That’s right. 1,500 days.
Yes, you read that right. 1,500 days until we can potentially retire.
If that name rings a bell, you’re not alone. There are other more famous people out there who have launched websites based on that number and their own calculations. I only point it out because that number came up for me, too. According to the countdown clock on my enormous financial spreadsheet, 1,500 days from today, in June 2020, we should be able to quit our jobs if we want to.
This is what I refer to as QT (Quttin’ Time), a time that Maeby enjoys all day.
What goes into this calculation?
I project out all of our savings based on our predicted income and where our savings will be saved. We (probably) won’t have $1 million in 1,500 days. But I will be 38 years old and will have put in exactly 15 years at my current workplace.
With that many years, I will be able to claim retirement at age 55 and begin getting 16% of my final average salary. Unfortunately, there’s no accounting for inflation. It will be 16% of what my final salary was 17 years earlier. But as I showed in my classic post pitting a defined benefit pension against a DIY “pension,” having a pension at your job acts like a weak pair of golden handcuffs. Saving on your own, you can make much better returns. Especially if you’re using savings to buy rental properties.
And if we wanted to quit our jobs in 1,500 days, that would be how we (potentially) could do it. In 1,500 days, we probably won’t have enough financial assets that they will be worth 25 times more than our annual expenditures. But bring expected rental income into the picture, and we have enough, between income and assets, to cover our 2015 average expenses of $3,000 a month. After the pension kicks in at age 55, we would have more than enough, and we could sell the rental property.
So… Annual Rental Income of $15,000 + Some Withdrawls From Savings + No Debt + Pension Kicking In At 55 = Ability to pay for 2015’s expenses ($3,000/mo) adjusted for inflation, for all time.