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Subject:  Re: Beginning Retirement Investing Date:  2/18/2013  2:31 PM
Author:  intercst Number:  71410 of 88538

pauleckler writes,

As to how much to save, you may very well have a home to buy, children to educate, and other expenses to fund in the future. Those can be difficult to foresee this early. Keep in mind, Motley Fool wants you to accumulates investments worth 25 years of gross income to consider early retirement. Experiment with a spreadsheet program to see what it takes to get there in say 20 to 30 years. Let that be your guide.


Just one small correction -- it's a nest egg of 25 times your annual spending in retirement, not 25 times your gross annual income in the year before you retire.

to scwrigh2,

If you can limit your spending to a smaller fraction of your annual income, you can retire earlier. Of course, many Americans spend more than they earn.

I retired in 1994 at age 38 after working as an engineer in the oil & gas and chemical industry. I paid off my student loans by age 25 and started saving about 25% of my gross income. That slowly increased over the years until the last few years before I retired I was living on about 25% of my gross income, paying 25% in taxes, and saving 50% of my gross for retirement.

I created a website devoted to the topic which you may find useful.

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