To get right to it, between saving early, a well paying job, and starting off financially ahead, at 40 I'm looking to retire at 45. The numbers:
- Around $6,500/mo spending, includes all insurance, mortgage, bills, etc
- $75,000 mortgage remaining on a $450,000 home, no other debt
- $1,700,000 in investments, currently earning about 6.5%
- Between investment dividends and salary and after taxes, I save just short of $10k a month
Assuming I finish off the mortgage and pull out about 3.5% of my saving ever year, I'd need about $2,200,000 to retire. That's $500,000 more than I have now, but something I could potentially pull together in four years. Two mil is a lot of money but at $6k/mo I'm not exactly living frugally. I feel like I'm missing something big.
FWIW, my goal is less to actually retire but to have career freedom. A job that pays less than half my current salary would keep my from dipping into savings, and at this point in my life the idea of a job I enjoy is more and more appealing than a job that makes me tons of money.
Submitted January 05, 2021 at 10:42PM by immanuel_taal https://ift.tt/2JLStFU
