The Truth About The FIRE Movement! (Is FIRE Still Possible?)
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- เผยแพร่เมื่อ 21 ก.ค. 2022
- The Truth About The FIRE Movement! (Is FIRE Still Possible?)
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Please add timestamps. It would really take this show to the next level.
yes, timestamps
Yes! Even if it’s 4-5 different chapters/topics. It would help a lot!
Don’t worry, they’ll release a bagillion number of short clips. A bit annoying is you are a subscriber, but nice for the videos to enter your generic feed.
0:00 - Start of show
50:22 - End of show
My life has improved as the decades pass. My post college/late 20s was the worst. I was saddled with college debt, had few job opportunities, lost all my college friends. FIRE would have given me hope that didn't arrive until much later.
One of the key insights of the fire community is divorcing your retirement number from your current income, so I think using pre-retirement income is a poor way to calculate FIRE number. Otherwise, great episode!
Hmm
Yes! FIRE Felicia (saving 40%) has proven she only needs 60% of her income to live/retire, while steady Steve (saving 20%) requires 80% of his income. Granted, some FIRE folks uber-frugal lifestyle may not be sustainable throughout a retirement, but FIRE Felicia is likely to be ok with less retirement income than steady Steve and using their pre-retirement income is an arbitrary benchmark for either of them.
Yes it's all about the expenses you need. Not your pre retirement income.
My favorite version of the FIRE acronym is “Financial Independence, Recreational Employment.”
Nearly every bigwig and ‘founder’ of the movement still earns money post-retirement. (Real estate, podcasts/media, speaking fees, courses, books, special projects, yadda yadda.) They just earn money pursuing what they’re interested in, when they’re interested in pursuing it, at a rate with which they’re comfortable.
Which is a good thing! Most people (whether a W-2 employee or not) want to add value to the world. And, in a capitalist society, most additions of value are remunerable (typically with money). But it’s Recreational after FI.
The “Retire Early” part of the acronym was proto (and successful) branding, but doesn’t really reflect the reality of most tenured FI bloggers/‘casters/figureheads.
Financial Independence, Recreational Employment
Well yeah...you aren't going to hear from the ones who retire early and quietly go about their business...not like everyone who FIREs is sitting around posting stuff on social media all day for the world to see.
Well said! I am also here to learn how to invest after listening to a lady on tv talk about the importance of investing and how she made 7 figure in 3 month, somehow the video taught me nothing and left me even more confused, I'm a newbie and I'm open to ideas on how to invest for retirement
@@rajeshupadhyay5683Think long term, personally i ventured into the market so i won’t be stranded after i retire. A colleague of mine introduced me to CFA " Teresa Jensen White " who drew out retirement plans and they all aligned with what i wanted and had to pick one plan and with her exit and entry strategies on commodities , securities and digital assets, my portfolio has really been diversified with good ROI. I am really impressed by how much i have achieved
Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future
Investment now will be wise but the truth is investing on your own will be a high risk. I think it will be best to get a professional👌
Really enjoyed this video. As a 41 year old who left the work force, as a chemical operator, in March, I can personally say, its still very possible. I did it with a 4 bucket (401k, Roth Ira, HSA, Taxable) passive income system, and most of my effort went into maximizing my Army of Dollar Bills based on accounts and opportunity cost. (MLPS and qualified dividends in taxable, REITs, BDCs, and income in my sheltered accounts). I became The Dividend Monster, and I can truly say it was worth it, I have no regrets, and I really enjoy living life on my own terms. Cheers!
You should make some videos about that. I'm 10 yrs older with over a million, paid off home but, I'm still afraid.
The dividend Monster really is inspirational ! His post is what keeps me inspired to keep working towards my dream to FIRE 🔥 one day.
Why lie?
I hope one day to have a 1-2 million dollar dividend portfolio. Right now more into growth stocks but will sell some day.
The nice thing for me is that I’ve been working at home full time for the past 2.5 years and my work life balance has greatly improved….no rush to retire since life is very balanced and I can still earn a paycheck
I always do my laundry at the laundry store
😂😂😂
Being of age and how to manage the sequence of returns in those early periods is what seems quite scary in the current market. The market is never a loser in a twenty year cycle, but the 2000s decade scenario scares me and could really disrupt my retirement. When you are no longer accumulating but withdrawing its hard to be anything but cautious.
