Retirement
Calculator
by Ramit Sethi
How close are you to having enough money in retirement? Tell us how much you want to have each year,how much you currently have, and we’ll tell you how much more you need to save.
How Much Most People Need for Retirement = $1.8 Million
If you have $1.8 million, you’ll be able to comfortably retire in most cases. Let me explain.
- That number isn’t random. It’s based on financial advisor Bill Bengen’s “4 percent rule,” which says that you can safely withdraw 4 percent of your portfolio every year of retirement—including increasing your withdrawals based on inflation—and not run out of money within 30 years.
- We use 30 years because you want to protect yourself from running out of money before you die. Some bozos claim you can safely withdraw 8 percent per year (and “easily” make 12 percent in the market), but 4 percent is much more realistic. I cover this in more depth in my book I Will Teach You to Be Rich.
- If you have $1.8 million in your portfolio, you can safely withdraw $72,000 per year—which, in this example, is exactly the current income you’re living on. You wanted to know the number, so there you go.
- If you have $1.8 million in your portfolio, you can safely withdraw $72,000 per year—which, in this example, is exactly the current income you’re living on. You wanted to know the number, so there you go.
Your monthly meeting guide is ready
- Go skydiving.
- Take an improv class.
- Plan a 2-week trip abroad.
- Make your next trip extraordinary: Book a cooking class, stay with a local family, visit a local school and donate, go to a place you’ve never been before.
- Take a class on a new craft (crocheting, origami, scrapbooking, etc.).
- Redecorate a room in your home.
- Start a vegetable garden.
- Carve out an hour a day for walking — a new route each day.
Welcome to
I Will Teach
You To Be Rich
Thanks for signing up, you’re all set!
i’m Ramit Sethi
- Netflix “How to Get Rich” Host
- New York Times Bestseller
- 20+ Years Personal Finance Expert
- Founder of "I Will Teach You to Be Rich"
- Stanford Graduate
Ramit Sethi’s early learnings
In 2004, studied tech & psychology at Stanford
Self-funded undergrad & grad school with a system to win 60+ scholarships.
Invested first check in stocks — lost half immediately.
Wake-up call to truly understand money.
Most money advice is outdated & irrelevant.
Financial success isn’t about restriction—it’s about mindset.
Master the psychology of money, and everything else follows.
So what is a Rich Life? You decide.
These simple — but effective — tenets are what
drive your new Rich Life.
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MASTERING MONEY & BUILDING A RICH LIFE
Welcome
- Netflix “How to Get Rich” Host
- New York Times Bestseller
- 20+ Years Personal Finance Expert
- Founder of "I Will Teach You to Be Rich"
- Stanford Graduate
One of the biggest myths about money is that if you rent, you’re a loser, and buying a house is the best investment. The propaganda around real estate can be extremely harmful and can lead you to buy for the wrong reasons.
Even worse, it can cause you to get a mortgage you can’t afford. But this doesn’t just happen because of societal pressure. It’s also because most people don’t know how to run the numbers, what they can afford, and how to save properly for a house.
Buying a house is one of the biggest purchases of your life. When done the right way, it can be extremely rewarding! So I want to walk you through how to do it. By the end of this guide, you’ll be able to answer all of these questions:
- Will I live here 10+ years
- Is my total housing cost lower than 28%?
- Have I saved 20% for a down payment?
- Am I ok if the value of my house goes down?
- Am I excited about buying?
Step 1: Be aware of the myths & propaganda
Buying a house is often not a carefully measured purchase. Instead, it’s a decision based on propaganda and myths.
The reasons we’re starting here is because myths around buying a house are so heavily seeped into our culture that almost everyone believes they’re true. This has caused so many people to buy a home when they’re not ready or when it’s not the right choice for them.
If you’re considering buying a house, the first thing to do is unlearn these myths.
MYTH: Renting a house means you’re just paying your landlord’s mortgage
Almost everyone thinks being a landlord works like this: a landlord owns a place that costs them about $1,000 a month, they add on 10% — and laugh all the way to the bank:
This is untrue.
Your landlord can only charge you what the market will bear. That means sometimes the rent you pay is more than their expenses, and many times, it’s not.
This myth has led to so many people rushing into buying a house because they think someone else is getting the better end of the stick.
MYTH: If you’re paying rent, you’re throwing money away
I posted these questions on Twitter. What do you notice?
Virtually everyone agreed that when I paid for dinner, it was worth it. But when I said I rented an apartment, suddenly many more people thought I “threw money away on rent.”
But when I pay rent, I have a roof over my head, a great view, and a home to lay my head.
When you pay rent, you’re paying for value. When you spend money at a restaurant, you’re paying for value. The same concept applies when you pay for essentially anything. It’s as simple as that. You’re not throwing money away if you rent.
People have lots of opinions on buying a house. They think what they’re spewing out is truth. It’s not. Don’t take everything you hear about buying a house at face value. Commit these myths to memory. You might hear them on Reddit, Instagram, from family members, from friends… and it’s easy to be convinced! Remember these myths and why they’re untrue, and you’ll be much more likely to make a choice that’s right for you.
Step 2: Figure out if buying a house is part of your Rich Life
Buying a house is often not a carefully measured purchase. Instead, it’s a decision based on propaganda and myths.
The reasons we’re starting here is because myths around buying a house are so heavily seeped into our culture that almost everyone believes they’re true. This has caused so many people to buy a home when they’re not ready or when it’s not the right choice for them.
If you’re considering buying a house, the first thing to do is unlearn these myths.
MYTH: Renting a house means you’re just paying your landlord’s mortgage
Almost everyone thinks being a landlord works like this: a landlord owns a place that costs them about $1,000 a month, they add on 10% — and laugh all the way to the bank:
This is untrue.
Your landlord can only charge you what the market will bear. That means sometimes the rent you pay is more than their expenses, and many times, it’s not.
This myth has led to so many people rushing into buying a house because they think someone else is getting the better end of the stick.
MYTH: If you’re paying rent, you’re throwing money away
I posted these questions on Twitter. What do you notice?
But when I pay rent, I have a roof over my head, a great view, and a home to lay my head.
When you pay rent, you’re paying for value. When you spend money at a restaurant, you’re paying for value. The same concept applies when you pay for essentially anything. It’s as simple as that. You’re not throwing money away if you rent.
Transform your spending habits and prioritize what you love
If you’re tired of budgeting your way through life and want to learn how to make your money work for you, this FREE simple spending plan will help you discover how to invest and save money each month.
When you signup, I’m also going to send you my newsletter full of my best money advice for free.
When was the last time…
That’s what a Rich Life feels like: Wow.
That could be picking up your kids every day from school, or buying a $1,000 cashmere sweater. It can be buying anything you want from Whole Foods without ever worrying about cost, or taking your family on an incredible Disney World vacation that they’ll never forget.
It’s up to you. Every Rich Life is unique.
And I want to help you achieve yours.
Introducing the How to Design Your Rich Life mini-course!
When you’re done, you’ll have a crisp, compelling vision of the life you want to live. You.
Not your parents’ vision. Not your friends’ visions. Not even mine. Your Rich Life vision.
In this program, you’ll learn:
- What a “Rich Life” is (and why it’s much more than the toothless day-dreaming that most people waste their time with)
- How to create your own Rich Life Map
- How to pinpoint what makes you happiest — and “dial that up” in your life
And I’ve included plenty of “How to” videos and fun exercises to help you along the way.
What's Inside IWT
Here’s a sneak peek of just a few of the things you can learn with IWT
