Top 10 reasons for targeting more than 25 times annual spending

We started writing this blog post a while ago and were happy to see that right around the same time, other bloggers we like and follow published nice pieces around the topic of reasons to delay early retirement:

So, why might someone delay pulling the trigger for a while? You have saved diligently for ten years or more and finally reached the magic number: a Net Worth of 25 times your current spending. That’s an impressive amount, probably somewhere in the seven figures. Now what? Quit your job and enjoy retirement! Not so fast, here are the top 10 reasons for delaying retirement and accumulate more net worth than 25 times spending:Read More »


When bonds are riskier than stocks

Everybody knows that stocks are riskier than bonds. We agree with that, but like to present one chart to cast a little bit of doubt on that picture. Food for thought if you will, for the fact that in finance and personal finance (and most other places in life, for that matter) nothing is completely clear-cut all the time.Read More »

The 4% Rule is not as good as we hoped – Part 3: The small-sample problem in historical simulations

The rule to withdraw 4% of assets during retirement is considered “safe” because the Trinity Study has declared it so. The term “Trinity Study” has become something of a dogma, almost scripture, for the early retirement community. The 25 times annual consumption rule and the equivalent 4% withdrawal rate rule of thumb are referenced pretty much everywhere in the community. One almost gets the impression that what the Holy Trinity is to Christianity (you know; The Father, The Son and the Holy Spirit), the Trinity Study is to the Early Retirement community.

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