{"id":6037,"date":"2021-11-30T12:53:25","date_gmt":"2021-11-30T19:53:25","guid":{"rendered":"https:\/\/mattfife.com\/?p=6037"},"modified":"2021-11-30T12:53:25","modified_gmt":"2021-11-30T19:53:25","slug":"realistic-retirement-numbers","status":"publish","type":"post","link":"https:\/\/mattfife.com\/?p=6037","title":{"rendered":"Realistic retirement numbers"},"content":{"rendered":"\n<p>Now mid-career, I have been doing some math and adjustments to my retirement planning. One question that always gets asked is &#8216;When can I retire?&#8217;. This first boils down to &#8216;How much money do I need to have to retire&#8217; (then in what ways can I arrange\/distribute that money in a tax\/minimal penalty way)<\/p>\n\n\n\n<p>You read a lot about <a rel=\"noreferrer noopener\" href=\"https:\/\/www.investopedia.com\/terms\/f\/financial-independence-retire-early-fire.asp\" data-type=\"URL\" data-id=\"https:\/\/www.investopedia.com\/terms\/f\/financial-independence-retire-early-fire.asp\" target=\"_blank\">FIRE (Financial Independence, Retire Early) folks<\/a> that are &#8216;retiring&#8217; in their 30&#8217;s. I say &#8216;retiring&#8217; in quotes because it&#8217;s not your traditional retirement. The idea is that you carefully examine and reduce expenses to the point you are saving up to 70% of your income, and then retiring when your expenses reach the return on savings\/investment. While there are variants, many folks are retiring on around $1M (or even less) in the 30&#8217;s to 40&#8217;s. <\/p>\n\n\n\n<p>As a frugal person myself, I have been intrigued by the FIRE movement, but often found their calculations and assumptions to be very optimistic. Aggressive FIRE calculations work well in low-inflationary, 8% return markets we&#8217;ve had for the last 20 years. They do much worse in high inflation and lower returning markets that are being predicted the next 5-10 years.<\/p>\n\n\n\n<p>Enter Brian Fry, a certified financial planner, who ran a bunch of <a rel=\"noreferrer noopener\" href=\"https:\/\/www.businessinsider.com\/personal-finance\/how-much-money-need-to-retire-early-at-45-2019-8\" data-type=\"URL\" data-id=\"https:\/\/www.businessinsider.com\/personal-finance\/how-much-money-need-to-retire-early-at-45-2019-8\" target=\"_blank\">interesting simulations to give you a much more realistic set of values if you want to retire at certain ages<\/a> to ensure income well into retirement. I found his assumptions (listed in the artcle) to be MUCH more realistic than the $1M and retire numbers that I often see come out of FIRE calculations. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.businessinsider.com\/personal-finance\/how-much-money-need-to-retire-early-at-45-2019-8\" target=\"_blank\" rel=\"https:\/\/www.businessinsider.com\/personal-finance\/how-much-money-need-to-retire-early-at-45-2019-8 noopener\"><img decoding=\"async\" src=\"https:\/\/i.insider.com\/5d55930fcd978471ed6dca09?width=700&amp;format=jpeg&amp;auto=webp\" alt=\"How much money you need to have invested to retire early\"\/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Now mid-career, I have been doing some math and adjustments to my retirement planning. One question that always gets asked is &#8216;When can I retire?&#8217;. This first boils down to &#8216;How much money do I need to have to retire&#8217; (then in what ways can I arrange\/distribute that money in a tax\/minimal penalty way) You read a lot about FIRE (Financial Independence, Retire Early) folks that are &#8216;retiring&#8217; in their 30&#8217;s. I say &#8216;retiring&#8217; in quotes because it&#8217;s not your&#8230;<\/p>\n<p class=\"read-more\"><a class=\"btn btn-default\" href=\"https:\/\/mattfife.com\/?p=6037\"> Read More<span class=\"screen-reader-text\">  Read More<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9],"tags":[],"class_list":["post-6037","post","type-post","status-publish","format-standard","hentry","category-cool"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4WECr-1zn","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/mattfife.com\/index.php?rest_route=\/wp\/v2\/posts\/6037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mattfife.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mattfife.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mattfife.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mattfife.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6037"}],"version-history":[{"count":1,"href":"https:\/\/mattfife.com\/index.php?rest_route=\/wp\/v2\/posts\/6037\/revisions"}],"predecessor-version":[{"id":6038,"href":"https:\/\/mattfife.com\/index.php?rest_route=\/wp\/v2\/posts\/6037\/revisions\/6038"}],"wp:attachment":[{"href":"https:\/\/mattfife.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mattfife.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mattfife.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}