Summarizing from previous posts heres my current situation and goal:
Point A - My current situation:
I own my home and will be paid off in 10.5 years.
Net assets towards retirement plan = $319,214
Net annual savings after expenses: $29,900
Point B - My goal:
Goal: $50,000 / year income (todays dollars) from investments and my house paid off by age fifty
So how do I get from Point A to Point B?
If I assume a 3% annual inflation rate I'll need about $75,600 in annual income in 14 years. I did a little figuring and modeling in Excel and determined that if I start now with $319k and add $30k (29.9 rounded up) every year then I'd need to get about a 6% annual return on my investments in order to have a net worth to provide me the $75k annual income.
6% annual return is not too hard over the long term so I'm in pretty good shape here.
So the bottom line for my plan is:
Save $30,000 per year and make at least 6% on my investments.
March 13, 2008
What I'll need to do to meet my goal
Labels:
retirement planning