Becoming financially secure is about learning to be the CEO of your own savings

 

   When social security and company pensions were first set up most retirees lived less than ten years in retirement. Longer life spans for both men and women means living for 25- 35 years in retirement, no generation has ever done or tried this before. Living off of savings and investments for 25 years or longer is going to require skills not taught to most of us in school. Current school of thought says we can withdraw four percent of current assets and not outlive savings. We need to do some backwards math to see how much to accumulate for the income we need in retirement. Someone that would like fifty thousand annual income would need to calculate the following equation with x = savings;  x times 4%= $50,000 so x = $50k divided by 4% or $1.25 million. Learning the math behind retirement is just as important as savings itself. When we have a handle on how much we need to retire secure, it's easier to create a plan to accumulate those assets. The more we read about personal finance strategies the better prepared we're going  to be down the road. Finwiz.