I'm interested in learning what metrics / measures people use to monitor the health of their portfolio and spending during R.E. Do people continue to calculated SWR? Something else?
I think some of the basics would be
- Yearly Expenses
- Total Assets (not including house value)
- % of Cash on Hand
*Editing good adds from posts!
- AGI
Ideally I'd like to find a few KPIs that help with deciding if going back to work is necessary, if expenses can be increased or need to be decreased etc.
Thanks in advance for all the helpful info!
Discussion: Metrics to monitor portfolio while in FIRE
byu/demobeta infinancialindependence
Posted by demobeta
2 Comments
I have a little sheet that calculates the AGI impact of various sources of funds over the year. That helps stay in a certain band for ACA subsidies and allows me to fine tune at the end of the year as necessary.
My RE is a little different in that I still get a nice sized distribution check from my business. So, basically, I keep two months of expenses cash on hand, I get my distribution (which is more than I need), and I invest the excess.
If/when I sell my business, I should be able to live on a 2% SWR. So, I’ll just make monthly withdrawals and use my cash-on-hand as the chief metric. If I go over three months, I’ll skip the next draw for the month (basically still investing the excess, by not drawing it out).