If you require net 24k per annum to pay your bills in retirement what factor do you use to plan for increases in living costs each year? Do you use the CPI, the inflation rate, or look at your own incremental increases over the past 5 years and extrapolate from there.
Also , in the example above assuming "costs" go up by 5% per year is it reasonable to just work at your leisure at something you enjoy and just make-up $1,200 per yr ($100/ month) and not have to worry about it effecting your swr numbers/ assumptions. For me it would be a walk in the park mentally and emotionally to just get the extra $100 bucks for a cuple of hours work per month....any thoughts ?
Also , in the example above assuming "costs" go up by 5% per year is it reasonable to just work at your leisure at something you enjoy and just make-up $1,200 per yr ($100/ month) and not have to worry about it effecting your swr numbers/ assumptions. For me it would be a walk in the park mentally and emotionally to just get the extra $100 bucks for a cuple of hours work per month....any thoughts ?