Retirement is a game of probabilities – especially early retirement. One of the key risks you face in early retirement is the possibility that your portfolio will run dry. We can plan. We run scenarios, and we try to minimize the risk of failure.
What does it mean to be free? In America, we cherish our political freedoms, and for damn good reasons. But I’m here today to talk about a different kind of freedom – financial freedom. Too many people are not financially free.
The personal finance community loves talking about FIRE – financial Independence (FI) and early retirement (RE). Conventional wisdom is that you can achieve FI with savings and investments worth 25-30 times what you spend each year. For example, a married couple who spends $40,000 per year can thus achieve financial independence with $1M –
If you have a somewhat-above-average professional salary, saving at least half of your income is totally doable. I’ve been doing it for many years, even while I was the sole wage earner for a family of four living in high-cost California.
Given the number of self-help books, motivational speakers, and online forums dedicated to discipline, I think it’s safe to say that lots of people realize they need discipline, and many struggle to obtain it. Discipline is one of the two primary keys to wealth.
Ah yes, the eternal question: What makes you happy? Being happy is, after all, the ultimate challenge in life, the holy grail. Everything we do to make money or to gain power, status, or success – is ultimately because we seek happiness.
One of my best friends from college, Bob, came over for dinner last week. We were discussing my plans to quit my job and take a Family Gap Year in South America, and he said something that really stuck with me.
It’s that time of year again: time to revisit your 401(k) and retirement contributions. If, like me, you intend to break free from the shackles of Corporate fiefdom, then you should always aim to maximize your 401(k) contributions while you can.
Have you ever wanted to fire your boss? What if you could? Tell your boss to go F*** herself. Just walk away, and not be concerned about the consequences. If you really burn bridges like that, you may need enough money to cover your expenses for a couple of years –