Achieve Financial Independence In 10 Years Or Less!

[@OnCashFlow]

I use M1 for all of my investments, and I think you should too! www.oncashflow.com/m1

[@Bigboss-xe6lm]

This should be obligatory for kids to watch 1 time a year throughout their school life. Great work explaining everything

[@OnCashFlow]

Wow, I really appreciate that! If anything, I strongly believe that we need to teach basic financial literacy in our schools!

[@SreysrosTakeo]

I agree !

[@OnCashFlow]

@@SreysrosTakeo Thank You!

[@TS-so2xi]

Completely agree

[@MatthewYates1]

Absolutely!!!

[@jamesbranagan2389]

After looking through loads of videos on this subject, finally someone who explains it correctly great job.

[@OnCashFlow]

Thank you so much for the positive feedback! I'm really glad the video was helpful!!

[@pardeepsgrewal]

You put together the practical knowledge of my 25 years of hard learned lesson in 1 hr 25 minutes. Wish I had excess to this kind of wonderful knowledge when I started working 28 yrs ago. Thank you so much, this video is the lesson for my kids & many others to watch. And watch multiple times. Blessings dear. Will look for more of your videos. 🙏🏽🙏🏽

[@OnCashFlow]

Thank you so much for the positive feedback! I am really glad that it was helpful!

[@nsharma99]

Great channel, you seem like a great guy!

[@OnCashFlow]

Thank you so much! I really appreciate your kind words!

[@ZachGinnOfficial]

I love passive income - dividend investing is one of the best forms of passive income with very low barriers to entry.

[@OnCashFlow]

Dividends certainly do create easy passive income streams!

[@twinkletooty8358]

👏 wow! Why doesn't this have more views and likes? This is phenomenal info😘 i love your discipline and the digestible bits all broken down for life long strategy💘 thank you for sharing your passion🙏

[@OnCashFlow]

Thank you so much for watching! I'm really glad it was helpful for you! I hope that I can continue to bring you value in the future!

[@posturelink9683]

It does not have more views because there is no superficial bling and the content is genuine.

[@OnCashFlow]

@@posturelink9683 Thank you for the kind words!

[@MP708]

Thanks for putting thorough info out there. It takes a ton of time and effort to put something with nuance together so many thanks.

[@OnCashFlow]

Thank you Michelle, I'm just glad that you found value in it!

[@CCJJ160Channels]

Just finding your videos now and they’re great, especially this one. I’d suggest maybe breaking up the longer videos in 15 - 20 minutes segments to make them a bit more digestible. Great job!

[@OnCashFlow]

thanks I really appreciate the kinds words. this was definitely a super long video and I haven't done anything like it since lol

[@truthtelleranon]

Epic video! Gained a ton. You’re the man

[@OnCashFlow]

Thanks again! Glad it was helpful!

[@verma9537]

Simply an outstanding video: clear, simple, logical and without any BS. Bravo! Nice job!!

[@OnCashFlow]

I'm very glad that you found it useful and I really appreciate the kind comments! Thank you!

[@mariatravieso5226]

Thank you so much for the breakdown. This is a wealth of knowledge.

[@OnCashFlow]

No problem, Maria! I'm very glad that it was helpful for you! I hope that you can find more of my videos just as helpful :)

[@KayGee_yt]

I watched this while at work ironically enough. I didn't even notice it was an hour long. Such a thorough explanation of all of the questions so don't get addressed in everyone else's videos. I really appreciate it! Time to go find my fire numbers

[@OnCashFlow]

No problem! and thank you so much for watching! I know it's a bit long and I have tried to do better and update this guide to be more in chunks rather than 1 very long video. so now I have a few separate videos that I try to point people to such as "full guide to... minimizing taxes... increasing income...investing,,,etc. All FIRE related and around 20 minutes each. I hope that you will find value in some of my other videos too :)

[@noveltyrobot]

What a monumental video. I'm sending this to all my friends!

[@OnCashFlow]

Wow! I'm so glad that you found it helpful! I really appreciate you sharing it! It means so much to me! Thank you!

[@dmoon9037]

Epic effort, I may have to absorb this over multiple sessions and blocks.

[@OnCashFlow]

Thank you very much, It took so much time to make this, I realize that it's a lot to watch too!

[@healthyaisletoasia]

You should add timestamp chapters to long videos. It's easier to navigate and viewers won't go away

[@OnCashFlow]

You are 100% correct, sir. My apologies. I will add chapters to this video very shortly. Thankfully, KZbin is implementing automatic chapters that is supposed to be rolling out as well! :)

[@sokhasen8146]

I subscribed after hearing your voice.

