Retirement & Planning
Retirement math, withdrawal rates, unlocking assets, and life financial planning.
How Much Do You Need to Retire? 15× Annual Spending, Not 50×
Many think you need 50× annual spending (2% withdrawal) to retire — you don't. You can consider retiring at 15× annual spending; liquid stock beyond ~15 years of spending barely matters to your life — it's just inheritance. At NT$96k/month, NT$14.4M is enough.
Three Lines of Defense: What If the Market Crashes the Year You Retire?
In the CLEC system you sell nothing on the day you retire. Living expenses come from three lines of defense: a 3-year cash buffer, then pledged loans (≤20%) in years 3–10, then you wait for the market to recover. Even the longest underwater period was ~15 years.
US Retirement Accounts: Only Fund Roth — Never Touch Pre-Tax IRA / 401K
Contribution priority for US workers: fill the Roth first, then a regular brokerage account, and never put money into a Pre-Tax (Traditional) IRA/401K. James calls Pre-Tax an 'asset poison pill' — RMDs force withdrawals into your top bracket, a later Roth conversion is still taxed high, and worst of all it's double-taxed as an inheritance (estate tax plus the heir's income tax).
Rental Property vs. Index Funds: Whose Retirement Cash Flow Is Easier?
A rental property becomes a burden in old age — property tax, upkeep, and capital-gains tax on sale all eat the cash flow. Index funds aren't taxed until sold, can be borrowed against, and pass on whole.
Five Myths of Retirement Planning: The Traps That Sank Even an Investment Banker
James lists the five most common retirement-planning traps: too many bonds, money locked in a primary home, relying on rental income, underestimating inflation, and worshipping the advisor's '4% rule.' Even an investment banker who retired at 34 with $3M fell into the first one. This is the flip side of 'How much do you need to retire' — avoid the traps first, then talk numbers.