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=0AgS6NUOS4OypdDlXSlNLRFg1NGhiU2RqdDB2TjdwYlEPlease 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.