The Motley Fool Discussion Boards
Retirement Discussions / Retire Early.
|Subject: Re: Arbitration||Date: 11/25/2002 2:16 PM|
|Author: sozenne||Number: 24 of 67|
Here's some info about me:
Salary: X/year (if the threads make it clear that I need to be less vague, I will deal with that later)
Benefits: health insurance, 401(k) with partial match, term life
Net worth: 4X
Living expenses: 0.3X/year
Great idea! I think another relevant piece of info would be
Did you include taxes in the living expenses? What I'm getting at is how much X per year are you saving (0.7X/year would be amazing!!!)? In order to predict when one will reach FIRE, we need to know a few things, some of which we have to make educated guesses about. Off the top of my head, these include:
living expenses (post retirement phase)
rate of savings
rate of savings growth
With this info, we can predict how the nest egg will grow. Then we just have to pick a number for "enough" and quit our jobs. The REHP study is a great starting point, but obviously past performance is no guarantee of future results. I've seen amateur statisticians argue quite reasonably that the 100+ overlapping periods used are not statistically independent (they overlap!), so there aren't really 100+ data points, there are many fewer than that (3-5 IIRC). Not exactly the sort of stuff to make me sleep well at night.
I've seen some Mo