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mawhinney asks,

Calling all math wizards! Has the law of deminishing returns set in? When I look at my pay stub and all the deductions, I wonder if it is worth working any longer? Only 38% of my salary is take home pay, 43% goes to state and federal taxes, 8% to SS & Medicare, 9% to a 401k, & 2% to other items such as United Way. I won't be eligible for SS for 3 1/2 yr.but most retirement calculators show I have enough set aside. (When I retire I plan to live in a state with no or little in the way of state taxes.) Is it worth it to keep working?

It's not a math problem. Once you have sufficient assets to enable you to live off a 4% withdrawal rate, you can safely retire. Once you reach this level of financial independence the decision to keep working ought to be based on other factors (e.g., Do you like working?, Are there better ways to spend your time?, etc.)

I told my boss "to go screw himself" in 1994 and retired at age 38. After being retired for 6 years and enjoying it immensely, you couldn't get me back into a 40 hour per week job for a salary of $1 million per year. <grin>

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