[@OnCashFlow]

That is so sweet! I think my voice is too nasally :(

[@abra3cadabra3]

Thank you. I actually understand what you're saying and now it's starting to make sense. Everyone should watch this.

[@OnCashFlow]

Thank you very much, April! I'm so glad it was helpful! I really hope you will find other videos of mine just as useful! :)

[@oasis3808]

Great, great video! Informative and helpful contents towards my path to FI. Much appreciated!

[@OnCashFlow]

Glad it was helpful! I've got lot's of other FIRE videos that I hope are just as helpful for you!

[@ErinTalksMoney]

Great video! Very detailed!! 👏👏

[@OnCashFlow]

Thanks Erin!

[@rubyette]

You’re so smart. How did you learn all of this ?

[@OnCashFlow]

Thank you so much for your kind words! I've been interested in personal finance, investing, and financial independence ever since I earned my first paycheck at age 18. I hope you will watch my journey to F.I.R.E video :) kzbin.info/www/bejne/iobFkomnrs-apNE

[@kadendecker211]

Finally finished the whole thing. Thank you so much for putting so much time into sharing this info. I’m 19 years old and can’t wait to start this journey. My biggest takeaway from this for me personally, is that i will definitely need a much higher income to achieve my version of FI. Although I can save at least 80% of my income right now with the lifestyle I have chosen, this is not the budget I want to live off of forever.

[@OnCashFlow]

Wow thank you so much for watching the entire video, I know it's a lot and I really appreciate you taking the time! I'm really glad that you are interested in this at such an early age as I was. It so worth it and I do not regret saving and investing rather than getting into debt and inflating my lifestyle like most people do in/post college. I know you are going to achieve great things, and I will be here every step of the way with you!

[@MinnieOnCam]

I've created my own term disabled fire needing my social assistance to cover my medical cost but still able to retire with dignity within the policy directive rules of what assets i am allowed to have

[@OnCashFlow]

Haven't heard of that one before!

[@MinnieOnCam]

@@OnCashFlow I found the FIRE movement to be dominated by white men and abled body. which is not my reality.

[@sree6222]

Thanks for your help, appreciate it! Very good information, very overwhelming. will take few breaks to grasp 😊

[@OnCashFlow]

I appreciate you watching! I know it's a lot, I'm going to add in the timestamps so that hopefully it will make it easier for you to watch in segments!

[@NondeM]

Great video. 👏🏿 I am bookmarking this video.

[@OnCashFlow]

It is a lot to take in all at once! Thank you so much for watching! :)

[@nikiclaypool8800]

This video is so concise and well explained! Thank you!!

[@OnCashFlow]

Yay! Thank you for your kind words!

[@lindarubio4617]

Great video. Im halfway through,just waiting to learn how to grow money to the 1 million...

[@OnCashFlow]

just keep investing consistently over a long period of time and you could get to 1 million :)

[@JL-bc5fv]

Great information. Thank you so much 😊

[@OnCashFlow]

Glad it was helpful!

[@nikiclaypool8800]

This will be my go to video to share to explain FI to others

[@OnCashFlow]

Awesome! That will really help me out a lot! I appreciate it!

[@albagarcia3584]

Excellent explanation, thank you!

[@OnCashFlow]

I'm so glad it was helpful! Thank you!

[@normanhyland9642]

A metric that needs to be emphasised is the minimum YTD ROI possibly 8 percent, that allows the 4 percent rule to be successful

[@normanhyland9642]

Above comment is assuming YTD inflation rate of 3 percent

[@OnCashFlow]

Yes the 4% rule uses an average of the long term inflation rate

[@normanhyland9642]

@@OnCashFlow agreed, but the essential question is, what is the minimum YTD ROI that would be required for the 4 percent SWR to be successful for a given period, say 30 or 50 years respectively. Thanks

[@OnCashFlow]

@@normanhyland9642 The YTD ROI isn't really relevant, it's the average ROI over that entire time period. Not necessarily any given year. Although the first 10 years of performance are more important than the last 10 years (sequence of returns). FIRE calculators have the data and they can answer the question better than I can, have you tried FIcalc orcFIREsim?

[@normanhyland9642]

@@OnCashFlow understood, thanks for your enlightening response. After considering what you suggested, wrt sequence of returns and the irrelevancy of short term YTD, that helped me comprehend my strategic question. Which is an overlooked factor, since each market i believe has a unique SWR or if any at all. What was or is the average ROI over that entire time period of the stock market used to determine the 4 percent SWR,

[@awoldeyesus]

Very helpful, thank you.

