Comments on: How to Predict the Future Part 2 http://www.moneysmartsblog.com/how-to-predict-the-future-part-2/ Investing and Personal Finance Sat, 31 Jul 2010 15:45:55 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Four Pillars › How to Predict the Future Part 1 http://www.moneysmartsblog.com/how-to-predict-the-future-part-2/comment-page-1/#comment-773 Four Pillars › How to Predict the Future Part 1 Mon, 03 Sep 2007 03:00:50 +0000 http://www.moneysmartsblog.com/how-to-predict-the-future-part-2/#comment-773 [...] How to Predict the Future Part II [...] [...] How to Predict the Future Part II [...]

]]> By: FourPillars http://www.moneysmartsblog.com/how-to-predict-the-future-part-2/comment-page-1/#comment-336 FourPillars Sun, 22 Jul 2007 00:40:48 +0000 http://www.moneysmartsblog.com/how-to-predict-the-future-part-2/#comment-336 <p>WB - you'll notice that I didn't even mention Bob's income. I'll agree that most people need less than 60-80% but it's really up to the individual. I'm more a fan of a cost-based analysis to determine how much you should save rather than a simple percentage of pre-retirement income.</p> <p>I'll be posting more detailed analysis on the this topic - one of the things I've been thinking about is that the 4% rule may not be that relevant to most Canadians who retire early since we will have government income kicking in at age 60-65.</p> <p>Mike</p> WB – you’ll notice that I didn’t even mention Bob’s income. I’ll agree that most people need less than 60-80% but it’s really up to the individual. I’m more a fan of a cost-based analysis to determine how much you should save rather than a simple percentage of pre-retirement income.

I’ll be posting more detailed analysis on the this topic – one of the things I’ve been thinking about is that the 4% rule may not be that relevant to most Canadians who retire early since we will have government income kicking in at age 60-65.

Mike

]]> By: WB http://www.moneysmartsblog.com/how-to-predict-the-future-part-2/comment-page-1/#comment-331 WB Thu, 19 Jul 2007 07:39:18 +0000 http://www.moneysmartsblog.com/how-to-predict-the-future-part-2/#comment-331 A recent actuarial study concluded that the 60 to 80% of pre-retirement income often recommended by financial advisers in order to maintain a similar standard of living, is in error, and that 50% is more like it. Bob may well find that only $40,000 is required, and that the amount of capital required to achieve it is less. For what it is worth, I tend to use 5% payout, as opposed to 4% A recent actuarial study concluded that the 60 to 80% of pre-retirement income often recommended by financial advisers in order to maintain a similar standard of living, is in error, and that 50% is more like it. Bob may well find that only $40,000 is required, and that the amount of capital required to achieve it is less.

For what it is worth, I tend to use 5% payout, as opposed to 4%

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