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WATCH THIS to retire COMFORTABLY! | How much money do we need? | Retirement in 40s? #rahuljain
2 money rules you need to know to retire comfortably.:
1 – Rule of 25x
This means that if your annual expense is 10 lacs, you need 25 times of 10 lacs, that is 2.5 crores at the time of retirement.
Now why 25x?
Because of rule number 2 that is rule of 4X
So as per rule of 4x, you can withdraw 4% from your retirement money for your spending for rest of your life.
Again taking the same example, if you build 2.5 Cr for your retirement, 4% of 2.5 crore is 10 lacs which is your annual expense.
And 4% of withdrawal will come from investing this 2.5 crore at 4% return which is a guaranteed return that you can get from FDs no matter what the FD rates are.
So by using 4% rule, you can still leave 2.5 crs for your kids.
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