Yes, correct--net worth.
I don't plan on pulling anything out of my index fund or retirement accounts.
Of the million:
48% is index funds held in 401k and ira's ( this will be preserved and allowed to conitinue to take advantage of compound interest)
45% is investment/rental properties all paid off (1 house 3 condos)-- $30k annual cash flow
7% is liquid cash which equated to being over 1 year emergency fund/walking around money
I also have primary resi paid off w $150k in equity but I don't count that as you have to live in it.
My wife still works because she loves what she does and that brings in $22k/yr
the rental income and wife's income covers expenses and it allows everything else to continue to earn compound interest......and I expect more 'cushion' once I decide what my 'encore career' will be.
One insight....one HUGE insight I'd like to share and I have not seen much coverage on this point in any of the forums or personal finance sights:
I planned and saved and invested and reached my goal and am able to retire decades earlier than the rest of the general population but.......literally after a week + of being retired, I realized I missed a MAJOR factor:
if you FIRE fairly young in your 30's/40's, but you have a spouse who still wants to work full time and still have young kids in school........YOU ARE STILL ON THEIR SCHEDULE.
You still have to wait for their weekends and their vacation times to go out and do things and go on road trips and vacays.
And as a responsible husband, you volunteer to pick the kids up from school each day and drive em to basketball and soccer practice since you are the spouse that no longer has to work.