I am not expert on retirement planning and have many years to go before readers of this blog would need to worry about "withdrawal" rate. However it's never too early to plan. Thanks to one of the friend, I came across few articles on "withdrawal" rate and how much one needs to save to maintain decent living standards. Here are few assumptions to make: "Safe or risk-free" rate of return is about 3% (equivalent of coupon on 30 year US treasury) Protect "principal" as many years as possible Mortgage is paid off College expenses are over (and kids have settled down) No major health care expenses With these assumptions, one could assume that $100K per year income is sufficient to live in areas like Bay Area (which is one of the costliest but most cosmopolitan areas to live in USA). Assuming about $25K in social security benefits, one would need to create $75K per year in additional income from retirement savings. That would mean one ...
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