EK Retirement Targets

Written By Nomad FI

// Calculate PV and FV //

Current:

  • Own Home

  • Investments: 1M (incl Home)

  • Age: 40

Want:

  • Fully paid off home mortgage

  • Invest 50% DRPs/50% withdrawals

  • Work part time at Age 50 w/ Coast FI

  • Or Relocate and Geoarbitrage

  • Age 60 TRP Plan

Assumptions:

  • Inflation Rate: 3.5%

  • Target Market Return: 7%

  • 40K in living costs (in today’s dollars)

  • Rule of 72: 72/3.5% = 20 years = 80K

// Calculations //

  • PV: 1M

  • Rate: 7%

/ Years: 20 / Calc FV: 4M

/ Years: 25 / Calc FV: 5.7M

  • PV: 1.5M

  • Rate: 7%

/ Years: 15 / Calc FV: 4.3M

/ Years: 20 / Calc FV: 6M

// Did not factor in //

US Social Security-entitled 40 work credit

K Annually: 25K USD

E Annually: 25K USD


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