Talking stocks, trading, and investing in general

[venividivicibj]

I briskly filled out this retirement goal calculator online. The report said in order to reach my goal I need to do one of the following:
1. Increase my savings to 130% of my annual salary,
2. change my rate of return to 13% annually, or
3. Delay retirement until age 106.

Clearly its option 2- leverage equities up your eyeballs.

 

[Coffandcig]

I briskly filled out this retirement goal calculator online. The report said in order to reach my goal I need to do one of the following: 1. Increase my savings to 130% of my annual salary, 2. change my rate of return to 13% annually, or 3. Delay retirement until age 106.

I'm torn what to do.

Write naked options.

 

[jbarwick]

Sounds like fewer bespoke suits and cat food for retirement.

 

[patrickBOOTH]

Cat food maybe, but less bespoke? NEVER.

 

[jcman311]

4. Invest heavily in WeWork.

 

[Omega Male]

Easy, just die sooner.

 

[venividivicibj]

Easy, just die sooner.

Most I see project retirement to end at around 95?

 

[brokencycle]

If you wanted to live in $100k/yr assuming no other income, and you assumed 4% interest with a starting balance of $2m, you would still have money in the bank after 37 years. If you had $2.5m you would almost never run out.

 

[Omega Male]

FIRECalc: A different kind of retirement calculator

www.firecalc.com

 

[patrickBOOTH]

If you wanted to live in $100k/yr assuming no other income, and you assumed 4% interest with a starting balance of $2m, you would still have money in the bank after 37 years. If you had $2.5m you would almost never run out.

The way I think about this is how much do I need in capital to live off interest and dividends without drawing down at all. I figure this equals about $4 million in today's dollars to throw off roughly $100k. I am 34, how much will I need when I am 65? With inflation I would need (off the top of my head) $250k to live like I would today on $100k. How much capital would I need to do the same thing? $10 million?

 

[jbarwick]

Interesting #'s Booth as we are the same age and based on my calcs, would have $4M in today's $$$ @ 65 so similar ending amount. This is using a real return of 4.9%. Using a nominal 9% growth, it is a hair over $8M @ 65.

Again I am saving 20% gross income and haven't updated my salary since 2014 (other than 2% raise each year) on this model as anything over that is cushion. If you are buying bespoke, you aren't making something like $50K per year so that model must be broken.

 

[patrickBOOTH]

Your first line is similar to my thinking, that's also what I am looking at honestly. I also save 20% gross. My biggest worry is inflation. People think in terms of % of their salary to save, but I fear there are many costs that are going to rise in the future that are unrelated to my salary hence the need for a real ending value of $8-10 million.

 

[patrickBOOTH]

I also lied in my previous post, I only save 19%.

 

[Piobaire]

I’m having angst about all the “dead” equity we now have in our house. Should I remortgage and triple leverage?

 

[jbarwick]

So $4-$5M in today's money? Gotta up that salary or leverage. Somehow I got lucky in 2019 and my wife may close to double her pay. Good problem to have I suppose but I worry like Piob, someone is going to pull the rug out from under us tomorrow.