Are you that lucky to be continously fully employed for 30 years? How do you know that you will not be unemployed in the coming recession?Looking for some people smarter than me to reply. But I don't see how you would need a 50% savings rate to retire early. It seems it can be done with less. Of course, assumes you continue to stay employed etc.
But, let's say you make 100k, spend 50k, taxes 25k, and invest 25k.
If you start at age 25 and do it for 30 years at a rate of 4% you could end up with 1.4M and that could generate 56k per year.
To keep it simple I am thinking in real terms and present value. Used 4% and ignored inflation. So by the end of the 30years the numbers would be different but percentages would stay the same.
So if my math is correct, that person could work from 25-55 and call it quits by only investing 25% of their income
How old are you?
IMHO, that is an overly optimistic assumption with zero safety margin. What if you are unlucky? There is no do it over in life.
KlangFool
Statistics: Posted by KlangFool — Sat Aug 17, 2024 6:29 am