Retirement
Retirement planning is one of the highest-impact financial decisions you'll ever make. Thanks to compound interest, starting early can mean the difference between struggling and thriving in your later years. Our retirement guides cover everything from tax-advantaged accounts to the FIRE movement and sustainable withdrawal strategies.
Key Concepts
Master these retirement planning concepts to secure your financial future.
401(k)
Employer-sponsored plan. Contributions reduce taxable income. Many employers match contributions — that's a 50-100% instant return.
Roth IRA
Contribute after-tax dollars. All growth and withdrawals are tax-free. Best for those who expect higher taxes in retirement.
Traditional IRA
Contributions may be tax-deductible. Withdrawals in retirement are taxed as ordinary income.
The 4% Rule
You can withdraw 4% of your portfolio annually and it will last 30+ years. To retire, save 25x your annual expenses.
FIRE Movement
Financial Independence, Retire Early. Save 50-70%+ of income and retire in 10-15 years instead of 40+.
Required Minimum Distributions
Starting at age 73, the IRS requires you to withdraw a minimum amount from tax-deferred accounts annually.
Start Here — Beginner Guides
Go Deeper — Intermediate Guides
Learning Roadmap
Calculate how much you need to retire
Multiply your expected annual expenses by 25. This is your retirement number using the 4% rule.
Maximize your 401(k) employer match
Contribute at least enough to get the full employer match. It's a 50-100% instant return — never leave it on the table.
Open a Roth IRA (if eligible)
Roth IRA limits: $7,000/year ($8,000 if 50+). Income limits apply. Open at Fidelity, Vanguard, or Schwab.
Max out tax-advantaged accounts
401(k) limit: $23,000/year. IRA: $7,000/year. These are the best tax shields available to individuals.
Invest in a simple index fund portfolio
Low-cost total market index funds + international + bonds (adjusted for age) outperform most active strategies.
Consider the FIRE movement if you want early retirement
Save 50%+ of income and reach financial independence in 10-15 years instead of 40.
Frequently Asked Questions
How much do I need to retire?
The common guideline is 25x your annual expenses (based on the 4% safe withdrawal rate). If you spend $60,000/year, you need $1.5 million. Use our retirement calculator to model your specific scenario based on age, savings rate, and expected returns.
Roth IRA vs. Traditional IRA — which is better?
If you expect to be in a higher tax bracket in retirement than now, choose Roth (pay taxes now, withdraw tax-free later). If you expect lower taxes in retirement, choose Traditional (deduct now, pay taxes later). When in doubt, Roth is usually better for younger, lower-income individuals.
Can I retire early?
Yes — the FIRE movement has shown that with a high savings rate, early retirement in your 40s or even 30s is achievable. The key is saving 50-70% of income and investing in low-cost index funds. The math is straightforward once you know your "retirement number."
When should I start saving for retirement?
Yesterday. Seriously — starting at 25 vs. 35 can mean $400,000+ more at retirement (with the same monthly contributions) due to compound growth. Every year of delay is extremely costly. Start with whatever you can afford today.
What is the 4% rule and is it still valid?
The 4% rule (from the Trinity Study) says you can withdraw 4% of your portfolio in year 1, adjust for inflation each year, and your money will last 30 years with 95%+ success rate. Most researchers still consider it a solid baseline, though a 3-3.5% rate provides more safety for very long retirements.