Some investors look to their investments as a source of income while others use it is a means to grow or preserve their wealth. For new investors, getting started can feel overwhelming. Risks loom large, and complicated, unfamiliar financial jargon can be intimidating.
My spouse and i are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Bought my first £400,000 house. Success requires market knowledge and we made a very good choice adopting a financial advisor Abernathy Nancy Louise .
That's good for you. If you dont mind, how exactly does this work ? and how profitable have you been ? I would love more info about her services.
Wow, I know Abernathy Nancy Louise, I joined her program just a couple months back.! She obviously brings a lot of experience to the table but more importantly I think she is a tough person in an industry that demands clairvoyance.
I believe your guide is obviously based where you are in the States, can this also work if I am looking to do this from UK / Scotland?
My wife and I are working on obese FIRE. We are 37 y.o., maxing out 401k, Roth iras, HSA, taxable account. And also invested in long term rental properties. Goal is to be financially independent by 45 y.o. Our plan is to use our real estate income in early retirement and let the other investment accounts grow untouched. We may also keep our day jobs part time, but who knows. Exciting time for us!
I enjoyed listening to this. Knowing what you’re retiring to is key!
Thanks for using my research and citing it properly! It's cool seeing my graphs on your show :) Well done guys :)
I’m not part of the FIRE movement but a few years ago after my break up I decided to really think about my future and I started saving 70-80% of my income. Currently saving/investing 8k per month. However, I feel like I don’t enjoy life because all I do is work. I work 7 days per week, have no friends or family. But I must say I do feel accomplished. I grew up a poor orphan so financial security is super important to me. I just hate the idea of spending any of my money. I think when I hit 300k-500k I’ll ease up a little. I just want a good buffer.
Chances are if you hate it now you won't be able to just turn on a switch and be able to do it in the future
I think what you’re doing is great, as log as your mental health is in good stature. It could be worth it to spend a little extra time away from work each week doing something you’re passionate about. It might lower your saving rate by a couple percent, but it wouldn’t really change how quickly you’d reach independence
I think its important to learn to spend money because you need something to motivate you to earn more and maintain social ties. I budget 3% of my salary now for "social" activities - beers at the pub, meals out, coffee at the cafe etc. & 7% for vacations. Its only 10% but adds so much more to my life.
Kudos on the savings rate! I would suggest looking at how long it will take you to reach your goal. 1, even 2 years of that kind of grinding can really jumpstart your financial journey. For lifetime earnings, however, burnout prevention can be key. "Only" saving 50% may allow you to continue for longer. FIRE is typically at least a 10 year process.
Great video guys! Loved all the valuable information.
To reduce sequence of returns risk, I plan on having a 1 year cash reserve + 2 years of short term bonds with maturity lenght of 3 years. Plus an adaptative expenses model.
I plan on 1.5 years on cash, to sleep just a little bit better ;)
You could do revolving I-bonds ;) that’s what I’m planning to start soon after I have a cash buffer
@@dynamichunter843 that would typically be called a ladder strategy whether with CDs or bonds. I-bonds are paying high now but that won’t always be the case.
The idea of FIRE really comes from the realizating time is more important than money (consumption) and the possibility of and saving 30% for 10 years instead of 3% for 40 years.
The rebellion against voluntary servitude (work) from the entitled Millennial generation started from the inherit generational ability to do more. Mainly intellectual elites share and embrace the challenge of possibilities of a new lifestyle and life proposition.
Question.
Where they right?
Did they assessed the risk properly?
Is it possible?
Is their premise of time more important than money wrong?
Millenials are just as entitled as any other generation. Plato or maybe Sokrates was already writing about this "ungrateful" youngsters and whatnot. Every generation looks down on the next one.
Great video! And interesting perspective on FIRE. We talk a lot about budgeting and finances on our channel too, and agree completely with your views on consumption, and more importantly stopping to smell the roses. What's the point of living completely frugally if you don't take time to enjoy what matters to you.
