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Looking for discussion. I've actually saved/invested/lucked into 8X salary already, but 5X that is real estate- my house and an rental. I've usually read to discount the value of my residence. I'm tracking my net worth, but for FIRE purposes, should I simply discount that Real Estate?



I generally do not consider real estate for my purposes. But some people do and consider a paid off home kind of like an annuity that saves them the cost of rent each month.

For rental income, I would think yes.

I've read the Fidelity advice and for a RE, 8X is less than half of what need unless you are expecting an inheritance or are close to qualifying for SS in a few years and don't mind burning through some of your stash.

I have plans, within plans, within plans for my FIRE purposes such as:

- If all goes to plans, I'll FIRE by year-end with about 65 times my annual basic living expenses and 30 times my overall living expenses that will include a healthy chunk of fun/blow/travel $.
- paid off home which will sell soon and downsize a lot. We plan on taking 1 to 2 month long traveling excursions so I don't want a lot of property to maintain. We may go with a condo, zero lot line or a small home in a retirement community. Don't know yet. We may RV for a year or two and own nothing but what we can carry.
- E-fund to cover 1 year basic living expenses separate from my FIRE stash.
- HSA that I've built up nicely the past 5 years. Separate from FIRE stash.
- starting off on my FIRE date, my withdrawal amount will be 2.5 times my basic living expenses, enabling me to adjust if my FIRE stash takes a hit
- I'm going to ignore inflation adjustments when I withdraw and just go with a flat 4% withdrawal out of my 75% stock and 25% cash portfolio. If all goes well the 1st few years, I may increase it to 5% and take some super nice vacations.
- DW and I will qualify for SS in less than 10 years so I'll have that as an additional income source, enabling me to reduce my SWR if I need it to grow.
- DW and I can do the minimalist living pretty easily if we have to. I mean really minimalist like chopping my own wood for heat and growing most of our own food.
- Health care costs should be at a minimum. DW and I are vegans, work out regularly and live active lifestyles that involve golf, hiking, mountain biking (the extreme kind), tennis, kayaking and anything outdoorsy. We just don't expect any health issues for many years to come except perhaps from accidents. Both have parents that rarely went to the doc until their 70's. My dad, for instance, is 72 and still does not need glasses, can bench press 250 lbs and works regularly. DW's dad is an 82 year old amazing rock of seeming invulnerability. He eats like crap, stays thin, never goes to the doc except for a yearly check-up and keeps up his 2 acres of wooded property respectfully.

If everything goes as I suspect, I'll have more money than I'll ever need by the time we qualify for SS in 9 1/2 years. I plan on using the SS to encourage sound financial thinking in my grandchildren. For example, offering to match their savings etc..

Neither of our parents have done squat for my children like other grandparents typically do. DW and I will be very different.

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