Retire Early With the 4% Rule
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- เผยแพร่เมื่อ 24 มิ.ย. 2019
- At any age, it's daunting to think about retirement, much less about retiring early. There are, however, growing communities of people making ambitious and aggressive retirement plans that get them out of the daily grind in as little as ten years.
On this episode of Good Money, we explain how you can retire early, or, if you want something more traditional, a little farther down the road.
Today’s modern leaders face a different set of financial challenges than their predecessors did, but also far more opportunities. And the conventional wisdom of past generations is just that- conventional. Good Money is dedicated to demystifying personal finance for the modern leader, helping them prepare for a better future. Learning how to navigate your financial future shouldn't be this fun. Good Money covers vital topics such as taxes, gold, day trading, money tips, saving, renting vs. buying and much more. Learn all things personal finance by checking out the rest of the series: • Good Money
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Do you or someone you know have a plan to retire early? Let us know your strategy. (We just might use it, too.)
Sell those mugs. You'll swim in money in no time.
One strategy to building real wealth is to recognize that the 4% infinite inflation that we are currently experiencing is caused by the creation of fiat currency backed by nothing of value via the quantitative easing mechanism of the Federal Reserve.
just having crypto is more than enough to make anyone rich enough to retire
This was absolute trash piece of production
What a crappy strategy. A better one is to have a min of 10mil net worth and then earn 500k in interest every year. Now you can retire.
Impressive, i feel the key to early retirement is making sacrifices, you don’t need that new Tesla or that new vacation house in Cabo, instead why not set up an investment plan with your financial advisor. I did the same and I’m rounding a million currently, I’m sure in the next 5 years I’d have 2 million in my portfolio🤞🏻
@Hill Landry yes sure, I can't leave her details here so look her up on google..Lucy Maria Koss, she has a webpage you can email her from there
@@vanhall9513 inspired, i just looked her up. i would like to start with 40 grand. what's her commission on that
This video told me nothing more than basic “sagacious” advice. The statements were partially shrewd, but then said you can still buy coffees and go out to eat. WTH? How much did that couple earn for those 9 years? How much did they put away? Did they purchase rental property or invest in stocks? Maybe even just CD’s?!!!!
Basically all Bullshit---nothing revealed or given away.
Derek Dilger or r/fatFIRE if you want to retire with much more nest egg.
@@nicewknd Sure, that's nice and maybe I'm sleeping under a rock but nowadays of low interest, who pays 5% interest? Then when you earn interest, that is taxed too (legal extortion) by corrupt people with sticky fingers.
I’ve seen that guy before. I think his circumstances were having a high paying tech job, dumping all his money into stocks during the crash to ride it up during the massive bull run, and not own a house.
@@ericp1139 I think by by
4% rule only provides 95% confidence for 30 yrs. doesn’t work for retirement periods >30 yrs
Wow. This video was like how I wrote discussion boards in college. Beating around the bush
Minimize spending
Maximize earnings
Invest the difference
Withdraw 4% of investments
Minimize spending on things that aren't important to you, maximize on the most important things in your life to maintain happiness
Enjoy your life past fun age
Thanks
Pay student loans
What does withdrawing 4% of investment means ?
I'm about to start my first ever job , it's not a very great amount of money but decent for my situation , what can I do to become an HNI?
@@Mashburn007 , i'm assuming you can expect on average to receive 4% on your investment. This means that if your burn, let's say $20 000 a year, you need to have $20 000 / 4% = $500 000 in your savings account.
I retired at 28, just work like crazy, save tons, invest like there is no tomorrow. And my standard is even harsher than 4 %, mine is
guys pls if you need a retirement plan i suggest you look into buying stocks and trading..people neglect and overlook the kind of money you make from trading right...i make about 45,000USD monthly
when i looked her up i saw her webpage and connected with her..she just got back to me..thanks
i contacted her but she hasn’t replied me..i hope i am not doing anything wrong…
mrs Nancy Berman Epstein handles my investment of 25,000GBP all the way from Sweden..i have never been in better care
These days its so difficult to get your hands on a genuine trade assistant..when I discovered Mrs Nancy Berman Epstein, i knew i could count on her..there is just something about her charisma
My diversification from profits and income.
5% savings
65% stocks
20% dividend stocks(retirement, reinvest dividends and don't touch.)
10% real estate or something else.
Most important is cash flow should be at least 60%.
Don't have kids... Problem solved
I was gonna say, they don't have kids, once you factor that in goodbye early retirement in your 30's lol. They just travel the world like empty nesters, skipping that whole life stage event. Anyone can do that lol.
