3 months, 4 weeks ago

How you can calculate your early retirement fund

Financial Independence, Retire Early has come to signify the aspirations of people who want to save and invest extreme amounts so that they can leave the workforce well before the traditional age of retirement. View Full Image An analysis using the Monte Carlo method involves running simulations on inflation and market return data over a 20-year period to project a safe withdrawal rate for the retirement corpus. Hence, such an analysis is aimed at finding the safe first-year withdrawal rate or the corpus cover multiple to the first year’s expenditure. Taking the same example forward, when the individual retires at 40, with 50 years of post-retirement, the cover multiple required is 65 times the expenses in the first year of retirement. The safe withdrawal methodology accounts for various combinations of inflation rate and returns based on past data to simulate what withdrawal rate or expense multiple would be 'safe' to start one’s retirement journey.

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Retirement Expenses Fire Inflation Period Rate Withdrawal Cover Corpus Saraogi Multiple Number
How should you calculate your retirement corpus? Here are 6 steps
2 years, 10 months ago

How should you calculate your retirement corpus? Here are 6 steps

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