It’s Been A While…

Boy things have been picking up at work lately.  But I’ve still got my mind on what’s important.  My plans are not entirely set in stone yet though.  I’ve been soliciting comments from people about my plan and the resounding feedback has been — why not work for a few years and retire?  Since 80% of people have said this — not all of whom are drinking the middle-class striver Kool-aid — I’ve decided to think carefully about that approach.  I’m starting to come around a little bit.  But I really think this is due to my training of being able to delay gratification.

Right now, I have 8x annual expenses saved in cash.  Another 4x annual expenses saved in retirement.  Of course, these annual expenses apply only to me.  Not to a wife or kids…yet.  In order to safely retire, I’d need 25-35x annual expenses.  Since I don’t plan on vegging out entirely (my plan to start my venture is now a part-time gig), I think I can be safe and shoot for the lower limit of 25x.  I still plan on moving out to a cheaper place at the end of my lease.  This means I go from saving 2x annual expenses a year to 3x annual expenses a year.

So I need 25x to last me until 59 1/2 and hopefully by then my retirement accounts will have grown to a point where I can live off those savings at that time.  I’m short 17x.  If I go another 5 years at 3x a year, then I’ll basically overshoot the 25x assuming I get a decent return.  Hey I might start getting raises again and that 5 years might be 3-4 years.  Who knows?

*sigh* This is probably the most prudent course of action.  Although, if my side venture takes off, I will be more comfortable quitting.

3 thoughts on “It’s Been A While…

  1. That only works if your expenses don’t increase. I think it’s definitely prudent, but just watch out for lifestyle inflation… and you’re right, if you get married and have kids, your expenses will definitely jump up.

  2. There doesn’t seem to be any way to contact you other than these blog comments. I just wanted you to know that the sound of 17 emails getting sent from your blog every minute for 15 minutes woke me up at midnight last night. You probably need to figure out what caused that.

    • Sorry about that! I can tell you what happened. I went through my old posts last night and made most of them public again. Didn’t realize that would cause mass e-mails to get sent out. Fortunately, I don’t plan on going through that exercise again soon.

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