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4 Simple Steps to Calculate Your Retirement Portfolio
Learn how to estimate the savings you’ll need for a secure and fulfilling retirement
Welcome to Financial Fluency - a newsletter designed to boost your understanding of financial terms and provide you with investment ideas for long-term financial success.
In today’s newsletter:
A look at the markets: Bitcoin & Tesla
4 Simple Steps to Calculate Your Retirement Portfolio
Unlocking Apple Intelligence on a Mac in Italy
Word of the Day: Workaround
A Look at the Markets: Bitcoin & Tesla
Last week, I said that thought a close above 72,000$ would be a bullish signal. We are not at the end of the week yet but Bitcoin has at least broken this level before dropping back below it as I write this newsletter (Thursday 31st). We will see what happens over the coming days.

Bitcoin/USD Weekly Chart
On the 11th of October, we saw the market’s negative reaction to the Tesla Robotaxi event. Last week, Tesla had an earnings announcement which beat estimates by 22%. This immediately pushed the price above the area of support and resistance we have been monitoring.

Tesla Daily Chart

4 Simple Steps to Calculate Your Retirement Portfolio

Last week, we explored the 4% guideline for managing withdrawals from your retirement portfolio. Now, let's answer the question - how much money do you need for retirement?
Step 1: Calculate Your Annual Retirement Income Needs
When planning for retirement, start by estimating your annual income requirements. Many people find they need less income during retirement than while working. Consider these factors:
Reduced work-related expenses
No daily commuting costs
Less spending on professional clothing
Lower food costs (fewer expensive lunch breaks)
Housing costs
Will your mortgage be paid off?
Do you plan to rent?
Will you downsize your home?
Lifestyle choices
Travel plans
Hobbies and leisure activities
Healthcare considerations
Step 2: Account for Other Income Sources
Once you have your target annual income, subtract guaranteed income sources:
State pension
Company pension schemes
Other personal or private pensions
Step 3: Calculate your Target Income from your Retirement Portfolio
Let's work through a practical example, assuming you would like a retirement income of €50,000.
Target annual income: €50,000
Minus state pension (for example): -€10,000
Minus company pension (for example): -€15,000
Required income from portfolio: €25,000
Please do the above calculations with your own figures and goals.
Step 4: Using the 4% Guideline
If 4% of the portfolio is 25,000 Euros what is the value of the portfolio?
25,000 / 0.04 = €625,000 (required portfolio value at retirement)
More Conservative Approach (2.5%)
You may want to consider a more conservative withdrawal rate of 2.5% withdrawal:
25,000 / 0.025 = €1,000,000 (required portfolio value at retirement)
Important Considerations
Inflation Impact
Remember that these calculations reflect today's money. Your actual target will need to account for inflation between now and your retirement date.Salary Growth
The good news? Your earning potential typically increases over your career, making higher savings targets more achievable.Personal Circumstances
These calculations provide a framework, but your specific needs may differ based on risk tolerance and personal circumstances.
Next Steps
Next week, we'll explore practical strategies for building your retirement portfolio using ETFs (Exchange-Traded Funds) and the power of dollar-cost averaging.
We will also answer a newsletter reader’s question about how to find and analyse an ETF.
Important Note: This newsletter provides general guidance only. Always consult a qualified financial advisor for personalised retirement planning advice.

Unlocking Apple Intelligence on a Mac in Italy

Apple Intelligence
Apple Intelligence, with its powerful image recognition, smart search, on-device processing, and writing tools, may not be officially available in Italy—but there’s a workaround if you have a MacBook with an M1 chip or later (i.e. not Intel). You also need to download macOS Sequoia.
Start by setting your keyboard language to US English, then switch Siri to US English in settings. Next, open the Apple menu, select System Settings, and find Apple Intelligence & Siri. Once there, make sure to turn on Apple Intelligence—this enables features that would otherwise be restricted based on your location.
Give it a try and let me know if it works!

Word of the Day: Workaround
Workaround - noun - countable - a way of dealing with a problem or making something work despite the problem, without completely solving it.
"Due to the software's limitations, our team implemented a workaround to streamline data processing. While it’s not a permanent fix, this solution enables us to maintain productivity until the updated version is released."

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Do you have any Financial Questions?
Please email me and I will do my best to answer them in future newsletters.
Until next Friday - have a great weekend!
Iain.
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Disclaimer:
This newsletter is for informational and educational purposes only and should not be construed as financial advice. The information contained herein is generic and does not take into account your individual financial circumstances. You should always consult with a qualified financial professional before making any investment or financial decisions.
Additionally, the authors and/or publishers of this newsletter may hold investments in securities or other financial instruments mentioned herein. These are included for illustrative purposes only and should not be taken as a recommendation to buy or sell such securities or financial instruments.