Retirement amount
What net worth do you think is required to retire at an age of ~40 in this economy? How focused would you be on generating cashflow vs high performing stocks or real estate?
40 is way too early to retire. But if 40, then $5mil Much easier to stretch retirement to past 60 without much work. Just get a coasting job at one of the tier-3 dev shops. That way you have full insurance for family and low expectations. Its a win-win.
Are you worried about missing out on opportunities that are only available during your youth though? I ask myself if I'm lacking imagination by continuing to go down the corporate route.
I mean you can still keep a job and pursue everything you want. Things are not necessarily binary. Humans- by design must have something of value to pursue. If that “something “ requires your full effoet then sure go ahead. I am saying, for mosy folks , having a desk job and pursuing interests is still doable- you dont have to be 10x engineer
It’s not about how much you have, it’s about how much you spend.
I personally use a conservative 3% rule to decide based on what expenses I expect while in retirement.
3 percent of your networths returns should cover your expenses?
The number from the 90s was 4%, so 3% seems conservative. However, the newest analysis actually says 1.9% is appropriate. https://www.marketwatch.com/story/forget-the-4-retirement-spending-rule-would-you-believe-1-9-11664559109
40 is too early, you may lose your daily routine and find life empty very quickly. 45-50 isn’t bad. But to your question, for two people retiring in MCOL or LCOL 3m would be enough. If you wait until 50, you only need 2m(todays’s value)
Working from home for 3 years has kind of dissolved that routine already. Perhaps, creating a rigid structure for myself right now would be good preparation for the next step.
I have a news for you.if you retire at 40. Your quality of life will be so bad at 80 unless you are an investment genius
Doesn't all financial advice always just boil down to "invest in the snp500" though?
Yes but I don't believe in safe withdrawal rate. It assumes you will not face some situations in life like a random trough or pit that will need more than 3% withdrawal
25-30x of your annual expenses.
You are just being complacent
Thirty times what you want to spend annually.
Depends where to retire and mix of investments. It could be $2M if you want to retire in LCOL. With a withdrawal of 3-4% you will get $60k-$80K per year. Will that be enough?
Inflation has made me worry that it won't be. This year has shown me that all of my previous assumptions about stability have been wrong. At some point you can just have enough residual income to weather any storm though right? It seems like you would have to see your income grow over time to keep up with inflation. Perhaps, that hints at a blend of long term investments and cash flow producing assets.