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Thank you for the detailed analysis! You're expecting quite a lot of text. Who do you think reads the first-person text?
Well, one question anyway: if you're interested in financial freedom, why would you choose a strategy that leaves the safe withdrawal rate at 4%? There are strategies that double that and would halve your FIRE figure. This would be much more efficient than counting cents at the end of the month. 🤷
Well, one question anyway: if you're interested in financial freedom, why would you choose a strategy that leaves the safe withdrawal rate at 4%? There are strategies that double that and would halve your FIRE figure. This would be much more efficient than counting cents at the end of the month. 🤷
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@Epi Well, He doesn’t count the dividend stream which is on top of that 4% rule, and I believe that is very conservative in this case.
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@beardonfire If he included the dividend stream, why doesn't the Fire figure include it? 🤔
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@Epi but he wrote that he uses the 4% rule and does not count the dividend stream just to be on the conservative side 😉
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@beardonfire The question remains: why does a dividend investor calculate without dividends?
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@Epi that is a question for the author himself.
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@Epi Yes, it's a very long text. But I don't rewrite it every month, I rewrite it. This means that I take my Word file and then edit it for the new month. Since the whole thing has grown historically over a long period of time, it's more or less a monthly return that's already in my blood, just like the IG Carousel posts.
On the subject of the FIRE number, why do I include a divi in it? Answer: It's complicated.
Better answer: I basically wanted to establish comparability with the followers of the accumulators. They actually ask themselves: How much do I have to have in it so that what I can safely withdraw does not lead to the bankruptcy bird coming.
Basically, I don't want to sell anything. And I probably won't have to. But: if push comes to shove, then there is the option and that's why I calculate the FIRE figure, simply to know where the threshold is at which I would be "safe" (because selling would be enough and dividends would be the extra income). Of course, this contradicts my actual approach.
Finally, the FIRE number and the runway give me further insights into my metrics, which is why I calculate them and publish them now.
And as @beardonfire writes, that's quite right.
The basis remains the same: Nothing is sold and I want to live purely from the distributions. Life will then tell me whether I was right with my bet. :)
On the subject of the FIRE number, why do I include a divi in it? Answer: It's complicated.
Better answer: I basically wanted to establish comparability with the followers of the accumulators. They actually ask themselves: How much do I have to have in it so that what I can safely withdraw does not lead to the bankruptcy bird coming.
Basically, I don't want to sell anything. And I probably won't have to. But: if push comes to shove, then there is the option and that's why I calculate the FIRE figure, simply to know where the threshold is at which I would be "safe" (because selling would be enough and dividends would be the extra income). Of course, this contradicts my actual approach.
Finally, the FIRE number and the runway give me further insights into my metrics, which is why I calculate them and publish them now.
And as @beardonfire writes, that's quite right.
The basis remains the same: Nothing is sold and I want to live purely from the distributions. Life will then tell me whether I was right with my bet. :)
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@frugalfreisein I see. In order to establish comparability with accumulators, you would actually have to add your dividends to your performance and then calculate the fire figure from the total, right? 🤔
But you actually need a separate fire figure that only takes into account the expected dividends and indicates the capital required to live off the dividends. In other words, a divi-fire figure. 😁
But you actually need a separate fire figure that only takes into account the expected dividends and indicates the capital required to live off the dividends. In other words, a divi-fire figure. 😁
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