2018-05-22 at 5:22 PM UTC
Ajax
African Astronaut
[rumor the placative aphakia]
Retirement thread. For those of you who work and plan your life, when do you plan to retire? What is “retirement” to you? How are you working towards that goal and how will you know you’ve reached it? How much “fuck you” money do you need to feel financially independent and potentially retire early?
2018-06-05 at 11:42 PM UTC
I have no retirement plan.
2018-06-05 at 11:45 PM UTC
Nm. I didn't read the op.
2018-06-05 at 11:46 PM UTC
The day I drop dead most likely
2018-06-05 at 11:50 PM UTC
The following users say it would be alright if the author of this
post didn't die in a fire!
2018-06-05 at 11:51 PM UTC
So the day you drop dead too 😏
2018-06-05 at 11:51 PM UTC
POLECAT
POLECAT is a motherfucking ferret
[my presentably immunised ammonification]
I am semi retired,, I work when i feel like it
2018-06-05 at 11:57 PM UTC
Ajax
African Astronaut
[rumor the placative aphakia]
Thanks for the bump.
Any other responsible niggas have a retirement plan?
2018-06-06 at 1:52 AM UTC
I’m already pretty much retired, I just make money doing shit that I’d probably be doing anyway.
2018-06-06 at 4:57 AM UTC
I'd like to retire by 35-38.. Then again, I guess it's whatever defines "retirement" within your given perspective. I don't mind pursuing my own goals and businesses indefinitely.
2018-06-06 at 5:16 AM UTC
I did a calculator thing and it suggested 45, which doesn't seem bad although I feel like the estimates of income growth and income requirement in retirement doesn't make a ton of sense. Like I realize it's a rule of thumb but I could easily get by on 80% of my paycheck today, 80% of estimated last year of work seems like a ton. Spending tends to goes up with income and all I guess but I'd like to think I have the restraint to not spend more money just because I have it.
Like if you play with the numbers and increase you income but no other figure it estimates you'll have less money in retirement.
2018-06-06 at 5:37 AM UTC
Ajax
African Astronaut
[rumor the placative aphakia]
Retirement to me isn’t necessarily never working again. It’s having options. It’s being financially independent so you can do what you want and not worry about the income.
So how do we get there? Let’s take some examples from a traditional retirement plan. Rather than focusing on an age, we should focus on a number. An end goal. How do we determine that number? We need to determine our income needed in retirement. More importantly, we need to determine our expenses.
For a quick and dirty example, let’s say you want to spend $100,000 per year in retirement. Those are your expenses. So how do you generate that income? You need a nest egg of $2,500,000. How did I come up with that? Safe withdrawal rate. People suggest that 4% is a safe withdrawal rate initially and then you increase with inflation, and that makes it very likely that your money will outlast you. The backwards math is to take 100,000 divided by 0.04 and you get 2,500,000. You can also take that same number and multiply it by 25 to get the same result. So you might hear people say to save up to have 25x annual expenses for retirement. And that’s it. Withdraw 4% in the first year and increase your withdrawals at the rate of inflation.
What does it take to get to $2,500,000? Let’s say you’re going to be working and investing for the next 35 years. You really should start early and get at least 40 years in, but I’ll say 35. If we use a compound annual growth rate (CAGR) of 7%, you would have to invest $1,388.07 per month to achieve $2,500,000 after 35 years. Not unreasonable, but you better get started.
Let’s lower those numbers a bit. Let’s say you only want to replace your income (or cover your expenses) for $40,000 per year. In that case, you need $1,000,000. To get there, save $555.22. Pretty cool. That’s a car payment for some people.
As for me, I have my sights set high.
2018-06-06 at 9:27 PM UTC
What if thw finacial system crashes and you lose all of your moneyz?
I only keep enough for about a year of expenses in cash and another years worth in metals. Any additional funds I spend.
I plan to work until I'm dead.. but knowing my job they'll still have me charting at my own funeral.. talking bout" you gotta finish this care plan before we lower you down in there"
