It looks like we can retire at 60 on $80,000 a year, so now it’s time to look at our stretch FIRE goal – can we retire at 55 on the same? To be honest, the stock standard retirement calculators did not paint a very happy picture for our retirement, except in the best case scenario of receiving at least 5.9% growth for the rest of our lives. However, the FIRE principles and calculators say differently. I’ve been around long enough now to put my faith in an alternative pathway. There are a lot of people successfully implementing various versions of FIRE, including in Australia. Our Stretch FIRE Goal: To ... Show Me More!
If you are following the traditional Financial Independence Retire Early path of saving a lump sum amounting to 25x your yearly expenses which you will begin to access when you retire, this post isn’t for you. The 4% rule has you covered, as it takes inflation into account. But if you are a late starter, you might have superannuation or some other form of pension pot that you can’t yet access at the time you’d like to begin your retirement. This is where inflation can have an impact. As we are following a SlowFIRE path (high expenses, relatively low savings rate for FIRE), superannuation is essential to our FIRE plans. ... Show Me More!
Last post, we defined our numerical FIRE goal. In this post I’ll explore whether it is achievable. Is it too ambitious? Or perhaps not ambitious enough? Let’s get to work! Our FIRE goal: to retire at 60 (in 2033) on $80,000 a year. To determine how much we need to generate this amount, we are using the 4% rule. This rule states we require 25 times our expenses ($2,000,000) to access an inflation-adjusted $80,000 a year for the rest of our retired life. Yes, it is simplistic. Yes, it is based on historical returns. No, it can’t predict the future or cover nuances for every person saving for FIRE. However ... Show Me More!