Age early 40s. 2016 expenses were 230K (was a little overboard).
I saved 37% of my salary in 2016. My current net worth is around 2.3M. 1.6 in stocks while rest in equity in house and cash.
How much do I need to retire?
I don’t see how anybody can determine their “number” now when we have this Great Transition awaiting us. People simply don’t realize that what they consider wealth is actually a claim check on wealth. There is simply no way all these claim checks can be honored at present value. Most of what people have in their portfolios are actually ghost assets.
Age early 40s. 2016 expenses were 230K (was a little overboard).
I saved 37% of my salary in 2016. My current net worth is around 2.3M. 1.6 in stocks while rest in equity in house and cash.
How much do I need to retire?
- When do you plan to retire?
- Will you continue to work in retirement?
- What kind of lifestyle will you have in retirement?
- How much do you want to leave as a bequest at your death (children, other relatives, charities)?
- How is your portfolio allocated? How will it be allocated after retirement?
- Will you have more children?
- Will you continue to support your children after they reach adulthood?
- Is there any chance you will get divorced?
- If you divorce and remarry, how will your plans change?
- How long will you live?
A basic rule of thumb is that you’ll want 25 to 33.3 years worth of anticipated retirement expenses (including taxes) saved up for a 3% to 4% withdrawal rate.
Let’s say you pay off the mortgage and are able to live well on about $150,000 a year. You’ll want $3.75M to $5M to retire with that level of spending.
Your savings rate is excellent, particularly if that’s 37% of gross salary. I challenge physicians to live on half their takehome pay to reach financial independence in a reasonable timeframe (15 to 20 years). You may be exceeding that and well on your way.
If the Great Transition arrives, remember to grab the can opener before you head down the tunnel into the Nuclear Winter bunker.
Cheers!
-PoF
A basic rule of thumb is that you’ll want 25 to 33.3 years worth of anticipated retirement expenses (including taxes) saved up for a 3% to 4% withdrawal rate.
Let’s say you pay off the mortgage and are able to live well on about $150,000 a year. You’ll want $3.75M to $5M to retire with that level of spending.
Your savings rate is excellent, particularly if that’s 37% of gross salary. I challenge physicians to live on half their takehome pay to reach financial independence in a reasonable timeframe (15 to 20 years). You may be exceeding that and well on your way.
If the Great Transition arrives, remember to grab the can opener before you head down the tunnel into the Nuclear Winter bunker.
Cheers!
-PoF
Also how do I calculate taxes in it? if half of my market investments is in taxable and half in tax deferred?
Age early 40s. 2016 expenses were 230K (was a little overboard).
I saved 37% of my salary in 2016. My current net worth is around 2.3M. 1.6 in stocks while rest in equity in house and cash.
How much do I need to retire?
- When do you plan to retire?
- Will you continue to work in retirement?
- What kind of lifestyle will you have in retirement?
- How much do you want to leave as a bequest at your death (children, other relatives, charities)?
- How is your portfolio allocated? How will it be allocated after retirement?
- Will you have more children?
- Will you continue to support your children after they reach adulthood?
- Is there any chance you will get divorced?
- If you divorce and remarry, how will your plans change?
- How long will you live?
Dont know all the answers but
1. Looking at current expenses and money saved cant retire full time before 55
2. My thinking was to reduce work around 55 to maybe 60-70% of current work, maybe go half time at 60
3. Probably similar lifestyle that I have currently
4. I would like to leave around a million each to two of my kids when I die.
5. Portfolio is pretty aggressive. Out of 1.6M Bonds are like 12%, US stocks around 55%, international: 25%, real state 6% (have an investment real state property as well beside that). 2% other stuff. Beside the 1.6M in market I have a investment real state property, cash and personal residence equity worth 600K. In retirement I plan to increase bond exposure maybe 5-10 years before I retire build a CD ladder to reduce risk of bad returns early on and 5-10 years into retirement increase my stocks again.
6. Two kids only right now. Hopefully I can gift some money to them starting around age 18 (long ways from there) and teach about saving and investments, or do it early if by chance I get to 11 million a little earlier.
7. If they are trying to do something and I have free time I may invest my time with them beside few dollars (dont know right now)
8. Hopefully no chance for divorce but you cant predict these things
9. If I remarry or divorce may have to work till 70
10. Dont know how long but planning till 85 or so
There’s another issue. Demographics and mandated withdrawals. The Millennial accumulation won’t be enough to compensate for Boomer distribution.
Also the Eurodollar won’t be what it used to be as the system becomes more multipolar. RMB denominated assets will gain market share as One Belt One Road takes off.
And the petrodollar recycling scam ended in 2014. Oil will sell for gold via the physical gold exchanges. Look no farther than the increases in Russian gold reserves. They’ve been selling oil for dollars for gold since 2014.
http://russia-insider.com/en/russia-china-lay-groundwork-transactions-gold/ri19355
Of course, you won’t hear this on CNN or CNBC…Fake News.
Age early 40s. 2016 expenses were 230K (was a little overboard).
I saved 37% of my gross salary in 2016. My current net worth is around 2.3M. 1.6 in market while rest in equity in house and cash.
How much do I need to retire?
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