Can’t be empty nesters if there was no 🐣 to begin with
never get married and never have children, rules ive broken several times 👪👪👪
😂😂😂😂😂
What’s wrong with no kids? Sounds peaceful to me
Yea except you have no health insurance if you're in America
Here's the actual formula for finding how much to spend when retired:
spending rate = long term portfolio yield - inflation rate
(You want to make sure your portfolio grows with inflation so that it does not lose value; also, the larger the portfolio the larger the yield)
P.S.
If a portfolio's return is 6% and inflation is at 2% then a spending rate of 4% makes sense
To me, you should be saving some of that 4% you are withdrawing, as well. If the market were to crash like it did back in 2008, and you go to withdraw your 4%...
I guess that's why they say there's a "95% certainty", lol.
3:56 Vaguest investing advice I've ever heard lol
The most common as well.
Just achieve FIRE or whatever and still go to work. I mean who doesnt want a house that is paid for?? Then still go to work and ball the fuck out.
The only thing I don’t like about the FIRE movement is no one is doing it right in my opinion. The current model doesn’t work, cause it depends on a saved amount. As where If someone wants to retire and focuses on multiple income streams they could walk away making the same or more than they do at their job and live better.
Let's banter Chris. I'm a fire advocate and saving 75% of my income with plans to retire at around 35. Think of it like this, your investment into a business would be the equivalent to my investment into a stock account i draw 4% from. The only difference between our investments is the amount of market risk you take and the amount of return you want. Having multiple income streams (I'm assuming your're talking about businesses) is more volatile than holding 3 sold etf funds, so you'll actually own hundreds of companies and your risk will be spread much wider.
That ipad on his lap gives me anxiety
agree
Where did you guys got the credit card swiper?
I expect to retire at 85, at least I won't need a lot
Are you 84 now? lol
FNM my man
I couldn’t retire early, I would get so bored without work!
Luis Treto they mean “financial freedom,” where you can do whatever you want without fear of money.
Kids?! They forgot if you ever want to have kids in that formula
And health care
Solidified the issue that planning for retirement is a cloudy, confusing process for many of us younger people
*Housing, Transportation and Food*
You shouldn’t feel like buying a house is a trap. It is not. I am VERY frugal and a minimalist. But..I am also a cat rescuer. So, those titles conflict with eachother. But point of the matter is that a house is a necessity to me. You can’t have a rescue in an apartment. At the end of the day do what makes you happy. You don’t have to fall into this idea that you can’t have a home and also retire early. You can retire early in a home you love if that’s the lifestyle you truely desire.
This video was so subpar when compared with almost anything, but especially compared with other Bloomberg pieces like Great Leap.
I'm assuming that is 4% ANNUAL* withdrawals. Two additional things to look into, vanguard index funds and annuities.
I'm gobbling Fidelity smallcap growth up. Would do vanguard but fidelity is empolyer offered. Been on a tear lately, retirement at 35 sounds nice
This bear market in stocks and interest rates going back down to 0% is going to kick a lot of these early retirees right in the nuts.
You have to make video by amount calculation on chat sheets.
Plz
Imagine if you can advertise your skill set, through an online course, to just 10 people a week. Selling the course for $200 per person. Earning you $2000 a week, while doing it from anywhere in the world. Now that's financial freedom. Simple, easy and doable. It's time to level up. Are you ready to get out of the rat race?!
my current strategy: blow it all and hope I‘ll make a lot more in the future 😁
Nice video but the graph with the average retirement age in the us is a very bad graph... the horizontal lines indicate nothing and the line seems to be flat while it’s not
Eat rice, retire early.
TheAstronomyDude True.
On one side, living, on the other, saving... Ghee... I wonder which one I won't choose. Early Retirement!!!!
Bad advice while Bloomberg trying to make a $100 with these videos. This is ridiculous
This does not apply to me there is always a job in hvacr always.We are loosing 60 to 70 to even 80-year-olds every in the hundreds and only getting 200 ish employees per state, whiles losing 400 per year. I own my own business btw at 28.
Isn't the Trinity study kind of outdated now?
You must really hate your job if you retire at 30. Just think what you would do 24 hours a day without a JOB
@TH-cam Username 2019 yeah, that's fine but I think you could manage that with your work life. They obviously didn't chose their passoin of work if they want to retire that early
@@kamaljyotsingh672 I'm passionate about many things, though you could never demand that I do *anything* for 40+ hours a week, and expect me to enjoy it.
All I'm saying is, everyone is different. I'm a bit envious of people that really enjoy their jobs, to me they are among the wealthiest people in the world.
Money couldn't buy *those people* happiness, but, it would for me, as I enjoy freedom.
