Want To Retire At 40 And Play Golf All Day? Here’s How Much Money You’ll Need To Save


Want to retire at the age of 40 and spend your days golfing and drinking on the beach? With this retirement formula it doesn’t matter if you want to retire at 20, 30, or 40 because age is not a factor with this strategy. First off, if you want to live a life of leisure you’re going to need a serious stack of cash saved. Secondly, you’ll have to calculate realistically how much you will spend yearly. Thirdly, you’ll need to develop an investing strategy that works for you.

You’ll need to determine how much money you spend a year to make this method work because it dictates how much you need to have saved. This retirement plan works by withdrawing 4% of your retirement savings account every year. That money will pay for your living expenses such as golfing, traveling the world, and getting drunk on a Tuesday afternoon. Let’s say you need $50,000 a year to live your stress-free retirement life, then that means that you will need $1.25 million in savings. The more your yearly living expenses, the more money you’ll need in savings. If you spend $60,000 a year, you’ll need $1,500,000 or if you’re a baller and spend $250,000 a year then you’ll need to save up $6.25 million. The next thing you’ll need to do to make this strategy work you’ll need to receive a 5% return (after taxes and inflation) on your retirement savings. With this investing blueprint, it won’t matter if you retire at 26 or 86 because you’ll have more money coming in than you are spending even without working one day.

That’s it. See how easy it is to retire at 40? Now you just need to get that first million saved.

[BusinessInsider]