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If you don't mind my asking, how do you plan for your retirement? How much money etc. needed?
by sidcool 7y ago
If you don't mind my asking, how do you plan for your retirement? How much money etc. needed?
- imakwana 7y agoNot OP but I believe he is referring to the concept of Financial Independence. There is an excellent reddit community and wiki on the topic [1]. [1] https://www.reddit.com/r/financialindependence/wiki/faq https://www.reddit.com/r/financialindependence/wiki/faq
- pickle-wizard 7y agoBasically I know what my costs are today. I take that number and adjust for inflation. I use 3% for that number. I know that some costs will go down, for example my house will be paid off. I know some such as health care will go up. I figure it will be a wash budget wise. That gives me a future number I need to adjust for. I then take the current value of my savings, plus future planed savings and estimate their future value using several different rates of return. That gives me a savings rate that I need to shoot for, which I generally try to exceed that rate.