Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

kevman · 10-10-2013, 09:31 PM

I always thought the idea of early retirement wasn't to save enough to live x years but rather save enough to generate a never ending income from. eg, If you can save 5 million and get a 4% return on your retirement investment you can withdraw 2% of that ($100k) and use the other 2% to grow your investment at the rate of inflation. In other words, you could live forever on your retirement nest egg. Or in the case of 3.2 million at 4% you could pull out a living wage of $64k/year while growing your initial investment with inflation.

Now saving 5 million bucks to start the party is a different story...

10-10-2013, 09:31 PM	#141
kevman #1 Goaltender Join Date: Apr 2004 Exp:	I always thought the idea of early retirement wasn't to save enough to live x years but rather save enough to generate a never ending income from. eg, If you can save 5 million and get a 4% return on your retirement investment you can withdraw 2% of that ($100k) and use the other 2% to grow your investment at the rate of inflation. In other words, you could live forever on your retirement nest egg. Or in the case of 3.2 million at 4% you could pull out a living wage of $64k/year while growing your initial investment with inflation. Now saving 5 million bucks to start the party is a different story...