Amazing sheme
I retired too at 32 😍🇮🇳🙏
Where do you live? Do you rent an apartment for life? Homes can be a major investment as well.
That man probably has no student loans. Also im just gonna b like miyazaki. Never retire.
No mention of Health Benefits/Coverage.
The myth & temporary illusion of a comfortable retirement will not be an option for much longer in our ongoing sixth mass extinction. Planning how to find food & water, and how to die, will soon become of far more relevance to humanity.
Well, if everyone else dies, there should be a lot more openings for the career you really want -- and if you're one of the poor saps that actually dies, then you don't need to worry about it!
I feel you. The IPCC report predicts 1/3rd of the economy will be destroyed by the ravages of the climate crisis. I’m here saving for FIRE, but there’s cognitive dissonance about doing so, as it’s unlikely to work out when the world is actually ON FIRE. Our own personal financial freedom is worth working for, but countless lives and the suffering of so many people and creatures are at stake and that’s worth working for even harder. I advise investing at least some of your time in political action, and get other humans to vote and virally engage in grassroots movements to activate others, as that’s the only thing that will ultimately move the needle on legislation to reduce carbon. That in turn may be the only way we can live the dream of retirement in a thriving world.
@@bradleypariah Far from feeling sorry for myself, I enjoy & appreciate the gift of being alive. But if you think that everything is going to be just the same and OK in 10-15 years from now you have a nasty shock coming to you. Many will be living an existence where the only 'career' is finding the next food & water to survive - & it won't just be the equatorial hothouses. I recognize the ongoing reality & can make some adjustments, can you?
Just skip to 0:55
get out off debt, cut back like your homeless but you have a job,invest in dividend stocks first,spend your dividends to pay bills....and capital gains..
Work 3 days a week and then you will be happy .
Not having kids helps too. Have you ever tried to finance your kids education?
Two words: trade school
@Graham Stephan
So who else is now an expert on the "4%" rule. .. not me.
I live in Bloomsburg PA Lmao.😂
4% is way to aggressive I think 1% or 2% is better.
How realistic is this strategry?
Easy! Just be the top of your class, have no student debt, work for a billionaire, and save up about a million dollars so you can live off the interest without your balance dwindling! SO FUCKING SIMPLE. Let's see, to retire in nine years, simply get paid $111,000 per year and don't spend a single penny the whole fucking time. No food, no water, no home, no car, no nothing. Save it all, and in nine years, Boom! You're retired! Just like the lying asshole in this video! Seriously though, start a 401k.
Read on the mister money moustache blog. It’s realistic (it’s just math!) for you to drastically cut expenses. What you probably don’t realize yet is the power of investing. So cut your expenses and start investing.
bradleypariah I feel sorry for you, your attitude and all the unnecessarily swearing will prevent you from further investigating the matter yourself, effectively making sure that you’ll work until 70.
I have retired a few broads in my day, oh wait wrong topic, my bad
This video was badly made. Failed to properly explain the point and was so vague it didnt make sense
Rubbish Video, Bloomberg I expected more from you.
You failed to explain the principles behind the title of the video in any meaningful and simple way.
You know you’ve internalized greedy capitalism too much when you’re scared of retiring early. 2:55
0:40 independance?
But why would I want to retire at 31???
You are thinking about it wrong. Why would you say no to the freedom of not worrying about money, ever again? Habits and investments are the key to a happier life.
These people also make way above the average median income and do not have children.
If you are earning enough to retire early your job is probably not bad enough to warrant retiring early.
😂 OK so in english the fox ate the crow but the crow can fly away and he goes high.
What the hell is this the first step to this so called 4%rule,
Do we need to have 25x our our yearly amount invested??.. 😂
I'm not sure I'm following this someone enlighten me so I can and many others will understand the formula please to succeed in this rule
Someone explain to me,
Steps 1.
2.
All the way to now you can retire when you are at so and so
4%what? Lol 😂
no kids? no wonder
Hit like if u too didn't get any important information from this video 🤦
V
If you enjoy what you do, no need to retire. Retired people are bored on average. And yeah this is a bad vid, it explains nothing xD
Borrow money then put every cent you own and borrow into bitcoin and you can retire a multimillionaire at age 25 like me. I have a ferrari, a beach house, women and living the dream all from bitcoin.
Almost like the lottery, except, if you lose the lottery, you aren't thousands of dollars in the hole.
Why retire at young and become useless to yourself and society at large is beyond me? Work can be so much fun
They don't actually produce anything valuable for other people.
Third comment
Is the reporter gay? He moves like that!
buy bitcoin
First comment
Buy Bitcoin
1:29 wtf is wrong with this head guy, also I’m all in bitcoin 25k into the hole