I have had a lot of difficulty figuring out what my retirement goal should be. I’m not alone in having this difficulty – after all retirement planning is an industry on it’s own. The biggest problem I’m having is trying to project 35 years in the future.
The more I think about it, the race towards retirement is going to be a journey. That being the case, it makes sense to update the goal along the way. Why not start with today? How much would I need to retire tomorrow? The answer to that question is also the answer to “How much would I need to replace to my income?” I think I’d be very comfortable with a 100K income. Working backwards from that, at 8% interest, I’d need about 1.25 million today. Over time, that 100K income will buy less (thanks a lot, Mr. Inflation), so I’ll be raising the goal even as I chase it.
Can I run faster than inflation? Join me for the journey and we’ll find out together.
Adverstisement may follow below…