FIRE, Financial Independence Retire Early, is gaining popularity due to modern society’s pursuit of financial independence and a more autonomous lifestyle.
*Do I use the 4% rule to set investment goal?* Let's say I want to retire in 20 years time, so... To save $3,000,000 in 20 years, i would need to save: - $150,000 per year (simple calculation) - $75,000 - $90,000 per year (assuming 7% annual return and 2% inflation) - $6,250 - $7,500 per month (assuming 7% annual return and 2% inflation) To achieve $150,000 a year in I may need: - A portfolio size of $2.5 million to $5 million, depending on the dividend yield or interest rates. - An average annual return of 6% to 8% on your investments. - A combination of stocks, bonds, and other assets to generate passive income. Where to find a portfolio size of $2.5 mil to $5 mil?!
Creating wealth isn't about luck or inheriting a fortune—it's about cultivating habits that lead to financial success. According to Malik S. Lee, a seasoned financial planner with 15 years of experience advising affluent clients, the wealthiest individuals share three key habits that have significantly contributed to their financial freedom. Here’s how you can emulate these practices to create your own path to wealth: Prioritize Savings as Your Biggest Expense Contrary to the common portrayal of the wealthy flaunting lavish lifestyles with luxury cars and grand mansions, their most significant annual expense is often their savings. Lee highlights that his most successful clients consistently save at least 25% of their total income each year. While most financial advisors recommend saving
I believe the 4% rule offers a straightforward and effective framework for setting investment goals. However, it's essential to remember that personal circumstances and market conditions can vary. Hence, it’s crucial to revisit and adjust the plan regularly to ensure it remains aligned with your financial objectives and life changes. How’s My Investment Goal Going? Personally, my investment journey is ongoing, with a keen focus on building a diversified portfolio that can generate steady returns. I regularly reassessing my goals against the backdrop of the 4% rule. The “4% rule” is merely a guideline that setting a goal to accumulate assets that are at least 25 times your estimated annual living expenses. However, wealth freedom starts with a plan, and the golden rule applies are: 'the ea
I don’t use 4% rule to set my investment goal. Instead this year I set a KPI of SG dividends of $24K. I did a rough estimate and I need another 3 counters to achieve my KPI. As some counters were either purchased last month or this month, hence I have missed 1st half dividends. Anyway, I m planning for next year [Happy][Smile][LOL][Chuckle][love you]
I don't think 4% is suitable for everyone. It depends on what kind of lifestyle you want. 6% for Singaporean, yes...haha.. inflation and medical fee is the main problem!
i have set my goal to make as much profit and try to make as much money. with 4% rule i dont use. i am new at this treading so learning about it and trying to even out before i can make any profit.
I am more interested in using my annual expenses instead of 12 x monthly as expenses can vary in different months. Also, i am more keen to develop passive income thar exceeds basic necessities for now. What do you think? [Grin]
for me, the % is just a visual cue. we are visual orientated and its easier to work with a number in mind. The 4% rule is great that because it is simple! knowing i aim to withdraw 4% of my savings each year, I can plan ahead with flexibility to adjust based on market changes and my personal needs [Miser]
I think it’s a useful reference but not a magic number. You could continue to work and explore interests, hence getting constant stream of active income. You could also need large expenses.
I am not financial savvy. I keep aside 10 percent instead to invest on s&p etf, gold etf and Bitcoin etf to do the income generation in recurring monthly basis.
I set my investment goals by buying valuable companies. I agree 4% rule to certain extent. I use multiple brokers and platform for my investment. There are ups and down. So far, it seems to be on track
Creating wealth isn't about luck or inheriting a fortune—it's about cultivating habits that lead to financial success. According to Malik S. Lee, a seasoned financial planner with 15 years of experience advising affluent clients, the wealthiest individuals share three key habits that have significantly contributed to their financial freedom. Here’s how you can emulate these practices to create your own path to wealth: Prioritize Savings as Your Biggest Expense Contrary to the common portrayal of the wealthy flaunting lavish lifestyles with luxury cars and grand mansions, their most significant annual expense is often their savings. Lee highlights that his most successful clients consistently save at least 25% of their total income each year. While most financial advisors recommend saving
*Do I use the 4% rule to set investment goal?* Let's say I want to retire in 20 years time, so... To save $3,000,000 in 20 years, i would need to save: - $150,000 per year (simple calculation) - $75,000 - $90,000 per year (assuming 7% annual return and 2% inflation) - $6,250 - $7,500 per month (assuming 7% annual return and 2% inflation) To achieve $150,000 a year in I may need: - A portfolio size of $2.5 million to $5 million, depending on the dividend yield or interest rates. - An average annual return of 6% to 8% on your investments. - A combination of stocks, bonds, and other assets to generate passive income. Where to find a portfolio size of $2.5 mil to $5 mil?!
