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Retirement Discussions / FIRE Wannabees
|Subject: Re: FIRE checker for Fools||Date: 8/13/2003 5:51 PM|
|Author: dsemmler||Number: 355 of 5138|
Stage 1: You spend less than you earn and save the difference. You are accumulating wealth.
Stage 2: Your savings appreciates in value (not including new contributions) an equal or greater amount than what you contribute. i.e. You have a $100,000 port earning 10% and your annual savings are $9000. Your port is appreciating by more than what you are saving, and if you wanted you could stop saving so much.
Stage 3: Your savings appreciate in value an equal or greater amount than your annual income. At this point you are essentially FI without the safety net of 25x spending.
I like this staged approach as well. Likewise, I am still in Stage 1 and will need to evaluate the timeframe for me to reach Stage 2. I believe I have the same spreadsheet that you mentioned from intercst and will have to look to see when Stage 2 and Stage 3 will occur.
Thanks for the book reference and the information. I'll have to try my luck at the library and see if they have it. Our local library is pretty dinky so I may strike out there.
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