Keeping track of your expenses is the cornerstone of any FI plan. I took this to an epic level: developed a double-entry, accrual-based bookkeeping system mimicking a corporation’s accounting system. Hence, I have a P&L, balance sheet and cash flow statement for “Me Inc.”. There’s much more to FI than budgets, but this is where it all starts. Fat-FIRE-ed on 1 Feb 2022 (talk about sequence of returns rusk 🤣), but I had a stress-tested plan that was sound before I RE-ed, and it still is sound now, even after equity and bonds both down, and inflation up. So, yeah, if you do your homework and make sure your SWR has a (very significant) margin of safety, FIRE still works.
I can assure That This is one of The best videos ..... liked ,.,.,
i know a lot of the 4-5% withdrawl rate gets thrown around in FIRE but also people in FIRE generally seem to live on 25-40k a year because they've downsized and are debt free and do flyer mile travel hacking when it comes to travel expenses. not drawing down 100k a year off their portfolio.
what a life, don't have family or kids, don't have any health issues, don't own or buy anything, live off rice and beans. but hey, you are now retired and independent.
@@yuriib5483 there are plenty in the fire community that have families and dont live on beans and rice. they buy things that they think add value to their lives. they seem pretty happy.
@@sorensje Average spend for the family in US of Ay is 50-60k annually. Health Insurance premiums alone for my family is $9600 on HMO. this flex is weird and not true but oh well you do you
@@yuriib5483 the average family also buys tons of useless garbage that doesn’t actually make them happy because marketing teams have figured out how to manipulate the masses. If you can’t see past the the BS and spend your money where it truly matters to you, that’s a personal issue.
@@yuriib5483 tk God I'm military retired. I FIRE'd and health insurance is less than 1k/year.
The FIRE movement has some great information about alternative withdrawal strategies with higher success rates, such as Financial Guardrails. It sounds more complicated because it is, mathematically, but really it's quite intuitive: if markets are down, you take out less...and if they're high, you take out more. The latter piece is actually important, because it increases your cash reserves to smooth out those downturns. Definitely requires flexibility!
Intuitive, but not necessarily easy to do; you’d need to think long and hard if it really possible to significantly reduce your withdrawals for extended periods of time and to what extent that implies important life style sacrifices. What several experts (eg Kitces) say, is that people tend to severely overestimate their spending flexibility.
Great show, gentlemen! Thanks for the content!
My savings rate is very high but i am no longer making it my goal to retire early. I want to stop working full-time in my 40s and have the ability to get a job that i enjoy more and where the salary doesn't play so much of a role. Am not willing to throw away my youth so i can save more. Next year am planning on going back to at least two international vacations a year and focusing more on the experiences. I thankfully can still maintain my savings rate while saving additionally to travel but I would have reduced my savings rate in order to achieve my travels.
Awesome show
Sooo right! Budget budget budget
Great talk
I'd love to see you guys cover LETFs (leveraged exchange traded funds) and what your thoughts are on those!
They believe what Buffett says about leverage...""If you don't have leverage, you don't get in trouble. That's the only way a smart person can go broke, basically. And I've always said, 'If you're smart, you don't need it; and if you're dumb, you shouldn't be using it.'"
@@Kornheiser10 But with leveraged ETFs the leverage is built in, it doesn't actually involve you borrowing money and you can't lose more than what you put in.
Hey- just want to say that my understanding of fat FIRE is not 100% of current income, it’s actually desiring a rate above that. Lots of fat FIRE folks reflect a desire of wanting to “live it up” after retirement (think vacations, nice cars, etc). I think Bo is using the label fat FIRE when he means the “typical” FIRE path. Just FYI!
If you're saving 30-50% of your income and then retire spending 100% of what you used to earn, that IS fat FIRE! they would be spending 1.5x more than what they used to spend
FAT FIRE means you sold a bussiness for 5 million and live off of bonds now.
Fat fire is also having a fully paid off house and no debt so that you can allocate that monthly payment towards vacations and stuff
I believe it is. It’s very important that you start towards this goal as early as possible though. I think you need to start saving aggressively before the age of 25. Saving 60-80% of after tax income consistently for at least 10 years while still investing maybe around 20% for another 10 years. Based on the current market conditions, that, in theory, should allow you to have enough money for the rest of your life.
