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Discover the 3 Magic Numbers for Early Retirement – None of Them Require $1 Million

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Want To Retire Early? These Are the 3 Magic Numbers — None of Them Are $1 Million

Want To Retire Early? These Are the 3 Magic Numbers — None of Them Are $1 Million


Early retirement is a dream of many Americans, but many are inhibited by the concept of costs associated with such a bold move. So how much do you need to retire early?

Magic #1: 70% of Your Income Annually

All of the magic numbers require doing some math. Use this method if you want to live a life in retirement that is close to how you are living now.

  • Replace at least 70% of your income annually
  • If you can’t do that, you’ll have to budget whatever that difference is

Magic #2: 3-6-8

At age 40, try to have three times your annual salary saved. By age 50, that number jumps to six times. By age 60, you are looking at eight times.

Magic #3: 25

If you plan to live at least 25 years past retirement, you need at minimum 25 times your income in your retirement savings account.

It’s Not About a Magic Number; It’s About Math

There’s not really a magic number to be able to retire early so much as there is magic math. You need to know which numbers to crunch and how.

Factor In Lifestyle

Many people want a dollar figure for how much money they need to retire, but this is an oversimplification of the process. Lifestyle is the lever used to close the gap between how much money people need for retirement vs. what they actually have.

Make Sure Your Retirement Accounts Are Accessible

Retiring early doesn’t depend only on how much money you have; it also depends on the accessibility of your retirement accounts.

Don’t Forget Healthcare

Another aspect of early retirement to factor in is the fact that you’ll have to pay for your own healthcare for a while.


Remember that retiring early will not only require extreme saving and investing techniques, it also will require you to live as modest a life as you can. Also, think about how you will use your time productively and happily in early retirement.

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