I don’t know what it is lately but I have been reading and writing a lot about retirement, even though I have no plans for retirement any time soon. This past weekend I had a great time talking with a couple of colleagues about retirement, finance in general, and our discipline. I get a high off of helping others, talking about these items and I am not sure why.
Now what does this have to do with this post. Well, as we were talking about speculating when we would retire and the like I came across a great article last week from Rockstar Finance put out by Chris at Keeping Thrifty. He has developed a spread sheet where you can put in your retirement savings, how much you would contribute until age 65 and determine your “retirement freedom.” In other words, if you have enough savings now, based upon what you think you have to spend in the future, would you have enough saved? Do you have to save more? Etc?
Of course, a lot of this depends on how much you have saved, your rate of return, how much you want to spend, etc. However, based upon my target amount for financial independence I put in the amount that we have saved, put in a specific return rate that I think will occur and it turns out that we are already “retirement free.” In other words, if my expectations are correct then Mrs. ROB and I would not have to save another dime in order to retire “free” by the time we are 65.
So what does that mean? Not much. I want to pad my accounts. I want to achieve financial independence sooner. I can actually see myself working to my early 60s, but it is good to know that at some level I am doing things right.
Check out the calculator and put in the comments below whether you are “retirement free” and/or when you will be.