Hi All,
I'm very new to and love the MMM blog. I've just started on my way to becoming a mustacian, and have high hopes for myself and my wife. I completely understand investing and passive income, and understand that you can "retire" when your yearly passive income is greater than your yearly expenses. However, what is not clear to me on the MMM blog, is whether or not he is talking about passive income before taxes or after taxes. MMM always seems to say that yearly expenses are "X" and he's getting "Y" in yearly passive income from investments, but the number he gets from "Y" must be after tax passive income, correct?
I guess the whole reason I am asking this question is becuase my passive income target (and retirement date) need to reflect an after tax dollar ammount that exceeds my yearly spending, is that correct? Am I missing something? It's just a little confusing when MMM explains it the way he does. I understand this may be a REALLY dumb question, but just want to make sure I'm not missing something here.
Thanks for the help!