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Also, only 10 years of salary means you'll eventually have to start working again... so no plan means that you don't know what you'll do after 10 years
by selestify 5y ago
Also, only 10 years of salary means you'll eventually have to start working again... so no plan means that you don't know what you'll do after 10 years
- Archelaos 5y agoNo necessarily. It depends on a person's yearly expenses. If, for example, she was able to save 10 years salery in 20 years, it would mean that she consumes only 5 % of the total savings per year. This sounds quite sustainable, because you need only to achieve a 5 % return on investment (after inflation) on the savings to live just from these returns not touching the savings at all.
- beardyw 5y agoIf the money is sensibly invested an adjustment in lifestyle might allow you to live on it a considerable time, or even indefinitely.
- DavidPeiffer 5y agoThe runway length is dependent on their expenses. If they earned 100k and spent 50k, it would last 20 years assuming no investment returns. If they spend around 4% of their 10 years salary annually, they're very likely to be fine for 30+ years as long as it's invested reasonably. https://en.m.wikipedia.org/wiki/Trinity_study https://en.m.wikipedia.org/wiki/Trinity_study
- popotamonga 5y agoLeft out my wife is still working and its enough for 70% of living expenses.
- VRay 5y agoNow you follow The Way of the House Husband