Nah Graham’s more like, “So after all these years, the best decision I have made in my life was not getting my real estate license, which is probably my second best ever decision, but the best decision of all things is SMASHING the like button for the youtube algorithm”
It seems like saving as much as possible in the early years would be smart since once you get married and have kids life gets complicated. Plus it allows for adding to the nest egg if something goes wrong.
I love the way you explain things to us and I actually like the first one I'm in my forties so I'm trying to work as hard as I can to catch up cuz I had nothing in retirement
COAST FI is way to go for me. I always had that goal in mind never knew that’s what it’s called. Thank you for boosting more information very helpful! Keep up the good work.
I want to pursue a type of coast fire, where I save much more aggressively while I’m still young, then still save, but not as aggressively later in my career.
I always saw lean fire and fat fire as percentages, not numbers. so Lean fire was your typical 4% safe withdrawal rate, where fat fire was closer to 2.5 or even 2% withdrawal...
Thank you for always showing different options when it comes to finances. Definitely helps so many people achieve that independence for their own lifestyle.
Long time follower of your video. Your videos are always interesting, appreciated, and well done. I think it would be interesting if you did a video that focused on a income based strategy to achieve Financial Independence. In other words focusing on assets that provide income and rather then sell assets to live in further, you build an income stream and you retire when your assets make enough income to cover expenses.
Great suggestion! I will add it to my list. Due to my personal schedule I have had to get more ahead on videos than normal so my schedule is booked through the end of the year, but an income based approach would make for an interesting video so I'll add it to my list of ideas.
Having started late, I guess one of the ways to pick a strategy is the age, hence time horizon of the person. The target retirement age. And the current financial position.
Almost no FIRE videos for the US talk about the #1 issue in early retirement in the states... health care coverage. That is about 20k a year alone for two people. How does that significantly change the FIRE planning?
@@obaobo135 Minority Mindset channel has lots of videos. Also if you want to passively invest vs owning property, they have a video on Fundrise. Fundrise is a real estate platform to invest in that specific market, without dealing with day-to-day real estate tasks
I like the presentations (graphics and content too). Can you tell me the name of the program you use for your presentations? Great job, keep up the excellent work.
We’ve never had $100k a year i our life. And we do fine. Home, 3 vehicles, camper all paid for and $161k in investments. We do fine. We work part time too. And we are 72
I really like your FI videos, however I noticed you never include TAXES in your living expenses, nor in growth/compounding of investment calculations. I understand these are simplified examples, unfortunately they are also misleading. (Income) Taxes are probably the greatest over-looked expense people will have throughout their life. Additionally, investment returns are much less when including taxes while compounding unless you assume you never re-balance, sell or have any other taxable event. I appreciate that these assumptions are in a tax-sheltered account, but that is not always the best way to invest for lifestyle planning. Just an aside, when you invest I.E. the timing, especially in equity markets, SIGNIFICANTLY effects the end Rate of Return. Compounding is great in theory but in reality, if you're not selling within 20% of tops and buying within 20% of bottoms, your capital is stagnating/treading water. It may grow over time, but it's not really compounding. Just food for thought. Like I said, I really enjoy your videos. Keep up the good work.
Awesome video! Full of great content but so fast paced that I barely had time to digest all that great info! Had to watch video twice to make sure I got everything right!😂 One person commented that this video oversimplifies things ( no mentioned of taxes for instance) but still, video is informative although incomplete. Just went to check out your channel. It seems full of other informative videos! 😃 U just earned yourself a new subscriber mister!👍🏾😊
An investment of x doesn't mean you will get y cash flow. Having $1m on stocks is great but you only reap the value when you sell, aside from dividends. You need cash flow to retire more than net worth
i think aggressively saving until 35-40 is a good strategy. most of us will live to that age and then we can begin to enjoy more of the fruits of our labor
what about a strategy where you start ultra aggressively as in the last scenario for the first few years; and then just invest a smaller percent for the next 10 to 20 years.
Dude, I like your work, but your numbers are always crazy high. Please run some numbers for us poor people earning 18-26k a year. What can we expect to achieve.
