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Show Notes

Many rules of thumb are great to follow to help with your finances, but some rules are outdated and don’t align with current economic conditions. We’ll explain which rules to follow and which to leave behind.

Let’s share one of the specific rules we’ll break down on the show today.

Don’t follow: 75% rule

This rule says once you retire, you’ll need about 75% of the income you had while working. We’re all different and have different needs and activities.

Some of our clients budget $10,000 a year or more for traveling. Others don’t spend that much. Some clients want to renovate their house, but it’s important to take into account whether the home is paid off.

This general rule of 75% doesn’t work for everyone. You need to understand what your expenses are. Retirement is all about cash flow.

Here are some other important things you’ll learn on this episode:

• How to handle retirement taxes (13:00)
• Why you need to understand your retirement income (16:24)
• Why you need to do an income and tax projection (19:30)
• Why the rule of 100 is outdated (22:22)

Listen to more of our conversation in the podcast or use the timestamps to jump to a specific section.

[4:01] – 75% rule

[6:33] – Retirement spending smile

[8:50] – Understand expenses

[13:00] – Taxes

[16:24] – Retirement income

[19:30] – Income and tax projection

[22:22] – Rule of 100

Thanks for checking out this episode. We’ll talk to you again soon.

“There are some great rules out there that will lead you down the path of financial success.”

-Scott Sierens