You Might Only Need 55% in Retirement - Fidelity’s 45% Portfolio Rule Explained

Comments · 315

• RE

  @RetiredCLS-lovestravel · 6 months ago

  We’ve been retired 16 years & 11 years respectively. We spend 100% or more of our pre retirement income because of travel and remodeling. We did plan for it all.

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• US

  @user-hd9ws3lr9h · 6 months ago

  This is what I've realized over the last few years of planning for my retirement that will be coming in 5 years when I am 62.  My thinking was like, if I am making let's say $115,000 now, that's what I am going to need in retirement. However, what I was forgetting was that my take home paycheck is like 39% of that (after healthcare, taxes, 401k contributions)  Since I survived off of 39% of my yearly salary, it's changed my planning drastically.

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• IR

  @IramisandGerry · 6 months ago

  I realized this 3 years ago and now mic dropping in 2.5 years.🎉🇵🇷

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• AU

  @autumneagle · 6 months ago

  As a single line item the largest part of my budget is retirement investments. The second largest is mortgage.<br>If you take those two away I&apos;ve suddenly got 55% of my budget back.

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• DE

  @denniss3980 · 6 months ago

  Take away mortgage, car payments, payroll taxes, and 401K, then I need less than 50% of my working income, and Social Security covers half of that so now my investments really only need to replace 25% of my working income. No wonder my investments are growing faster than I can spend them 😂

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• DD

  @ddavidson5 · 6 months ago

  My wife and I have been retired for 11+ years now and the 55% of working income is about right. &nbsp;Yes, if you are on the low end of the income scale you probably will need 80%, maybe even 100%, of your working income but for middle income people (and up) 55% isn&apos;t far off. First off you are no longer saving for retirement and that alone frees up a big chunk of cash. &nbsp;No more saving for retirement, the kids are out and gone, the house is paid off, &nbsp;plus you are probably in a lower tax bracket too. &nbsp;Our experience is that in retirement we have more money available to spend now even though we have about half the income we had when we were working.

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• JE

  @jerryandtom · 6 months ago

  Thank you for your hard work and dedication putting out consistent quality content , I am absolutely certain this is making big life changing actions for the better for a lot of us

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• TH

  @TheGrizz1717 · 6 months ago

  I&apos;m glad more financial advisors are starting to shift focus away from &quot;rules of thumb.&quot; While they are great goals for someone just starting out, as you say, &quot;the closer you get to retirement, the more your plan needs to be personalized.&quot;

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• RE

  @Retiring54 · 6 months ago

  Retirement spending is the only number that matters.<br><br>Your current income is not the starting point.

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• OZ

  @OZGFIVE · 6 months ago

  The more and more I take in this content on spending needs it feels the keys to successful spending are having a low floor of fixed expenses and willingness to be flexible to do more or less on the discretionary side based on the markets. &nbsp;The last and smaller rung being choosing tax allocation to optimize ACA credits and lower lifetime tax hits.<br><br>All in all it feels good that less is needed and I like that content is coming out to more custom tailor spending rules versus the blanket 4 or 5 percent

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• MI

  @michaelmatthews4727 · 6 months ago

  Why are we worrying about replacing a % of income. Do the work and track your spending. Know what you spend

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• BI

  @bigstick3513 · 6 months ago

  Thank you -Excellent information<br>Super helpful

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