Inspired by the interesting "Magic Retirement Number" poll, I offer the more interesting (to me anyway ) "Magic Number to Income at Retirement Ratio" poll.
Divide your Magic Number (considered to be the gross assets required for you to retire tomorrow) by your current income. Thus, if you intend to retire at your current standard of living, spend everything you make, and believe in the 4% SWR, your ratio would be 25 (ignoring savings associated with quiting the job).
For purposes of this poll, pretend you do not have a pension (if in fact you do have one) and your mortgage is paid off. The question is, how much cash would you need, relative to your current income, to retire tomorrow.
My purpose in this poll is find out if people are willing/planning to retire at a reduced income in order to retire early, or are willing to retire later to get a higher income.
I'll go first, obviously. My ratio is 20. I would be out in a heartbeat! I may, at some point in the future, go out at a lower number. However, I would act today at that point.
[edit -> added "spend everything you make"]
Divide your Magic Number (considered to be the gross assets required for you to retire tomorrow) by your current income. Thus, if you intend to retire at your current standard of living, spend everything you make, and believe in the 4% SWR, your ratio would be 25 (ignoring savings associated with quiting the job).
For purposes of this poll, pretend you do not have a pension (if in fact you do have one) and your mortgage is paid off. The question is, how much cash would you need, relative to your current income, to retire tomorrow.
My purpose in this poll is find out if people are willing/planning to retire at a reduced income in order to retire early, or are willing to retire later to get a higher income.
I'll go first, obviously. My ratio is 20. I would be out in a heartbeat! I may, at some point in the future, go out at a lower number. However, I would act today at that point.
[edit -> added "spend everything you make"]