[Apple]

How much do you guys suppose a 27 year old will need to put away monthly to retire at age 50-55 in a HCOL area in the USA? What about in a LCOL area outside the US?

I don’t know what my FI number should be.

I’m happy with working part time for medical/dental/vision insurance.

I don’t make much now for where I live but it’s a lot compared to my friends, and I don’t know how to figure out what I need.

I would like to eventually have a house and a child someday, but it’s kind of sad to me that many people my generation are making that decision based on whether or not they can afford it, which seems to be how I need to make that decision as well.

Any insights/advice would be appreciated.

[Scott]

It depends on what you want to spend per year in retirement. Location drives about 30% of that spend number. As a quick way to set a target, take your current salary and multiply it by 25.

That’s your target networth (outside or your house) number.

You have 25yrs to make it happen. Now use a compound interest calculator to figure out how much you need to put away per month. Use 7% annual return.

This accounts for 3% inflation as the market averages 10%.

[Myra]

Do you have any stocked away at the moment in retirement?

[Rebecka]

Try identifying a rough estimate of your annual expenses in the life you want. As for the housing and kids’ part—it’s completely okay to build those goals into your plan.

You don’t need to give them up; you just need to budget and plan for them.

That might mean buying a home in a LCOL country or state, or renting longer while you invest the difference.

[Stephens]

“Your Money or Your Life” read will explain how to put money away so you can reach your early retirement goals.

[Step]

Need to put away (invest) as much as possible and more. Decide on a sum and invest regularly, not just once in a while, but the more you invest and the sooner, the more you will have.

[Author]

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