Retirement theories.
> : Given that you're starting young and making good money -- you *can* retire
> : by 40 (or even earlier) but you have to accept a *much* lower standard of
> : living both now and in retirement.
>
> A person can make a lot of progress on the margin with some relatively
> modest changes in spending habits. But retiring at forty would require
> some pretty draconian measures. Here's an interesting illustration for
> someone starting out at age 25...
>
> % of income Age of Financial
> spent saved Independence
> -------------- ----------------
> 90 10 66
> 85 15 59
> 80 20 54
> 70 30 47
> 60 40 42
>
> There are a lot of assumptions built into this table. I use long-term
> averages for stock market returns and inflation, less 100 basis points
> for investment expenses. I assume equivalent real levels of spending
> before and after the age of independence, and I define "independence"
> as the point at which a person has accumulated 20 times the amount
> s/he spends in a year.
>
> Each person's situation will be a bit different, so the above numbers
> should only serve as a very approximate picture of what might be
> possible.
>
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geocities.com/vyque)