Retirement Planning and Index Investing
Compounding, index funds, asset allocation and the 4% rule.
Taught by Dipesh Koirala · CFA, Financial Analyst
What you'll learn
- Calculate the future value of regular savings and compare the cost of starting late
- Explain why low-cost index funds outperform most active funds over long periods
- Quantify how ongoing fees reduce a retirement pot over several decades
- Choose and rebalance an asset allocation that matches your age and risk tolerance
- Set a retirement savings target from your expected spending and a withdrawal rate
- Describe the 4% rule, sequence-of-returns risk and flexible withdrawal strategies
About this course
Retirement can feel too far away to plan for, yet the decisions you make in your twenties and thirties matter most. This beginner course shows young professionals how to build a simple, evidence-based retirement plan with low-cost index funds. You will learn how compounding and the time value of money work, why index investing beats most active funds after fees, how to choose an asset allocation for your age and risk tolerance, and how tax-advantaged pension and savings accounts fit together in any country. You will then set a retirement target, stress-test it, and learn how the 4% rule and other safe withdrawal strategies turn a pot of savings into a reliable income. Short Python scripts and spreadsheet formulas let you run your own numbers. No finance background is needed; basic arithmetic and curiosity are enough. This is education, not personal financial advice.
Course content
7 lessons- 1Why Starting Early Matters: Compounding and Time ValueHow compounding, the time value of money and inflation shape every retirement plan.Preview
- 2Index Funds vs Active Funds: What the Evidence SaysWhat an index fund holds, why most active managers trail the market, and how to pick a good tracker.
- 3Fees, Costs and the Silent Drag on ReturnsWhere investment costs hide and how a one-percent fee compounds into a large loss over decades.
- 4Asset Allocation by Age and Risk ToleranceMixing shares, bonds and cash, choosing a glide path as you age, and rebalancing back to target.
- 5Tax-Advantaged Accounts and the Order of SavingHow pension and tax-free wrappers work anywhere, and a sensible order for filling them.
- 6How Much Is Enough? Setting a Retirement TargetTurning expected retirement spending into a savings target and a monthly contribution you can test.
- 7Drawing Down: The 4% Rule and Withdrawal StrategiesWhere the 4% rule comes from, why the order of returns matters, and flexible ways to take income.