Use This Income Formula To Know How Much You Can Spend In Retirement

Yes, building a huge retirement nest egg is a great thing. I highly recommend it. But that’s not the only road to a happy, secure retirement. Another approach to retirement planning is my Fill the Gap (FTG) strategy, in which you create a financial formula that fits your individual retirement needs.
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[@robertnicholson771]

This is a sound principle. Whatever the gap, each person has to decide if the need is more money or less spending. I followed it and learned I could retire now instead of 5 years from now. Thanks for clear advice.

[@4656superman]

Thanks for all your common sense useful information

[@Laborkei]

To me it's simple. How much are your expenses per month, then you need to have greater than that in Income for inflation, emergency fund, health care, and taxes. RMD could be a killer in Tax Liability.

[@inquirer1016]

Unfortunately, most people, especially seniors, can't use this formula as they don't have pensions, adequate savings or investment. Even the younger folks will have a difficult time following this formula given the current situation with the economy and job market. It is a good formula though.

[@Nick-sg8xo]

Invest in a whiteboard

[@AlumniQuad]

Invest in rehearsing beforehand so that an abrupt transition from monthly to annual figures (4:40) isn't necessary.

[@jaywali249]

Thank you Sir. My simplified take on it is you basically need $500K in retirement savings by the time you're 50 years old.

[@nathanielcarreon5634]

Hyperinflation will ruin everything you saved and worked hard for.

[@kroychoudhury]

Bro, where's inflation, healthcare, lifestyle creep?

[@TR4zest]

4% draw down of the 750,000 allows inflation adjustment as it is a conservative draw down. The social security benefits are adjusted for inflation annually. Healthcare has to be within what you can spend, and lifestyle creep on a fixed income? More fool you.

[@elpatria2184]

Just because you don’t have a mortgage doesn’t mean you don’t pay anything for housing. These analysts always leave out: HOA, real estate tax and hazard insurance. All still significant housing cost at retirement

[@mariofiallos6880]

I agree with you.

[@mmabagain]

Well, a mortgage plus all those costs you mention = $$$$. Subtract the mortgage and it will = much less $$.

[@TR4zest]

So a good reason to move to non-HOA property, lower real estate tax, and hazard insurance? Is that different from home insurance? Not working to minimize those costs in retirement is poor planning.

[@CalmerThanYouAre1]

Having zero debt is one of the pillars of successful retirement. Housing costs will never go away because thieving governments will ensure you never truly own anything through increasing taxation. However, you can minimize the theft by choosing to live in a low-cost home and by moving to a lower-tax area such as FL or TN.
Also, by owning a home free and clear, the only things going up with inflation are taxed and insurance. With rent, the entire amount goes up with inflation. Over a 30-year retirement, that’s a substantial savings.

[@donniemoder1466]

Your beginning formula does not make sense. It truly is not a balanced formula. What bs! The 2nd formula is also not a formula. Also, at 4:44 the video has a gap, a continuity problem. What is going on, bro? You are also forgetting another variable, you are allowed to take from your nest egg or principle savings as you get older, you can't take it with you when you go.