It definitely starts there, it misses on a key aspect: 70k for how long and how assuredly? Usually once you start making that, your next goal would be
- To ensure that is true for your life time. (at 4% reasonable return, that would mean $1.75MM in savings) assuming you don't want to bite into the principal.
- Then you want to account for inflation. (Add a buffer to the above)
- Then you want to ensure this is on top of your car, house, child costs. (Depending on where you like to live and your car choice, add anywhere between 200k -> 2MM)
- Then you realize this car/ house kinda bumps into the 70k limit - especially if you went for a giant house because reasons.
And so on. So yes, folks can definitely start to feel 'safe' at 70k, but that's nowhere close to the checkout point. Once you figure out a target number based on above, you will realize you need to make so much more than 70k to get to that comfort state.
> To ensure that is true for your life time. (at 4% reasonable return, that would mean $1.75MM in savings) assuming you don't want to bite into the principal.
> Then you want to account for inflation. (Add a buffer to the above)
A buffer?? Assuming 2% inflation, the "buffer" you're adding is just over 100% of the original amount.
- To ensure that is true for your life time. (at 4% reasonable return, that would mean $1.75MM in savings) assuming you don't want to bite into the principal.
- Then you want to account for inflation. (Add a buffer to the above)
- Then you want to ensure this is on top of your car, house, child costs. (Depending on where you like to live and your car choice, add anywhere between 200k -> 2MM)
- Then you realize this car/ house kinda bumps into the 70k limit - especially if you went for a giant house because reasons.
And so on. So yes, folks can definitely start to feel 'safe' at 70k, but that's nowhere close to the checkout point. Once you figure out a target number based on above, you will realize you need to make so much more than 70k to get to that comfort state.