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Let's Talk about the FS Retirement Savings Graphic

Started by jd_, November 21, 2019, 04:07:57 PM

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You don't allow images on your board. Yeah, I see how that could be abused. Anyway.

Who is the chart even for? You would expect that the amount necessary to retire early:
1) Is highest early in life
2) Decreases slowly, then faster, as one approaches their full retirement age

It makes no sense that amounts should increase as one approaches retirement. The reason is the 3% rule, 4% rule etc.... These rules contain the FIRE basic assumption that your income will come from invested assets during retirement. If you already have enough assets at age 22, you have enough and additional assets are unnecessary. The amount should stay the same regardless of age. The reason for the slight decrease as you get older is that your Social Security benefits are getting nearer so they don't get discounted as much - so you can get away with retiring with fewer assets. Anyhow, your rationale was never explained and it would benefit from some explanation.

It seems like you are going for under accumulator / prodigious accumulator of wealth designations like the "Millionaire Next Door" authors did, or you are making a chart of "if you play your cards right, here is how much you'll be able to save / could have saved." You should change the chart title to reflect your goals with this chart.


The chart is for everyone who wants to retire early and live a comfortable retirement life.

It is very difficult to spend down your principal once you've retired early. Once you retire early with enough capital, you'll find the capital starts generating way more than you'll need in a bull market.

I do agree there should be some sort of spend down towards zero, but in reality, that doesn't seem to be happening in a bull market and by those who do retire early. Early retirees today still do a lot of things to save and earn them money.

I'll add some notes to the graphic. Thanks for the feedback.