Question 1:

If you are not going to have enough money to retire UNTIL your actual retirement age, do you multiply your current expenses times twenty-five -or- do you multiple how much your current expenses will be in retirement (adjusted for inflation) times twenty five?

For example:

Current Expenses Year 2016: $20,000 [This means you will need 25 x $20,000 = $500,000]

Value of $20,000 in 45 years when retiring considering 3% inflation: $75,631 [This means you will need 25 x 75,631 = $1,890,775]

That is a huge difference so I am asking this question! haha.

I think the answer is that you if you can get $500,000 saved during the time when the value of your expenses is $20,000, then $500,000 is all you need. BUT, if you cannot get the 500k saved while your expenses are 20k, then the goal post is going to keep moving (not because your expenses increase, but because they cost more due to inflation)?????

Question 2:

If a person would like to save an equal amount per year in order to arrive at the '25 Times' number at retirement age, how do they go about figuring out how much per year to contribute? Would you choose an exact number that would lead you to your goal -or- would you choose a percentage of income?

For instance, using a compound interest calculator, if a person needs 1 million in order to retire, over 45 years, they would need to add a total of $2592 per year (at 8% return) = $1,000,000 are retirement age. This would mean that the piece of your take-home pay over the years that went to retirement would actually be less and less because $2592 in 2016 is going to be worth a lot more than $2592 in 20 years. It would be easier to save for retirement, the older you got.

Or, would you simply always put in 15% of your income or some other percentage (that would rise as your income rose).

Thank you, thank you!

**p.s. I know the answer is 'save as much as you can' and 'get to FIRE as fast as possible.' But, I ask these nuanced questions so I can more fully understand the 25X rule, etc. Thank you.**