If you like to read about personal finance, you may be familiar with Lindsey Stanberry and “The Purse.” Lindsey writes about women and money, and a few weeks ago, she began a feature called “Home Economics
Good question. Continuing to work and delaying Social Security retirement benefits until age 70 will increase the magic number and the lifetime sustainable living standard. The trade-off of continuing to work is delaying some of the benefits households receive from leisure. With a couple, something to be discussed!
Absolutely! From income taxes to other costs-of-living concerns geographic choice matters and is one to be evaluated. Details on the topic are forthcoming in chapter 4 of the book.
There is investment associated with any savings account, whether through an IRA, bank savings, or employer-sponsored plan like a 401k. Higher investment returns will create a higher living standard, but comes with risk. The risk/return trade-off is an important consideration to be evaluated.
Good question. Continuing to work and delaying Social Security retirement benefits until age 70 will increase the magic number and the lifetime sustainable living standard. The trade-off of continuing to work is delaying some of the benefits households receive from leisure. With a couple, something to be discussed!
Would you include moving as a recommendation for maximizing life style? There are other cities where their income would go much further
Absolutely! From income taxes to other costs-of-living concerns geographic choice matters and is one to be evaluated. Details on the topic are forthcoming in chapter 4 of the book.
If Brooklyn didn't want an early retirement, how would this affect their magic number?
She invested. In the article, there is a link to my website where I placed the PDF of the financial plan.
If Brooklyn earned at an expected higher rate than I assumed, the magic number would be higher.
would the magic number change if she also invested?
There is investment associated with any savings account, whether through an IRA, bank savings, or employer-sponsored plan like a 401k. Higher investment returns will create a higher living standard, but comes with risk. The risk/return trade-off is an important consideration to be evaluated.