Personal Finance Canada

1184 readers

1 users here now

Come and discuss anything related to personal finance, directly or indirectly, with other Canadians!

founded 1 year ago

MODERATORS

[email protected]

Retirement saving at 35 (lemmy.world)

submitted 1 year ago by [email protected] to c/[email protected]

13 comments fedilink hide all child comments

I'm in a place where I've spent the last 10-12 years saving like a chipmunk before an ice age. I've been fortunate and have a decent chunk saved up. I've got another 15-20 years of work ahead of me but want to find a bit more balance between saving and living during that time.

How does one forecast retirement targets vs current value? In other words, how can you calculate when it's ok to decrease retirement savings without compromising too much?

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 1 points 1 year ago

I believe the original study (Trinity Study) that determined the 4% used a 30 year time horizon. One would have to adjust to their own risk profile and assumptions.

I mentioned ERN's SWR series because of that. He simulates longer time horizons and I believe finds 3.5% is a more conservative number, but everything will vary by individual.