What would it take to spend $10,000 per month, every month, for the rest of your retirement?

Today, I'll show you exactly how to calculate this number, as well as the three factors of the

biggest impact on this and can either make or break your ability to maintain the retirement

lifestyle you want to maintain.

I'm a financial advisor and the founder of Rout Financial, where we've helped hundreds of

clients answer questions just like this, and what I want to do in today's video is share the framework I like to use to come up with a number that can allow apply the three factors I'm going to walk you through to understand how this number changes so that you can have an

idea of what number is going to make most sense for you. But let's start with this. You want to spend

$10,000 per month for the rest of your retirement. That $10,000 per month is after taxes. So let's

make an assumption and let's say that you actually need to take out 12,000 per month from your accounts.

Obviously, this is going to depend upon what types of account are you drawing from.

But let's make the assumption that you need 12,000 per month before taxes so that after tax you can spend $10,000 per month.

Well, 12,000 per month, that's $144,000 per year that you need to have in pre-tax income so that after taxes, you can spend

$120,000 per year or $10,000 per month.

So let's now take this further.

If you need $144,000 per year, you may be familiar with something called the 4% rule.

The 4% rule states that historically speaking, you can take 4% per year from your portfolio

and have that last for 30

years and have a high degree of confidence that your money is going to last. So if we take 144,000

and divide it by 4%, that gives us $3.6 million. So this is a very simple starting point, and that's

not the actual number that you're going to need, but this is the number that says if you had

$3.6 million, and you could take 4% per year, that would give you $144,000 pre-tax, $120,000 per year after tax, or $10,000 per month.

Now, that number is going to adjust for inflation. The 4% rule assumes you're adjusting that number for inflation. But that's not where this analysis ends.

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