Comment by icedchai
6 years ago
Have you heard of the 4% rule? That basically means if you save up X amount, you can spend 4% of X every year, in perpetuity, given some reasonable return like 7%. So if you can live on $80k/year, save and invest $2 million.
I can live on much less than $80k and I actually currently do. But $2 million actually sounds like a reasonable goal. If I can get it down to $1 million then that will be achievable.
Yes, if you can get your expenses under 40K a year, you'll be good. I read a lot of financial independence / FIRE forums. Some people are much more conservative and think 4% is too high. They prefer the 3.5% or even 3% rule. For a very early, longer retirement, they are probably right. The 4% rule was based on a "normal" 30 year retirement.