Most use the 4% safe withdrawal rule, or 25x of current expense. It is the common formula for financial freedom and if you're unsure, read on this post.
Most just have fantasies on how much they need to retire (lump sum basis) and when they want to retire.
Some answers come up to be $1m by age40 so as to F.I.R.E (financial independence retire early) and go traveling every 6 months without worrying about money.
#vanlife #goodvibesonly
Problem is if you go travelling everyday, your expenses will skyrocket but more importantly, as I'd share below, it's unrealistic...
Factor annual retirement expenses and NOT current expenses!
After speaking to a few retirees, I found something missing in our forum discussions.
There is a component in most retirement plans which most people tend to overlook or downplay it's significance.
The formula for retirement should be: "Annual Retirement Expenses" multiplied by 25 instead of current expenses multiplied by 25 for financial freedom.
Retirement
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