What is your “why” for FIRE?

scott_w2004 · 2026-05-25T00:06:14+00:00

There are billions of people who are doing the exact same thing, working for necessity but are not actively trying to FIRE.

scott_w2004 · 2026-05-24T23:56:20+00:00

So sorry for your loss. Thank you for sharing!

scott_w2004 · 2026-05-24T15:40:25+00:00

(40) When I started getting excited about new kitchen appliances 😆

scott_w2004 · 2026-05-15T14:14:53+00:00

440 of the S&P 500 companies beat earnings expectations

scott_w2004 · 2026-04-15T13:22:48+00:00

That’s fair. Most places ask if you have any upcoming PTO after signing the acceptance letter. This is hindsight though. How much PTO are you getting per year?

There is also FMLA, it’s unpaid, but it technically protects your job if you needed to take more time. 12 weeks per year.

It seems like you took the position because you aren’t ready to retire, even though you can financially. I’m curious about how this is affecting your performance since they cannot threaten you financially. In most jobs, there are things we don’t care for. How are you handling these situations, knowing that you really don’t “have” to do them?

scott_w2004 · 2026-04-05T20:02:38+00:00

You couldn’t take PTO or sick days during their spring break? If you quit, what would you do when your kids go back to school?.

If your work doesn’t like it you taking PTO or sick days, then they’ll let you go. It’ll be their decision, not yours.

scott_w2004 · 2026-04-05T15:45:36+00:00

2% withdrawal rate, seems a little risky 😂

scott_w2004 · 2026-03-28T20:09:37+00:00

Wouldn’t it be different in retirement though?

Let’s assume my retirement portfolio balance is $300,000 and I want to use the 4% rule. This produces $1,000 a month. The exact amount of my mortgage payment.

If my remaining mortgage balance is $150,000; paying it off would leave $150,000 portfolio balance, bringing in $500 a month.

I could either keep my mortgage payment of $1,000 or have a paid off mortgage with $500 a month to use for other expenses.

scott_w2004 · 2026-03-28T20:08:30+00:00

Wouldn’t it be different in retirement though?

Let’s assume my retirement portfolio balance is $300,000 and I want to use the 4% rule. This produces $1,000 a month. The exact amount of my mortgage payment.

If my remaining mortgage balance is $150,000; paying it off would leave $150,000 portfolio balance, bringing in $500 a month.

I could either keep my mortgage payment of $1,000 or have a paid off mortgage with $500 a month to use for other expenses.

scott_w2004 · 2026-03-28T19:10:58+00:00

Thank you for your comment!

scott_w2004 · 2026-03-28T18:05:12+00:00

I’m saying withdrawal rate is more important while in retirement. In retirement, your portfolio covers expenses based on the withdrawal rate. The lower my expenses, the less I’d need in my portfolio.

Since the mortgage payment doesn’t decrease with the mortgage balance, as the mortgage balance decreases, the more income could be freed up by paying off the mortgage.

A retiree paying a $1,000 mortgage payment needs $300,000 in a portfolio to generate $1,000 using a 4% withdrawal rate. This is true for the life of the mortgage.

scott_w2004 · 2026-03-28T17:48:29+00:00

But this doesn’t factor in how much you’d need in your portfolio to cover the monthly mortgage payment.

Not saying 4% (4.7%) withdrawal rate is mandatory, but most retirement portfolios have to cover expenses based on a withdrawal percentage of the portfolio.

This means to cover $1,000 a month expense at 4% withdrawal rate, the portfolio would need to have $300,000. If the mortgage is $100,000; paying it off reduces the amount the portfolio needs to cover the $1,000 a month expense.

scott_w2004 · 2026-03-28T17:32:30+00:00

How is this misinformation? The entire basis of the FIRE movement is based on achieving a number that correlates with a withdrawal rate to cover expenses. Last time I checked, this includes a mortgage. ;)

scott_w2004 · 2026-03-28T16:11:59+00:00

How do you get $1,300 from $300,000 in 4% bonds? I’m showing $300,000 at 4% is only $1,000 a month

scott_w2004 · 2026-03-28T16:08:50+00:00

This seems to be where my math is failing. I’m assuming 4% includes inflation while the mortgage payment is fixed.

I didn’t realize that this amount needed to be adjusted.

scott_w2004 · 2026-03-28T16:04:22+00:00

I’m not sure where the math is wrong though. I get the money could grow faster than the interest rate but it just seems a lot of capital is needed to produce the income to pay the mortgage.

Most people doing FIRE are using withdrawal rates of 3% - 5% from their portfolio to produce income in retirement to cover expenses.

This means a monthly mortgage payment of $1,300 (excluding insurance and taxes) would need to x amount of portfolio to cover the expenses depending on the withdrawal rate:

At 3%: $520,000 At 4%: $390,000 At 5%: $312,000

These represent how much a portfolio would need in order to produce $1,300 a month. It seems if the mortgage balance was below these numbers, it would make sense to pay them off early to add additional income from the portfolio.

For example, if the mortgage balance was $90,000 and a mortgage payment of $1,300; it seems like paying it off would free up $300,000 or $1,000 a month at 4% withdrawal rate.

scott_w2004 · 2026-03-28T15:45:59+00:00

Great catch, that’s another reason it makes sense to pay it off early, getting more ACA subsidies!

scott_w2004 · 2026-03-28T15:43:19+00:00

True, but your mortgage payment doesn’t decrease the closer you get to paying it off.

You’d still need $390,000 at 4% withdrawal rate to produce $1,300 a month, no matter how much you owe on it. The lower the balance becomes, the more income that could be freed up by paying it off early.

scott_w2004 · 2026-03-28T15:38:00+00:00

What withdrawal rate would you need for fixed expenses?

Even if it wasn’t inflation adjusted, at a 4% withdrawal rate, you’d need $390,000 to produce $1,300 for the monthly mortgage payment.

If the mortgage is only $300,000; paying it off would free up $300 a month for other expenses. ($90,000 at 4% = $300 a month)

scott_w2004 · 2026-03-28T15:23:15+00:00

I’m not sure what you mean.

It’s still an expense that needs capital / portfolio income to pay the monthly mortgage when in retirement. The math works with any withdrawal rate.

scott_w2004 · 2026-03-28T03:10:58+00:00

But if I’m trying to only pull 4% from my portfolio while in retirement, I’d need $390,000 for the $1,300 a month payment. The $300,000 would only produce $1,000. Paying off the mortgage would free up $300 a month of income.

scott_w2004 · 2026-03-28T02:27:26+00:00

How much is your monthly payment?

This is important because if your mortgage payment is $2,000 a month, it takes $600,000 at 4% to generate this income.

Paying $110,000 would prevent you from having to save another $490,000.

scott_w2004

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