Current Portfolio: 23% Picked Stocks27% 401k Mutual Funds (75% S&P500 index fund)40% California Real Estate (Our House Value*0.93-Mortgage)10% Fixed Income (Cash Savings, Money Market)I'm wondering why you subtract the mortgage from the real estate value? You are still exposed to the real estate market for 100% of the house's appreciation or depreciation in value regardless of the mortgage. It complicates the accounting, but I think a truer picture would be to include the entire house value (*0.93 if you like to figure for the selling costs of turning it liquid), letting the portfolio sum to over 100%, then the mortgage is essentially a short position in a fixed-income asset which pays your mortgage's interest rate.Nothing magic about 8 NW/AI, but I have seen this number mentioned several times in the past as an FI number (not necessarily FIRE).NW/AI is sketchy in the first place. AI shouldn't be a denominator as Rocannon points out. Reducing AI causes NW/AI to increase, which is silly, having less income doesn't put one in better financial shape. NW/annual expenses makes a lot more sense, since ultimately that's what determines when you can retire. When NW > AE * life expectancy + a margin of safety, that's retirement.Anyway, that was nitpicky. Sounds like you're doing great overall.- Erik
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