No. of Recommendations: 0
Because of the tremendous uptick of various markets around the world and the current steady increase in value of many investment vehicles, this couple should be able to retire on what they want by age 50.


Assuming the recent past is an accurate prediction of the long term future.

Lets see an annual return of 11% on 300k is 33k

So, the first year is almost covered. Aren't you the least bit concerned with the effects of inflation after 10 or 25 years? The reason you don't spend all of the interest in the beginning is that you have to allow for inflation which creates a need for ever larger annual withdrawals. Or else you eat cat food in your later years.


True, 35k in 15 years will not be as much as it is today, but take into account that this couple expects to live on half of its current income. So they could max out 401k and other employer savings plans. They could increase thier savings to a total of 20% and garnering a modest 15% annual return they could easily eclipse 550k. Add to this the purchase of a home and paying it off in 15 years and the purchasing of other income producing assets and you will see that in 15 years this couple could easily retire in comfort.



How?? They are barely making it on their current income, with no money going to savings. How can they max out the savings plans AND purchase a home and other income producing assets? I see a critical need for additional income in order to make this scenario turn out. Second job, anyone?

AnnV
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