The big question for all early retirement aspirants is, "How much do I need to retire?". I know this is a critical and difficult question to answer, since there are several discussions around this very thought in blogs and personal finance websites. I realise that the final amount that one comes up with is very dependent on your personal situation, monthly spending assumptions, risk taking ability etc. However, I am sure there is a common thread that you can find in the following thought process no matter where you are from.
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To provide some perspective, my wife's and my current combined take home income is ERU7.34. This means that my baseline target for overall retirement savings/investments is ~11.3 times my annual take home pay. My stretch goal would amount to ~22.6 times my annual take home pay. I will try to add some detail on how I arrived at these numbers the next time, but as of now, I think the stretch goal is practically impossible to achieve! The baseline target sounds more realistic, but I will have to come up with a detailed plan on how to reach this goal.
Let me know what your thoughts are regarding a safe retirement corpus? What multiple of your annual take home pay do you need to have saved up, to be ready to retire?
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