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URL:  http://boards.fool.com/still-700k-isnt-so-bad-if-you-really-wanted-to-22636024.aspx

Subject:  Re: Happy Dance Date:  6/17/2005  3:17 PM
Author:  yttire Number:  3329 of 5069


Still, 700k isn't so bad. If you really wanted to FIRE, you could buy a nice place for 100k and sell your current one (I saw a special on Money about nice houses for 100k in different parts of the country).

Take the extra 200k and buy a duplex, to bring in around 5% a year in rental (or 10k). Take the remaining 700k and put it in dividend achievers, REIT's, and some bonds and draw of 4% for 28k a year. Then you have no mortgage payment and 38k a year to live on.. that seems like a ton to me. Save 10% and live off the 34k remaining.

I suppose it is all a matter of perspective. If you love where you live more than retiring then you should stick it out for 2 million. I am going to FIRE at 1 million including the house (unless inflation comes along fast) but probably take up teaching as a career with little kids, to try it out. That is still a long ways off for me though, I suppose once you finally reach it you have already set higher goals.

Yeah, there are not that many people who seem interested in FIREing, and people don't normally talk about finances, for better or worse. It is an impressive achievement, nonetheless. I am thinking of a big treat at major milestones (like 500k, 1 million), like a European vacation (with a house swap though).
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