Are you new to the concept of FIRE (financial independence, retire early)? Or have you ever wondered what all these acronyms and formulas (“4% SWR”, “25x annual expenses”) are really all about? Or maybe you have a colleague or a friend you would like to send a link to explain the basics of FIRE? Plain figures and charts are nice, but wrapped in a personal story, it gets more tangible and real, right? Mr. MP lives in Switzerland with his…
Banker on FIRE has a different take on how much money you need to retire early.
Loui runs the numbers on the 4% rule and comes up with a different theory.
Current bond yields are much lower than historical ones. So if you base your retirement on historical data and you’re investing in bonds, you might want to read this detailed analysis by The Poor Swiss.
“It’s a bad plan that cannot be changed” says an Italian proverb. A young FIRE blogger from Norway had the ambitious plan to retire within 5 years, when he would be 36 years old. He wrote down a detailed plan how to realise this goal. Now, a little over half a year later, the blogger changed his plan. He reduced his FIRE number, i.e. the amount of money he thinks he needs to retire early, and also touched a well-known…
Route 2 FI adapts his plan to retire in his mid-thirties. He takes into account the fact that he will still earn some money when FIREd along with his frugal lifestyle – under 20 000$ annual spending in an expensive country like Norway!
The Poor Swiss has updated the Trinity Study and adapted it to his particular situation. In this podcast he explains it all in more detail.
Ermine talks about the realities of living off his investments between quitting his job and drawing his first pension packet.
If your plan is to retire early with the 4% SWR you must know about the sequence of returns risk. The Poor Swiss wrote a good article about it.
Save a lot, invest wisely and in a couple of years you can say goodbye to the job you hate: no more commuting to work, no more boring meetings, annoying bosses or co-workers! You have done the math, you will use the 4% safe withdrawal rate and all will work out perfectly. There are already bloggers who retired early, this proves that it’s possible. You just need to be 100% focused on your goal and your growing net worth. Most…
