The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / FIRE Wannabees

URL:  http://boards.fool.com/this-good-question-was-asked-in-another-thread-19428414.aspx

Subject:  Re: Life Expectancy Date:  8/7/2003  6:06 PM
Author:  Lammergeier40 Number:  173 of 5084

This good question was asked in another thread. Will life expentancy affect your plans for early retirement?

While not an option for everybody, those who are embracing FIRE early enough in their lives (and have jobs that don't totally suck the marrow out of them) could shoot for a slightly higher nest-egg, one that ought to allow them to effectively endow their lives. In other words, save enough so that you can live entirely off investment income less inflation, so that your real capital is never depleted. One way to do this would be to live entirely off a dividend stream from a 100% equity portfolio (at a mere 1.6% dividend yield on the S&P 500, you probably wouldn't want to be an indexer though).

Potential reasons for taking this additional step (which would necessarily postpone your date of FIRE) would be to help set your kids up for the luxury of not working forever, or if you're childless, to support some charitable cause that you strongly believe in.

Todd
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us