Forget This “25X” Retirement Rule. Grab This 9.6%-Paying Fund Instead

One of the worst investing mistakes you can make is blindly sticking to “rules of thumb” given out by so-called “experts.” That goes double when you use these overly broad guidelines for the most important decision you can make: planning for your financial future. Consider a recent article by Bankrate telling retirees to follow the “rule of 25,” which is as simple as it is deceptive. This piece tells us that you “should have 25 times the annual amount you plan to spend in retirement saved before you leave the workforce.” That’s a lot of money! Take a look at the table below to match up how much you plan to spend in retirement (to make things easier, we’ll set inflation aside and use today’s dollars) with how much you’d need to save.… Read more