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Question about passive income in Coast FIRE calculations

April 14th, 2022 at 05:24 pm

This is something I just started thinking about yesterday, and I thought who better to ask than my SA buddies!

I use this calculator when tracking our progress toward potential Coast FIRE status:

https://walletburst.com/tools/coast-fire-calc/

As some of you may have read, we recently bought a rental property. While it's not fully rented yet, when it is, we think we can count on about $1500 monthly income after expenses.

Since we intend to hold onto this property and keep renting it, I was looking at the Coast FIRE calculator trying to figure out how to factor that in. The only solution I could come up with was to reduce the projected spending in retirement (since some of the spending would theoretically be covered by rental income vs. drawing down retirement funds).

Does that sound like the right way to think about this?

Posted in Uncategorized | 1 Comments »

1 Responses to “Question about passive income in Coast FIRE calculations”

  1. ceejay74 Says:
    April 15th, 2022 at 07:08 pm 1650049718
    1650049718

    Thanks for answering! Yes, I think it'll be $1500 net, but still learning about water/trash and taxes, and how much we need to set aside for repairs, so we'll see. And I assume we'll be raising rents roughly in line with inflation, so hopefully that makes it an accurate factor in our retirement calculations.

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