Grumpus Maximus Comment: I originally wrote this post with the intent to create a clear and concise step-by-step on how to calculate your Gap Number. Turns out I wrote another tome. Some of you may prefer my ramblings. If so you are probably one of my relatives or friends. Or maybe you are waiting to laugh at another of my $750,000 dollar financial mistakes. Fair enough, all I can do is laugh about it too. But in case you don’t prefer my ramblings, I thought I would quickly refer you to some other resources that are clear and concise.
First off, check out Darrow Kirkpatrick’s website Can I Retire Yet?. I’ve talked about him before, so I won’t rehash my book and website review for him. On his site under the Index link, if you scroll down to the Retirement Equation section, he walks you through everything you need to do in order to make your calculations. The Mad Fientist also has a Planning section under his archive, which has several useful articles. Finally, check out the two booklets I reviewed in my book review section entitled Early Retirement Solutions: How Much Money Do I Really Need to Retire & Achieve Financial Independence? and Retire Sooner!: How to Optimize Your Plan to Achieve Financial Freedom by DJ Whiteside. They are what I used to make my calculations.
For the rest of you gluttons for punishment, please read on …
The Retirement Income Gap: What Does It Tell Us?