Quote:
Originally Posted by lewdog
Let's spin this off. What is rich?
They recommend the following being saved based on age, ending at 10x your salary by retirement.
Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67.
I am shooting to have at least 20x my salary by 65. It's not easy though. We live pretty frugally for most things given that we only have my income and we are saving 20-25% of our income each year into investments.
https://www.fidelity.com/viewpoints/...need-to-retire
And you actually need less money saved if you work until you're older in life. So many people think they can retire early, but don't realize they need MORE capital to start with because their drawdown period will be so much longer.
https://www.canstar.com.au/superannu...-super-retire/ |
I've run the numbers for myself, and while they're not completely generalizable due to some unique things to my household (e.g., my assets in IRA versus investment accounts), I concluded that I need about 20 times my salary to maintain my standard of living to age 99 without tapping into home equity. This assumes 3.2 percent inflation and investment returns in roughly the 4.5 percent range annually. So 20 times your salary isn't rich, but it'll give you a good likelihood of retiring with no financial compromises.