Quote:
Originally Posted by Traum
So here is my back of the napkin math retirement savings calculations:
retirement age: 60
dying age: 85
years alive = 85 - 60 = 25 years
months alive = 25 x 12 = 300 months
total amount of money needed if monthly spending is:
$3k -- $3k x 300 months = $900k
$4k -- $4k x 300 months = $1.2M
$5k -- $5k x 300 months = $1.5M
Conclusion -- I can't afford to live to 85, so I'll need to die sooner. Fxxk this fitness and health shxt.  |
Sorry bro but this is a stupid way to calculate retirement savings. So what you're saying is at age 60 you're going to take out your money from investments and savings and stash it under your mattress and only take out what you need to spend?
Better way to get to the same result:
(Annual expenses today) x 25. That's it. That's a 4% withdrawal rate and a 7% assumed growth rate (3% spread is for inflation). Best part is? You don't need to wait until you are 60, you also don't need to MAID yourself at 85. If you've got 1.5M liquid and your annual expenses don't rise significantly you're set for life for any length of retirement (theoretically).