Retiring at a young age requires a more cautious approach to withdrawal rates. Traditional guidelines, such as the 4% rule, aren't suitable for those expecting to retire for 50 years or longer.
For those planning to retire early, I advise aiming for a 3% withdrawal rate or less. This strategy helps account for longevity and potential market fluctuations throughout retirement.
Inflation significantly impacts living expenses over a long retirement. Thus, it's important to adjust your withdrawal strategy over time to ensure funds last amid rising costs.
When considering early retirement, planning for unexpected expenses and incorporating inflation into your financial strategy can prevent premature depletion of savings.
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