So you don’t want to work until 62, 65, or 67? Many people are interested in retiring early, but do not know where to start. It is much easier to get there once you know how much you will need.
In general, to determine how much you will need:
- Calculate your yearly expenses in retirement.
- Multiply by 25.
- This is the total nest egg you will need to begin retirement.
This uses what is commonly referred to as a safe withdrawal rate of 4%. For example, a $1 million portfolio will provide $40,000 of income per year forever.
In general, this is a very simplified approach. If you’d like to more details, here are some of my favorite resources dealing with early retirement:
- Early Retirement forums  discuss many topics including safe withdrawal rates.
- Firecalc  is a calculator that can help you determine if you are ready for retirement and if your money will last.
- Retire Early Home Page  has many articles including a great spreadsheet  to download detailing year by year savings.
More Retirement Topics
- 29 Steps I Took to Leave the Workforce at Age 29 
- Quitting the Rat Race at Age 39 
- 3 Free Retirement Calculators You Should Try Right Now 
- Retirement Planning Checklist: 43 Tasks to Get You Ready! 
- Easy Retirement Plan Goals 
- Calculator Review: Optimal Retirement Planner 
- Financial Calculators 
- How much money do you need to Retire? 
- 5 Steps to Figure Out a Successful Retirement Plan 
- Emergency Fund or Retirement First?