At its core, FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible. ... FIRE is no more of a movement than eating less calories and exercising more is a miracle movement for weight loss.
The FIRE movement ideal is not sustainable for society as a whole. Companies need workers, and not only workers but experienced workers. People leaving the work market at 30 to retire, will kick the legs out under society. If everyone was to get their income from passive investments, and retire at 30.
Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time.
The Roadmap to Early Retirement
Fat FIRE (Financial Independence Retire Early) is being able to live it up in retirement without having to sacrifice your spending. If you are Fat FIRE, you can easily survive without a job because your investment income more than covers your best life's living expenses.
Calculate your fire number without a financial independence calculator
Financial Independence, Retire Early (FIRE) is a financial movement defined by frugality and extreme savings and investment. By saving up to 70% of annual income, FIRE proponents aim to retire early and live off small withdrawals from accumulated funds.
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Defining FatFIRE
In order to achieve this, one must increase their income, increase the amount they invest and earn average or higher than average market returns.
Most people here recommend saving 15-20% of gross income every year toward retirement. This already factors in inflation. Assuming: 7% yearly returns (gains), 3% inflation, 4% withdraw rate.
But, I find it very convincing that $1 million is more than enough to retire comfortably in almost any city in the US for an unlimited amount of time. $30k-40k/year is more than many people live on.
For most people, you'll need to be able to save between 25% and 50% of your after-tax income to be able to retire in less than say, 20 years. The exact percentage will depend on how much you'll need to reach your goal. Naturally, if you expect to retire in 15 years, the percentage will need to be higher.
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