Daily Productive Sharing 759 - Spend More in Retirement

Daily Productive Sharing 759 - Spend More in Retirement
Photo by NOAA / Unsplash

One helpful tip per day:)

In the FIRE (Financial Independence, Retire Early) community, the 4% rule - which states that you can retire when you have saved enough to cover 25 years of living expenses - is widely known. After conducting some experiments, Nick Maggiulli pointed out that the 4% living expenses can be relaxed to 5.5%:

  1. If a portion of your expenses is non-essential, you can spend that portion in the following year when the stock market is performing well. Conversely, in a following year of bad stock market, you need to cut back on these expenses.
  2. This approach requires you to make trade-offs between spending money and saving money.
  3. From another perspective, if you are willing to cut the expense during your retirement, you can actually save enough to retire in less time, without having to work until you have saved 25 years of living expenses.
  4. Overall, this strategy requires you to have a clearer understanding of your expenses and be willing to make flexible adjustments.

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在 FIRE (financial independence, and retire early) 届,4%的定律 -- 即当你存够了25年的生活开销,即可退休 -- 几乎是人人皆知的道理。 Nick Maggiulli 跑了一些实验之后指出,4%的生活开销可以放宽到5.5%:

  1. 如果你的开销中有一部分是非必要的生活开销,那么在股市行情不错的后面一年,你可以花掉这些非必要开销;同理,在股市行情不好的后面一年,你需要压缩这部分开支;
  2. 这样做其实需要你做出取舍,也就是花钱和攒钱之间的取舍;
  3. 从另一个角度而言,如果你可以压缩退休后的开销,其实你可以花更少的时间就存到可以退休的资金,而不必一直工作到存够25年的生活开销。
  4. 总体而言,这一策略需要你对自己的开销有更清醒的认识,并且愿意做出灵活调整。

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