Lagniappe
Recycles dryer sheets
- Joined
- Mar 21, 2006
- Messages
- 406
I build my retirement budget from the bottom up, based on my expenses. I thought it would be fun to figure out what my "salary" would have to be to match my planned retirement spending. I remember a chapter in Work Less Live More that showed how much less in taxes a retiree payed than someone working for W2 income.
Lots of assumptions - single, maxing out 401K, no state taxes, most income from LTCG, etc. The bottom line was at a 4% withdrawal rate, you would need 16-18 X whatever the salary was you were trying to emulate.
I don't know why, but viewing it from a different angle somehow made me feel better/ more motivated. As if, in I can get my portfolio to say $1.6 Million, I can feel like I will be getting paid $100000 per year to surf the net, hike and travel - forever.
I can't figure out how to post a table or I'd show my calcs.
Live Like = Portfolio
100K = 1.628M
150K = 2.655M
200K = 3.625M
250K = 4.539M
300K = 5.520M
Lots of assumptions - single, maxing out 401K, no state taxes, most income from LTCG, etc. The bottom line was at a 4% withdrawal rate, you would need 16-18 X whatever the salary was you were trying to emulate.
I don't know why, but viewing it from a different angle somehow made me feel better/ more motivated. As if, in I can get my portfolio to say $1.6 Million, I can feel like I will be getting paid $100000 per year to surf the net, hike and travel - forever.
I can't figure out how to post a table or I'd show my calcs.
Live Like = Portfolio
100K = 1.628M
150K = 2.655M
200K = 3.625M
250K = 4.539M
300K = 5.520M