What’s Your Part Time Number?

I recently revealed my plan to decrease my workload as a part-timer this fall.

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While I do get my share of quizzical looks due to my relatively young age in my early forties, I honestly haven’t been on the receiving end of much negative feedback, at least not to my face.

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I waited until I was easily financially independent (FI) with more than 25x anticipated annual expenses saved before even contemplating a part-time position, but that doesn’t mean FI is a prerequisite.

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What’s Your Part Time Number?

Last fall, a physician in his early forties asked the Bogleheads if he or she could afford to go part-time. Dr. Am gave us some details of her situation.

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1. She’s got 8x to 10x desired retirement spending saved up. 2. Halfway done saving for college (presumably, she has children). 3. House is paid off. 4. Saving 1/3rd of her income annually..

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Let’s make some assumptions so we can do some math. 1. Retirement Savings $800,000. 2. Desired retirement spending $80,000 to $100,000 per year.

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Based on our assumptions, to have $100,000 a year in today’s spending power, it will take 19 to 57 years at 2% to 6% real. If we bump it up to 8%, the goal is achieved in a timeframe that Dr. Am will be happy with.

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Let’s assume Dr. Am has accepted my Live on Half Challenge and is saving $100,000 a year while living on an equal amount.

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If she simply decides to work full time to reach her goal faster, she’s got 9 to 13 years to go at 2% to 6% real returns.

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SWIPE UP NOW TO READ MORE

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What’s Your Part Time Number?

I recently revealed my plan to decrease my workload as a part-timer this fall.

While I do get my share of quizzical looks due to my relatively young age in my early forties, I honestly haven’t been on the receiving end of much negative feedback, at least not to my face.

I waited until I was easily financially independent (FI) with more than 25x anticipated annual expenses saved before even contemplating a part-time position, but that doesn’t mean FI is a prerequisite.

What’s Your Part Time Number?

Last fall, a physician in his early forties asked the Bogleheads if he or she could afford to go part-time. Dr. Am gave us some details of her situation.

Dr. Am Requests Permission to Go Part Time

1. She’s got 8x to 10x desired retirement spending saved up. 2. Halfway done saving for college (presumably, she has children). 3. House is paid off. 4. Saving 1/3rd of her income annually..

Let’s make some assumptions so we can do some math. 1. Retirement Savings $800,000. 2. Desired retirement spending $80,000 to $100,000 per year.

The Analysis for Dr. Am

Based on our assumptions, to have $100,000 a year in today’s spending power, it will take 19 to 57 years at 2% to 6% real. If we bump it up to 8%, the goal is achieved in a timeframe that Dr. Am will be happy with.

Let’s assume Dr. Am has accepted my Live on Half Challenge and is saving $100,000 a year while living on an equal amount.

How does that compare to the status quo option of continuing to work full time?

If she simply decides to work full time to reach her goal faster, she’s got 9 to 13 years to go at 2% to 6% real returns.

SWIPE UP NOW TO READ MORE

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