Quote:
Originally Posted by Nate417
jIM_Ohio - What great advice, thank you. A couple of quick questions. 1. what does PRPFX stand for? 2. are there any good investment calculators out there that anyone would recommend? 3. One thing I have always struggled with is determining how much money i will need at retirement; any good rules of thumb I should follow?
|
1) PRPFX is permanent portfolio- it is a moderate risk mutual fund which I invest in myself and really like. You should only invest in it if you read it's objectives and understand its risks.
2) investment calculators- meaning trying to calculate how much you need to retire on? I don't think 30 year projections are useful. The best calculator I can suggest is know your current expenses. When investments are 20-33X your annual expenses, consider retiring. 25X is the typical number used (so if you spend 40k annually, 25X that number is $1 M to retire on, 80k annual expenses is $2 M). The best calculators are not investment calculators, they are spending calculators.
3)
The best advice in this regard is
a) spend less than you earn
b) set aside 15% of current income for retirement
c) keep debt at a moderate to low level
d) when investments represent 25X annual expenses, retirement can be considered.