This blog series is the best analysis I have seen of the question of: given a certain portfolio, a desire to retire a certain number of years with specific assumptions, how much money does one...
This blog series is the best analysis I have seen of the question of: given a certain portfolio, a desire to retire a certain number of years with specific assumptions, how much money does one need to accumulate?
Tl;Dr: with an aggressive portfolio, mostly in broad market index funds/etfs (e.g. VTSAX, VTI, SCHB,...), one should have saved about 30 times their annual spending to basically be able to live off of savings forever.
Why this is under science: The author has an economics PhD, the analysis is entirely technical, and they even present their work as a Social Science Research Network (SSRN) working paper.
EDIT: someone moved this topic to ~misc...guess SSRN ain't good enough, folks :-(
Scott Pape, the barefoot investor councils trying to reframe your life to lower income levels and not simply driving yourself into the ground chasing high income lifestyle. It is advice aimed at...
Scott Pape, the barefoot investor councils trying to reframe your life to lower income levels and not simply driving yourself into the ground chasing high income lifestyle. It is advice aimed at the forty and fifty somethings looking at the sixty plus age group. By that stage you have usually cleared mortgage, and do not need to spend as much on things but do spend on health and experiences.
I don't seek to contradict the 30x multiplier mentioned here. I just note nobody lives forever. Most worldwide pension and superannuation schemes use actuarial models to draw down capital for a reason.
It should be noted that the limit to the IRA in 2019 is now $6,000, not $5,500. If one can save a single cent (and feels like they would be able to survive a typical emergency), then that cent...
It should be noted that the limit to the IRA in 2019 is now $6,000, not $5,500. If one can save a single cent (and feels like they would be able to survive a typical emergency), then that cent should go into an IRA. The Tax benefits are huge.
Which governmental agency is saying you can't have more than 2k in your checking account? I've never heard of this restriction and would like to read up on it.
Which governmental agency is saying you can't have more than 2k in your checking account? I've never heard of this restriction and would like to read up on it.
This is a stupid idea, but it's an idea - you could put any extra money in crypto. As far as I'm aware the US government only cares about this money once you convert it to fiat (USD, etc.).
This is a stupid idea, but it's an idea - you could put any extra money in crypto. As far as I'm aware the US government only cares about this money once you convert it to fiat (USD, etc.).
The best thing to do is try and save as much money as possible. Fundamentally, there are only two ways to go about doing that. Spend less Earn more Reduce non-essential spending, get a low initial...
The best thing to do is try and save as much money as possible.
Fundamentally, there are only two ways to go about doing that.
Spend less
Earn more
Reduce non-essential spending, get a low initial cost side gig that is profitable or is likely to be profitable, invest in education or training that allows you to get a higher paycheck.
Your money doubles roughly every decade or so when invested in a broad market index fund. Which means after 30 years, your dollar will be worth 8 dollars...This is basically free money, if you're willing to save and invest your money today.
Some decades can be better, some can be worse. But the longer you save, the more your portfolio will experience the average of these fluctuations.
On reddit, this sort of discussion takes place on /r/financialindependence or on /r/leanfire...but obviously I wanted to start a discussion here :-)
A good book (which I freely admit to having downloaded from libgen) is called the simple path to wealth. It is a more of less a restatement of this series of blog posts: https://jlcollinsnh.com/stock-series/
The author is writing the series addressed to their daughter, who doesn't want to think about money all the time. If that is you, or you want to get a good primer in this world, I would probably start there, with the knowledge that their can be some disagreements in this world. For example, I prefer the technical analysis presented in my post above when it comes to calculating safe withdrawal rates.
This blog series is the best analysis I have seen of the question of: given a certain portfolio, a desire to retire a certain number of years with specific assumptions, how much money does one need to accumulate?
Tl;Dr: with an aggressive portfolio, mostly in broad market index funds/etfs (e.g. VTSAX, VTI, SCHB,...), one should have saved about 30 times their annual spending to basically be able to live off of savings forever.
Why this is under science: The author has an economics PhD, the analysis is entirely technical, and they even present their work as a Social Science Research Network (SSRN) working paper.
EDIT: someone moved this topic to ~misc...guess SSRN ain't good enough, folks :-(
Scott Pape, the barefoot investor councils trying to reframe your life to lower income levels and not simply driving yourself into the ground chasing high income lifestyle. It is advice aimed at the forty and fifty somethings looking at the sixty plus age group. By that stage you have usually cleared mortgage, and do not need to spend as much on things but do spend on health and experiences.
I don't seek to contradict the 30x multiplier mentioned here. I just note nobody lives forever. Most worldwide pension and superannuation schemes use actuarial models to draw down capital for a reason.
How does this work for someone living paycheck to paycheck? Am I doomed to working my senior years in a walmart greeting center? I have about 2k debt
It should be noted that the limit to the IRA in 2019 is now $6,000, not $5,500. If one can save a single cent (and feels like they would be able to survive a typical emergency), then that cent should go into an IRA. The Tax benefits are huge.
Which governmental agency is saying you can't have more than 2k in your checking account? I've never heard of this restriction and would like to read up on it.
This is a stupid idea, but it's an idea - you could put any extra money in crypto. As far as I'm aware the US government only cares about this money once you convert it to fiat (USD, etc.).
The best thing to do is try and save as much money as possible.
Fundamentally, there are only two ways to go about doing that.
Reduce non-essential spending, get a low initial cost side gig that is profitable or is likely to be profitable, invest in education or training that allows you to get a higher paycheck.
Your money doubles roughly every decade or so when invested in a broad market index fund. Which means after 30 years, your dollar will be worth 8 dollars...This is basically free money, if you're willing to save and invest your money today.
Some decades can be better, some can be worse. But the longer you save, the more your portfolio will experience the average of these fluctuations.
On reddit, this sort of discussion takes place on /r/financialindependence or on /r/leanfire...but obviously I wanted to start a discussion here :-)
A good book (which I freely admit to having downloaded from libgen) is called the simple path to wealth. It is a more of less a restatement of this series of blog posts: https://jlcollinsnh.com/stock-series/
The author is writing the series addressed to their daughter, who doesn't want to think about money all the time. If that is you, or you want to get a good primer in this world, I would probably start there, with the knowledge that their can be some disagreements in this world. For example, I prefer the technical analysis presented in my post above when it comes to calculating safe withdrawal rates.