[@OnCashFlow]

Happy to help! Thanks for watching!

[@1Billyon]

THIS IS GREAT INFORMATION!

[@OnCashFlow]

Thank you! I'm so glad that it was helpful!

[@samspraguefinanceformula3519]

Nice work bro! Lot of great information

[@OnCashFlow]

Thank you so much! I want to perfect a full guide that can help practically anyone!

[@samspraguefinanceformula3519]

@@OnCashFlow love the channel

[@OnCashFlow]

@@samspraguefinanceformula3519 I love your support! Thank you!

[@LouisTheTraveler76]

Very good, straight forward info - nice

[@OnCashFlow]

Awesome! So glad it was helpful!

[@yahdi]

Thanks

[@OnCashFlow]

Thanks for warching!

[@FreshLights]

Very well explained and informative

[@OnCashFlow]

Thank you so much!

[@eightsprites]

Dont forget the risk of being dead, against risk of running out of money. One is sadly higher then the other.

[@OnCashFlow]

Another reason to seek out financial independence as quickly as possible!

[@nikiclaypool8800]

I show this to everyone. So we'll explained

[@OnCashFlow]

Thank you very much for sharing! that really means a lot to me! :)

[@shmowlana]

Amazing content. Thanks for taking the time and putting this together. I have a question on paying capital gains on the portfolio withdrawal. Does the 4% withdrawal rate take that into consideration? Wouldn’t paying taxes on a 40K yearly withdrawal from a 1M portfolio require a much higher capital to achieve the FI target? Thanks in advance!

[@OnCashFlow]

Thank you so much for the positive feedback, I really appreciate it! The original 4% withdrawal study does not take taxes into account. The amount of taxes you would pay would obviously be highly dependent on what kind of accounts you are withdrawing from. In theory, the 40k is the withdrawal and you pay your taxes on that withdrawal (if any) and the rest would be for spending. Also take into consideration that if the investments were in a regular taxable account, only the capital gain amount would be taxable and at a much more favorable tax rate.

[@davidporcel3096]

Thanks!

[@OnCashFlow]

Thank you very much!

[@MR20MR]

I got a question. I recently built an addition to our house(2 new bedrooms and a bathroom) . I installed energy efficient windows , insulation , new roof to the whole house and an Attic fan. I would like to know ,when you are filling your tax return ,on what section you can report all this improvements so I can get the insensitive if still possible?

[@OnCashFlow]

Hmm, that question seems to be beyond my scope of knowledge (sorry about that) This FAQ from the IRS might help you. www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-questions-and-answers I would talk to a tax advisor on this one. Please let me know what you find out!

[@rebekahedwards7135]

Do you have issues with the networthify calculator. It will change the figures applied, as not to give an accurate projected retirement date??

[@OnCashFlow]

What do you mean? I don't have issues with it. It is very simple and you can control the inputs. I think it is great for getting a decent estimate of when you could retire, as long as your inputs are reasonable.

[@unknowninfinium4353]

I have a question, when you mention the Fire amount, should we like invest that amount in the span of 10 years? Or is it like keep investing till you reach that number in your index fund?

[@OnCashFlow]

You would keep investing until your total investment balances reach that amount. The less time you have to invest, the more you will have to contribute yourself to get there because compound interest takes a long time, still worth it though! I hope this helps clarify :)

[@Claybraham91]

Great video! A little off topic but me and my wife are thinking about buying a second home and renting it out. We're still paying our home off and not sure of where to start. Do you or do you not recommend this?

[@OnCashFlow]

If you want to get involved in rental real estate then Yes I think it's a great idea! Learn how to properly run the numbers and makes sure that you can find a property that fits your criteria and goals. Good luck!

[@Matthewuzarski]

the major limitation of using the this specific Trinity study is that the portfolio exhaustion looks to 30 years max. if we are trying to retire early, we need to look to longer time frames, are there studies with expanded time frames?

[@OnCashFlow]

Yes, all the FIRE calculators in the internet allow you to use much longer time frames. I actually like to use 60 year time frames in my personal calculations and the result is very similar (80%-90%+ success rate even for 4% depending on allocation, fees, etc.) I like FIRECalc, cFIREsim, and Engaging data.

