How To Manage Wealth After Retirement Like an Expert?

Tips on Managing Wealth After Retirement

Tips for Managing Investment in Retirement

FAQs About Managing Wealth After Retirement

What is meant by the 7% rule of retirement? up-arrow

The 7% rule of retirement advocates that you can use 7% of your retirement corpus every year. This will not put your financial stability at stake or in other words, you will not face shortage of money by withdrawing 7% of your retirement savings. The logic behind this rule is that the value of your savings will keep on increasing at a decent rate to negate the chances of running out of money.

What is the risk of inflation on retirement wealth? up-arrow

The inflation risk of retirement tells that the wealth you accumulate loses its purchasing power due to inflation. Since the prices of items increase on a year-on-year basis, you will need to put in more money to buy them a few years later. To avoid this risk, you need to ensure that your retirement wealth grows at an interest rate higher than the inflation rate.

What is meant by the 25 times rule of retirement wealth? up-arrow

The 25 times rule of retirement is a rule of thumb regarding ideal savings for retirees. According to this rule, they should save at least 25 times their annual expenses before retirement.

What percentage of Income should I invest on a monthly basis to build a decent retirement wealth? up-arrow

You should ideally try to invest 15% of your total monthly income to build a decent retirement wealth. It is better if you start the retirement savings from the early phase of your career.