If you're "saving" for 20 years then you're fire plan failed
Yeah the way I look at it is that income is income regardless of if its passive or from a job. If I've got 2m at 40 paying me 80k a year in dividends and am unemployed I'm in much better shape than the working guy making 80k at 40 with a zero net worth...so why couldn't I retire? Hypothetically if I only needed half of that income to live comfortably and the rest gets invested the working guy not starting until 40 will never catch up to the guy who started young even if the guy who started young stops working decades earlier.
It basically boils mismanage your finances in your 20s and 30s, play catch up in your 40s and 50s, or manage your money well in your 20s and 30s and enjoy the dividends of your decisions later in life.
@@jtowensbyiii6018 True. That’s my estimate on a conservative side, but 20 years means you can still retire before 50 which is FIRE.
Great show guys! Reading the comments, may I suggest that you discuss the irrelevance of dividends (as the primary basis for asset allocation) in a future episode, as so many investors seem to misunderstand the mechanics of dividends creating a false belief that a portfolio of high div paying sticks trumps investing in the total stock market.
Mixture is good. I’m mostly into growth stocks and will someday sell to buy dividend stocks. My wife has some growth and mostly dividend for dividend growth.
Pieter doesn’t know what he’s talking about
Irrelevance of dividends 😂 lol . Dividend investing is one of the easiest paths to wealth weirdo
What’s the name of/where can I get that Monte Carlo portfolio simulator you showed around the 30 minute mark?
I would much rather be invested in dividend paying stocks with companies that pay dividends through recessions then be selling 5% of my portfolio every year. I’m interested to see how the math changes if your portfolio pays you dividends where you don’t have to actually sell the underlying asset. Is that a superior strategy?
dividend stocks are income. Just keep at it. You don’t lose your principle and you get that income now, if you want. Of course, reinvesting those dividends makes returns even more impressive until you need that cash dividend.
@@tonycrabtree3416 right now my Roth IRA pays just over $1500 a year so technically I’m able to invest $8000 a year or just under 1.25x. It doesn’t just help with future income. It also helps me grow an account that is restricted on the amount you can put in it faster.
Is 60 instead of 65 considered FIRE??? 🔥🔥🔥
I worked at Hardee’s too! Mom taught too!
Hey Money Guys, thank you for what you do! I have a question: I have recently setup a ROTH IRA and I am trying to figure out what to invest in. I want to be very aggressive while I am young. Do you guys have any opinions on Leveraged ETFs like TQQQ or UPRO? They look like NOS for my account. Thank you.
They have mentioned to invest in target date index funds. Look into FDEWX for example!
A growing stream of dividends from a low cost dividend growth focused index fund like SCHD, rental property income, and a low stress part-time job AKA barista FIRE is the way.
That part-time job can fall off whenever your dividends and rental income grow to the point sequence of return risk is no longer a big concern. However, there is a good chance most people will want to continue some type of part-time work anyway to stay engaged in the community and to continue helping others and making progress toward a purpose in life.
Live on only the income, never sell the principle, and pass the assets on to your next generation or a charity of your choice.
Great episode! I agree with the definitions of "levels" of FIRE, but I've always heard Fat FIRE is actually *increasing* your standard of living during retirement--to match your increase in free time. More travel, more dining out, more events, etc.
Does the money guys show have a list of books they recommend regarding investing for beginners who are 40 yr old interested in joining FIRE? Thank you
The Simple Path To Wealth might be useful. Never read it but I've read their blog, and the book is supposed to be about the same thing (and you asked about a book).
B and B, what do you guys use to budget?
Great show! Really appreciate the perspective you guys continue to bring. One question though: why only look at inflation back to the 70s? It seems like this is a common period to look back to, but I don’t see why we wouldn’t want to look back further
The 1970s is when we got off the gold standard and adopted a FIAT currency. Comparing prior to that point wouldn’t really be useful, since the gold standard acts as a deflationary force on the currency. It’s not like inflation didn’t exist prior to then, but it wasn’t as much of an absolute guarantee every year like it is nowadays.
You Need A Budget! YNAB is the best!
If you expect to make more money in retirement because your a financial mutant and are saving 25% plus maxing out Roth IRA. Would you still recommend contributing to a traditional 401k or should all my additional resources go into a Roth 401k. If I should do both to hedge my options how much should go into my traditional vs my roth 401k? I wont retire for another 29 years and would expect to be in a higher tax bracket.
Perhaps only contribute the match in your 401K since it’s and instant 100% return.
