How much is enough to retire on when building wealth?
Lisa asked:
With medical expenses raising each year, cost of living and general day to to day living, what annual income or % of your current income would be enough for you to retire? Are you building wealth?
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With medical expenses raising each year, cost of living and general day to to day living, what annual income or % of your current income would be enough for you to retire? Are you building wealth?
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12-15% of your gross for 40-50 years
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It really depends on how well your investments do and how you want to live during retirement. You can live with basically the same standard of living if you save 10 times your annual income. So if you make 30k/ year then save 300k to retire on. If you make 50k/year then save 500k.
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it depends on how ravenous you are with money. For the high flyers 500 million dollars is just ok but if you are like me its 500,000 dollars would do
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I’ve used this metric for years — it’s called FTI (for “F*** This” Index, ha ha):
FTI = Age * Net Worth / Yearly Expenses
When your FTI passes 1000, you’re probably good to retire. As you age, the number goes up because you have fewer years to support yourself. Obviously, a higher net worth and/or lower yearly expenses help, too.
It’s not terribly precise, but it’s useful for measuring your progress.
Good luck,
Doug