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> how much money will that specifically require? A general rule of many in the "financial independence" is 20x annual expenses saved for a sustained life witho
by brookside 7y ago
> how much money will that specifically require?
A general rule of many in the "financial independence" is 20x annual expenses saved for a sustained life without work.
https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ https://www.mrmoneymustache.com/2012/01/13/the-shockingly-si...
You sound like a burgeoning F.I.R.E'r. Join us!
- ivalm 7y agoDoesnt 20x suggest a 5% withdrawal rate? The oft quoted safe withdrawal is 4% (25x) with conservative being 3% (33x)...
- brookside 7y agoYes actually, my mistake.
- robocat 7y agoThe big caveat for this is that it assumes your expenses are flat over your lifetime, and the idea is to drive down your expenses, and can then be happy with your reduced expenses. It does make some sense, but the simplification sort of drives you in the wrong direction IMHO. FIRE stands for “Financial Independence Retire Early” (I think it is a good practice to explain acronyms, since those you are trying to inform are the least likely to recognise the acronyms you use!)