Do You Use the 4% Rule to Set Your Investment Goal?
In yesterday's livestream, @谋定后动 mentioned the 4% Rule for wealth freedom.Wealth Freedom Goal = monthly expenses × 12 months ÷ 4%The 4% Rule is based on the assumption that withdrawing 4% of your savings each year will allow you to live off your investments without exhausting them too soon.Do you agree with this principle?Calculate Monthly Expenses: Determine how much you spend each month.Annualize Expenses: Multiply monthly expenses by 12 to get annual expenses.Estimate Required Savings: Divide annual expenses by 4%.Example:If your monthly expenses are $10,000:Annual expenses = $10,000 × 12 = $120,000Required savings = $120,000 ÷ 0.04 = $3,000,000This means you need $3,000,000 to live off 4% of your savings annually, achieving financi
I believe the 4% rule offers a straightforward and effective framework for setting investment goals. However, it's essential to remember that personal circumstances and market conditions can vary. Hence, it’s crucial to revisit and adjust the plan regularly to ensure it remains aligned with your financial objectives and life changes. How’s My Investment Goal Going? Personally, my investment journey is ongoing, with a keen focus on building a diversified portfolio that can generate steady returns. I regularly reassessing my goals against the backdrop of the 4% rule. The “4% rule” is merely a guideline that setting a goal to accumulate assets that are at least 25 times your estimated annual living expenses. However, wealth freedom starts with a plan, and the golden rule applies are: 'the ea
🔥🪭💰Fanning the Flames of Freedom: A Fiery Quest for Financial Independence 💰🪭🔥 Picture this: I'm lounging on a beach, sipping a Piña Colada🍹, and my biggest worry is whether to take a nap now or in ten minutes. That's the dream, right? FIRE (Financial Independence, Retire Early) is the sizzling trend everyone's talking about, and I'm ready to fan those flames into a full-blown inferno of freedom. Is FIRE my goal? Absolutely! Who wouldn't want to escape the 9-to-5 grind for a life where I can finally immerse myself in my interests like tracing my ancestry, mastering the art of face reading like a seasoned psychic, dominating the stock market like a Wall Street wizard, and stay perpetually informed like a caffeine-fuelled journalist? Imagine having the time to enter every Tiger competition,
FIRE- Financially Independent, Retire Early- used to be my goal when I was younger. I wondered very early on in my life, "How can 20% of my salary be able to pay for 100% of my 20-30 years of retirement life with inflation and all?" My answer to that was FIRE. I worked very hard and I saved a lot, so much so that I ate one meal a day and slept about 4 hours daily. I took it to the extreme. Now, about 10 years later, I realize the toil it has taken on my body and mind. I am paying for that now. It didn't go very well either, there were times when I had high ticket impulse purchases from all the curbing of purchases that were always followed by regrets and guilt about how that could have went towards maybe $2 in interest in a year (We had low interest rates last time.) I lost friends because
The pursuit of Financial Independence, Retire Early (FIRE) has become a popular goal for many. However, as with any investment journey, there are significant pitfalls to avoid. Seasoned investors emphasize the importance of adhering to three critical "don'ts" to safeguard your wealth and foster a sound money mindset. 1. Don’t Entrust Your Wealth Lightly Building wealth is challenging, but losing it can be all too easy. Blind trust is a major factor in rapid financial loss. Benjamin Graham, the "father of value investing," advised decades ago: never let anyone manage your business unless you can thoroughly monitor and understand their actions, or you have strong reasons to trust their character and abilities. Many who have lost money in financial products failed to heed this advice—they ne
FIRE... Hard to reach especially everything going up and increments, bonuses cannot cover... Life in the fast lane... Life like that... [Doubt] [Doubt] [Doubt] tell me why why why [Drowsy] [Drowsy] [Drowsy] sometimes, you can plan all you want and then poof... life turns you upside down and inside out... most months always have something coming up and need to fork out more [Allin] [Allin] [Allin] for either this or that [Facepalm] [Facepalm] [Facepalm] money no enough [Facepalm] [Facepalm] [Facepalm] how to plan like that [Glance] [Smug] [Thinking] [Victory] [Helpless]
sometimes, you can plan all you want and then poof... life turns you upside down and inside out... most months always have something coming up and need to fork out more [Allin] [Allin] [Allin] for either this or that [Facepalm] [Facepalm] [Facepalm] money no enough [Facepalm] [Facepalm] [Facepalm] how to plan like that [Glance] [Smug] [Thinking] [Victory] [Helpless] @rL @LMSunshine @koolgal @GoodLife99 @Universe宇宙 @Shyon
FIRE, Financial Independence Retire Early, is gaining popularity due to modern society’s pursuit of financial independence and a more autonomous lifestyle. @koolgal mentioned in her post that it is important to allocate my limited funds wisely so that I can achieve my goal of FIRE - Financial Independence Retire Early.People seek to break free from traditional work patterns and have more time to pursue their interests and passions. $Tiger Brokers(TIGR)$ Is FIRE Your Goal?How do you achieve it?What’s your expected return for your investing per year?Leave your comments and also post to win tiger coins?
