Karen saved $15,000 each year. Out of the $30,000 that Karen earns, she invests 50%. She puts 50% into the machine by investing in shares and she will receive an average return of 7% adjusted for inflation. In order to pay her monthly expenses she needs $15,000 a year or $1,250 a month. She needs a safe withdrawal rate of 3.5%.

How much money does Karen need in order to become financially independent?

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