I think you are missing what I will call Ex-pat FIRE. There are many countries in the world where the cost of living is half of the US cost of living, or less. Say you are comfortable with moving to a country where the COL is 1/2 of where your US high COL career job is. That cuts in half the the amount of time it takes to reach whatever FIRE you are aiming for. You might think ex-pat fire is a just a lean-fire but you might consider that a US lean-fire could be FAT-fire in another country. Capiche?
there are plenty of couples that can quite easily live on $29k a year. maybe not in NYC, LA, or SF, but there are plenty of cheap places to live in the USA. in Arkansas for example you can quite easily buy a decent home on a few acres of land for under 50k
I enjoy the explanation, but I don't understand the lack of inflation adjustment for future needs. People can understand 40k/yr in 2020 dollars/purchasing power. Not the same for 2040 or 2050 dollars.
We can’t do a Roth IRA due to our income (at least when we get married at the end of the year). What would you recommend for early retirement? We do a 401k and outside investments.
OrdinaryHuman yeah we do those already. I really wish we could do Roth IRA but not many people talk about the income restrictions. Yes we are very lucky and blessed but I would like to be financially independent at some point.
You can do Roth conversions. I regret not doing them earlier. Too much of my savings is in the 401k, but I will be gradually converting some of it to keep taxes down once RMDS kick in. Lots of TH-cam videos about this.
It dawns upon me from this presentation, that if there is an Inflation hiccup because of money printing, some people will have to go back to work again with the calculations messed up. Better factor some different value of inflation in planning...not 3%
So I'm 19 right now trying to find a way to start investing for FI. After using the Coast method, couldn't I switch up to another method somehow? Someone help me out lol
At 19 you have the most valuable asset; time. Look into ROTH IRA calculators, for about 6k/year you could get 5+million (TAX FREE) in retirement JUST FROM THIS ONE TOOL. Biggest thing I wish I knew lol. Only other tip I would give, hustle hard while you're young to buy and pay off a house. A 30 year mortgage will kill you; if you have the income to pay it off in 5-10 years, do it. Having no debt or housing cost opens so much of your income for investing.
Aangler I was gonna tell homeboy almost the exact same thing. I’m 29, looking to purchase and pay off a modest house within the next couple years and then consider myself “semi retired”. With no debt and no mortgage, the pressure to stay in crummy jobs almost disappears. I intend to continue throwing a few bucks in a ROTH IRA for the long haul and enjoy having very little overhead for the next couple decades. Hopefully lots of travel and freedom to take time off from work in the future.
There's no straight answer since it depends on your ambitions. Aggressively saving starts at 50% and goes up to 70-90% if you can somehow manage that. These really high percentages are only realistic if you find a way to house hack (live at your parents or find roommates to pay your mortgage).
No mention of SS benefits in all this. I will never accumulate 1 million but with a modest pension, proceeds from the sale of our home and waiting until we reach 70 my honey and I should be pulling in over 100K annually, thanks to Uncle Sam.
so need a couple of cars? a vacay? kids that you need/want to feed or send to school? possible job loss over 13 years? yeah. 52 K pretax isnt going to get you very far. which means you have to invade your fire pile of money.
Leah high valley P.A. ... I am a very mechanical in Kline ... I now how to do service work like repairing hybrid cars .. ( I do not want to do cars any more ) .. I know how to work .. But I dont know how to start my own business.. Scared to !
Quite a deception when comparing the title with the content. You litterally offered NO WAYs to get to FI! You rather discussed the different type of FI and the speed at which you get there. How do you get there ? by getting 8% return ? How do you get that 8% return for 20 years + ?! Just another click bait... and people are actualy so sold to you in advance that they still are in awed even though you completly misguided people with your alluring title but no content.
If you never buy anything and just go back and forth to work on a bicycle you inherited and wear Dad's hand me down clothes and furniture from salvation army, eat pb&j for breakfast and ramen noodles for dinner then you too can retire early. For everyone else who ever needed to buy their own clothes, car, groceries, mortgage, property taxes, pay for their wedding and child's tuition we are the stupid one's because we couldn't save 50% of our paycheck. Btw take home salary in New York City on $65k/year is roughly $850, so do the math if your mortgage alone is $1600/month. If the answer is always to just make more money then this whole conversation is a dead end because when is enough ever enough?
"Make sure to smash the like button if you haven't already" Graham, is that you?
