Name the price for your future – your early retirement number

Everyone has the ability to determine the price for the future they envision.  Basically it comes down to what you are spending and what money will be worth in the future.

For example,  using this calculator I  see that in the year 2001 in Ireland, 19K was worth 30k of today’s money. So 30k of today’s money in 2032 for example? Well, it may be worth around just over 47K if we use historical data to forecast the future worth. We are living on a little on between 30-40k now and struggling with monthly cash flow, I cannot imagine how little 47k would cover in 2032. The kids would be heading to college in that time (please God), and will need a lot more money.

Using this calculator I can calculate in capital gains what lump sum I would need to have 50k a year (in dollars) to retire in 15 years:

  • $234,531.81 invested today to reach $647080.67, which would have to last us 17 years until our pensions and state pension benefits kick in.

(Note that I put in 1% inflation rate, and average 7% yield, while in 2016, Ireland’s inflation rate was 0.1%, so 10 times more) Following today’s inflation rate

  •  $193,414.60 invested today, to reach $533,636.98.

I don’t have 193k to invest today. Maybe 15 years is too aggressive then? Or maybe we will beat the market, maybe our income will drastically increase, maybe inflation will rise considerably…who knows.

If I put all my savings in and make monthly contribution to my stocks, then in 15 years at 7% yield and 1% inflation I can hope to come out with a lump sum of 340k – but at a minimum 47k per year to live on, that would sustain us for around 8 years. I hope to go back to work in a couple of years which could make a considerable difference to our saving/investing rate.

The question really comes down to how much you can spend, what your life goals are and what sort of retirement do you envision for yourself – lots of travel, a new yacht, or living simply.  Retirement…or rather financial freedom will come when you have accumulated enough that you can live off the proceeds within your yearly costs.

For me, I’m trying to lower our costs and invest in dividend stocks so that I will have a healthy dividend income as well as that lump sum and a lower yearly cost in 15 years.

We certainly won’t be swanning around in one of these!


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