@@meesc3556 My employer allows me to contribute to my Roth 401k and still get my pretax match. I guess its probably a good idea to use the three bucket method since no one can foresee the future. Would love for the Money Guys to do an show where they explain how taxes work in retirement. If Roth income counts towards your yearly income on your tax bracket even though those taxes have already been paid.
Hell, I feel like I'll be lucky enough to just be able to retire in general, let alone retire early!1
So much better than Ramsey. No condescending speeches, religious dogma, political crap or pissed off hillbillyisms
What Monte Carlo simulator tool was that screenshot from?
I’m shooting for a withdrawal rate of 3% or less, 2% ideally
Remote work now makes fire still possible because it opens up the ability build your wealth through geo arbitrage. Since you can earn money from anywhere you can move to where your money goes the farthest thus allowing higher amounts being put aside for savings and investing. Companies are allowing more employees to work remote than they ever have in the past so this might be even more possible now if you are in an industry or field where your work can be done remotely.
I’m contributing a decent amount of my pay to 401k/Roth 401k (27% currently)There would be penalties if I wanted to live off that before 59 years old. Do the FIRE ppl use brokerage accounts? I have a brokerage account, but I put way less in there (7-8%)than the retirement accounts. Between those accounts and savings I am setting aside around 40-45% of my pay. The way I’m doing it, it looks like I should have a high seven figure or 8 figure retirement, but most wouldn’t be available without penalties until I’m 59.
13:00
This is very important. Delayed gratification also corresponds to reduced enjoyment. How fun is a sports car when "feeling the road" means back pain?
❤
Some great points here:
1. You have to know your values and what brings you the greatest joy in order to spend and save purposefully
2. It’s okay and can be just as healthy to save up money slowly if it’s in line with your values as to save at a more intense rate.
3. Don’t be pulled into “get rich fast” schemes at the expense of wisdom & security (ie bitcoin).
4. Technology has profoundly impacted how one can earn money on the side.
Why don't you ever talk about living off dividends? I have been living of my portfolio for the past 5 years and I've never had to sell my positions. Every year I keep getting more money because of dividend growth. Just a different view I guess. I mean it did take 30 years to build the portfolio.
Dividend income is usually a stagnant source of income that doesn't catch up with inflation. That's the problem with it. A dividend t stock aren't meant to be growth stocks.
@@bobblake1004 this is nonsense...thats why dividend growth is a strategy. Grab value dividend aristocrats/kings and challengers with lots of fcf, low payout ratio and great fundamentals and look for a dividend growth rate that beats inflation...
@@bobblake1004 completly wrong.
Dividends are not unimportant but as a basis for asset allocation within your equity portfolio, think twice! Check out Ben Felix on the Irrelevance of dividends. This is a concept which many investors misinterpret.
@@CT-O ok sure. Give me some examples of great dividend stocks that outpace inflation. Give me atleast 10 so I'm convinced.
I’m trying to retire at 50-55. Currently I’m investing over 42% of my income. I got a 10% raise last year and I threw all of that into my 401K. Every time I get a raise I just put it all into my retirement.
You realize you need to be 59.5 years old to start withdrawing from a 401k right. I’d suggest building up in taxable account. You could use the rule 55, but you have to work til 55, retiring before that is a 10 percent tax fee
@@zoeyth4003Great advice...also, long term capital gains tax on taxable accounts could be 0% if income under 40K(single) or 80K(married)
@@zoeyth4003
Rule of 55 and you can withdraw early. I have a taxable to last me until I can withdraw from my 401K.
Same here, would love to retire by 50. Only maxing out my 401k and Roth IRA and putting some away into a taxable account. Saving close to 30% a year but it’s hard with 2 kids. Wife is working a temp job but we do have 0 debt and mortgage paid off 10 months ago. Wife in her early 30s but I will be 40 next year, hoping to be on the right track.
@@eplugplay8409
Yeah it’s hard early on. But if you put 100% of all raises in that helps. In a few years that total % you are contributing piles up.
We want to Fat FIRE. Fire doesn’t mean not working a lot of people has passive income as well. As well as doing things we love.
