Do Retirement Rules of Thumb Actually Work? Explore 4 Simple Planning Rules

Rules of thumb can help answer retirement related questions, such as:
How much can I spend each year?
How much will I need to retire?
How should I invest my savings?
How much spending should I budget for?
You should know about these-but not always rely on them.
🌞 Subscribe to this channel (it's free): / @approachfinancial
Get free retirement planning resources: approachfp.com/2-downloads/
🔑 9 Keys to Retirement Planning
🐢 6 Safest Investments
While those rules of thumb can potentially simplify complicated topics, they can oversimplify things, potentially leading you astray. So, you might learn about some concepts or get some decent ideas, but it’s often wise to take a closer look. Ultimately, it’s critical to do detailed planning that’s specific to your situation for better results.
We’ll look at some of the most popular rules of thumb here and highlight their advantages and disadvantages. With that information, you should have a better idea of what to expect in retirement.
In particular, we look at the 4% “Rule,” the Rule of 72, The Rule of 100, and replacement ratios for retirement planning.
Once you understand what’s behind these rules of thumb, you may have a better idea of why they exist (the good) and where they could fall short (the not-so-good).
Resources:
Future value calculator: www.dinkytown.net/java/future...
Rising equity glide path: www.google.com/url?q=...
Spending reality for retirees: • Retirement Spending: T...
“Safe” withdrawal rates: • Updated Retirement Wit...
Read the article: www.approachfp.com/retirement...
Learn about working with me at approachfp.com/
✔️ Flat-fee and hourly advice options
✔️ One-time projects available
✔️ Investment advice (optional)
CHAPTERS
00:00 Retirement Rules of Thumb Can Help (But Only to a Point)
00:39 The 4% Rule - How Much Can You Withdraw?
07:50 Rule of 100 - How Much Risk?
11:36 Rule of 72 - How Long it Takes to Double
13:52 Replacement Ratio - How Much Will You Spend?
Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.
IMPORTANT:
Even with careful planning, you can run out of money and/or lose money investing. It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.

[@alphamale2363]

I love rules of thumb so I enjoyed this. Thanks.

[@bruced.370]

Many thanks.👍

[@davidfolts5893]

Thank you for the excellent content, Justin!🎯

[@blackbeardpapa9547]

awesome video sire !

[@terryB4713]

Thankyou excellent information

[@AlanvFan]

I really like your Video, but if there’s one thing I could request from you is that I wish you could go slower. Thanks!

[@ApproachFinancial]

Thank you for watching and for chiming in!

[@brianadams6204]

At what point should you have a CFP?

[@ApproachFinancial]

That's a great question, and I should acknowledge that I am biased. Not surprisingly, I think it's often a good idea to get help.
I would think hiring somebody is appropriate in some of the following situations: When you want outside perspective or a "second set of eyes," when you want help getting things done, when you're having a hard time solving a question or problem, or when you simply want somebody else to figure it all out for you.
Most people can figure (most of) this stuff out eventually. But the question is how much time and energy they want to put into it-and what the alternatives are. If you can get good help for a reasonable price, you need to evaluate all of the alternatives (what else you'd do with the money or what else you'd do with the time and energy, for example).