How do you guys figure things like taking income taxes out of your FIRE needs.

[Cougar]

 I'm playing around with my numbers and figure in 3 years i'll be fire because my pile of cash will exceed my current salary for my estimated lieftime plus 5 years just in case.

and i figured that i may not be considering that i'm in a even better position because i'm used to a chunk of my money being taken for taxes every month before i even see it.

now, i know if you have investments, they have taxes; but are generally lower than income tax, so does anyone factor that in or do you just figure you need for instance 5,000 per month in retirement and as long as your stash supplies that; your just need to include taxes in  retirement the same as other expenses ?

[Eric]

You should include taxes as an expense.  I like the Taxcaster from Turbotax when it comes to estimating tax amounts owed.

[Cougar]

Thanks.

I used this: http://www.calculator.net/take-home-pay-calculator.html

and found my current SWR is actually more than my after tax take home pay. Why am I working, I don't know.


I guess i'm just doing my part to help support the country now.

[Thegoblinchief]

You shouldn't even have this expense in FIRE.

http://www.gocurrycracker.com/never-pay-taxes-again/

[Retired To Win]

You should include taxes as an expense. ..

That is what I did when I calculated up my $15,000 a year basic living expenses.  Estimate what your adjusted gross income would be after deducting amounts for your exemptions and standard deduction.  (It's an estimate.)  See what your income tax bill would be on that adjusted amount from the IRS tax tables  Add in any applicable state income tax.  Do the math and add the tax owed to your expense budget.

(And remember: if you have no earned income, then you have no social security or medicare tax.)