Been investing 55-60% of my after tax income for the past 3 years and about 10-20% years prior. I'm able to still keep a travel fund and live comfortably with no debt other than my mortgage. If all goes well I can FIRE in 6 years and live comfortably with a budget for hobbies, health optimization, international travel, and shopping. The challenge is being able to enjoy my job during these next 6 years despite having a solid six figure salary. I am looking at getting to the next level and breaking the next 100k in salary and doing something that is fulfilling enough to think that 6 years will fly by instead of thinking of it as a very slow moving goal. In other words, my challenge is finding that job that'll have me tap dancing to work.
It's all about how "early" you're looking at exactly. My pension kicks in at 66.5, and retiring 10 years before that looks trivial -- 20 years, probably not gonna happen,😃 But I echo the sentiment of ensuring you live a fulfilling life through you working years, future and stuff like health are never guaranteed.
Do yall think it is smart to put money into index funds for the growth then transition them to dividends and REITs after building up savings
Using dividend pay-out ratio’s as a basis for asset allocation is a fundamentally suboptimal idea. Check out the two video’s in Youtub of Ben Felix on the Irrelevance of dividends. This is an important topic, which I can say as a former finance professor, many DIY investors misunderstand.
@@Pieter2360 Very helpful thank you!
@@Pieter2360
I agree. Dividends aren’t “free” money.
I am on the path to fire saving over 50% of my income. I watch the show all the time and generally enjoy the content. However, each time I hear “take the relationship to the next level,” I’m curious why there isn’t more transparency with the cost. Would love to hear the exact structure and numbers.
It’s on their website and they have mentioned it on the show sometimes. If I recall it’s fee only 1.25% of AUM.
@@owlegrad wow, that's freakin high expense rate...tks for info
@@rjpg I don't think 1.25% is horrible, but it is a bit high when there are good firms out there that charge 1%.
@@thynnus2422 or robos that charge 0.25% and offer TLH and DI
1.25%? Uh. No thank you. That turns your 4% safe withdrawal rate into a 2.75% and pays hundreds of thousands of dollars over time to them. I don’t believe any advice is worth that.
They still play movies at a lot of laundromats. Your dark ages nostalgia is a lottttt of ppl’s currentrealities.
11:00 video starts on how to achieve fire 😊
FIRE is still possible! Instead of retiring at 78, I’m retiring at 72!
????
@@rebekahfolkert You’re so cool!
@@mickeypigknuckles 🤣🤣 Sorry, I couldn’t tell if you were joking or not!
I've always been concerned about using a budget app for Android, where it connects to my bank and credit cards. I would love the simplicity BUT I worry about the security aspect? What would you guys feel is the safest from a privacy point of view when using all of the features. Also I'm in Northern Canada as some apps (in general) can be country specific
I have been reading WFH was slowly disappearing
It will never fully disappear. Some employers hate it, some employers love it. That's the way it's always going to be.
I came across this channel and the information here is so helpful! Being in my early twenties and also learning about finances, it really helps to know you're on the right track, when they mention things you're already working on!
Don't you need multiple invest types for FIRE? If not planned right they might not money later on in life :(
Individual account to use when retiring early
ROTH for after 59.5
Company pension & 401k
Social Security - Full benefit at 70(?) & 35 years in the work force.
Social Security is a scam. Never include it in your retirement. If you get it, think of it as a bonus but never count on it.
If you have most of your assets out of your portfolio paying you 8-10% dividend income rates on etf index funds, you won’t eat into capital. Your dividends should cover your withdrawl rate. You leave the capital alone no matter if it went to half or not. The dividends are being paid on your number of shares not the portfolio value. So not really understanding their comments on eating into principal. You would never do that unless your portfolio was all in growth or stuff that barely paid anything overall. Which if you are part of FIRE you would be investing in larger dividend payers
what dividends are at 8-10%? also, dividends can end any time so I wouldn't really to heavily on them.
Yeah exactly what ETFs pay 8 percent dividends. Most pay around 2 percent
Another thing is that if your dividend stock doesn't perform well they can stop the yield and all you will have left is a stock which is in a massive loss.
@@bobblake1004 sure as with any stock. That doesn’t mean you don’t go after high dividends. You check the run rate of how consistent the dividends are, obviously you just don’t let your stock go down
This is a very common, and understandable, misconception. When dividends are paid out, the stock price drops by exactly the same amount and dividend pay-out ratio’s should not be the primary concern when it comes to asset allocation. I recommend to check out Ben Felix’ “the irrelevance of dividends”.
