FIRE number
Hi all of you.
I see a lot of you with a % FIRE in your name/tag or whatever. What is your FIRE number and how do you calculate it, taking into account this might be 2 decades down the line.
What assumptions do you make, are you aggressive, conservative, do you take into account any margin for unforseen setbacks?
I am asking as I am doing some projections myself and currently got to 1,425,000 as a today FIRE number based on our way of living and I am simply adding 2% per year to calculate my FIRE number down the line.
I am using 7% for ETF returns, 2% on group insurance and pension savings, 10% on private equity and 2% on housing appreciation.
I am aware my house won't be generating any additional liquidity but either I sell or it will lower my monthly costs significantly so I am thinking it counts at least somewhat? How do you take housing into account? Do you correct a bit somehow for it to work? Obviously living in a 1.4m home gives you 0 left to live so I assume it does matter significantly.
Thanks for your insights and feedback on how you calculate using various assumptions.