How Much Money Do You Actually Need to Retire?

Most people avoid thinking about retirement because the number feels impossible to calculate. The 4% Rule and 25x Rule fix that - they give you a concrete target based on how you actually want to live.

The 4% Rule: How Much You Can Withdraw Each Year

The 4% Rule says you can safely pull 4% of your portfolio annually without running out of money.

Example: If you've got $1,500,000 invested, you can withdraw $60,000/year.

Why it works:
The stock market averages 10% returns long-term.

By only withdrawing 4%, your portfolio keeps growing even after inflation and market downturns.

This assumes you're invested in index funds or a diversified portfolio - not cash sitting in a savings account getting destroyed by inflation.

The 25x Rule: How Much You Need Saved

Flip the 4% Rule to figure out your target number: multiply your annual expenses by 25.

Example:
Want $60,000/year to live on? You need $1,500,000 saved.

($60,000 × 25 = $1,500,000)

Now you've got a real number to aim for instead of
guessing if "a million dollars is enough."

Things to Know:

• Planning to retire early? Many early retirees use 3.5% instead of 4% to be safer.

• Your expenses will change over time - revisit your number every few years.

• This only works if you're actually invested in the market, not keeping everything in cash.

You Don't Need to Be Rich - You Need a System

The 4% Rule and 25x Rule give you the target. But hitting that target requires a system: how much to invest, which accounts to use, how to stay consistent when life gets busy.

Most people understand the math but never build the plan.

That's what Money Mastery fixes. It's the complete investing system that shows you exactly how to build toward your number - account setup, contribution strategy, tax optimization, the whole thing.

Over 2,700 students use it to automate their wealth building instead of guessing their way through.

If you're ready to stop researching and start building, check out Money Mastery here.