[@ericwei8707]

I think the 4% withdrawal is by selling the index or stocks. What if we did not touch the principle money but only withdraw the dividend? Does this actually grow our wealth?

[@OnCashFlow]

Your wealth can still possibly grow even on the 4% rule depending on how your portfolio does over the decades. dividends are still just like withdrawals because the company you own is passing off value to you the shareholder (although the % right now is very small). most likely if you lived off only only dividends (let's say it was 2%) then likely your wealth will continue to grow over the long run because your withdrawal rate would have been lower than your long term returns.

[@ericwei8707]

@@OnCashFlow Noted. Thanks.

[@r4v3nous31]

You know he's frugal with a chrome book

[@OnCashFlow]

Haha! I have since then got a much more expensive Dell Xps 15 for editing videos!

[@ibrahibrak4210]

does the trinity study inlcude reinvestong dividends,

[@OnCashFlow]

I'm not 100% sure but I would guess that it does since you take a distribution once per year and then have the dividends reinvest the rest of the year? The more tax efficient way would be to not reinvest the dividends and to use them as part of your spending though. Here is the study pdf if you want to read it: www.aaii.com/journal/199802/feature.pdf

[@garcia4062]

Muy bueno

[@OnCashFlow]

:)

[@rickdiculous5655]

Hello! I got a Fidely roth IRA with the target date fund 2050. The expense rate it 0.75%. Is that too high or is that normal?

[@OnCashFlow]

High is relative, but that is a high expense ratio to me since Fidelity's total stock market index fund (FSKAX) has an expense ratio of only 0.015% and their total bond index fund (FXNAX) has an expense ratio of 0.025%.

[@rickdiculous5655]

@@OnCashFlow for a roth ira would u recommend the FSNAX or the FXNAX

[@OnCashFlow]

@@rickdiculous5655 It doesn't matter in a roth since there are no taxes on gains/interest/etc. In a roth ira

[@rickdiculous5655]

@@OnCashFlow how's money suppose to grow if there are no gains?

[@OnCashFlow]

I mean that when you make a gain within the account, it isn't taxed.

[@jaylenlenear3944]

Fat/Lean/Barista fire is my approach

[@OnCashFlow]

I'm lean/barista FIRE :)

[@toledoohio66]

how much should i invest out of 125k?

[@OnCashFlow]

Depends on your goals, how much you spend, how much income you bring in, how much you can invest going foreword, etc. If I made 60k/yr and was ready to invest 50% of it, and I had 125k cash, I would keep 10k-15k in cash and invest the difference. If I had any debt above 6% then I would pay it off before investing the difference.

[@toledoohio66]

@@OnCashFlow thanks...well i think i can do 70k..and add 350 per month from my check....i can manage that much....for starters

[@OnCashFlow]

@@toledoohio66 great! Start where you can and slowly find ways to easily increase your savings rate :)

[@toledoohio66]

@@OnCashFlow im thinking 60% S&P 500....30% Index....and 10% Bond....what do you think???

[@mucusofwanderhome6945]

Where /how are you deciphering 10 years as a horizon to 1 million based on that chart ? You say yourself it’s a much longer horizon which is what the chart explicitly indicates. Click bait

[@OnCashFlow]

I apologize, I do not have any intention of presenting any kind of click bait. I don't know of the top of my head what the timestamp of the chart you were referencing, but It is certainly possible and attainable to get to 1 million in 10 years. It's obviously going to be easier the higher of an average return you make and the more money that you can contribute to investments. Using a compound interest calculator with $6,000 monthly contributions earning 8% annually leads to over 1 million in 10 years. Similarly, If you could manage to attain an average of 10% annual returns it would require about $5,300 per month contributions over 10 years in order to reach 1 million in 10 years. Sorry if it seemed misleading to you, I appreciate your feedback. www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

[@donaldlyons17]

@@OnCashFlow Dude your idea for many to be realistic the timeframe should be a minimum of 25 years. But to be super safe about 40 years.

[@donaldlyons17]

Yeah he has 10 million in 10 years on the thumbnail but I don't see any way that is possible.......... It seems more realistic to suggest a lot lower because so many people don't even make 10 million in a lifetime.

[@OnCashFlow]

@@donaldlyons17 The thumbnail is presenting an exaggeration. I suggest closer to 1M in 10 years is the realistic goal provided you have enough income to support it (upper middle class type income).

[@donaldlyons17]

@@OnCashFlow why do that when so few even come close to that in lifetime earnings?

[@khafreahmose8768]

Cfmr

[@OnCashFlow]

what's this referring to?