Image Source: Getty Images To see how this strategy can work for you, let's walk through an example using Vanguard High Dividend Yield ETF (NYSEMKT: VYM). The math works like this: Total withdrawals = Inflation-adjusted annual rent expense divided by (1 minus your tax rate, expressed as a decimal). A compound earnings calculator can help you determine how much to save each month, using the number of years you have left until retirement and your expected annual return.