cardude
Full time employment: Posting here.
- Joined
- Feb 21, 2006
- Messages
- 599
I set up a simple spreadsheet tracking my monthly SWR, but I'm wondering if I'm double counting my cash pile. I have a budget set up, and then I enter all our actual expenses and then subtract our income (real estate rentals, DW income and return on cash) to come up with a net amount of cash needed monthly to live on. I use that cash amount needed to come up with my annualized SWR (multiply it by 12 and then divide it by the total portfolio value).
Am I double counting the cash since I include it in the total portfolio value denominator but also reduce expenses by the amount of interest it throws off? Should I reduce the total portfolio amount by the cash pile?
Am I double counting the cash since I include it in the total portfolio value denominator but also reduce expenses by the amount of interest it throws off? Should I reduce the total portfolio amount by the cash pile?