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Clarification I meant what ARR%.
6 M with 2 kids
Coach
P1: Is the annual return on investments? which would suggest 60+M total net worth? Could you express in %?
Targeting 10% now, but actual nr determined by markets. After retirement counting on 3-4% net return through conservative investments and assuming current tax rates and long term inflation of 2-3%.
I’ve been hitting -15% average annualized returns for a portfolio that’s long equities with a decent allocation to private markets.
~ not - 😀
I run scenarios for between 5-7% for retirement planning. Recently returns >30% almost all indexed. I also use cfiresim for backwards testing. Need to hit 10M excluding college funds and home equity for retirement
$10M should be pretty easy to hit. I’m targeting more like 15M at 55. $10M is my retire at 50 number if I choose to do that.
My 18 year CAGR is 15% on brokerage investments and 401k which is my primary savings and accounts for over 85% of my assets. Remaining is in short term CDs earning about 4% or so. I have stayed away from exotic investments such as crypto etc and only invest in diversified ETFs. Kids are entering college and hopefully will be on their own by the time we get to retirement. We don’t own a second home and otherwise are quite frugal.
I have wondered about making changes in my investments closer to retirement which will come in about 7 years.
Mentor
My long term return on my equity investments is around 11% but I moved several $M into alternative investments 3 years ago that are intended to return less but provide more downside protection. Those are mostly real estate based (both debt and equity) and some private corporate debt. Those return around 8% but are a lot less likely to lose value.
51 yo, no kids, 8m net worth - can I retire or need more?
I have found the expenses x 30% to be a solid criteria if you are used to spending lesser. If you spend more go for 25% of spending as in the worst case you can go for lesser spending
10-15 percent during working years 5 percent or less in retirement. 10m liquid target for FIRE but may bump due to anticipated inflation under new admin