I really appreciate the "pun intended." So upsetting when people say, no pun intended, when they clearly intended it.
I believed Bitcoin is a ponzie scheme. When an asset are not productive and depend on the next person to buy more than the last person...
Great video, you guys always have level headed takes on this topic.
Now, if you don't mind, I'm going to earn three times my current income in order to set myself on fire. That's how this works, right?
What changes is if you have a federal pension, which I have
oh yeah, my military pension is crucial for my FIRE life.
You guys have an awesome money guy logo .. why are you rolling with the lame, low budget sign in the background?? C’mon man 🤣
Paused at 4 seconds expecting, "Brian I'm real excited about this show."
"Brian I am excited about this because..." - SO CLOSE
1% of your money annually, for their employee to run monte carlo simulations and play with variables for a couple hours a year.
Are we living longer in the U.S.? ...Or is life expectancy in a nose dive? 🤔
I asked this in chat... curious.
Have Brian and Bo ever done an episode on legit, intra-family loans? The ones that have their rates set by the IRS and require Form 1098 to be sent to the borrower and form1099-INT to the lender?
I'd like to hear their thoughts. Seems like a really good way to keep money in the family and avoid gift tax related problems. Benefits both family members, protects the lender...
who cares?
It seems really niche. Would the money you'd be sheltering from tax this way be substantial enough to matter for the average family? For most, all they're leaving their kids are whatever retirement money they haven't spent, and maybe their house if they own it.
@@aclopolipse I agree with you that it is niche. However, it seems like a good way to avoid giving kids, future heirs hand-outs. It is also a good way to reduce the interest rate paid on the loan and also keeps the money in the family rather than it going to a bank. It is not so much a tax shelter as an interest / closing cost shelter on substantial purchases.
U.S inflation hit 7% in December, fastest pace since 1982 . Consumer prices in Germany rose by 3.1% in 2021 . France shows a 12 -months inflation rate of 3.4% the highest since September 2008.
American workers are experiencing unprecedented declines in their real incomes, which is why record numbers have been forced to work multiple jobs to make ends meet. When we talk about 9.1% inflation, the media acknowledged the true rate of inflation of about 18%?
Had no Idea we were Felicias? 100% in about 28 years seems right on target at this point. Not trying to brag but your data seems about right. We never contributed 40% but there were many years of definitely going well above 20%. Thanks for the chat. -There's a light at the end of the tunnel at 55.
22:00- AWSHX has also has a 5.75% front load. It’s predatory. The fact that it’s the largest just speaks to the kickbacks/commissions that the “financial planners” get to push American Funds.
This is a different way of defining the different types of FIRE. Usually lean FIRE is up to 1M (in today's dollars), regular FIRE is 1.2M -1.6M, and FAT FIRE is 2M+. And these figures usually account for 2 income households.
@Neil Stewart It's not a 50% reduction unfortunately since you still have to pay for utilities, etc. I think of it as a "single supplement" and I read somewhere it's usually about 30% for household expenditures compared to 2 peeps. But then if there are kids, then I don't know how the heck people do it tbh. My goal is based on the above figures while being a solo FIRE person for the nice buffer.
@Neil Stewart That is a good plan. Lots of folks do that and really enjoy the idea of geo-arbitrage. The ability to enjoy tropical weather (for better or for worse but mostly for the better - especially if you're in an area w/ snow), great food, the beaches and different cultures, live much more comfortably than the US in terms of cost of living - $1M is plenty for those countries.
I incorporated that into one of my retirement scenarios but as I kept visioning what it would be like, I knew I had to have a home base within the US bc I would absolutely get homesick. So I thought about possibly doing AirBnB at my home base while I was overseas and coming back every 3 months or so. But it's getting less and less likely as I'm in a more and more serious relationship where my partner won't be able to do that. That's the beauty of being a solo FIRE person - the world is your oyster!
Also I totally can relate to the regret and knowing I could have FIRE'd so much earlier. I'll also be around 49-50 by the time I FIRE despite having a very solid 6 figure income the last 8 years and counting while my friend only earned a fraction of my salary. She was an early FIRE adopter back in 2008 and is now able to comfortably make work optional and FIRE if she wanted to and then some (even with a husband and child - and she's the bread winner!).
