What is the magic number? For a US based couple, to retire in their mid-50s. I am not talking about FU money, but a comfortable one that allows 2 people to have good quality of life - say staying in 4 star hotels and traveling in business class for 2 or 3 International vacations /year . Please comment your magic number and state any assumptions. Net worth at retirement (excluding primary home where you live in):
$10 million+ is the top choice right now. Y'all are insane.
Answer is… it depends… By here is a logical way of figuring it out - (1) Figure out what it’d cost to have a comfortable life you describe in todays dollars - say that number is $150k/ year (2) Using the Trinity study 4% rule, you’d need to have a nest egg of $3.75 Million to afford that life style through retirement… (or) 25x $150k/year
Yes and remember that in retirement you won’t be saving a chunk of your income anymore, (hopefully) you won’t be paying mortgage (but still taxes & insurance) and won’t be paying for kids (including saving for their education). And if you still have faith that there will be social security when you retire, as a high earner, you will be getting ~$46k/yr (double that of your spouse worked). $4 million at 4%/yr + $92k in SS = $252k/yr. For most people that should be plenty to have a comfortable retirement, including travel
The trinity study only is designed to last a 30 year retirement. If retiring in your mid 50s you should consider 3.5% withdrawal rate.
You’d be absolutely safe with 10+mm, however that requires a lot more work and more time working which wastes life. I’d say 6mm is more than enough for two.
Your expenses times 25
What do mean by FU money? Fuck you money? Be inclusive, dont use acronyms like that
Get a life
Why are u getting bothered? I am asking OP what he/she meant by ‘FU Money’ . Because I dont know what that means. Its that simple. Dont complicate things
We’re in HCOL so 10m in today’s $ would help us maintain an adequate lifestyle.
One international vacation from US for two people in biz class would cost 20k. Four per year would be 80k. To that add your regular expenses which could be 8k per month. So total need will be 176k per year. 176x25=4.4M
If he is planning on retiring in 50s better to multiple yearly expense by 30-35 and not 25
My goal is $15MM personally, $10MM at a minimum.
Similar. Our expenses are about $500k/yr. So at 4% safe withdrawal rate that is about $13m