Compound interest is powerful but takes a long time. To retire in 5
or 10 years the most important number is not your return on investment.
It's your savings rate. Learn more.
*Avg Household Savings Rates (2008) Sources: OECD, IMF
Savings rate
You can retire in 12.4 yearswith a savings rate of 60%annual expenses 20,000annual savings 30,000monthly expenses 1,667monthly savings 2,500
When your annual return on investments cover 100% of your expenses you are financially independent.
The above table will likely show you need to work slightly longer because your withdrawal rate should be less than your return on investments.