Nah Graham’s more like, “So after all these years, the best decision I have made in my life was not getting my real estate license, which is probably my second best ever decision, but the best decision of all things is SMASHING the like button for the youtube algorithm”
@@iimJacKaL perfect! 😂😂😂😂
It seems like saving as much as possible in the early years would be smart since once you get married and have kids life gets complicated. Plus it allows for adding to the nest egg if something goes wrong.
))
@@Garden-offgrid I felt that way once, too. 😂
@@LJernegan What happened so i can avoid it? lol
@@DylanJo123 I met someone worth marrying. So hang out with losers, and you should be fine. 😂
@@LJernegan way ahead of you lol
I love the way you explain things to us and I actually like the first one I'm in my forties so I'm trying to work as hard as I can to catch up cuz I had nothing in retirement
COAST FI is way to go for me. I always had that goal in mind never knew that’s what it’s called. Thank you for boosting more information very helpful! Keep up the good work.
You should prioritize how enjoyable your journey to financial independence is rather than prioritizing how fast you can get there.
I want to pursue a type of coast fire, where I save much more aggressively while I’m still young, then still save, but not as aggressively later in my career.
Sounds like an excellent plan!
I'm in my 50s and this video was totally talking about me. Thanks for sharing your wisdom!
This video was very good. I had to watch it twice. The comment section is helping me learn as well.
I always saw lean fire and fat fire as percentages, not numbers. so Lean fire was your typical 4% safe withdrawal rate, where fat fire was closer to 2.5 or even 2% withdrawal...
Thank you for always showing different options when it comes to finances. Definitely helps so many people achieve that independence for their own lifestyle.
Absolutely!
Title for video should be, different strategy for FI. I like #5 the best.
Long time follower of your video. Your videos are always interesting, appreciated, and well done. I think it would be interesting if you did a video that focused on a income based strategy to achieve Financial Independence. In other words focusing on assets that provide income and rather then sell assets to live in further, you build an income stream and you retire when your assets make enough income to cover expenses.
Great suggestion! I will add it to my list. Due to my personal schedule I have had to get more ahead on videos than normal so my schedule is booked through the end of the year, but an income based approach would make for an interesting video so I'll add it to my list of ideas.
Having started late, I guess one of the ways to pick a strategy is the age, hence time horizon of the person. The target retirement age. And the current financial position.
Great points made here. Thanks for sharing. Gives me motivation to keep working on my channel! Thank you!
Almost no FIRE videos for the US talk about the #1 issue in early retirement in the states... health care coverage. That is about 20k a year alone for two people. How does that significantly change the FIRE planning?
It puts a dampening on it
For a successful journey to financial independence is finding what works best for you and work your way up.
Ok, so go back in time by 18 years, got it!
Haha I'd love a do over of the last ten years, financially speaking
Well done. Terrific video.
Glad you enjoyed it!
Invest in real estate. Invest in real estate. Invest in real estate.
repeat 🔁
How do you get started?
@@obaobo135 Minority Mindset channel has lots of videos. Also if you want to passively invest vs owning property, they have a video on Fundrise. Fundrise is a real estate platform to invest in that specific market, without dealing with day-to-day real estate tasks
Horrible advice. Diversification is key.
Until covid hits and no one pays rent
I like the presentations (graphics and content too). Can you tell me the name of the program you use for your presentations? Great job, keep up the excellent work.
The program is called video scribe. Glad you enjoyed it!
That was interesting. I like all of the options. But retiring at 70 y o is sad. Prefer 55.
42* lol I'm putting 20 years into the fire service and then I'm out
Why? 55 is too young to just sit around and do nothing for another 30 to 40 years
I would love to retire at 55 and start a small home business just for fun.
I prefer 30 tbh.
14.9 years in govt service
We’ve never had $100k a year i our life. And we do fine. Home, 3 vehicles, camper all paid for and $161k in investments. We do fine. We work part time too. And we are 72
Great video!
Thank you for sharing.
Sure thing, Ann! I'm glad you enjoyed it :)
In FIRE videos how come I never hear about defined benefit pensions nor about annuities? Do these not exist in the USA?
