Am I really this close to FIRE according to Mr. Mustache's chart?

[decessus]

So in the spreadsheet Mr. MM prepared in this blog post, http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/, I calculated approximately 3-4 years until FIRE.

1)  I determined this by inputting the below parameters and finding Safe Withdrawal Rate would give you this percentage of your spending: was roughly equal to 100%, which occurred around Year 3.  Is this the correct way to interpret the spreadsheet?  I didn't realize I was this close, so this seems like a good surprise!
2)  Are there any other things I should consider?  I don't have a house, so my spending figures include my current rental costs.   If I buy a house, then I guess that will deplete my savings, and it will be longer to get to FIRE.  Is there a better way to buy a house without withdrawing cash / selling investments that will finance FIRE?
3)  Since I am in a high cost coastal area of the US, would it be better to find another job in a lower cost state (such as Colorado), move there, and then buy a house while achieving FIRE?  I suppose I want to buy a house because I see it as a good way to easily lower your retirement costs (no rent).


Here are the parameters I used:

Existing Savings (how many years' worth of take-home pay) = approximately 6 (figured by taking my current savings divided by my gross yearly salary minus all taxes)
Annual Investment Returns After Inflation = 5%
Savings Rate = 65%
Safe Withdrawal Rate = 0.04

** definition of take-home pay: gross income minus all taxes. Remember to add back in any 401k or other savings deductions to the paycheck you see, since these are really part of what you are “taking home” – you just happen to be saving it automatically.

[deborah]

Sounds about right to me. Check whether your spending pattern is right though. If you have been budgeting, you might have put off big purchases, such as house maintenance... which you probably want to budget long term for.

[Señora Savings]

On home ownership:

You currently spend $x to rent per month.  Your stash must therefor have 25*x dollars in it to support your housing needs.  If you buy a house, that will reduce both your spending and your stash, so it shouldn't affect things too much.*  If you earn more and save more on the coast then stay there in the money accumulation phase, and move somewhere with a low cost of living when you're retired, no need to own a house before you retire if you have the money for it.

Once you get close to FIRE you can figure out what your life will cost in Colorado; looking at the price of actual houses, etc. and maybe you can retire a bit earlier than expected.

*This is if you buy a house comparable to your current renting situation.  If you go from a one bedroom apartment to a five bedroom house, you're out of luck.

[decessus]

" If you buy a house, that will reduce both your spending and your stash, so it shouldn't affect things too much.*

If you have been budgeting, you might have put off big purchases, such as house maintenance... which you probably want to budget long term for."

- Great points thanks.  I realize I never considered property taxes, house maintenance, or how to buy a replacement car (will be used of course;) )

[forummm]

Include things like health insurance too if you currently get that from work.