If we take your office building (125K) and current savings (870k), and assume (say) a 2% annual return after taxes and inflation, you should have investments of about $1.14M (2009 dollars) in seven years' time. And if you contribute ~385K in additional savings over that same period, that should bring you up to about $1.53M.
That is 220K short of the $1.75M Coach suggests as a rule of thumb ... but perhaps you can sell your condo and either rent or downsize to a smaller (cheaper) place. Or perhaps you can manage to stash away more than 50-60K annually?
Originally Posted by walkinwood
If you haven't started already, this is a good time to start tracking all your expenses so you have a good picture of which expenses are important to your happiness, which will rise after you quit working, and which ones will fall.
Very good advice. You may find that you actually need significantly less than $70,000 annually, in which case you might be able to retire sooner than you think. Conversely, you may find that $70,000 annually is not going to be enough, in which case you will need to either adjust your lifestyle or postpone retirement for a few years more.
In any event, it is better to arrive at a reasonably reliable annual amount based upon current expenses rather than simply pulling a number out of the air.