The Framework
Are You Ready to Retire?
Knowing when you CAN retire is math. Knowing when you SHOULD retire is strategy. Here's the framework I used to know when I was truly ready.
01
The 4% Rule & Spending Math
Multiply your annual spending by 25. That's your target number. The Trinity Study showed a 4% withdrawal rate historically sustained portfolios for 30+ years.
Key Questions:
- Calculate your true annual spending (not guesses)
- Add buffer for healthcare and unexpected costs
- Multiply by 25 for your FIRE number
02
Cash Flow vs Portfolio Drawdown
My approach: real estate cash flow covers 100% of living expenses. Stocks never get touched, just compound. This eliminates sequence-of-returns risk.
Key Questions:
- Can your rental income cover all expenses?
- What's your backup if rents drop?
- How long until you need to touch investments?
03
Safety Nets
Even the best plans need buffers. Bonds, cash reserves, and flexibility are your insurance against the unexpected.
Key Questions:
- 1-2 years of expenses in cash or bonds
- Ability to reduce spending 20% if needed
- Healthcare coverage planned and budgeted
04
Retire TO Something
The money part is just math. The harder question: what will you DO? Purpose, routines, and meaning matter more than most people realize.
Key Questions:
- What activities give you energy and purpose?
- How will you structure your days?
- What goals will replace career achievements?