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What you might do is model a bare bones lifestyle and then throw $100,000 (pick a number) worth of hobbies and travel into the first 5 years of retirement and see how that pencils out.

Remember, this is from a guy who retired rich long before his hair turned gray. His advice may be tainted by this experience, so his advice may not be completely applicable to more normal situation.


But anyway, we are on our 13'th year of retirement (yes, I retired early too--just not as early as him), and we have just now cut down to taking only 2 cruises a year. So I'd modify his advice from "first 5 years of retirement" to "until you get to a mid-70 age".

I always say that there are some categories of question where, if the immediate answer is not "Yes" then the correct answer is "No". If you even have to think about it and then come up with "Yes", the true answer is "No".

The biggest risk here is that you retire on a shoestring by fiddling with computations and formulas and assumptions until you get a "Yes I can retire" answer. (We used to call this torturing the numbers until they say what you want.) .... And then discovering that the world didn't work out as you hoped.

Lots of people got this lesson good and hard in the dot-com meltdown.

You need to decide how much risk you are willing to take. Lots of people back then minimized or ignored the risk they were taking.....and wound up trying to re-enter the job market looking for a high-paying job at 55 years old.

Spend a few hundred dollars and take your figures to a by-the-hour financial advisor and ask for his professional take.
The answer you need is, "Pfft, what do you need me for?"[*]

If he says, "Lord willing and the creek don't rise" .....

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[*] We got this with one. With another one, he wouldn't even take our money after spending a hour with us.
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