That will be a lifestyle adjustment of some kind for you.
If you're currently making more and only investing the $41.6K, then you must be dispensing of the excess somehow. OP, yes, it will approximately work if you invest the 64% of that number and the stock market returns as assumed, AND you cut back your spending in 10.6 years to that $65K. It sounds to me like OP makes more than that, but wants to plan to live on $65K and retire in about 10.6 years. Quote from: alcon835 on May 26, 2019, 08:14:11 AM I think I asked the question poorly. This also assumed I am investing in pretty standard index funds for that time.Īm I understanding the math correctly, or to live off of $65,000 in the future do I need to be investing 64% of my current income? It seems like my assumptions above are correct, but almost none of the calculators seem to account for what I'm trying to math out. So, to clarify my question: Regardless of my income, if I want to withdraw $65,000/yr in FIRE retirement, assuming a 4% withdrawal rate, I should be bale to hit that number in ~10 years as long as I invest 64% of $65,000 (aka $~42,000/yr). It seems like all those calculators assumes I'm going to live at my current lifestyle and income level into retirement. When I put that number in, I get a wildly different outcome that says it will take a really long time for me to get to that goal. The problem I'm running into in all of the FIRE calculators is they ask for my current income. But based on the Shockingly Simple Math that is more-or-less the idea behind the whole thing. Obviously, nothing is perfect and who knows what the market will do. According to the Shockingly Simple Math, I should be able to achieve that in ~10 years as long as I'm putting away ~$42,000/yr in investments over those 10 years. To get there, I would need $1,625,000 in total investments. This, presumably, takes into account yearly 2-3% inflation (which is my current assumption).
I want my withdrawal rate at retirement of 4% to be $65,000.
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