Team,
I am trying to pin down a realistic FIRE #, I have been shooting for something like 40k a year in spending cash.
We all know, that's around 1MM.
Great.
Problem comes when you have a mortgage. This is outside of my FIRE budget above, and I owe something around 450k.
I have read that you don't really need enough, via the 4% rule, to cover the payment. Rather, you really only need enough to cover the balance as a whole.
So either, I need...
1m (spending) + 450k = 1.450m
OR
1m (spending) + (2500/m *12*25) = 1.750m
It can be fairly drastic, as far as the difference goes. Curious how others are handling this.
PS. I know you could downsize, there are property taxes and insurance as part of a mortgage payment etc etc etc, but trying to focus purely on the thought process here, rather than specifics.