Want To Retire Early?

[securespark]

The people living hyper frugally so they can retire early

The Fire (Financially Independent, Retire Early) movement sees followers save as much as possible.

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She retired at 35...

 

[motorbiking]

Doing your FIRE numbers is useful, particularly if you don’t have a defined benefits pension. Generally for the U.K. the 4% withdrawal rate doesn’t apply. It’s safer to opt for 3.5%.

There are lots of calculators and a few scammers but using one of the AIs gives you some pretty sound projections.

What you don’t want to do is end up with a high risk investment strategy to support a FIRE strategy that doesn’t really have enough capital.

 

[Justin Passing]

They gave up and retired when their savings or net worth, or something, reached £1m. I may have missed whether that included their house, which is pretty important..

Even if it didn't, I would say that £1m at 35-40, isn't going to be enough, £1m pension pot at 65 would give you 50k ish a year, 3% incrementing, before tax. There aren't figures from 40, but - maybe half? You'd be relying on stock market gains keeping you afloat, I think. But you might be unlucky.
That would be mbk's

high risk investment strategy to support

Picking the better sectors - not even the best - would have done it, in the last 20 years.
Keep payng NI at a low cost self-employed rate, to keep your pension!

Trouble is, when fit and 40 you can spend quite fast. I've met people doing constant travelling. You're likely to become cheaper to run when you're older!

 

[wobs]

From the article:
"The two rarely had takeaways and always took packed lunches to work. "We were £40,000 better off over 10 years from just that one lunch habit," says Alan."

Sorry, but what?! I take pack lunches to work, but can't imagine I'm saving £40,000 over 10 years.

I think I would spend from £7200 over ten years on work lunches if I stuck to salad. Probably a bit more if I had the cooked meals at work. Then there's the cost of pack-up (home-made bread with tuna, 40p flapjack and banana). Which to be fair will be minimal for me, but would still reduce that saving.

Now double that cost for a couple, and you still don't get close to £40,000.

 

[Murdochcat]

^^ but you forget about the growth, on growth, on growth over the years.

Sure an interest account won’t deliver but stocks and shares just might

 

[motorbiking]

A £10er per day for all week days gets you to £40k if you put it in something like VWRP in an ISA.

It would be more if you put it into pension.

 

[motorbiking]

They gave up and retired when their savings or net worth, or something, reached £1m. I may have missed whether that included their house, which is pretty important..

Even if it didn't, I would say that £1m at 35-40, isn't going to be enough, £1m pension pot at 65 would give you 50k ish a year, 3% incrementing, before tax. There aren't figures from 40, but - maybe half? You'd be relying on stock market gains keeping you afloat, I think. But you might be unlucky.
That would be mbk's


Picking the better sectors - not even the best - would have done it, in the last 20 years.
Keep payng NI at a low cost self-employed rate, to keep your pension!

Trouble is, when fit and 40 you can spend quite fast. I've met people doing constant travelling. You're likely to become cheaper to run when you're older!

Part of FIRE is spreading your investments to maximise tax efficiency, so you draw your pension earlier and blend it with investment release to maximise tax efficiency.

I’m on a few FIRE forums, the problem the young FIREers aren’t thinking about is that their 40s and early 50s are their prime earning years and sitting those out or Coast FIREing leaves them having to make their money work hard.

 

[Justin Passing]

I had no idea there were forums for that.
All you have to do, at the moment, is learn how the stock market works.
Today was an easy 25% gain. I was at the dentist for some of it. That doesn't work every day, but, something like it minimum twice a week on average..
Today was clearly going to be "bullish"
Get a guide as to what might be moving - they're free.
Have say 4 charts open, have a screener running.
Spread your pot between them, then just use the one or two which do best.
If there's nothing, go away. You can have a commentary on youtube, also free.
Almost that simple, it really is.

This will change. There will be more AI powered ways to do it. They won't be quite as good for a while, then they'll be a lot better,
I just posted a chart on the stock Market thread about overnight trades which work with high probability.

My sis in law said, unbelievingly "There would be really rich people if that worked"! Well, yeah, that's one way they do it.

 

[SPLINE]

The people living hyper frugally so they can retire early

The Fire (Financially Independent, Retire Early) movement sees followers save as much as possible.

share.google

She retired at 35...

SS, you are promoting conservative behaviour. Well done