FIRE!!!! 🔥
There’s a FIIIRREEE, %FIRSTNAME%!!!
No, this isn’t your typical fire.
It’s not even Elmo setting everything on fire.
It’s something even more serious.
It’s a movement… in the finance community that stands for:
Financial
Independence
Retire
Early
It’s a regular term people have been using to promote an extreme-saving lifestyle where you save 60-80% of your yearly income until you can retire early.
For example, if someone lives on $25,000 a year but makes $75,000, they’ll save the extra $50,000 and put it away towards retirement.
When their savings reach 25-30x their yearly expenses ($25,000), or roughly $1 million, they have the option to retire early thanks to their precious 4% rule:
The overall market tends to grow on average at 8% per year, while inflation grows at 3-4% per year.
Do the math and you’re left with 4-5% growth.
I personally like to play it safe and say 3% in case there might be some bad months.
In theory, if you invest $1,000,000 and only take out 3% per year, you have $30,000 to live off of and keep the $1,000,000.
A theoretical monies printer 🤑
So what these FIRE people do is:
- Slave away their 20s and early 30s
- Penny-pinch and save away every cent for retirement
- Avoid vacations and leisure time
All to retire in their 50s, 40s, and even late 30s.
Now, although retiring at a young age and not working until you die on the Walmart floor sounds like heaven…
There are a few things you should understand before you join the FIRE nation (yes, that’s an Avatar reference):
- What will you do when you retire?
Now, I’m all for doing what you want.
But it’s important to do something fulfilling and productive if you’re retiring early:
- Train for a marathon
- Become an aspiring artist
- Devote your time and attention to your kids
- Pursue a different career or start a small business
Relaxing by the pool, sleeping in, or playing video games for 30 years straight doesn’t lead to a fulfilling life.
Whatever it is, it’s important to know what you want and what’s the goal.
Retirement is not sitting on your butt and doing nothing.
Retirement is about having the freedom to not work.
It’s about doing what you want that adds meaning to your life – and preferably helps you earn monies to soften your retirement account.
Otherwise, you’re going to go full brain-rot, zombie mode.
- What do you need to retire early?
There are a few things you need to figure out before you start throwing all your savings into retirement:
- When do you want to retire?
- At what age and how far away is it?
- How much do you want to save for retirement to keep the 4% rule?
- The standard rule is $1 million. Some people save away more for a better lifestyle, Others save less as they don’t need much.Â
- How much are you willing to save every year for retirement?
- What are you making currently?
- How can you reduce your lifestyle down to save as much as you can?
If you’re going to join the FIRE nation, you’re going to need a plan.
Otherwise, you might run out of monies and die on the Walmart floor.
- Set your investments up for your retirement age.
How you set your retirement funds depends on when you plan to retire.
If you put your retirement funds into a Roth IRA or 401k, you may face a 10% penalty if you take money out before you’re 59 ½ years old which isn’t ideal.
Womp womp.
You can still have money saved away in these accounts in the long-term, but if you want to have more accessible funds without potential penalties for taking them out, a personal investment portfolio will be your more flexible choice, and the one that I personally use for single stock investing is moomoo!
And my favorite platform just got better, because they now offer fractional share investing, which allows you to consistently dollar cost average into your favorite stocks and ETFs! So now, you truly can budget for your investment.
With them, you can invest into ETFs which offer similar diversification opportunities. And if you aren’t quite ready to start investing into the stock market yet, they also offer *5.1% interest (APY) on any cash you don’t invest AND they’re offering a cool welcome bonus for new users who sign up with my affiliate link.
And to help kickstart your investing journey, moomoo is giving you 7 free fractional shares of big companies like Nvidia, Amazon, and Tesla, once you make your qualifying deposit! Or if you already have a personal investing portfolio but are thinking about making the switch to Moomoo, there’s never been a better time. New users can transfer in from another account without any transfer fees and receive a 1.5% cash reward match up to $300.
So if you want some great bonuses, you can sign up with my affiliate link here (which supports the channel).
And there you have it. 🔥
Joining the FIRE nation is simple but isn’t necessarily easy.
Either way — make a plan, know what you want, and stop f**king buying taquitos.
Taquitos,
Caleb Hammer
*The transfer match amount is limited to the first $20,000 transferred in. Any subsequent transfers are not included. Fractional shares are illiquid outside of Moomoo Financial Inc., and cannot be transferred. Each of the 7 fractional shares were initially worth $5, totaling $35, based on the closing price on 03/14/2024. The actual value received will vary based on market conditions. The rewards are mutually exclusive. See moomoo.com for additional terms & conditions.
Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. (MTI). Securities are offered through Moomoo Financial Inc. (MFI), Member FINRA/SIPC. The creator is a paid influencer & is not affiliated with MFI, MTI or any other affiliate of them. Their experiences may not reflect those of other users. Any opinions expressed are their own & not necessarily those of MFI or MTI. This advertisement is for information purposes only & is not investing advice or a recommendation. Any financial decisions should be based on your own situation. Investing is risky & may involve losing principal. Past performance does not guarantee future results. Any app images or securities shown are for illustration only & not a recommendation.
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