5 ms·
Yes, the author is pretty off-the-mark and I would say misleading. Here are some scenarios worked out with www.numbercanvas.com Early Retirement, Average Lifes
by anifow 12y ago
Yes, the author is pretty off-the-mark and I would say misleading. Here are some scenarios worked out with www.numbercanvas.com
Early Retirement, Average Lifespan: $1 million
Early Retirement, Long Lifespan: $1.5 million
Average Retirement, Long Lifespan: $1.25 million
Average Retirement, Average Lifespan: $650,000
Early Retirement, Short Lifespan: $480,000
http://pastebin.com/QU5dnCe8 http://pastebin.com/QU5dnCe8
- Ntrails 12y agoExpected joint life at early retirement (which is what the article prices) in the US is ~35 years assuming spouse of similar age to the retiree (looking at http://www.irs.gov/pub/irs-pdf/p590.pdf http://www.irs.gov/pub/irs-pdf/p590.pdf from a quick google). The 4% was not defined as real return, maybe it was supposed to be - but otherwise you need to account for the inflation linkage of the annuity. With that basis you get $1.4m with no inflation and almost exactly $2m with an inflation assumption of 2%.