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> What age are you planning to retire? Plan on retiring before 40. > What are you doing to get there? Maxing all retirement accounts, putting leftover money

> What age are you planning to retire? Plan on retiring before 40. > What are you doing to get there? Maxing all retirement accounts, putting leftover money into taxable accounts, and letting compound interest do it's thing. > What do you plan to do after retirement? This is definitely an open question, and I sometimes feel uncomfortable when I think about it. Saving for retirement is my life goal and when I achieve it, I bet I will soon feel empty. That multi-decade challenge that took thousands of hours will be completed, and now what? I don't know how I am going to fill my weekdays for another possibly 50-60 years. It will be a great problem to have, I just don't have a solution yet.

yodsanklai 4y ago
How much do you think you need?
- 1270018080 4y ago
  A prerequisite to retirement for me is having a paid off house, so that could fluctuate my net worth dramatically (do I live in a condo or custom home, somewhere cheap or expensive etc). But in terms of liquid assets that would cover my expenses, $1.5 million in today's dollars with a 3.8% withdrawal rate. I am far enough away that the exact number is not very useful to calculate yet, so I am just throwing that out there.
- adamsmith143 4y ago
  A standard rule is figure out how much you want to live on and multiply by 25. So if you want 100k per year in retirement multiply by 25 to get 2.5M needed for that income. That assumes a ~25 year retirement, so if you want to retire by 40 and live til 90 you'd need to multiply your desired income by 50. So 5.0M in that scenario. If you can live off less you can reduce the amount needed. This assumes a 4% withdrawal rate per year.
  - yodsanklai 4y ago
    How do you protect your savings from inflation and market fluctuation?
    - adamsmith143 4y ago
      What do you mean by savings? Do you mean cash in a Savings Account? If so you don't it's inevitable. But you shouldn't have more than a few percent of your total net worth in cash anyway. To beat inflation you invest your money, it's that simple. Investing in a SP500 index nets you something like 7-10% per year on average. That includes crashes and bull runs, so on average.

yodsanklai 4y ago

How much do you think you need?

1270018080 4y ago
A prerequisite to retirement for me is having a paid off house, so that could fluctuate my net worth dramatically (do I live in a condo or custom home, somewhere cheap or expensive etc). But in terms of liquid assets that would cover my expenses, $1.5 million in today's dollars with a 3.8% withdrawal rate. I am far enough away that the exact number is not very useful to calculate yet, so I am just throwing that out there.
adamsmith143 4y ago
A standard rule is figure out how much you want to live on and multiply by 25. So if you want 100k per year in retirement multiply by 25 to get 2.5M needed for that income. That assumes a ~25 year retirement, so if you want to retire by 40 and live til 90 you'd need to multiply your desired income by 50. So 5.0M in that scenario. If you can live off less you can reduce the amount needed. This assumes a 4% withdrawal rate per year.
- yodsanklai 4y ago
  How do you protect your savings from inflation and market fluctuation?
  - adamsmith143 4y ago
    What do you mean by savings? Do you mean cash in a Savings Account? If so you don't it's inevitable. But you shouldn't have more than a few percent of your total net worth in cash anyway. To beat inflation you invest your money, it's that simple. Investing in a SP500 index nets you something like 7-10% per year on average. That includes crashes and bull runs, so on average.