http://money.msn.com/retirement-plan/article.aspx?post=dd544488-f716-496b-b314-8e25b69e7aa9I've read this article several times.
It's not clear to me, based on the info he provided, how much of his $600k or so stache was in taxable accounts when he retired - reference the last number before year 9.
He mentions adding in $100k increase in the value of a house, but of course, that isn't cash flow that puts food on the table.
Some of the $600k appears to have been in tax deferred accounts as well, but it's not clear how much...point being those can't be touched until 59.5 unless he's doing something unusual so I'm assuming that doesn't factor into his retirement cash flow.
Assuming he based his ER on the low end of his spending, he's looking at needing $30,000 x 25 - or $750,000 in accessible investments (i.e. not 401k and property value).
Now maybe he decided to "retire" and work his part time gig to make up the different if he only had say $15,000 x 25 = $375,000 in more liquid savings, give or take.
Has anyone analyzed this and tried to apply it to their own situation?
I'm trying to better understand the numbers so I can maybe shave some more time off my own plan.
As it stands right now, I'm assuming I need to spend about $48,000 per year for a savings of $1.2MM in fairly liquid savings. I could easily retire sooner than that (by keeping spending down around $30k - $40k) but enjoy my job and want to create some buffer.
Thoughts?