No you need to work 15-20 years, depending on tax rates.

Unless you meant 130k after tax (which is doable today for many engineers).

This is a very important point because taxes affect decisions around money.

For example, the ability to contribute to a 401k plan can defer $18,500 a year from taxes per person (more if over age 50, and more if there is a company match). For someone with a $130k gross, the employer having a 401k plan or not could affect the choice of which job they choose.

Only per person if you are are dual or multiple income. For some asinine reason 401k limits are not only very low, but don't take into account how many people are going to depend on that 401k.

In what world are 401k limits low? Between you and your employer, you can contribute up to $55.5k/yr to a 401k, more if you are over a certain age, I think it's 50.

I should have said "per employee" not "per person" which could be misconstrued as "per household member".

As the other commenter pointed out, why do you think 401k limits are low?

You're missing the part where you invest the money as you save it.

Ah, so I was. Fair enough.

To live off of $30k/year, you only need $750k saved, not $1MM (@ 4% annual withdrawal rate).

The 4% withdrawal rate has been challenged, and one shouldn't use it as a guaranteed safe rate. It included massive bull runs that may not be repeated going forward. A lot of research has predicted lower real rates of return (around 4% average) in the next date.

> one shouldn't use it as a guaranteed safe rate

of course not - there are no certainties

> It included massive bull runs that may not be repeated

it also worked through times like the great depression; on aggregate it's amazingly resilient

> A lot of research has predicted lower real rates of return

This is a SUPER-important thing for making your own FI models!

It is based off of the best available information.

Don't forget to include the percentage required to offset inflation.

EDIT: Missed that this was for a fixed period of time - 30 years.

But... what happens if you live more than 30 years past your retirement? It would really suck to retire on $750,000 (or $1M) savings at 45, and live to be 100.

Included in the rate I quoted, per the trinity study, although you might need to reduce your withdrawal rate below that some years depending on your asset holdings (see below for detailed info).

EDIT: Again, the rate quoted is for withdrawals in perpetuity. It doesn't guarantee your savings will outlive you, but it's highly confident it will.

https://www.bogleheads.org/wiki/Trinity_study_update

Some research suggests that a 3.5% withdrawal rate will last basically forever.

See, e.g. https://www.kitces.com/blog/adjusting-safe-withdrawal-rates-...

I know it's not what most people want, but if you retired to a country with a low cost of living that $1M would be more than enough to live really comfortable till you die.

> You're saving $100,000 a year. In about 10 years you're a millionaire

Much quicker than that if you invest it at 7% (average real return on the S&P 500).