Retirement Planning With The 'Tism -Part 1
How Much To Save For Retirement Part 1
What is your plan for retirement?
Do you have an annual savings goal? A target $##? A withdrawal plan in retirement?
How do you plan to deal with market volatility or inflation?
There are lots of questions and even more answers. We have all heard some heuristics about wealth and retirement:
Save 10% , 20% , more % of your salary
60/40 portfolio allocation between Equity/Bonds
(100-Age)% Allocation to Bonds
Target Date Funds aka-paying someone to do (100-Age)% allocation to bonds
4% Drawn Down Rule in Retirement
Delay Social Security to Maximize Benefit
These ‘rules of thumb’ are repeated ad nauseum in the personal finance community but rarely are they every explained or shown.
For Part 1 of this series, we are going to start at the foundation. Let’s dig into 2 different rules for how much to save for Retirement.