At 1:28 you say multiply yearly expenses by 3000 to get FIRE number? So if you spend 50k a year you need 150 million? seems like somethings off there lol
Yeah I'm an idiot idk where I got that figure from lol. I must have got it mixed up with another short hand napkin calculation. What I probably ment to reference was 25x your annual expenses for a 4% SWR and 33x your expenses for a 3% SWR. Thanks for catching my mistake il pin this comment !
nice video with explanations, thanks! i tried investments but i was too lazy so i lost money beacuse i forgot about it and even thoughit went up it went back down
Remember to pick the *right* investments and be smart about them. Tossing money into Amazon, Microsoft, Tesla, Gamestop, etc. is much different than the diversified market. S&P500 is constantly hitting ATHs, if you're invested for the long term, even if you bought at the worst time every time for the last 100 years, you'd still be in the green.
Great mindset! Saving is almost always good. My issue with FIRE is that it doesn’t give your contribution time to compound. Half of the 2.5M might be your own contribution. Meanwhile another person may only contribute 2-300k for the same 2.5M if they keep working a few more years. Depends a lot on whatever the stock market does. What if you achieve your goal and it’s a bear market? Be more ideal to just keep working a few more years and sell near the top. If you allocate more towards bonds to avoid this, again, most of the 2.5M amount is contribution. Considering the lack of compounding and smaller withdraw rates, *IMO* FIRE can be risky. Taking a few years off work would be nice though 👍🏽 Can always go back to software or become a guitar instructor!
Totally agree, while my mid 30's might seem close it's still a far far away and many things can happen from now until then. If by chance I would hit my fire number right before a bear market I could essentially "coast fire" and work a job to cover my expenses while waiting for the market to rebound. And in reality from what I've read and seen, I can always adjust my SWR or work a couple extra years etc
That’s an interesting question, I think it depends on when you are graduating and how much money it would be. I personally never contributed to my RRSP for other reasons. But if I were to transport myself back in time with the knowledge I have now, I probably would not use the RRSP because it’s a hassle to handle when you move to the USA, especially if the amount in the RRSP is a small amount, ( amount of work for 1000 for example ). This is a hindsight is 2020, and this is under the assumption that I got a USA job right after graduation. So this is a question that’s very dependent on your personal situation, and it’s a case by case basis. I have a video that covers what I did for my taxes when I moved that il link here, I talk a little more about my reasoning etc. th-cam.com/video/Z_WXeiQXHf4/w-d-xo.htmlsi=UgUSZvyt-ZXrhUe7
Yes, plans change. Go with the RRSP. It's tax deferred, so if you end up needing to pull out of it later, you just pay taxes on that income then. It'll save you money in the short term, and if you change your mind or something goes wrong you still reap those benefits. Very little downside.
@@khangaroofinance Certainly the one you want to be careful about is the FHSA, money you put into there provides the same deferral benefits as an RRSP, but cannot be easily withdrawn.
At 1:28 you say multiply yearly expenses by 3000 to get FIRE number? So if you spend 50k a year you need 150 million? seems like somethings off there lol
Yeah I'm an idiot idk where I got that figure from lol. I must have got it mixed up with another short hand napkin calculation. What I probably ment to reference was 25x your annual expenses for a 4% SWR and 33x your expenses for a 3% SWR. Thanks for catching my mistake il pin this comment !
Love how humble remain throughout all your videos as you acknowledge your position as a software engineer!
What do you invest in primarily? Index funds, dividend stocks, bonds, etc?
Index funds mostly, some RSU and Bitcoin sprinkled in as well, very large majority; over 80% is index funds
nice video with explanations, thanks!
i tried investments but i was too lazy so i lost money beacuse i forgot about it and even thoughit went up it went back down
Thanks for the comment, I don’t really understand but I’m rocking w the vibe 😌
Remember to pick the *right* investments and be smart about them.
Tossing money into Amazon, Microsoft, Tesla, Gamestop, etc. is much different than the diversified market. S&P500 is constantly hitting ATHs, if you're invested for the long term, even if you bought at the worst time every time for the last 100 years, you'd still be in the green.
kudo! on point good video
Thanks!
man tech jobs are such a joke. 180k with a BS degree and 2 years of experience? da fok?
Totally agree that these salaries are kind of bonkers, it’s why I advocate to take advantage if you have the opportunity.
Great mindset! Saving is almost always good. My issue with FIRE is that it doesn’t give your contribution time to compound. Half of the 2.5M might be your own contribution. Meanwhile another person may only contribute 2-300k for the same 2.5M if they keep working a few more years. Depends a lot on whatever the stock market does. What if you achieve your goal and it’s a bear market? Be more ideal to just keep working a few more years and sell near the top. If you allocate more towards bonds to avoid this, again, most of the 2.5M amount is contribution. Considering the lack of compounding and smaller withdraw rates, *IMO* FIRE can be risky. Taking a few years off work would be nice though 👍🏽 Can always go back to software or become a guitar instructor!
Totally agree, while my mid 30's might seem close it's still a far far away and many things can happen from now until then. If by chance I would hit my fire number right before a bear market I could essentially "coast fire" and work a job to cover my expenses while waiting for the market to rebound. And in reality from what I've read and seen, I can always adjust my SWR or work a couple extra years etc
Just curious since you mentioned Canada, was your goal 2.5 million USD or CAD?
2.5 M USD, sorry if I didn’t clarify.
Based on current currency rates that would be roughly 3.3 M cad, or roughly 100k cad with a 3% withdrawal rate.
Damn I'm a senior SWE and only make 100k USD.
My country pays so bad lol.
What country?
If the plan is to move to the US after grad do u think RRSP is worth or should I just go w/ the 4% wealthsimple cash savings account
That’s an interesting question, I think it depends on when you are graduating and how much money it would be. I personally never contributed to my RRSP for other reasons. But if I were to transport myself back in time with the knowledge I have now, I probably would not use the RRSP because it’s a hassle to handle when you move to the USA, especially if the amount in the RRSP is a small amount, ( amount of work for 1000 for example ). This is a hindsight is 2020, and this is under the assumption that I got a USA job right after graduation.
So this is a question that’s very dependent on your personal situation, and it’s a case by case basis. I have a video that covers what I did for my taxes when I moved that il link here, I talk a little more about my reasoning etc. th-cam.com/video/Z_WXeiQXHf4/w-d-xo.htmlsi=UgUSZvyt-ZXrhUe7
Yes, plans change. Go with the RRSP. It's tax deferred, so if you end up needing to pull out of it later, you just pay taxes on that income then. It'll save you money in the short term, and if you change your mind or something goes wrong you still reap those benefits. Very little downside.
@@ridafkih This is also another valid point, I really think that it just depends on your own personal situation
@@khangaroofinance Certainly the one you want to be careful about is the FHSA, money you put into there provides the same deferral benefits as an RRSP, but cannot be easily withdrawn.
Yall done ur taxes yet ?
Yes! Taking a while to receive the refund however
@Jack-qb7hs nice! I still gotta do mine ( notice the whiteboard lol )