Hello all,
Can anyone offer any advice on how fluctuations in the size of one's stash due to market volatility factors in to one's decision to pull the trigger on early retirement? For example, let's say I have determined that I need $500K to attain financial independence. And let's assume I have a current stash of $400K, in a volatile market. In a few months, the market shoots up 25%, and (voila!) I now have $500K. Should I now declare early retirement, because I have reached FI? Or should I build in additional safety margin by amassing an even larger stash, knowing that a market correction can easily turn my $500K stash back into $400K (or less).
Would appreciate any thoughts on this issue. If this topic has been covered previously, I would be grateful if someone could point me to the thread.
Thanks very much!