Fri Mar 28 2025, by Tyler Gardner

The Only Retirement Video You Will Ever Need

Here’s the only retirement video you will ever need. You’re going to want a pen and paper for this one. If you want to explore this in more depth, tune into my new podcast, Your Money Guide on the Side, by clicking the link in my bio.

1. Assess Monthly Expenses

Start by figuring out exactly how much money you spend in one month when you are spending a lot of money. Now write that down.

2. Estimate Minimal Spending Month

Now do the same for a month where you don’t spend a ton of money. Write that down too.

3. Average Your Expenses

Average the two amounts together. You with me?

4. Project Annual Expenses

Now multiply that average by 12 to get a projected annual expense.

5. Plan for a Margin of Error

Multiply that number by 1.5 because in retirement we want to plan for a margin of error.

6. Calculate Safe Principal

Now multiply that number by 20 to get a projected safe principal. This should allow you to draw down 5% of your assets per year in retirement without running out of money.

7. List Your Investable Assets

Write down all of the investable assets you have as of today.

8. Determine Needed Investments

Now subtract your investable assets from the safe principal figure in step six. This is where it gets tricky, as it will help you see what you need to earn between now and when you retire.

9. Calculate Time Until Retirement

Now subtract your current age from when you want to retire.

10. Find Annual Earnings Needed

Now divide the answer from step eight by the answer from step nine. This will show how much more you need to make and invest between now and when you retire.

11. Social Security Consideration

Nope, I didn’t take Social Security into account. Neither should you. We always want to create as big of a margin of error as possible. Then Social Security will just be your cherry on top.

12. Inflation Consideration

Yes, I did take inflation into account by saying 5%.

If any of this is helpful, tune into my new podcast, as it’s where I spend most of my time anyway!

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