Challenge 10 - Retiring Early - Solution
Your coworker turns to you and says that she is going to retire. You laugh because she is 30 years old. She is serious. To understand how she got to this decision, you will create a KNIME component named “Financial Tracker_YOURNAME” (replace YOURNAME with your name). The component should use widgets to get the following input:
a person's monthly expenditure amount
their target age to retire
The output of the component should be how much money they need to have in order to retire at the target age. For simplicity, use this formula in your component:
amount_to_retire = (100 - target_age) * monthly_expenditure_amount * 12
Use your component to figure out if 2,000,000 dollars is enough for your coworker to retire, given that she spends 4,000 dollars per month. To keep this challenge simple, do not consider inflation, compounding interest, or part-time work in retirement.
Are you interested in how we came up with this formula? Check the Trinity study out. In this study, participants needed roughly 25 times whatever they spent yearly to survive for 30 years with a 95% success rate.
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