How to arrive at FIRE number.
I heard from lot of friends that FIRE number(financial independence) is between 3-4 million.
Can you write a column about how to arrive at one’s own FIRE number? I heard lot of methods like 10*salary or 25*expenses. Which one you would prefer? Thanks
Terry Says
I’ve read about the FIRE movement, but honestly I think it’s a bunch of baloney. There’s too much uncertainty to every decide you have “enough” money to retire so early — even if you have the self-discipline to stick to your spending budget. And the same uncertainty revolves around investments. If you stick to safe things like CDs and T-bills, there’s no guarantee you’ll earn a premium above inflation. And speaking of inflation, 20 years ago no one would have dreamed that medical expenses would so far outpace regular inflation.
This is like one of those TV commercials featuring daredevils — with a caption saying “don’t try this at home!”
