The word inflation is conspicuously missing from your analysis. There's a reason why people bother with stocks instead of just plopping all their money in CDs.

The word inflation is conspicuously missing from your analysis. There's a reason why people bother with stocks instead of just plopping all their money in CDs. (You could buy inflation-adjusted bonds. Last I heard, though, they were running slightly negative yields because of all the other people who want to buy inflation-adjusted bonds.) The other problem I see here is that this is a steady-state analysis. If you sustain one event that requires you to deplete your capital (like, say, a sudden surge in inflation, a sudden fall in interest rates or market values, an illness... or, god forbid, you decide to get married or have a kid or move to a nicer house) you will immediately suffer an income hit that will require you to go back to work. You should consider budgeting for such things. Having said that: If you have the discipline to follow this plan, minor holes and all, you'll be in better financial shape than the vast majority of the planet. (Obligatory investment-book recommendation: William Bernstein, The Four Pillars of Investing.)