To participate in this thread your employed income needs to be (or if already FIRED, was)
at or below Median Family Income for your country.
(The attached thread at
https://forum.mrmoneymustache.com/throw-down-the-gauntlet/race-to-100-fi! is intended for everyone to use, so go there and mark your progress also.)
I'm doing this thread because I want to point to a place where I can show people making below median family income who are making measurable progress towards financial stability, financial unf*ckwithability, and financial independence.
So, all that said, here's how this poll works!
PS - If you say, "Oh, I'm a stay at home spouse and only work part time (but my spouse is a doctor and makes oodles of money);
but we have separate finances, so I qualify as having less than median family income... Maybe you do in some contexts, b
ut this poll is not for you. ********************************************
For the last 3 years, I've been hosting a poll on the forum that asks how close people are to FI.
There are lots of "Race to $X Net Worth" threads but, honestly, that doesn't tell anyone how close someone is to being FI in terms of passive income already achieved.
If you're aiming for a given amount of passive income, via whatever plan you're using, how close are you?
For example, if you're aiming for a passive income of $40,000 using a 4% SWR via a 100% stocks and bonds portfolio, and your portfolio is now worth $500,000, you're at 50%.
If you're planning on $20,000 in rental profits and $20,000 in stock/bond profits at a 5% withdrawal rate, then if your current rental profits are $12,000 and your stock/bond portfolio is $160,000, you're at 50%, too.
If you're going to sell your $500,000 paid for house with a realtor and buy a $200,000 house and invest the rest at in stocks and bonds with a 4% SWR, then you can count the equity as $300,000 * .094 (less realtor costs) as $282,000, which would shed off $11280. Technically you have zero passive income, from this source, but, heck, the purpose is to figure out how close you are, and you're a lot closer than someone who doesn't have $300,000 in house equity that they can (and will) convert to stocks!
Oh, if you've got a $500,000 paid for house but you're not going to sell it when you FIRE, it counts as $0 towards your target income.
If you have stock options or a pension that you aren't vested in yet, technically, you may not have anything (unless the pension has some kind of cash out option for early terminations). But again, if you will be vesting in 5 years and feel relatively sure you'll get there, you could pro-rate it to get an idea of how well your plan is working. (But if it was me, I would calculate two numbers, one if things go according to plan and one where they don't and they never vest to full value, and track both of them. I would do the same if I was counting on student loan forgiveness programs, just in case the government cancels them and screws people over.)
If you have the info, show us your FI percentage over the last few years.
I'm curious! Enquiring minds want to know! :)
You can see last few year's polls here if you're interested in comparing results:
https://forum.mrmoneymustache.com/welcome-to-the-forum/what's-your-current-of-your-target-passive-income-as-of-eoy-2018/https://forum.mrmoneymustache.com/welcome-to-the-forum/what's-your-current-eoy-2017-of-your-target-passive-income/
https://forum.mrmoneymustache.com/welcome-to-the-forum/how-close-to-fi-are-you-what's-your-current-of-your-target-passive-income