How Much Is Enough For Early Retirement?

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8 Responses

  1. Jef says:

    Good to hear from you R2W, feels like it’s been too long! How was your Christmas and New Years.. I’ve started thinking less about capital i.e. having 1 million $ and more about the income being produced through rental income, dividends, P2P interest etc.. Of course capital will go hand in hand with this although that will be more about the process rather than the goal.. Looking forward to watching your progress along the way 🙂
    Keep up the fantastic work

    • tom says:

      Thanks Jef – Christmas and NY were good, nice and relaxing. Took a quick break out of the concrete world into the green one, very relaxing. I know what you mean about the income produced. Having a large chunk of money in super and primary residence (neither of which produce income now) when I started looking make me care much more about capital and it sort of stuck. I have slowly been transitioning to income however, as that is what you will live on and use (including to maintain the capital). Defiantly two side of the same coin. How was your year end?

      • Jef says:

        Awesome to here Tom and it’s all about the process rather than the destination.. I’m probably very impatient to get to the destination..
        Great to hear you had a break as well.. That’s fantastic :)!

        Things at my end are getting interesting.. I’m about to (in March) embark on a 6 month journey to Africa.. From a financial perspective this isn’t a fantastic and will set me back from building that income although being 27 it’s time to get out there and attempt to get more of that wanderlust in before kids 😉

        Onwards and upwards for you man and keep it all up!

        • tom says:

          6 months in Africa 🙂 Very jealous! Are you working over there? Holiday? Safari?
          And while financially it may not be a fantastic idea, it will probably be cheaper without brining kids along, so if you want to do it, now is a better time than after kids!

          • Jef says:

            Haha yes most have had similar reactions :)! I won’t be working, have built up enough of a financial buffet to do so.. There’ll be some volunteering (looking like Ghana) and I’ll head around the rest of the place as well
            From a practicality perspective doing before kids is also easier

            I’ll be looking forward to you smash 2017!

  2. Great job, R2W and thank you for the mention! I’m very impressed by the calculator that you created and in such a short time.

    How much is needed for early retirement is an interesting topic that I have struggled with at times as it can get a bit overwhelming when you start playing with the numbers and it suddenly dawns on you that early retirement may only be a pipe-dream. At the end of the day, I don’t think there is any perfect number that you can call it quits on. In reality, it’s likely to be a transition from a regular full-time job to part-time work/working for yourself when you have a significant nest egg saved up. Of course, it’s great to have a rough idea of the target so you can set defined goals that will push you along this journey to financial freedom.

    What we have decided to do in the near term is to focus on the core strategies that are in our control: maximising our income streams, reducing expenses and investing in a broad range of markets to gain solid returns. Basically, focusing on the basics with the plan that financial freedom will sort itself out in the longer term. Our plans for the future change regularly and that’s why it’s great to be part of this community of like-minded people to hear their stories and ideas.

    Again, great work on the calculator and I hope you have a great 2017!


    • tom says:

      I don’t think I could have put it better: “it’s likely to be a transition from a regular full-time job to part-time work/working for yourself when you have a significant nest egg saved up”. Ignoring the lotto scenario, it will defiantly be a transition for me. Not that I enter the lotto, my maths is just too good for that, I want more control over the outcome if I am going to gamble.

      Anyway, I would probably head toward things like moving to 4 days a week, some contracting, taking a year off for other work etc. I do like the idea of burning ships so you cant go back, but I don’t think my risk appetite is that large. Although it is getting larger as my assets grow.

  3. Where has this calculator been all my life! Seriously, it’s brilliant. Well done. I especially like the tax column. Sooooo helpful!

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