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August 21, 2006


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If you don't mind sharing, I'd like a little more information as to the five methods that you used in calculating the retirement number. I'm particularly interested in the two methods of calculation that you devised yourself.

Ooooooooooooh -- I feel a "part 2" coming up. ;-)

I'll work on trying to describe the two ways I set my number in a short post. It won't be this week, but stay tuned.

I just want to know what your resulting number is. Don't leave me hanging! :> Yours may be BIG, but I bet mine is BIGGER (I'm younger than you so I'll be dealing with more inflation in total)...

Ha! You wish!!!! ;-)

The difficult part is probably estimating what your expenses after retirement are. If you don't wish to disclose your number, just disclose the number of years of income. The safe spending rate of a diversified portfolio would suggest 25 years of income, but if you own your home, are debt free, no longer need to save or spend on work, pay less taxes, this can be trimmed substantially. It is always best to work in current dollars and real rates of return to provide a realistic feeling of what is involved.

In another financial resource I follow I have read a number of times about 'consumption soothing' and in particular the ESI Planner ( and I am in no way affliated with it ;-) ). I've never used it and wonder if you or anyone else has before I look to buy a copy. It in theory should be a very helpful in answering the 'how much' question, thoughts?

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