2 ms·
What I gather from the FIRE ideas: It doesn't matter how old you are. If you have 25x yearly expenses, then you can retire and live off of investment returns.
by bdndndnndnd 8y ago
What I gather from the FIRE ideas:
It doesn't matter how old you are. If you have 25x yearly expenses, then you can retire and live off of investment returns. This assumes market trends don't deviate materially from past hundred years of historical data.
- ericd 8y agoI tend to think that something more conservative is probably a better idea, even though it has the very real cost of needing one to work a bit longer. The Trinity study was based on a 30 year rundown IIRC, and was based on a period of US economic dominance.
- mercutio2 8y agoThe problem is that in the US, health care costs increase DRAMATICALLY as you age, without any clear upper bound. The ACA has improved the situation signficantly for people who qualify for ACA subsidies, but the subsidy cliff is really uncomfortable for people trying to make long term financial plans. In summary, 25x your yearly expenses when you’re 30 is no where near 25x your yearly expenses when you’re 50, even with zero lifestyle inflation.