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You should be able to live off of 4% of your savings a year in retirement. So if you need 100k a year to live off of you’d need 2.5 MM saved.
In terms of strategy, read “the simple path to wealth” and start saving very early into your career.
Cost of living
I started investing in real estate too, who knows if we’ll even hit 50 working in this industry 🤷♀️
Factsssssssss... I think about that everyday
Pro
2.5m
😬
Depends on your lifestyle and if you’re gonna end up in a HCOL area. But $2.5-$4m for a comfortable retirement.
High cost of living.
30 years ago the benchmark was 1m…but there’s been several major economic meltdowns and skyrocketing housing/medical costs in that period. 2.5-4 is a much better benchmark, but we really have no control.
Very fair points. 😬😬😬 Eekkk that's quite a chunk of change needed
Minimum of $2.5
Talk to a financial planner. There are many products out there besides your 401k.
Plus you might have social security... when you retire. The idea of 2.5 does sound daunting but save the max you can. Plus the math that I am seeing is a 5% rate of return, without touching the principal.
That's a good point!
Your yearly cost of living number x25 which is the vaunted 4% rule in reverse. Typically at 60 years old you have no kids in the home and your house is paid off so your costs today should be less adjusted for inflation later.
Will do, tysm 🙏
Wow. I’m 50 this year and thought I was set with my 1.5. I’m only half way?!
If somehow we avoid a massive correction, you should be in a great position if that’s all invested in 10-15 years.