Before having children, I was quite interested in the idea of, and the math behind early retirement.
Most of the interesting math happened at the margin: you’ve got just enough money that you could retire, but you’re susceptible to risk of a market crash in the first few years of retirement or an abnormally long life expectancy combined with a middling market.
Tontines fascinated me as an interesting piece of the puzzle for those who don’t plan on leaving an inheritance, and I’ve reread this guide[0] a few times - but ultimately it’s just another way to possibly move the margin a little bit, and the real solution is to save a little bit more, then spend a little bit less.
Most of the interesting math happened at the margin: you’ve got just enough money that you could retire, but you’re susceptible to risk of a market crash in the first few years of retirement or an abnormally long life expectancy combined with a middling market.
Tontines fascinated me as an interesting piece of the puzzle for those who don’t plan on leaving an inheritance, and I’ve reread this guide[0] a few times - but ultimately it’s just another way to possibly move the margin a little bit, and the real solution is to save a little bit more, then spend a little bit less.
[0]https://rpc.cfainstitute.org/sites/default/files/-/media/doc...