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Retirement Discussions / FIRE Wannabees
|Subject: Re: FIRE mid-year update 2008||Date: 7/2/2008 12:47 PM|
|Author: whyohwhyoh||Number: 4621 of 5139|
NW/AE is an option, but AE is harder to define and track, difficult to predict into the future, and needs to be adjusted for various unknown inflation factors. I picked AI since it is an easily calculatable number that, at least for me, is somewhat predictable and steady going forward. It naturally climbs with inflation, just a little faster than inflation. I am using gross base annual income.
As we get closer to FIRE we can start to evaluate our current and future annual expenses and determine a more accurate target.
I'm looking at NW/AI of 15 as a conservative target.
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