How Much Do You Really Need to Retire?

Mastering Retirement: Understanding the 4% Rule

In this episode of the Financial Foundry podcast, host Dan Mueller dives into retirement planning, particularly focusing on how long your savings can sustain you using the 4% rule. Mueller challenges listeners to calculate their true spending and uses a simple formula to determine the target nest egg needed for retirement. The episode covers essential points like adjusting spending habits, understanding risks such as sequence of return and longevity, and the importance of diversification and discipline. Mueller also tackles common questions about taxes, early retirement, and social security, providing practical tips to help listeners refine their retirement plans.

00:00 Introduction to Retirement Planning

01:05 Calculating Your Retirement Needs

03:11 Understanding the 4% Rule

04:01 Guardrails and Risks of the 4% Rule

06:05 Mindset Shifts for Financial Independence

09:40 Practical Tips for Retirement Planning

11:13 Common Questions and Final Thoughts