Retirement by 40

Copart / Product CbXK00
Jun 4 41 Comments

How much savings should one have to retire by 40?

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TOP 41 Comments
  • Facebook public2
    The amount you want yearly in retirement times 26.
    Jun 4 15
    • Intel pFVD84
      ^ Bingo. Given people retire at 65 and die at 85, they are likely to encounter 2-3 recessions in their retirements.

      7% equity returns were based on when Treasuries were at their 5% average over the last 120 years.
      Jun 7
    • SAP / Mgmt
      ImposterX

      SAP Mgmt

      PRE
      SAP
      ImposterXmore
      I personally calculate with 5% prior to inflation.

      Might be too low, but I don’t have many good expectations for the next decade or two. I think we’re going to hit a massive recession soon and there’s no way to go. Europe is in a bad shape, and don’t get me started BRIC.

      So whatever is invested in the market right now might tank 50% and will recover more slowly than usually.

      Am I very off?
      Jun 7
    • Facebook public2
      That's fine to make your own predictions but the data doesnt support it. Past returns do not gaurantee future returns of course but are a good place to start. Personally my rentals pay my living expenses so haven't touched much stock at all and rents tend to rise during recessions. Downturns are normal and fine but if you want to decrease your risk that's fine.
      Jun 7
    • SAP / Mgmt
      ImposterX

      SAP Mgmt

      PRE
      SAP
      ImposterXmore
      Good advise!
      Jun 7
    • Intel pFVD84
      The data shows the 4% rule lasts 30 years with a 60/40 equity/bond ratio. And that’s not from a starting point with the most expensive asset valuation in history.
      Jun 7
  • Microsoft lol_kek
    Depends on when you die.
    Jun 4 5
    • Oracle pzd
      So true. These days, 40 is not even middle age. It will be tough to support yourself for 40 years after retirement with a 20 year career.
      Jun 4
    • New / Other
      DuQvV7y

      New Other

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      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      The 4% rule stated above literally covers this scenario.

      Math it out
      Jun 4
    • New / Other
      DuQvV7y

      New Other

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      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      No, the 4% rules proposes that your money lasts for *at least* 30 years. Big difference.

      Keep in mind that the market traditionally runs at 6% YoY (6.7% in the last 45 years) then 4% is a safe draw.

      Go online and find any 15 year period since your birth year that the market returns were under 4%.

      I’ll wait.
      Jun 5
    • New / Other
      DuQvV7y

      New Other

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      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      At least 30 years when the return rate is 4%

      Is not the same as *at 30* years.

      Even at 0% return your principal burndown takes 25 years. 19 years with inflation.

      For many people, social security even, that and all other defined benefit plans are not a part of the 4% calc.
      Jun 5
    • New / Other
      DuQvV7y

      New Other

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      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      I’m on the 1 yr mark.

      I’ll let you know in 29 years if I ran out.

      Cheers
      Jun 5
  • Verizon heamer
    3-4 Million may b
    Jun 4 2
    • Capital One
      thickmama1

      Capital One

      BIO
      Woman struggling to pass interviews
      thickmama1more
      For a family? Yes. For SINK or DINK, about 1.7-2.5M.
      Jun 4
    • Capital One
      thickmama1

      Capital One

      BIO
      Woman struggling to pass interviews
      thickmama1more
      You’re right but this audience isn’t typical consumer.
      Jun 4
  • New qa771
    What is 4% rule?!
    Jun 4 8
    • New / Other
      DuQvV7y

      New Other

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      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      That’s (uninformed) opinion masquerading as fact.

      US male life expectancy is 76.

      Good luck making anywhere close to that with your sedentary lifestyle and gadawful diet
      Jun 4
    • Intel pFVD84
      If you exclude the bottom 80% of people whose retirement savings are under $250K, male life expectancy is 85 and female is 90.

      In your mind, the 4% rule works in perpetuity? Let me know when you find any research that indicates that’s true.
      Jun 4
    • New / Other
      DuQvV7y

      New Other

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      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      😆😂🤣😆🤣 In Russia its 185
      Jun 4
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      Uggh, I dislike people who edit threaded posts to hide their “factual mis-statements”.

      Man up, note your factual inaccuracies and learn up.

      I’m done with this
      Jun 4
    • Intel pFVD84
      Factual misstatements like the relevant population to this conversation dies at age 76?
      Jun 4
  • Oracle alwzangry
    It also depends on the year in which you turn 40.
    Jun 4 4
    • Cruise Automation dkMsa890
      4% rule
      Jun 4
    • Oracle alwzangry
      4% rule could become 8% rule in a few short years.
      Jun 4
    • Oracle alwzangry
      So, past performance? There can never be anything unprecedented? In this decade, we saw signs that people who were to retire last decade had to postpone their plans. You could take a chance. I won't.
      Jun 4
    • Oracle alwzangry
      How many of those 100 years had negative interest rates? What was the inflation like? Can you project if 4% would work during your retirement? In fiat currency? That's what I am talking about. I'm not setting myself up with only a 4% target to run out of money at 80.
      Jun 4
  • Never looked at it in terms of savings, passive residual income high enough to replace your current means of income 👍🏼
    Jun 6 0
  • Intel pFVD84
    20x your income.
    Jun 4 0