How does that work out? I'm a bit skeptical about this. At 25, people have much lower expenses than when they have a family and kids, mortgage, etc. Also you're living longer than to 50, so I assume there's some investing involved.
Thanks
Once you've accumulated enough cash, if you begin to withdraw around 4% per year and invest the rest, it is unlikely you will run out of money.
The 25x rule relatively decent estimation.
I'm more nervous, so I'm aiming for 40x annual spending. The stock market growth of the last 100 years might have been an anomaly. Healthcare costs may cause my annual spending to increase as I age.
In my experience, seeing and hearing of people's general retirement goals and savings; they simply don't have enough to not feel it when they're done.
A mindset like the OP or yours makes that stage in life much more enjoyable and worry-free.
I should expand on this. The historical returns of the US stock market are about 7% annually over the long haul. The US GDP has grown about 2% annually over the last 150 years. There were a few decades when it was about 3.5% and we felt pretty good, but that's been done for a while now.
So... economic growth is at 2% and capital returns are 7%. As Thomas Piketty pointed out, this is probably unsustainable. I suggest a healthy skepticism when someone uses the last 50 years to predict the next 50 years.