G
guest
Guest
Hello uncle mick. I am not familiar with taking your
expenses and "multiplying by 25". What is that supposed to give you? A 25 year required income stream?
John Galt
I use the 25 multiplier as well...basically it corresponds to the 4% SWR...i.e. for every $1000 of expenses you have per year, you need $25,000 invested; conversly, for every $1000 of income you can generate, thats $25,000 you DON'T need to have invested. Its a quick and dirty calculation...but I find it helpful.
Another example, if you can figure out how to generate $10,000 per year income stream that is not coming out of your nest egg, then thats like having an extra $250,000 of savings.