- Joined
- Nov 17, 2015
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While I agree the metrics for this article are wonky, at the time we retired, adding DH's and my gross incomes together, x10, was about the size of our investments. Plus the paid off house, no debts, which I don't see mentioned in the piece.
We absolutely saved more than 50% of our gross, especially in the final years. And 10x your salary "today" to someone still saving, isn't the same - hopefully - as 10x their salary the day they retire. Over the course of that timeframe salary should increase, as should the target number, if that's the anchor. Which is why it doesn't make much sense as expenses are the most important number.
So it's poorly written, just another way to try to frame how-to-fire, but not really getting it right.
We absolutely saved more than 50% of our gross, especially in the final years. And 10x your salary "today" to someone still saving, isn't the same - hopefully - as 10x their salary the day they retire. Over the course of that timeframe salary should increase, as should the target number, if that's the anchor. Which is why it doesn't make much sense as expenses are the most important number.
So it's poorly written, just another way to try to frame how-to-fire, but not really getting it right.