Planning for early stress free financially independent retirement

Smartly leading happy retired life even for those without pension facility is not a dream but with proper financial planning if started at an early age this is possible for everyone in todays era of attractive financial investments options

Planning for early retirement

Early retirement is getting extremely common amongst young generations. It offers quality life and opportunity to enjoy life to fullest without worrying about work commitments and at the same time also maintaining financial freedom

The golden rule of 4 percent

know about the valuable rule of four percent for leading stress free financially secure and independent post retirement life in old age. Continue reading further for more insights into the rule of 4 percent

Early retirement means more time for living a quality life

Every one dreams of reaching a stage where doing job or work is not out of compulsion for sustaining one's expenses rather to work becomes a secondary activity for keeping one self busy and active.

How to make the calculations work for early retirement

How can this be achieved in today world where high inflation and costly credit facilities are creating a big hole in everyone's pocket.

This stage is dreamt by everyone where on feels self-actualized in terms of stable earnings which can meet sundry expenses of post retirement life and also sustain ones life through fast approaching old age where one is dependent on other professional helps for day t day chores which leads to huge financial drainage.

Yes this is possible If planned and strategized with the aid of one of the valuable rule of four percent for post retirement income.

What exactly is the rule of four percent?

Yes it is considered as a thumb rule for calculating the retirement funds that can be safely withdrawn in a particular financial period without causing any dent on the balance sheet.

It is believed and observed that if this rule of four percent is wisely applied one can lead a tension free nd stress free financially stable life for the coming three decades or approximately next thirty years.

This rule offers a kind of insurance towards living a financially independent life without worrying for any kind of funds crunch or liquidity crisis.

know the rule of 4 percent

This rule is simple in prescribing that one must do sum total of all the Investment that one possesses and the without any kind of worry withdraw a sum total of four percent in the first year of the pooled up aggregate of savings and investments kitty.

For the subsequent years the retiree can leave aside the dollar amount adjusted for Inflation each period.

The credit of formulating this valuable rule goes to William P. Bengen therefore it is also referred as Bengen's rule in the Philosophy of Finance.

Rule of 4 percent is extremely useful for everyone planning a smooth stress free retired life

This four percent rule helps in making a very important and critical financial decision of life time by the common people who are not comfortable with the intricate dynamics of Financial Management, Applied Mathematics and Economics of financial holdings.

With careful application of this thumb rule one can also project the approximate value of funds that they may need for sustaining their post retirement life comfortably and confidently.

Rule of 4 percent has gained popularity over time

This rule initially caught attention of the finance professionals and slowly as they started advising about the benefits of this four percent rule in retirement planning to laymen this rule gained popularity.

How the rule of 4 percent is applied

In order to apply this rule accurately and precisely one needs to first work out what kind of life one is planning to live post retirement. In order to zero in on this one must start by counting the major expense which are like part and parcel of ones existence and cannot be parted with.

Some of the heads can be Health expenses, Groceries budgeted annually, Travel expenses etc.

Rule of 4 % is game changer in retirement planning

This 4% rule is a game changer for retirement planning and can provide a kind of robust insurance cover against any kind of fund crunch if panned and implemented religiously.