Recalculate your retirement

Sean BowerAs people, we all want a set of guidelines to follow for something that can be as difficult as planning for retirement. We want to know how much to save, exactly how far away retirement is, precisely how much money we can take out of our savings as retirement progresses, etc.

Well, there are 2 common “rules” of retirement that have become popular, in large part, because they are simple.

Those 2 rules are flawed.

So, what are these 2 broken rules, why are they broken, and what does it mean for your retirement?

If you’ve done any homework on retirement planning, you’ve likely heard of the Mulitply by 25 rule and the 4% rule. If not, I’ll quickly explain both…

The Multiply by 25 rule states that when you’re looking for your retirement nest egg number, simply start with the amount you want to take out in each year of retirement and multiply it by 25.

So, if you want to take out $60,000 each year in retirement, by multiplying that by 25, you will need to save up $1.5 million ($60,000 x 25 = $1,500,000).

The 4% rule states that you should take out 4% of your retirement savings every year, adjusting for inflation annually.

So if you had saved $1 million as you enter retirement, you should take out $40,000 (4%) the first year, and then adjust for inflation every year after that.

Both of these rules are flawed in their own ways, and luckily there’s a much better alternative to both that I’ll get to in a few moments.

Now, without bogging things down too much with tons of numbers and percentages, the Multiply by 25 rule basically comes down to a small return for your annual return (around 4%) based on long-term stock returns versus negative factors like inflation and value of the dollar.

And the 4% rule was originally created during a time of very low inflation and high interest rates, along with a much lower life expectancy, relatively speaking.

But beyond those flaws and even if we say those 2 rules work perfectly, what if you could drastically change the way retirement worked for you in a positive manner, no matter which way you come at retirement from?

For the Multiply by 25 rule, throw out the 4% annual return and replace it with 30%. What happens now?

For the 4% rule, adjust the number you could take out if you accounted for an annual return of 30%. Doesn’t that sound better?

Proven by over 30 years of back testing, there’s a very real secret would give you an annual return of over 30% by investing in just 1 security. That’s it, plain and simple.

That secret is included in Scripture Secrets, and it could make YOU recalculate retirement in a great way.

Go to the Retirement Calculator page on The Midas Legacy and see how changing your annual return to 30% could bring your retirement years closer, and check your email for an invitation to get Scripture Secrets now.

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