Levanti Wealth

Could one spouse stop working and your household still maintain its lifestyle?

One common guideline used in retirement planning is the 4% Rule.

The concept is simple:

• Take your annual spending needs
• Divide by 4% (0.04)
• The result is an estimate of the investable assets needed to support that spending

Examples (excluding your primary residence):

🏠 $30,000 annual spending ($2,500/mo) → $750,000 invested

🚗 $40,000 annual spending ($3,333/mo) → $1,000,000 invested

🚘 $60,000 annual spending ($5,000/mo) → $1,500,000 invested

🏖️ $80,000 annual spending ($6,667/mo) → $2,000,000 invested

✈️ $100,000 annual spending ($8,333/mo) → $2,500,000 invested

🌎 $120,000 annual spending ($10,000/mo) → $3,000,000 invested

🏛️ $150,000 annual spending ($12,500/mo) → $3,750,000 invested

🌴 $200,000 annual spending ($16,667/mo) → $5,000,000 invested

🚁 $250,000 annual spending ($20,833/mo) → $6,250,000 invested

Important: The 4% Rule is a general planning guideline, not a guarantee. Factors such as taxes, investment returns, inflation, pensions, Social Security, healthcare costs, and individual circumstances can impact the amount needed.

The right number isn't determined by your age. It's determined by the lifestyle you want your assets to support.