Bible verse: Proverbs 4:23 – Above all else, guard your heart, for everything you do flows from it.
Yesterday, you wrote down what your dream retirement looks like. Today we are going to look at how much money you will need to get there. There is a really simple rule to retirement planning. If you invest in Index Funds, you can expect to earn 6-8% in interest for long-term investments. Once you have invested money, you never want to touch the principal. The principal (nest egg) is how your money makes money. There is a rule called the 4% rule. For example, if you have $1M invested in Index Funds, you should be able to safely live off $40,000 / year and never worry about running out of money. Here are a couple examples:
| Retirement Savings Goal (principal) | Expected Interest Rate | Safe Withdrawal Amount Annually (4%) | |
| $1,000,000 | 8% | $40,000 | |
| $2,000,000 | 8% | $80,000 | |
| $5,000,000 | 8% | $200,000 |
Daily Guide:
Morning
- 5:30AM – Wake-up, thank God for this day prior to your feet hitting the ground
- Max out on push-ups / mountain climbers before leaving your bedroom (7 mins)
- Read your Bible or listen with audio app
Lunch Break
- Calculate how much you will need for retirement
- Walk/run min of 2KM
Evening
- Tell your wife that you love her and give her a big kiss on the lips
- Pray with kids before bed
- 10PM – Lights out