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If you save 15% of your (post-tax) income every year for 43 years, you can live off of market investment returns for essentially forever. Assuming you started w
by lalaithion 8y ago
If you save 15% of your (post-tax) income every year for 43 years, you can live off of market investment returns for essentially forever. Assuming you started working at 22, that's a retirement age of 65 with no government assistance.
- baccheion 8y agoHow did you arrive at this number? Based on my calculations, it will take 50 years of saving 20% of take-home into an inflation-offsetting account to be able to retire. It's assumed a house is purchased separately. If the fabled 8% YoY over and above inflation isn't available at retirement, the final amount lasts about ~20 years.
- billmalarky 8y agoCurious, are you using Mr. Money Mustache for that estimate? It seemed on point for this post: http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ http://www.mrmoneymustache.com/2012/01/13/the-shockingly-sim... If so you should probably update your comment to say "invest" instead of "save," which sounds nitpicky but the difference is huge.