If they go down further after a margin call, as stated by jay, you won’t have the availability to borrow more against them and will need to sell some of what remains at the even lower price to cover your expenses. Which you would have had to do anyway. The current loan covers only the past expenses, not future ones.
I think the question is: would you rather take the risk of not having enough assets, potentially at a time of crisis when all the shit suddenly gets correlated, for the prospect of maximizing your gains if all goes well or would you be happy with lower gains, providing you with enough as defined when you set your expected withdrawing strategy, in order to have historically backed precedent showing it should carry you through?
Theory is great for modelling but we each live through only one time serie. Theory and practice are the same in theory but different in practice.
Also FIRE people may be defined as “unemployed” if we want to be picky at that…
Anyway, as we have discussed several times here, FI may be a moving target and may be affected by a number of (positive and negative) developments in one’s life.
I consider myself RE’d without FI because - when I pulled the plug - I had not yet achieved “my number” (i.e. my 2026 number, as each year has had a different number depending on life circumstances, spending etc.)
While I may still have some interest in being engaged in something that brings $$ on the table, the plan is to figure out how to make things work even if I decide not to. This may end up in my bucket getting bigger anyway due to favourable markets (or my excellent trading abilities ), a reduction in spending or who knows what else.
And yes, not counting on inheritance, but pillars will also kick in at some point - and I may still be on this earth for the next 50 years - or 10 - and in the latter case I don’t want to regret having stayed on an unfulfilling path until I could reach a 2.3456% SWR…
yes, that’s the idea, as I believe I should have more available time, I’ll focus on timing the market err - I mean - carefully following the development of my holdings and optimising withdrawals and/or margin refills based on the circumstances… and refills from the less volatile portions of the portfolio. We’ll se how it goes.
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), a reduction in spending or who knows what else.
err - I mean - carefully following the development of my holdings and optimising withdrawals and/or margin refills based on the circumstances… and refills from the less volatile portions of the portfolio. We’ll se how it goes.