DOING THE MATH FOR EARLY RETIREMENT

Gray Frame Corner
Gray Frame Corner

Saving for retirement is hard. The entire concept is fraught with uncertainty, and there is an entire industry dedicated to help you do the math.

The first, basic question is how much do I need for retirement?

Investopedia says, “Most experts say your retirement income should be about 80% of your final pre-retirement salary.”

Your lifestyle could include many expenses designed to allow you to focus your energy on your career and money-making potential.

But How Much Will I need?

Say you're 30, and you plan on working another 20 years and increase your income at a rate 2% faster than the average inflation of 3.22%.

Then you currently have a desired household income of 150k a year. That would put your projected salary at $425,000 a year upon retiring.

A Full Stop Retirement at 50?

If you are planning retirement at 50 and then living to 100 without changing consumption, that is a LOT of runways to clear.

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