Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to Budgeting and Taxes

10 Keys To Financial Independence In Retirement

Saturday, July 7, 2012 - 4:55 AM
From MarketWatch
experts say it’s possible for those planning for or living in retirement to declare financial independence, provided they achieve most, if not all, of the following goals.

Read more

Most of the keys are basic and make sense, but the first on the list "set aside 11 times your salary" seems a little low.
3
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,687
1. Saturday, July 7, 2012 - 12:14 PM
Excellent article, Ken, with good advice, and thanks for posting it here. 

I agree with your comment, as I am generally uncomfortable with hard limits.  The 11 times annual salary, which the MarketWatch article quotes as the first key, and which has been mentioned on DA before  implies "one-size-fits-all", ignoring individual circumstances.  On the other hand, I think key #2 "Match income and expenses" is very good advice (as are other points made in the MW article).   

Perhaps a blended approach - using the 11x annual salary (with all of its modifications, as Bozo suggests in his comment on the prior DA thread which Shorebreak posted originally), matching income and expenses, and aiming (where possible) for the higher of the two figures would be a good cross-check and reflect individual circumstances a little better.   Even if you think you have enough it's better to have a little more because the planning assumptions can change very quickly.  

Aside from the number crunching, maintaining your health, staying active, and remembering the importance of balance and moderation is also important, since as the article recommends, "Enjoy time with family and friends.... [...] Life is short, more so when old". 
5
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
Reply