Define the "number"

[cygnus]

I have read a lot about "the number" people need to retire. I am sure it has been discussed here before, but how do you define that number when determining withdrawal rate? Is it total net worth including all assets like primary residence that you don't plan on selling or is it only the investable assets that you can draw an income from? For example our net worth is comprised of 40% in a taxable account (funds,cash, etc), 25% in retirement accounts (52 so would not like to withdraw from these until 59 1/2 at the earliest), 25% in primary residence and vacation home that we do not plan on selling, and 10% in a rental property.

So if we plan on withdrawing at a 3% rate is that based on the full net worth or only the taxable account, retirement account and rental property or just taxable account and rental property since that is all that will be generating current income?

[MrThatsDifferent]

It’s based on the totality of resources that produce the funds to pay your expenses. Your home wouldn’t count unless sold.

[Lady SA]

I base it off of my "withdrawal-able" assets. Meaning investment accounts with equities (both retirement accounts and taxable brokerage accounts). I exclude property like cars or houses, as those only generate income upon selling them, which I don't plan to do because I always need a place to live and a way to get around (so upon selling, they would need to somehow be replaced anyway).

So my investments have to equal 25X my expenses, and I consider all property consumable items on top of that--and I don't include them in my planning.