When planning for retirement, it's crucial to consider your individual living preferences and needs in today's dollars. Your location choice significantly impacts your living expenses, with factors such as cost of living, state income tax, and personal preferences playing a crucial role. Additionally, determining your withdrawal rate is vital, with risk tolerance influencing this decision. While the 4% rule is commonly used, personal confidence and comfort play a key role, leading many to opt for a slightly lower withdrawal rate for peace of mind in retirement planning.
How much do you really need to achieve financial independence? We decode the math used to calculate our FI numbers, talk about the different flavors of FIRE and you'll learn where our FI numbers fall on the FIRE spectrum. All finance is personal but it's difficult not to compare your financial situation to those around you. The pragmatics of calculating your FI number are easier to comprehend and address than the psychological ones and this episode touches on those too. And, the closer you get to financial independence the more these conversations impact your day-to-day life. Be sure to check out our website for key resources mentioned in the episode to help you establish and chart your own FIRE path: https://twosidesoffi.com/