I really like your FI videos, however I noticed you never include TAXES in your living expenses, nor in growth/compounding of investment calculations. I understand these are simplified examples, unfortunately they are also misleading. (Income) Taxes are probably the greatest over-looked expense people will have throughout their life. Additionally, investment returns are much less when including taxes while compounding unless you assume you never re-balance, sell or have any other taxable event. I appreciate that these assumptions are in a tax-sheltered account, but that is not always the best way to invest for lifestyle planning. Just an aside, when you invest I.E. the timing, especially in equity markets, SIGNIFICANTLY effects the end Rate of Return. Compounding is great in theory but in reality, if you're not selling within 20% of tops and buying within 20% of bottoms, your capital is stagnating/treading water. It may grow over time, but it's not really compounding. Just food for thought. Like I said, I really enjoy your videos.
Keep up the good work.
Nice! How do you know when the market has reached the 20% marks and it's time to buy or sell? Tx
@@i-postm4943 use simple moving averages with large intervals (ex 200 days SMA)
Love the whiteboard presentation !! Great information !!
Glad you liked it!
Awesome video! Full of great content but so fast paced that I barely had time to digest all that great info! Had to watch video twice to make sure I got everything right!😂 One person commented that this video oversimplifies things ( no mentioned of taxes for instance) but still, video is informative although incomplete. Just went to check out your channel. It seems full of other informative videos! 😃 U just earned yourself a new subscriber mister!👍🏾😊
Glad you enjoyed it and thanks for the support!
Can I ask what program you are using to make the video? It looks great!
Videoscribe :)
An investment of x doesn't mean you will get y cash flow. Having $1m on stocks is great but you only reap the value when you sell, aside from dividends. You need cash flow to retire more than net worth
Just have to sell 4% each year(assuming no dividends)... no difference with having 4% dividend yield.
@@og7952 Great point. A 4% yield isnt really that hard to find; especially once the bull market returns.
Great info! Love how you explained it! Simplified!!!
Glad you liked it!!
i think aggressively saving until 35-40 is a good strategy. most of us will live to that age and then we can begin to enjoy more of the fruits of our labor
Don't forget about bear markets when thinking you will achieve 8%. AND 9% inflation.
Great video, first time I've heard about different types of FI. Thanks
Glad it was helpful!
The more I learn about Coast FIRE, the more I like it
Hi, your subscriber from Philippines 🇵🇭
Same here
what about a strategy where you start ultra aggressively as in the last scenario for the first few years; and then just invest a smaller percent for the next 10 to 20 years.
Great explanation!
Dude, I like your work, but your numbers are always crazy high. Please run some numbers for us poor people earning 18-26k a year. What can we expect to achieve.
Is there a multiplier based on net worth as opposed to the value of investments?
No mention of social security?
I think you are missing what I will call Ex-pat FIRE. There are many countries in the world where the cost of living is half of the US cost of living, or less. Say you are comfortable with moving to a country where the COL is 1/2 of where your US high COL career job is. That cuts in half the the amount of time it takes to reach whatever FIRE you are aiming for. You might think ex-pat fire is a just a lean-fire but you might consider that a US lean-fire could be FAT-fire in another country. Capiche?
Where my leanfire gang at?
Wow. 5am post time MST.
Good morning! I hope the video didn't wake you up too early :)
Sorry but wich couple gain 100k ?
COAST FIRE works best for me!
Definitely an appealing option!
There is no way in he'll that a couple that has $100,000 in income with no savings is going to be able to go to living on $28,500 including taxes.
If they paid off all their mortgages then it is . No kids (they're adults),cheap car insurance, they'll be good
there are plenty of couples that can quite easily live on $29k a year. maybe not in NYC, LA, or SF, but there are plenty of cheap places to live in the USA.
in Arkansas for example you can quite easily buy a decent home on a few acres of land for under 50k
We live on 21k out of 73k annually
I think he means that they are used to be pampered and the lifestyle reduction is not realistic.
So John and Jane don't have to pay any taxes????
I enjoy the explanation, but I don't understand the lack of inflation adjustment for future needs. People can understand 40k/yr in 2020 dollars/purchasing power. Not the same for 2040 or 2050 dollars.
We can’t do a Roth IRA due to our income (at least when we get married at the end of the year). What would you recommend for early retirement? We do a 401k and outside investments.
Emily Browning backdoor Roth
Real estate , diversify
OrdinaryHuman yeah we do those already. I really wish we could do Roth IRA but not many people talk about the income restrictions. Yes we are very lucky and blessed but I would like to be financially independent at some point.
