As with other savings, the sooner you accomplish your goal, the better off you will be in the long run because things happen beyond your control, such as a job loss or health issues.
An aggressive savings plan must not interfere with living your life, enjoy it – simply save some and spend some. Be consistent.
Successful retirement planning begins with a solid budget, so bring your annual budget or use the BLS website to find averages for your age group. Be sure to include taxes and when in doubt, add a reasonable percentage as a budget item, 15-20%, depending on income needs.
Early retirement impacts your planning because one hundred percent of your income comes from your portfolio until you begin collecting social security. Use our Retirement Spending calculator to gauge how well you will do during an early retirement.
Social security income gets deducted from portfolio withdrawals. If collecting it ahead of withdrawals, the system assumes you spend it.
Inflation modeling enables you to quantify the impact a spike in inflation has on your portfolios/budgeting. Compare your Ending Portfolio Balance with and without a spike to gain a grasp of the erosion that occurs.