How to Calculate Exactly How Much You Need for Retirement

Рет қаралды 10,088

Күн бұрын

Want to retire one day? You need to know your financial independence (FI) number! Here's exactly how to calculate it.
🎯 If you to nail down your exact retirement goal using your net worth, spending, and investments, check out the Money with Katie Wealth Planner, which includes a built-in Financial Independence tracker: shop.morningbrew.com/products...
This show is a production of Morning Brew and is produced by Henah Velez and me, Katie Gatti Tassin. Devin Emery is our Chief Content Officer. Our video editors are Christie Muldoon, Sebastian Vega, Greg Jacob, and Nichole Friedman. Additional fact-checking comes from Kate Brandt.
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00:00 Intro
00:36 Financial independence factors
01:45 The 4% rule & why asset allocation matters
02:52 Calculating financial independence
04:17 Factors to note
05:29 Determining your save rate
07:07 Outro

Пікірлер: 49

@ld5714 11 ай бұрын

Katie, I found you through a vid of you having Chris Pederson (Paul Merriman) on your show for a discussion. I've been following Paul and Chris' for sometime now. I was very impressed with your show and have watched a number of your segments now and appreciate your approach and like the content. I've been retired for 12+ years and just turned 74 so am not your typical listener. As a life long learner, I found your content very informative and educational for me to better understand the issues and thoughts toward the subject that people of your age and younger are dealing with. I appreciate very much what you have to offer as it helps me understand your views and thoughts better, which better equip me to understand and relate to my kids and grandkids and be able to help them more in this area with that additional understanding overlay on top of my knowledge and experience. I've subscribed and look forward hearing more from you. Have a good week Katie.

@itsmadi 11 ай бұрын

Hi! Big fan, just wanted to suggest longer videos. I think it would be more fun to listen to.

@janaynmelis5250 11 ай бұрын

Just found out that you have a KZfaq channel. I'm a big fan of your podcast. ❤

@MoneywithKatie 11 ай бұрын

😭Thank you for listening and tuning in! That means so much to me. :')

@greggarner9515 10 ай бұрын

Hi, Super important to point out explicitly that your "spend" has to include the Federal and State income/Capital Gains taxes you will owe. So you really can't be spending the $6,000/mo in your example. You need to compute your tax rate and divide your desired budget by 1 minus this tax percentage. So if you really want to spend $72,000/year, you need to take out of your investments $90,000, assuming a 20% effective tax rate. Multiply $90,000 by 25-33x to get your FI number.

@KatherineKuehn-Bao 11 ай бұрын

Great overview of FI / Timeline 👍 Still trying to figure out the relationship with your content and Morning Brew 😅

@MoneywithKatie 11 ай бұрын

Thank you Katherine! I'm a creator brand within Morning Brew :)

@KatherineKuehn-Bao 11 ай бұрын

@@MoneywithKatie Nice! After Binging 3+ of your podcast episodes I figured it out😅 That must be why your production is on point, it's a team effort ey?

@amyamira99 11 ай бұрын

Love your baby looking at you adoringly while you work...

@MoneywithKatie 11 ай бұрын

😻

@timmay04 11 ай бұрын

You should read Die with Zero by Bill Perkins and do topic on that. Love to hear your thoughts.

@MoneywithKatie 11 ай бұрын

I've read it before! I talk about it a bit in this podcast episode: podcast.moneywithkatie.com/rich-girl-roundup-the-10-best-money-tips-for-your-20s-beyond/.

@TomNook. 11 ай бұрын

Awww kitty

@artaylor84 11 ай бұрын

🙏

@bobackerman54 7 ай бұрын

According to your projection i will never be able to retire ... do not understand how you can come up if / when i can retire without considering pension and social security information ...

@yashc7132 10 ай бұрын

I’m never sure how to participate in this conversation since I will use pension money instead of a traditional retirement portfolio

@glennt222 10 ай бұрын

Hey, I will have a pension and it is a bit confusing to figure out the worth of the annual pension checks as compared to having money invested in a 401K.

@kellyconrad4688 7 ай бұрын

Is this assuming the 35-40% save rate is contributed to only one account?

@MoneywithKatie 7 ай бұрын

Nope, it can be spread across investment accounts :)

@christinabonds675 7 ай бұрын

First off I don't care for rich people. And most people aren't money hungry or greedy I work hard for my money and don't have time to throw it around.

@rustycolon9368 11 ай бұрын

Want to know something really scary? 50% of all U.S. citizens have less than 500$ right now in their savings accounts. 18% have literally nothing at all. Interesting to see what these numbers look like in 25 years. TBH even with all the math and personal financial advice in the world, it feels like any reasonably comfortable retirement is going to become a pipe dream for the vast majority of working people. Also... healthcare. If you're in the U.S. and get cancer, that could easily totally destroy your entire retirement savings no?