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URL:  http://boards.fool.com/nwae-is-an-option-but-ae-is-harder-to-define-and-26781737.aspx

Subject:  Re: FIRE mid-year update 2008 Date:  7/2/2008  12:47 PM
Author:  whyohwhyoh Number:  4621 of 5076

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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whyohwhyoh
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