"I am interested in exactly how you calculated SS into the 1.4M. I'm sure otehrs would be too. Could you give us an example using something like an annual amount of $15K in todays dollars?"
I am not sure how Red does it, but one way that is probably as good or bad as most others is to use the 3.5% as a cap rate. Thus using an expected beginning annual SS income of $15,000, you would have CapitalValueSS=%$15,000/.035= $428,571. You can check by reversing this calculation, and see that if you had $428,571, and were to withdraw at a beginning level of 3.5%, you would be able to take $15,000 per year.
To me this treatment obscures some of the unique advantages and disadvantages of SS income. First it is truly indexed, and unless a lot of your capital is in indexed instruments, you can only hope that it will keep up with inflation. SS will keep up with inflation, as defined by the govt. Second, the politicao-legal treatment of SS income will usually be different as to taxability, safety from judments, etc. A nursing home may be able to get your swag, but your SS income will continue till you die. Many people treat SS Income as lesser quality than capital generated income becaue of worries about payment. While these worries are real, I would expect many other things to be challenged first. But it is a judgment call, impossible to really predict.
So I prefer to keep SS and also pension income as income streams, and not capitalize them. The way to do this with SS income or an indexed pension from another source is to just subtract these amounts from your planned Year1 budget. The remeainder is the amount you have to finance with you capital generated income. So if (budget-(SS & pension income))=<.(035*capital assets), you are FIRE. If not, save more.
Non-indexed pensions are much more difficult to treat, either by capitalizing them or using the income stream. It is very sensitive to inflation actually experienced.
Mikey