And does that reflect what you perceive your current spending percentile in your area?
For example, according to dqydj an annual gross withdrawal of $100,000 or 4% swr on $2.5m investments would put you in the 55th household income percentile in the NY, NJ, PA metro area.
However, your post tax disposable income would almost certainly be lower. Assuming LTCG tax and all of your $2.5m being in after tax brokerage such that your cost basis results in 50% of the $100,000 as a part of earnings, you would pay under $1k in taxes, maybe $2k depending on your specific state / city.
However a $100k wage income earning household would pay closer to $20k depending on if you’re in NYC or one of the suburbs close by.
So a $100k fire withdrawal household amount compares closer to a $120k wage income household, which puts that now at the 63rd income percentile. submitted by /u/AnimeCiety
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For example, according to dqydj an annual gross withdrawal of $100,000 or 4% swr on $2.5m investments would put you in the 55th household income percentile in the NY, NJ, PA metro area.
However, your post tax disposable income would almost certainly be lower. Assuming LTCG tax and all of your $2.5m being in after tax brokerage such that your cost basis results in 50% of the $100,000 as a part of earnings, you would pay under $1k in taxes, maybe $2k depending on your specific state / city.
However a $100k wage income earning household would pay closer to $20k depending on if you’re in NYC or one of the suburbs close by.
So a $100k fire withdrawal household amount compares closer to a $120k wage income household, which puts that now at the 63rd income percentile. submitted by /u/AnimeCiety
[link] [comments]