How much do you need to save before retiring?
#1
Posted 21 March 2018 - 10:24 PM
#2
Posted 22 March 2018 - 03:22 AM
As part of your savings needed to retire, maybe the amount is too high (30x or 40x your yearly expenses)?
Reason I bring this up is because I have learned that Cash maybe be King but Cash Flow is the Real Power.
Having a steady stream of income as you are retired, cash savings isnt as paramount.
Cash Flow from Trading stocks, options and/or futures can go a long way in reducing how much you need to stash away. Trading can be risky and shouldnt be the only source of income. Rental Income is a solid addition to what should be a diversified stream of income.
I apologize if you have brought this up in other blog positing that I have missed.
Waver
#3
Posted 22 March 2018 - 05:34 AM
They key to retirement is plan to be out of debt and have a constant cash flow per month of at least $4,000.00. Zero debt is a must.
#4
Posted 22 March 2018 - 06:09 AM
#5
Posted 22 March 2018 - 06:11 AM
CycleTimer.
As part of your savings needed to retire, maybe the amount is too high (30x or 40x your yearly expenses)?
Reason I bring this up is because I have learned that Cash maybe be King but Cash Flow is the Real Power.
Having a steady stream of income as you are retired, cash savings isnt as paramount.
Cash Flow from Trading stocks, options and/or futures can go a long way in reducing how much you need to stash away. Trading can be risky and shouldnt be the only source of income. Rental Income is a solid addition to what should be a diversified stream of income.
I apologize if you have brought this up in other blog positing that I have missed.
Waver
Waver,
I’ve brought this up to some degree in order blog posts, Income from real estate and put selling. I do believe in having 3-5 years living expenses in cash or short term notes, in order to mitigate being forced to sell equities in a bear market. I like the bucket strategy and I plan to expand on this in a future blog posting.
#6
Posted 22 March 2018 - 06:38 AM
Good thread.
I will trade until the last breath....addicted
#7
Posted 22 March 2018 - 07:51 AM
Zero Debt
Minimum $4K cash flow post tax, preferably from rental income (more solid). Ironically my goal is mid-$4Ks from rental income with trading adding another $1.5K - $2K from trading, post tax.
Yea a good amount of backup in savings definitely. Just not the 30x-40x.
Essentially thats my basic plan, which is in alignment with what is presented by both of you.
I am close. I cannot lose sight of the ultimate goal.
#8
Posted 22 March 2018 - 08:40 AM
As a young guy, the only debt I've allowed my family to carry is on our house, and that only because the 3.25% interest rate is less than my expectation for inflation averages over the next 30 years.
#9
Posted 22 March 2018 - 09:23 AM
They key to retirement is plan to be out of debt and have a constant cash flow per month of at least $4,000.00. Zero debt is a must.
Social security payment can be a good portion of this $4k if u r older than 66.5
#10
Posted 22 March 2018 - 03:16 PM
Social security payment can be a good portion of this $4k if u r older than 66.5They key to retirement is plan to be out of debt and have a constant cash flow per month of at least $4,000.00. Zero debt is a must.
True but I’ll be retiring at 55 (I’m 51) and not eligible for S.S. until age 62. I’ll need income as. A bridge between early retirement and SS eligibility.