Why is your FIRE number so high?

Airbnb
churnt

Go to company page Airbnb

churnt
Aug 30, 2021 90 Comments

For those pursuing FIRE, what financial considerations push your target to $3M, $5M, $10M?

These numbers sound so high to be following the 4% rule, and I wonder what folks are taking into consideration that I am missing…Does your lifestyle plan require caring for parents, yachts, staying in a HCOL area? (Nothing against yachts…just not a consideration for us.)

Background: partner and I plan to FIRE at $2.5M. We have 2 kids and plan to move to a LCOL country with free universal healthcare, free/affordable universities. (Based on estimated COL…we consider our number in the “chubby fire” category.)

TC: $390K
#personalfinance #fire

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TOP 90 Comments
  • Uber
    Leet88

    Go to company page Uber

    Leet88
    A lot of people don’t actually want to FIRE - they just want a Monetary goal to justify working a job they don’t love. The sad truth is to many their job is their identity and without it they’d be lost
    Aug 30, 2021 6
    • Cadence
      hdjskso

      Go to company page Cadence

      hdjskso
      The truth has been spoken
      Aug 30, 2021
    • Amazon
      notarobotz

      Go to company page Amazon

      notarobotz
      Neat hot take, I heard it on Rogan.

      For some of us that made our way here with nothing, the FIRE amount is essentially an emergency fund that allows us to take risks without worrying that we'll work hard to get kicked in the nuts. It's a lot harder to turn down the shitty $$$ job when a hospital stay or a fire wipes out 10 years of work.
      source: Currently renting my soul to future Skynet
      Aug 31, 2021
  • Amazon
    un3od8

    Go to company page Amazon

    un3od8
    Not everyone wants to move to Europe
    Aug 30, 2021 4
    • Amazon
      ipED28

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      ipED28
      What is exit tax?
      Aug 30, 2021
    • SAP
      kajnfjqbwf

      Go to company page SAP

      kajnfjqbwf
      If you're a GC holder or US citizen you must pay income tax in the US. If you don't want to do so you may consider denouncing your status but if your net worth is $2mio or higher, then you pay exit tax, one time fee calculated based on your net worth and can be pretty high (think of 20+% of your net worth). I'm not the US resident and never was so I may be wrong in some details so I'll not provide you much. It's easy to google though, " USA exit tax"
      Aug 31, 2021
  • Because everyone here has their personal value deeply entwined with their TC. Without money, they're worthless 🥺
    Aug 30, 2021 2
  • I want to leave enough money to my kids so they don’t have to LC everyday and worry about TC like me
    Aug 30, 2021 3
  • Google
    LizardFoot

    Go to company page Google

    LizardFoot
    Rents keep going up, inflation keeps going up, so FIRE $ has to go up
    Aug 30, 2021 2
    • GE
      whoopy

      Go to company page GE

      whoopy
      Also most people that go bankrupt do it because of unexpected medical bills
      Aug 30, 2021
    • Reddit
      23popql

      Go to company page Reddit

      23popql
      Divorce, disease and death (of spouse) are the 3 main reasons for bankruptcy.
      Gambling and very serious substance abuse issues follow the above.
      Aug 30, 2021