Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
I've seen below before, probably debated here too. Interesting comparison for a hypothetical person 60 years old, making 100k, paying 25k tax, hoping to retire on 80% of take home.
4% rule would suggest needing: $1.4million (100k-25k * 80% *25)
Below would suggest: $600k ($100k * 60 / 10)
Usually these "simple calculators" don't handle the extremes well - overestimates "should be" net worth for young people and underestimates for older people.
The Simple Dollar » What Should My Net Worth Be?
Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.
4% rule would suggest needing: $1.4million (100k-25k * 80% *25)
Below would suggest: $600k ($100k * 60 / 10)
Usually these "simple calculators" don't handle the extremes well - overestimates "should be" net worth for young people and underestimates for older people.
The Simple Dollar » What Should My Net Worth Be?
Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.