Unfortunately I don’t think you’re going to be able to stop working when you’re 60-years-old and then live off the fat of the land until you die. Please consider the following questions:
Will the dollar be seriously devalued in our lifetimes?
Will Social Security and Medicare survive?
Will the cost of health care continue to go up?
Will wages keep up with inflation?
Will corporations continue to outsource middle-class service jobs to other nations?
Will the stock market provide suitable returns to your 401k?
Will the government increase taxes to make up for their haphazard spending?
And most importantly…
Will you survive to the age of retirement?
What are you going to do when (and not if), the social netting holding our parents hand into retirement falls apart? Hell, even they are going to have a harder time retiring.
That said, here is a reasonable retirement plan:
1. Save $10,000 a year.
2. Put into CD’s, gold, and a basket of foreign currencies, and nothing into the stock market casino. Forget about hefty returns and focus more on retaining what you have earned. People go to great lengths to shop around and get a good deal on a laptop or digital camera but don’t mind “investing” thousands of dollars into companies and funds they know little about
If you save $10,000 a year for 30 years during your prime earning years (30-60 years old), you’ll have $300,000. Assuming it holds its value in today’s dollars (ha!) or you invested wisely, you can live comfortable in a place like Cuenca, Ecuador for 25 years at a cost of $1,000 a month. That money would last you until you’re 85, without having to depend on your incompetent government.