Originally Posted by pdangerp
My problem with the OP’s original idea is that in 40 years of working, you would get 4 years off. What happens when you’re actually at retirement age? You’ll have enough for one year before you need to go back to work. The point of saving as you go is to get the power of compounding interest. 40 years of saving is worth way more than 40x 10% of your salary.
i am in no way indicating that you shouldnt save for the end game of traditional retirement. the mini retirement savings would be in addition to that long term savings, in a liquid account with no tax advantage. i would also strategically take the time off so i have enough taxable income in a single year to contribute to IRA accounts.
i have also come to realize most people who plan on retiring early pump all their money into 401ks or IRAs for the tax advantage, but forget it has age restrictions, so they put themselves in a tough spot if there is an opportunity to retire early. so i will be doing some non retirement savings allowing me to have some operational capital in the event i want to retire 'early'