- Joined
- Jul 6, 2008
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I see two ways people look at FIRE.Agreed. Not saying you cant make money in real estate. I just dont have the time/energy/effort to want it. Also with rates so high i feel RE needs to reset to make it more alluring Set it and forget it in stocks. No ongoing costs vs a good chunk in real estate and the pressure to always have it rented.
#1 Fire - Hit that magic number where their 4% withdrawal will last them for 30 years. So if you need $200k/yr, you will need 5M to feel safe. BUT this will put your net worth close to zero when you get around year 30. Not that this is a bad thing but there will not be much legacy
#2 Fire - I want to have a legacy to give my kids. I want to spend more if I wanted to when retired than when I am working. If I need $300K/yr, I want $300K just from passive income. I want $7M in retirement and passive income making $300K/yr. This is my Fire. So if I want to increase my spending to 400K/yr, I don't have to work. So in 30 years and I never touched my retirement, I would have close to $40M to give to my heirs.
I am FIRE over 10M+ in assets and my passive from these assets easily covers my spending allowing me to continue to add to my assets. I worked hard and want to retirement under my terms. I don't want to be restricted by $$$. I want to pass on a legacy not only in teaching them how to handle money but also giving them the chance to grow the legacy. Someone has to be the 1st in the family to start this.
This is why most of my wealth is in real estate and business holdings. They all continue to make money when I stop working.
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