Retire at 40 eh?Originally Posted by bbaucom
Well first of all....you need to figure out how long you are going to live till. If you plan to die on your 80th birthday, then that means you need enough money to last you 40 years. If you start(ed) saving for retirement at age 20, then that leaves you 20 years to accumulate that money. If you intend to maintain the same cost of living during retirement as during your working years, then you need to earn 3x your cost of living, so you can save 2x your cost of living.
Of course, you can buff these numbers with investments, but its still not an easy task....especially since I believe many find it hard to even save the recommended amount, which is about 10% of their paycheck (let alone 66%).
Why do you think a lot of rich people still work into their 50s-60s?
For the record, I usually aim to save at least 55% of my net paycheck.
Edit: Oh, I suppose I should update my goals...since it's been almost a year when I created this thread....
I'll say that my next goal is to achieve a net worth of $1M in 10 years
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