Enter your desired income for retirement to know how much you need to retire!
Your FIRE Number is calculated using your desired retirement income to estimate how much money you need to in your total nest egg to ensure you can safely withdraw your desired income
Yearly Desired Retirement Income:?How much money you make a month before expenses
What is a FIRE Number?
FIRE (Financial Independence, Retire Early) number is the amount of money you need to accumulate in savings and investments in order to retire early and achieve financial independence. It is typically calculated as the total annual expenses you expect to incur in retirement divided by a safe withdrawal rate from your investment portfolio.
For example, if your expected annual expenses in retirement are $50,000 and you plan to withdraw 4% from your investment portfolio annually, your FIRE number would be $1.25 million ($50,000 divided by 0.04).
The idea behind the FIRE movement is to achieve financial freedom at a younger age than traditional retirement age, often in your 40s or 50s, by saving aggressively and living frugally. Once you reach your FIRE number, you can retire and live off the income generated by your investment portfolio.
Why will knowing a Cash on Cash return on a property help you?
Knowing the Cash on Cash return on a property can help you determine the potential profitability of a real estate investment. It allows you to compare the amount of cash generated by the property to the amount of cash you invested, which helps you determine the rate of return on your investment.
BBy calculating the Cash on Cash return, you can assess the viability of an investment property and make informed decisions about whether or not to purchase it. You can also compare the Cash on Cash return of different properties to determine which one is likely to generate the highest return on your investment.
Ultimately, knowing the Cash on Cash return on a property can help you evaluate the potential risks and rewards of a real estate investment and make a more informed decision about whether or not to invest your money.
Learn more about the FIRE Movement?
Want to learn more about the FIRE Movement? Read this article to learn more.