FIRE- Financially Independent, Retire Early- used to be my goal when I was younger. I wondered very early on in my life, "How can 20% of my salary be able to pay for 100% of my 20-30 years of retirement life with inflation and all?" My answer to that was FIRE. I worked very hard and I saved a lot, so much so that I ate one meal a day and slept about 4 hours daily. I took it to the extreme. Now, about 10 years later, I realize the toil it has taken on my body and mind. I am paying for that now. It didn't go very well either, there were times when I had high ticket impulse purchases from all the curbing of purchases that were always followed by regrets and guilt about how that could have went towards maybe $2 in interest in a year (We had low interest rates last time.) I lost friends because
Who wouldn't want to live the FIRE (Financial Independence, Retire Early) lifestyle? Most employees share a common dream: TO SAY "Sorry Boss, I don't want to work anymore!" This dream saying "Sorry Boss, I Don't Want to Work" echoes the sentiments of countless workers, but in reality, the need to earn a living forces many to continue their grind reluctantly. While money isn't everything, living without it is impossible. Essential household items like rice, oil, salt, and tea all come at a cost. The hardship of working often stems not from the workload itself but from the mental exhaustion of dealing with people and situations. Achieving FIRE Returning to the FIRE lifestyle—achieving financial independence and early retirement is not an impossible feat, but it requires concrete action
The 4% is the commonly cited percentage of one wants to live off without significant capital depreciation and accounting for inflation. But I do not go by this. I try to amass as much as possible and I am prepared to scale down my lifestyle if necessary. The other option is also to get stocks that pay good dividends or getting a property to get rental income. Getting a property is of course a high entry barrier so that will take more time. The latter two options mean that I don’t have to try to get so much capital to account for this 4-6%.
This is the first time in my life of hearing this 4% rule. First things first most of us are not individuals by the time we all retire. We are either married or still have children that are not fully independent. It's not that easy as you have to factor in a lot of assumptions and situations. If only life was that simple. As you age you might even spend less as you start to slow down as you get older. What you spend today or now is not the same 5 or 10 years down the road when you are 50, 60 or 70 years old. How you wish life was that simple man.
🔥🔥 Totally agree with FIRE — Financial Independence, Retire Early as my goal. Start growing wealth early. Build a portfolio large enough to sustain spending with inflation- adjusted withdrawals equal to 4% of the portfolio's initial value—the so-called 4% rule or any other percentage depending on the rate of inflation. Basically it is all about ‘earn more, save more, and invest more’. 🏖️🏖️🏖️🏖️
Ditch the Alarm Clock, Embrace FIRE: Why Early Retirement is Catching Fire
It used to be a simple equation: work hard, climb the ladder, retire at 65. But these days, a growing movement called FIRE (Financial Independence, Retire Early) is challenging that script. This isn't just about stockpiling cash; it's about wresting back control of your time and crafting a life on your terms. Breaking Free: Embracing Financial Independence and New Beginnings Why the surge in popularity? Well, let's face it, modern work culture can be draining. Stagnant wages, long hours, and the ever-present threat of burnout leave many yearning for a way out. FIRE offers an escape hatch. By aggressively saving and investing, you build a nest egg that covers your living expenses. Work becomes optional, allowing you to pursue passions, travel the world, or simply sleep in — the
Is FIRE Your Goal? How to Start Planning Your Retirement Now?
If you don't plan adequately for retirement, you might find yourself with little or no wealth when you retire. Without a retirement plan during your working years, you could face the worst-case scenario. Why People Lack Motivation to Plan for Retirement 1. Financial Illiteracy Many avoid planning for retirement simply because they don't want to learn about finance. This lack of knowledge can hinder our ability to save and invest for the future. Experts often highlight poor financial decisions as a major cause of retirement crises. The situation worsens when individuals, lacking financial literacy, withdraw their professionally managed pension funds and manage them on their own, often leading to economic hardship post-retirement. 2. Spending Retirement Funds Quickly If savings are treate
I don’t use 4% rule to set my investment goal. Instead this year I set a KPI of SG dividends of $24K. I did a rough estimate and I need another 3 counters to achieve my KPI. As some counters were either purchased last month or this month, hence I have missed 1st half dividends. Anyway, I m planning for next year [Happy][Smile][LOL][Chuckle][love you]