Retirement Formula - Rule of 25 Warnings

Retirement formula of 25 times earnings has several flaws. Three are outlined in this video.

Problems with Rule of 25 for Retirement Formula:
1. The rule of 24 is inverted 4 percent rule for retirement planning.
The 4% rule for retirement savings is based on 30 years in retirement and doesn't apply to those taking early retirement.
2. The retirement formula of 25 doesn't factor inflation into retirement planning.
3. Investment returns during retirement will be different than the results during the study period done for retirement planning rules of 24 and 4 percent.

CONTACT: Camille @ Retire Certain . com

ABOUT: Retire Certain helps proactive investors use their assets to fund their desired lifestyle before and during retirement. The information I share is about what I learned from:
1. Investing in my 20's, 30's, 40's, 50's and now investing in my 60's both alone and with financial advisors I have hired over the years (I now am a self directed investor) in stocks, bonds, alternative assets, and real estate.

2. Our accidental alternative retirement plan with income generating assets and wealth building strategies later in life after "stumbling into early retirement" in our 50's a decade before it was vogue.

Nothing in this video is meant to be taken as personal financial advice.

This channel is owned and operated by Brigadoon Investments, LLC.

Camille Gaines, AFC
Investment coach
Accredited Financial Counselor

[srikanth]

hi ma'am very good information thanks

[davidwelty]

If only most Americans had 25x their living expenses at retirement. Unfortunately most Americans won’t have this amount and will have far less. I would worry less about the 25x people and worry far more about the 90% of people who have far less than this.

[OnmywaytoFI]

Does the 4% rule not count for inflation?

[nvention]

maybe safer to be around 35x for retiring in our mid 60s i guess which is hard to fathom . Even the 25x probably bodes badly for the average US worker .