| 7/13/2021 3:41:57 PM sertra2002 |
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| Congrats on reaching 2 Mil on retirement accounts. Curious to know what you think or are working towards as a retirement target amount? |
| 7/17/2021 9:25:55 AM azphx1972 |
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| @sentra2002 thanks! I am aiming for early retirement and the 4% rule from the Trinity Study is a bit too aggressive for my personal tastes, so I am planning on a 3% safe withdrawal rate, which has a 0% historical failure rate based on Monte Carlo simulations I've run (using tools such as FIRECalc and cFIREsim). I'd also like to Fat FIRE and be able to spend up to $100k per year in retirement, so using that amount with my desired SWR leads to a target FIRE number of $3.33M in income producing investments. I'm hoping to get there within the next 3 years, which should be feasible based on historical stock market returns, but we will see! Looks like you're doing a great job yourself (congrats on crossing the 3M milestone btw), so thanks for the discussion and cheers! |
| 8/11/2021 9:42:03 AM girlnextdoor |
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| What's your current annual spend, and how did you decide on 100k/yr in retirement?
I expect that our expenses will go up if we retire early, but am really struggling to figure out the "by how much" part. Especially now that we are both working from home (husband already was pre-covid, my job will likely continue 90%+ WFH even after covid) - our "work expenses" have dropped to basically zero, so we wouldn't be saving anything new by not working anymore. |
| 8/14/2021 4:43:26 PM azphx1972 |
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| @girlnextdoor my current annual spend is 50k, and that doesn't include savings due to WFH (which I've also been doing, and hope to continue post-pandemic), so I figure 100k should be plenty to pay for extras in retirement. I can always adjust discretionary spending if necessary, but I think I'll be fine. What's your current spend, and do you know what kind of expenses you want to add after you retire? If so, you can start planning for it and fine tune it as you get closer to your date. |