Author Topic: 30y - on track for MM-lifestyle and retirement?  (Read 2298 times)

JanJanssen

  • 5 O'Clock Shadow
  • *
  • Posts: 7
30y - on track for MM-lifestyle and retirement?
« on: July 27, 2013, 11:39:23 AM »
Hi all,

I am 30 years old and would like to share my retirement plans so I can get some feedback on it. Any kind of feedback or questions are welcome. I currently have 180K invested, and need around 1 to 1,2M to have a comfortable retirement. I plan to retire at the age of 65.

First, some constraints and remarks:

- I plan to able to save an extra 25K each year in the next 10 years.

- After 10 years - when I am 40 -, I don't plan to be able to save much anymore. The reason is that I plan to work part time when I reach 40, to be able to focus on and enjoy family and life in general. My salary will not permit much more saving then.

- I assume an average CAGR of 3,5% after inflation and costs in the next 35 years.

I did some simulations, which can be found here: https://docs.google.com/spreadsheet/ccc?key=0AgS6NUOS4OypdDlXSlNLRFg1NGhiU2RqdDB2TjdwYlE

Please look at the 5 tabs below this sheet! In each of these 5 simulations, the total CAGR is around 3,5%. The only difference is the CAGR of the first 10 years, the accumulation period. I averaged from optimistic to pessimistic. In each of these simulations, I reach the target.

My questions:

1) Is an average CAGR of 3,5% reasonable? Is it optimistic or pessimistic? Of course, nobody knows the future, I accept that.

2) Are my simulations valid?

Any kind of questions or feedback is welcome. I really would like to start working part time as soon as possible, but I do not want to jeopardize my future/my retirement. This is the reason why I am making this topic. It's not really about the investments, but about the planning of the retirement.

Thanks a lot all.

ender

  • Magnum Stache
  • ******
  • Posts: 4864
Re: 30y - on track for MM-lifestyle and retirement?
« Reply #1 on: July 27, 2013, 06:07:16 PM »
The biggest question is what your expenses are.

I could retire right now, at age 25, and be fine with 1.2M in the bank given my expenses. This will change if I end up married or increase my lifestyle.

But some people would have trouble retiring on 1.2M even if they were 70.

ch12

  • Pencil Stache
  • ****
  • Posts: 593
Re: 30y - on track for MM-lifestyle and retirement?
« Reply #2 on: July 27, 2013, 07:22:42 PM »
The biggest question is what your expenses are.

I could retire right now, at age 25, and be fine with 1.2M in the bank given my expenses. This will change if I end up married or increase my lifestyle.

But some people would have trouble retiring on 1.2M even if they were 70.

Seconded. I know people with a lot of money who are high spenders and would be totally unable to retire simply because they spend too much money and can't imagine a life where they don't buy St. Johns suits every week.

oldtoyota

  • Magnum Stache
  • ******
  • Posts: 3151
Re: 30y - on track for MM-lifestyle and retirement?
« Reply #3 on: July 27, 2013, 08:10:27 PM »
More info needed. Expenses?

Have you used FIRE Calc?