Sat Sep 07 2024, by Tyler Gardner

Seven Steps to Retire Whenever You Want with Abundant Money

Here are the seven steps you need to follow to retire whenever you want with as much money as you want. And you might need a pen and paper for this one.

I'm Tyler. I'm a former financial advisor and portfolio manager. Now I make financial content for free so that you don't have to pay for it.

Step 1: Determine Your Annual Retirement Income

Determine exactly how much money you want to live on annually in retirement. Now write this number down.

Step 2: Check Social Security Benefits

Go to ssa.gov, create an account, check your projected annual social security benefits and subtract that number from what you just came up with in Step 1.

Step 3: Calculate Retirement Needs

Now multiply that number by 25 to come up with the exact amount you will need in retirement. Studies show that we would be relatively safe withdrawing 4% of our assets annually in retirement.

Step 4: Assess Current Assets

Now subtract your current retirement assets from that number. This is what you will need to make up on your own between now and retirement.

Step 5: Determine Retirement Age

Now determine at what age you want to retire.

Step 6: Calculate Time Frame

Subtract your current age from that number. This is how many years you have to make up the figure you came up with in Step 4.

Step 7: Use the Compound Interest Calculator

Finally, go to investor.gov, find the compound interest calculator, type in the years from Step 6, an annual return adjusted for inflation of 7%, and continue to play with monthly contributions until you come up with the figure from Step 4. This is what you will personally need to invest monthly and annually to retire whenever you want with whatever you want.

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