Quote:
Originally Posted by Rain Man
A lot depends on your expenses. I did an extensive analysis last year, and to retire at 60, and taking into account inflation and social security and assuming a conservative investment philosophy, I would need 28 times my household expenditures to live at my current lifestyle into my 90s. To retire at 40, you'd need more than double that, plus your social security payments would be smaller. My hunch is that you'd need about 65 to 70 times your annual expenses.
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Along the same thought lines here. I’d say 60x your annual gross income because remember at a young age you’ll be living off “income” that’s all taxed as you can’t tap things like a ROTH yet.
On the same note for people retiring early, do what you can to make earned income in the year to max your ROTH. Just $6k or $7k if over 50. This will allow you to draw on something not taxable once you hit the right age. Is a great way to drop tax brackets when you’re older.