You can do Roth conversions. I regret not doing them earlier. Too much of my savings is in the 401k, but I will be gradually converting some of it to keep taxes down once RMDS kick in. Lots of TH-cam videos about this.
It dawns upon me from this presentation, that if there is an Inflation hiccup because of money printing, some people will have to go back to work again with the calculations messed up. Better factor some different value of inflation in planning...not 3%
Great video! Gets a like from me!
So I'm 19 right now trying to find a way to start investing for FI. After using the Coast method, couldn't I switch up to another method somehow? Someone help me out lol
At 19 you have the most valuable asset; time. Look into ROTH IRA calculators, for about 6k/year you could get 5+million (TAX FREE) in retirement JUST FROM THIS ONE TOOL. Biggest thing I wish I knew lol.
Only other tip I would give, hustle hard while you're young to buy and pay off a house. A 30 year mortgage will kill you; if you have the income to pay it off in 5-10 years, do it. Having no debt or housing cost opens so much of your income for investing.
Aangler I was gonna tell homeboy almost the exact same thing. I’m 29, looking to purchase and pay off a modest house within the next couple years and then consider myself “semi retired”. With no debt and no mortgage, the pressure to stay in crummy jobs almost disappears. I intend to continue throwing a few bucks in a ROTH IRA for the long haul and enjoy having very little overhead for the next couple decades. Hopefully lots of travel and freedom to take time off from work in the future.
Why don't you include mortality rates in your calculations?
If you are married life insurance should be part of your journey if it’s affordable
Good vid
Thanks!
i like strategy #5, that sounds similar to garyvee and graham stephan. delayed gratification is a powerful thing
You say we probably shouldn't use the 4% rule. Then go on to use the 4% rule.
In today’s world will this work? The stock market is so volatile as well as runaway inflation.
Thanks for the great breakdown
No problem 👍
I got so busy at work i forgot today is Monday nurse life these day.
Oh “puts the lighter away” yeah F.I.R.E
I'm still confused how much should someone making $50 g a year be saving?
There's no straight answer since it depends on your ambitions. Aggressively saving starts at 50% and goes up to 70-90% if you can somehow manage that. These really high percentages are only realistic if you find a way to house hack (live at your parents or find roommates to pay your mortgage).
No mention of SS benefits in all this. I will never accumulate 1 million but with a modest pension, proceeds from the sale of our home and waiting until we reach 70 my honey and I should be pulling in over 100K annually, thanks to Uncle Sam.
What?!?
I am first !
WOW
Like this
There is an event of biblical proportions...
so need a couple of cars? a vacay? kids that you need/want to feed or send to school? possible job loss over 13 years? yeah. 52 K pretax isnt going to get you very far. which means you have to invade your fire pile of money.
who the hell makes 100 000 ... show me how to make money with no money
Spotless Bird plenty of people. Where do you live?
Most people in tech industry...who are also most people seeking FIRE info
Leah high valley P.A. ... I am a very mechanical in Kline ... I now how to do service work like repairing hybrid cars .. ( I do not want to do cars any more ) .. I know how to work .. But I dont know how to start my own business.. Scared to !
Quite a deception when comparing the title with the content. You litterally offered NO WAYs to get to FI! You rather discussed the different type of FI and the speed at which you get there. How do you get there ? by getting 8% return ? How do you get that 8% return for 20 years + ?! Just another click bait... and people are actualy so sold to you in advance that they still are in awed even though you completly misguided people with your alluring title but no content.
If you never buy anything and just go back and forth to work on a bicycle you inherited and wear Dad's hand me down clothes and furniture from salvation army, eat pb&j for breakfast and ramen noodles for dinner then you too can retire early. For everyone else who ever needed to buy their own clothes, car, groceries, mortgage, property taxes, pay for their wedding and child's tuition we are the stupid one's because we couldn't save 50% of our paycheck. Btw take home salary in New York City on $65k/year is roughly $850, so do the math if your mortgage alone is $1600/month. If the answer is always to just make more money then this whole conversation is a dead end because when is enough ever enough?
You don't have to live in NYC if that's all you get paid.
Lmaoo so step one of being financially independent is to get a husband or wife huh?
21 investing 2k a month and living on my own this life thing that everyone said was hard is actually pretty easy 😂