Retirement: When are u exitting the full-time rat race?
08-23-2011, 11:19 PM
#17
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I'd like to do that around 65-70, health permitting. I have come to this interesting observation: the more I work, the more money I seem to have. And even though money doesn't buy my family happiness or health, it does buy everything else.
I am interested to know how one can calculate when one has saved up "enough" to "retire"? Is there a formula? Something like this:
if my current annual income is X, my current age is Y, my desired retirement age is A, my desired life span is B, yearly inflation is D, number of dependents is C, lifestyle coefficient is Z (see separate chart), then I have to make (X(B-A)xDxZ C squared)/(A-Y) per year to retire according to plan?
I am interested to know how one can calculate when one has saved up "enough" to "retire"? Is there a formula? Something like this:
if my current annual income is X, my current age is Y, my desired retirement age is A, my desired life span is B, yearly inflation is D, number of dependents is C, lifestyle coefficient is Z (see separate chart), then I have to make (X(B-A)xDxZ C squared)/(A-Y) per year to retire according to plan?
08-24-2011, 01:02 AM
#18
Rennlist Member
08-24-2011, 09:42 AM
#21
Drifting
Thread Starter
Is there a formula? Something like this:
if my current annual income is X, my current age is Y, my desired retirement age is A, my desired life span is B, yearly inflation is D, number of dependents is C, lifestyle coefficient is Z (see separate chart), then I have to make (X(B-A)xDxZ C squared)/(A-Y) per year to retire according to plan?
if my current annual income is X, my current age is Y, my desired retirement age is A, my desired life span is B, yearly inflation is D, number of dependents is C, lifestyle coefficient is Z (see separate chart), then I have to make (X(B-A)xDxZ C squared)/(A-Y) per year to retire according to plan?
Say $80,000 in 2011 (house paid for, kids done school, don't live in GTA)
Assuming 4% return on investment, u would need to multiple that amount by 25 (or 100/ROI). So that couple would need $2M saved up. I don't think u would should count your primary residence in that number. But I don't know for sure.
Hopefully, when dead, you would have $2M nest egg to pass on to kids, donate to charity etc.
That's one way to guesstimate it....
Last edited by petee_c; 08-24-2011 at 10:04 AM.
08-24-2011, 10:31 AM
#23
Rennlist Member
Based on my financial plan and outcomes thus far I'm on track to retire at 107.
08-24-2011, 01:26 PM
#26
Race Car
I cut back to part time hours (and salary) June 1. Best decision I ever made. Way more time for family and music. My kids will only be young once, and I want to enjoy it, not build up some war chest for a distant future. Though I did put things in place to keep the door open to expanding the company in the future, if I want to.
Splashing around in the pool with my kids at 1:30 on a Monday afternoon is pretty sweet
Splashing around in the pool with my kids at 1:30 on a Monday afternoon is pretty sweet
08-24-2011, 03:21 PM
#29
One week from tomorrow! 
Gary
Gary
08-24-2011, 04:34 PM
#30
Race Car
Fully retired from an awsome job for over 2 years and I would never go back. Skiing, mountain biking, surfing, etc., a bit of writing, traveling and playing with cars and guitars is way more fun. I generally get up earlier to play than I did to work so that tells ya something.