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View Diary: IAN: Good Morning! Tuesday, 23rd of July, 2013 (67 comments)

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  •  g'day all; reading Ebony in doc's office (11+ / 0-)

    yesterday about finances; 1% has between 8.5M and 18.5M in net worth and an annual income of $250K-$500K.  (it takes $50M to hit the .1% level)

    For someone to retire today on $120K annually in investment income, he has to have a $2.7M nestegg.  At least I know how much farther I have to go to reach that level.  However the article included several "test" cases, such as the 55 couple with $250K in retirement and saving $18K annually.  My first glance told me they had missed the boat and could not catch up but the article explained how, if they followed the 50-30-20 rule and put off retirement until 72, how they could catch up (at least on paper; if they died before 72, then they were pikers I guess).

    50-30-20 calls for the person to live off 50% of income, invest 30% and sock back the other 20% for emergencies and "fun" such as vacations.  Problem is, given the way life is, the set costs kill this idea.  Family with $48K income has about same level of set costs (taking into account discretionary spending differences such as a nicer car or house) as the family with $120K income though the $48K family has a lot less margin when it comes to saving.

    I have to quit reading waiting room magazines is the moral of the story    

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