Originally Posted by Wu Wei
I tried to start a new topic but couldn't make it happen! See below.
Hi everyone! I'm Michael, and I'm.......an aspiring - perhaps un-proclaimed - FIRE'er! (Sounds like the intro into a 12 step program!) Can this affliction be cured? I doubt it.
I've been on the internet/www almost since it went "public" and this is the first time that I have posted anything to a forum. (Read: compliments to you folks for this very interesting forum.)
If I run the numbers through FIRECalc starting today, and excluding the primary residence, I come up with a SWR of 7.5%. Seems simple enough so I'm sure I must be missing something.
Congratulations on your first post, and a belated welcome to the board, Michael.
Starting a new post: if you begin here at the board's index page
and click on one of the board names (e.g., "Fire and Money"
, your next screen will have four oval buttons on the right-hand side, about one-third of the way down the screen. Of those four buttons, the third from the left says "new topic". Clicking on that button will give you a screen like this
Looks like you figured that part out already.
Are you planning to ER on the cash flow from your rents, or on the equity in your real estate? The former would ideally be paying the majority of your ER expenses and leaving your retirement portfolio to cover the rest. If it's the latter, then as you're doing you sell each "yacht" when you need the money.
The issue with a 7.5% SWR is that it's a pretty high burn rate. 3-4% is considered extremely safe, and 5% is probably safe enough, and even 5.5-6% might turn out to be safe over the next 40 years. But we're pretty sure that 7.5% is darn high, and probably too high. What does FIRECalc give for your success rate at a 7.5% SWR?
Your FIRECalc inputs should also include your spouse's pension (if you think that airline will be around to pay that pension 10 years from now for a period of 35 more years), her retirement portfolio, and your Social Security.
If you haven't already done so, your expenses will have to reflect the cost of medical insurance from the time she stops working until the pension picks it up.
(P.S.-- I'll delete the duplicate post on the "Introduce yourself here" thread.)