FIRE Movement | How to get the numbers right for financial freedom and retiring early

Описание: The FIRE movement is among the most popular ways to retire early. FIRE stands for ‘Financial Independence, Retire Early. It is inspired by the book ‘Your Money or Your Life’ by Vicki Robin and Joe Dominguez’. The basic tenets of the FIRE movement include:

Save 50-70% of your income
Live frugally
Invest wisely, preferably in a low-cost index fund

To find out how much one needs to save for one’s retirement, the FIRE movement uses the 4% rule or the Rule of 25. According to this rule, one should have 25 times of one’s first-year post-retirement expenses. If one does so, the portfolio can last for about 30 years.

These calculations are based on certain assumptions and they are as per the US context. Given the higher inflation rate in India, the 4% withdrawal rate may not be sustainable. To find out how much you need to accumulate, we have prepared a calculator, which can be downloaded from this link:

Retirement calculator: https://cdnlearnblog.etmoney.com/wp-c...

If your retirement calculations suggest that early retirement is only a remote possibility, don’t lose heart. Some tweaks to the FIRE movement can help you.

You can aim for lower post-retirement expenses. This is called lean FIRE.
You can work aggressively and earn more during your initial years and then later settle for a less-paying but comfortable job. This is called coast FIRE.
You can continue to work part-time post retirement as well. This is called barista FIRE.

Last but not least, you can always continue to stick to the traditional route to retirement. If you do choose the FIRE way, be ready to be ultra disciplined. There will be short- to medium-term pain but you will eventually be amply rewarded.

Related video:    • How To RETIRE EARLY In Your 40s Using The ...  

Chapters:

00:00 INTRODUCTION
02:00 KEY THINGS TO KNOW ABOUT THE F.I.R.E. MOVEMENT
04:10 DOES THE 4% RULE WORK IN THE INDIAN CONTEXT?
07:46 YOUR OPTIONS IF THE FIRE METHOD DOESN'T WORK FOR YOU
11:15 CONCLUSION

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