Comment on How Much Do I Need to Retire? by Financial Slacker.
I have adopted the rule of thumb that you need 25x your annual retirement spending in order to retire and not risk running out of money. If you’re under 40, I would target 30x annual retirement spending.
Financial Slacker Also Commented
How Much Do I Need to Retire?
Because I have always focused more on growing income rather than minimizing expenses, I often think about “what might happen tomorrow.”
When you have a large expense hurdle, it’s hard to imagine building a passive income stream substantial enough to cover. So you tend to worry about maintaining the active income stream – the succes trap.
Sounds like you have already mastered the expense side and are focused on building the capital side.
Thanks for sharing.
Recent Comments by Financial Slacker
Personal Finance Articles You Must Read
Every day blogging, I learn something new. I’m fascinated by the number of great sites and knowledgeable writers that I’ve come in contact with over the past few months.
I look forward to reading more wonderful articles from you.
Stop Spending and Start Saving
You nailed it!
Spending control is the key. Not only do you have more money to save and invest, but you get used to living on less.
As I started getting more focused on my personal finances, I kept coming back to my spending as the problem.
If spending is too high, it will be nearly impossible to save enough to retire at a reasonable age.
Thanks for the comment.
Why You Should Start Paying Your Children an Allowance
That was my initial reaction as well. But as we developed everything, the dollar amount started to make more sense.
When I was a kid, my allowance was the same way. It wasn’t regular or consistent.
With our children, we are trying to build a link between work, pay, and priorities and in order for that to have significance, we set the dollar amount relatively high.
I expect that as they get older and start looking for typically part-time jobs, my children may realize that they can make more money with our “allowance” system than they can on the outside. I’m not sure if that’s a good thing or not, but I have a few years before I need to deal with that.