Retirement planning …

Just a thought as I just saw the announcement for “AchieveFlow” (retirement planning software) here on the forum:

The biggest mistake people make in retirement planning is that they look at TODAY, think 1,500 Euro / 2,000 USD per month will do me fine, and don’t consider that even at between 2-3% inflation prices will nearly double every 20-25 years (yes, it’s the old “compound interest trap” which is the source of “everything has gotten so expensive” that old people love to say).

So if you think the EQUIVALENT of TODAYS 1,500 Euro / 2,000 USD per month will do you fine, then plan to have about THREE TO FOUR TIMES as much each month in 40-50 years time … and that’s assuming inflation remains that low … and you live that long … and the Apocalypse hasn’t happened …

Now I’m depressed … :wink:

I keep a spread sheet and the goal is to get to a 6000 Euro income at retirement.

That sounds a lot, but it’s still 30 years away and I expect if I could live from 3000 Euro today, I would need to double that for inflation over 30 years, just to keep at the same level.

Recently I’ve discovered Jim Rohn, a personal development coach, on YouTube, with some interesting ideas around capital, and obtaining financial independence (freedom)…

How to Attain Financial Freedom

Thought his ideas might be pertinent to this discussion.

Another thing people do is think they will need 2x the income, forgetting that “usually” by the time they retire their expenses are considerably less than today (in most cases you will have paid off your mortgage for instance)

Or just buy FAANG shares!

…shouldn’t it be FAANNG… they fogot to include Nvidia :wink:

ah forget these calculation or stocks or whatever… just try to find a nice, rich and clever girl you can marry :wink:

Good luck, we are just dirty old programmers ! But still more promising than getting any serious money from a self-enriching pension fund.

As a developer you know that fast delivery, loads of quality features and cheap price won‘t go together.

I‘m afraid the same applies to this girl: if she thinks she needs to marry then probably because one out of three qualities is lacking…

Don’t want to spoil the fun but … dream on guys!

Worked for me :slight_smile:

… now I just have to make sure she doesn’t divorce me … :wink:

An interesting topic and one that one should definitely think about although for some of us older types it might be a bit too late! I’m a professional accountant and I’ve spent most of the last 30 years working for asset management companies of various types developing various types of investment tools.

The first observation I’d make is to keep the planning simple - complex financial don’t provide better accuracy over the long term. I have always used: 80% of current salary divided by the expected rate of return to get the capital sum. I compare this to the current state of my portfolio and it’s projected growth, if there is a short fall I’ll increase my contributions over the next 12 to 18 months to bring it into line. Don’t worry about inflation etc the growth in your portfolio over time plus you contribution will take care of that for the most part.