Retire Early
Lifestyle
Retirement; like your parents, but way cooler

In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
|
Perhaps Retirement Is Closer than You Think!
Billy and Akaisha Kaderli

Billy and Akaisha in Panajachel,
Guatemala
The media is filled with dire stories about Americans not saving enough for
retirement or imply that they are going to be eating Ramen noodles in their golden
years.
We'd
like to offer a different perspective, and it might be a possible solution
for you! Perhaps retirement is closer than you think.
Based on a recent
article on Money, the average couple spends about $61,000 per year while working.
But this is not what they would spend in retirement as the
costs of
working would be eliminated from their budget.
So lets say they spend $45,000 a year for housing, transportation, food and fun
- which
is more than the total of what
we
spend annually after three decades of retirement experience.
According to
CNBC the average monthly Social Security check in 2023 was $1,825. If
you are married and both working, that would be twice the $1,825 a month ($3,650)
or $43,800 per year. To match the above number of $45,000 to cover yearly
expenses, this leaves only $1,200 to make up though investment income.
Some easy math
But lets pad that amount a little and call it $10,000 for easy math.
In this case a couple would need to have a portfolio of $250,000 of
invested
assets, roughly 60
% stocks VTI and 40 % cash/Bonds to make up this difference and
covering inflation as well, by withdrawing 4% per year.
So I'm thinking that this amount is more in reach for most people to achieve their
retirement goal.
Of course every household is different. Some might choose to
sell the home
and lower their
housing and
transportation expenses while others could have bigger
desires.
The best rule of thumb is to
know
what your spending is today and factor out work expenses that you will not be paying in retirement.
These would be items such as parking, lunches out, wardrobe, transportation costs and
other work related financial outlays.
To
obtain the Dollar amount of invested assets that you will need, subtract your
yearly social security payments from the total you will spend
annually. Whatever the difference is
multiply that number by 25. This is the Dollar amount of invested assets you will
need to maintain your lifestyle.
If you
can invest more, that would be great. However, this
might be an option to reach your goal of retirement much sooner than you had
expected.

About the Authors



Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
HOME
Book Store
Retire Early Lifestyle Blog
About Billy & Akaisha
Kaderli
Press
Contact
20 Questions
Preferred
Links
Retirement
Country Info
Retiree
Interviews
Commentary
REL
Videos
|