How do I retire - Review of how much money you need Today’s video presents a review of The Savage Number by Terry Savage. I got this book from the library in hopes to evaluate my plan to retire at age 55 and it did not disappoint me. Ms. Savage presents a number of methods and questions for evaluating the realistic goal of retiring and doing so without having to resort to eating cat food as long as you plan carefully and examine the plan frequently. It’s not enough to rely on Social Security or a pension to see you through you last years on earth. Sure we can all go at any moment and without notice. But most likely old age will come to me and it won’t be pretty.
Retirement to me at this point in my life is simply retirement from my current wage to sustain my lifestyle and that of my family. I’ll still work of course but if I lost my job I would not have to end up in a trailer in West Virginia eating what comes my way. However, being reliant on my wage into the future is not the best of plans nor should it be. The American way of life as it began is to be reliant on one’s self and neighbors to get by and part that requires an entrepreneurial spirit. If the spirit turns into an income and the income becomes something you own and not someone else then you have recaptured independence. That’s what I plan to do and it’s what I am working on through this website. In the meantime I must still plan and save and The Savage has helped me to reconsider my methods for realizing a livable income in old age.
What I learned from The Savage Number
Monte Carlo Modeling – The statistical science of modeling multiple alternatives because no one lives in the average.
My plans for long term have not been made and they need to be considered.
What I really liked about The Savage Number
The 10 questions to consider how your life may develop
Her prescient insight to seeing the housing bubble for what it was back in 2005 when the book was published.
The consideration that should be granted to precious metals as insurance against inflation which is real and higher than what The Fed tells us.
Evaluating my 401K and establishing a Roth IRA to protect against taxes in the future.
What I didn’t like about The Savage Number
Ms. Savage’s recommendations for finding a financial liar, I mean adviser.
This book is a great read for:
People who are considering retirement.
Young people who think retirement won’t ever come to fruition.
People who are reliant on one source of income for retirement.