But she also scrimped like there's no tomorrow and led a very frugal life that would make me super unhappy if I even attempted to do an iota of what she does to save. In the end, it's all about balancing the journey along the way instead of purely living for tomorrow.
@Neil Stewart LOL thank you for that! The funny thing is I DID create a blog, along with a million other FIRE folks, but ended up writing 3-4 posts since 2019. I "FIREd" the blog this past June bc I found myself sitting at the computer and typing endlessly for days and watching the world happen around me. Another one of those things that I found is not enough of a passion. I enjoy being a part of the FIRE community though and keeping tabs of what's going on through their blogs/books/youtube channels. Maybe one day I will just get a free blog and not worry about SEO. Thanks for the words of encouragement. Good luck on your journey!
And your time is alone lol everyone is working lol good things come in time , retirement before even starting Good Luck really
lol they completely got FATFIRE wrong.
I save 200 percent of my income.
Retire when your finances work. Early or late.
There is more to retirement than financial considerations. You should not even consider retirement unless you are both financially able to, and have a plan about what you do with your time. You must have something that you can do every day that will make you happy, otherwise you will be miserable.
“Special needs child out of the blue”
Having two girls in two years who are medically fragile and both have a chromosome triplication - every single plan, vision, thoughts about how life might go are out the window, boom. Life happens and seeing all these very young kids planning makes me sad and nervous because life doesn’t allow for that. Most people get kicked in the a- by unexpected life events, and I don’t see realistic conversations about this from the “ youngins.”
all the FIRE movement means is that people have spent zero time and effort to figure out the things they love to do, equating those activities and actions with skills and then finding jobs that pay well using those skills. If they did, then the jobs they work would be fun and interesting for them and there would not be a need to work your A_S off for XX years so that at the end of that period you can basically stop earning an income and do NOTHING? for possibly DECADES. Really? That's your end goal? I highly doubt it for most people. If you love to paint, paint and then sell your paintings and make $ doing something you love. If you love helping people , plenty of social worker jobs, customer service, training, etc type jobs to suit your interest in helping people. I am not a fan of FIRE in the sense of having that end goal after doing things you dislike or actively hate with a goal in mind of no longer doing those things. I spent part of my career doing that and in hindsight wasted 10 years of my career/life.
lots of fluff wish they had time stamps
Waste of time...stopped watching at the first half of video...they didn't say much about fire and I got bored waiting.
The most important thing that should be on everyone mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks gold, silver and digital currencies.
Despite the economic downturn,I'm so happy☺️. I have been earning $30,000 returns from my $8,000 investment every 12days.. All thanks to Ms. Lisa Paula Martins
I do invest in dividends, but they increase slowly and steadily. I'm 45, with a $300,000 investment account, and aim to retire at age 60. My objective is to raise $2 million. It is possible since I see traders making thousands of dollars each week.
@@daanishbridges4304 I suggest employing an investment portfolio adviser who can provide you entry and exit points based on current market research because you don't have to follow every estimate.
@@sharonthompson5936 You are right, My personal portfolio of approximately $550k took a big hit in November due to the crash. I quickly got in touch with a portfolio advisor that devised a defensive strategy to protect and profit my portfolio this red season. I’ve made over $120k since then
Guys am a millennial and a combat vet with tbi driven short attention span..please get to the point faster and explain things instead of the boomer small talk we don’t have time to waste! I had to forward to the end..
Why are you guys so against Bitcoin? Its not "Get rich quick corner cutting" Its one of the biggest assets in the world and has real value and purpose it easily could be one of the greatest investment decisions of our lifetime.
Because it has no intrinsic value and it takes a greater fool to buy it at a higher price from you.
@@Jon-fx9iq I see your point. But do you also see that USD has no intrinsic value? Yet look how valuable liquidity is.
The truth about the FIRE movement is that it is a POVERTY MINDSET.
How’s that?
@@TheOne-vf2yw Not out.
FIRE is more about delayed gratification and discipline than anything else. While I may be frugal, there is certainly no poverty mindset here. I left my job at the end of May. I'm thoroughly enjoying the abundance of time to volunteer and do what truly brings me joy. It will be my choice whether or not I return to full/part-time employment in the future.