Quit Your Job Sooner! Here's How to Invest to Retire Early: Understanding the 4% Rule for F.I.R.E.

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Books that have helped us on our Financial Independence Journey
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The Bogleheads' Guide to Investing: amzn.to/2UjEc4j
The Intelligent Investor: amzn.to/2MKGokh
A Random Walk Down Wall Street: amzn.to/2zIVI8p
The Book on Rental Property Investing: amzn.to/2UkwgQ6
Building Wealth One House at a Time: amzn.to/2ZJQuDW
Rich Dad Poor Dad: amzn.to/2ZD29IK
The Total Money Makeover: amzn.to/2Lc0thn
The $100 Startup: amzn.to/2UnBpqK
Freakonomics: amzn.to/2HCnDeJ
▸▸▸Follow us on Instagram: / richjourney
Our Rich Journey - Curious about how much you'll need to retire comfortably? In today's video, we delve into the calculation of your Financially Independent Retire Early (FIRE) number. Exploring the correlation between this figure, the 4% Rule, and insights from the Trinity Study, we shed light on crucial aspects of retirement planning. But wait, there's more! We're excited to unveil a special offering: our comprehensive 21-module, 4+ hour Stock Market Investing for FIRE Course, complete with over 30 handouts, assignments, and a 19-page Individual Investment Plan. As a sneak peek, we're sharing Module 3 of this course in today's KZbin video, focusing on the methodology behind calculating your FIRE number, the principles of the 4% Rule, and insights from the Trinity Study. To learn more about our course or to enroll, visit: www.ourrichjourney.com/firema... . Thank you for tuning in!
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We are not financial advisors. Our videos are for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!
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#FinancialFreedom #HowToRetireEarly #FinancialIndependenceRetireEarly

[@OurRichJourney]

▸▸▸SPECIAL ANNOUNCEMENT: Enrollment for our 365 Days to FIRE Program is now open for the class of 2025! Enroll now and get 50% off the full price. Spaces are limited! Learn more at: www.365daystofire.com/

[@1_badd_b]

I've been watching and watching and watching-- time to take ACTION!!!!!

[@wfp67k2006]

Thank you for sharing your journey. I went from feeling helpless to feeling more in control of my financial future.

[@heartfullydone]

A time travel video - look at you both back before Covid! It's very practical that you shared this video topic again, because that's actually the video I always have to search for to share with friends and explain it to them. Now I can find it so much quicker. 😉

[@HN-oq3gf]

you two are the best!!! one of the first channels I found on fire that actually makes sense.

[@Chefdavid28]

you guys have change my life forever

[@dianeking8835]

Can I just say thank you for all you’ve done for us just listening to you both he’s always motivating and captivating. I know this is as a result of your seamless hard work behind the scenes but I believe having listened to you for four years. I need to take the time to say thank you. Keep going and also well done with your girls it’s all inspirational motivational and captivating.🎉🎉❤

[@OurRichJourney]

📈Looking to learn how to invest? Enroll in our Stock Market Investing Course: www.ourrichjourney.com/investingforfire 🔥Learn more about financial independence and retiring early: Enroll in our F.I.R.E. Master Class: www.ourrichjourney.com/firemasterclass

[@BrianJenkins72]

Putting $$ in work 401k, putting $$ in Roth every week. No debt other than everyday bills ( electric, cell, etc). 52 with small pension from old job and looking to the future of my time...

[@TiagoRamosVideos]

Very interesting video 👌 thanks 🙏

[@lutherpilkinton2400]

Great video, as always

[@supalpatel6649]

Thank you both so much 🙏🏽

[@cann9155]

UR Training Courses are awesome. Thanks guys. 💝💝💝💝

[@CaseyPhilson]

How do you know which funds to sell when you're taking your 4% in retirement?

[@makaiokalahama]

And/or which to prioritize first/in what order to pull from... would be a great video for them to do, I've never heard someone explain that.

[@TheOne-vf2yw]

Stocks up? Pull from stocks. Stocks down? Pull from bonds. Look up cape ratio

[@nateums]

They go over it in their course, but it’s basically pulling well performing stocks and converting your 401k over 5 years using conversion

[@PartyMan_1TF1]

I believe the study was total world index funds and total world bond fund. I also assum you take a weighted average to get your 4%.

[@thejourneyofraymond5752]

If not all, some of their portfolio is base on dividend paying stocks. With that said, depending on when those stocks payout they: reinvest the dividend or cash out, if the dividend pays out twice a year, four times a year or once a month they could reinvest some of the times and cash out the other times. They just make sure not to cash out more than 4% per year. If i recall correctly their portfolio is growing and they will have 23 million when the get to "retirement age". Which leads me to think, if they are no longer contributing to the account(s) they are only cashing out a small percentage and reinvesting everything else. Assuming the growth is only or significantly from dividend reinvestment and/or dividend stocks.

[@willmallory9085]

Excellent video Team

[@claremorley9845]

Thank you 😊 💓 🙏

[@user-vc7cu9ks6y]

These people are legitimate. They are not con artists. I am a professional investor and know the difference.

[@moniquemichelle7295]

Yup. Agreed.

[@dionneking8]

Yes

[@wildfoodietours6702]

Pay yourself first and try to at least max out all retirement accounts, then dump the rest into a brokerage and buy index funds.

[@TheCookingDojo]

Thank you for the calculations. This is very helpful. Unrelated. But I just returned from a trip to Phuket, Thailand. Did you guys say you lived in Thailand at one point?

[@ilyaw.3081]

You guys planning on any more traveling and documenting it for us to live vicariously? 😊

[@paulputin]

Thank you for the video. I didn't quite understand one think. You explain numbers as if taxes do not exist. How taxex should be considered in all these withdrowal rate calculations?

[@Luxlookgood]

I know you guys are not close to receiving ssa however please please research and answer your opinion and I know it is only your opinion which I cherish about taking social security at 62 or 67? I would greatly appreciate and I know everyone’s situation is different!!!!

[@tmm4782]

Hi friends!

[@vincewoo3415]

Is this a remaster of old video? It seems I have watched it a while back 😊

[@carlyndolphin]

I like this video but personally I prefer the 3% withdrawal rate as I’m only 44

[@olababs2048]

This is how I calculate my fire number after retirement. Monthly cost(after retirement) ÷ 0.04% x the number of years you think u will live for after retirement(20yrs, 25yrs, 30yrs, 35yrs, etc).

[@BrianJenkins72]

Hello again

[@tiffanywilliams3019]

I just started back working for the government. i dont know how long ill be there

[@thesuperhopefulband3971]

The only thing I’m not getting from what you’re saying is you are not defining “success.” What do you mean by success - That your portfolio still has some money left in it after 30 years? Like a dollar :) or are you saying success means that after 30 years, your portfolio is still at the same value or higher? That has a big impact for those of us with kids who want to be able to pass money onto their family.

[@JRspeaking]

You don't need to pass along money to your kids. They will do just fine. Live your life to the fullest with the money you've saved for your retirement.

[@kvsk002]

If you want to pass money to your children then i think you should work as many years as possible since you can always earn more to pass on. Better for your peace of mind don't think about retirement.

[@danelledautrievesanford]

Hi There

[@castrostraveling9674]

Thanks for all of your advice! We are on our way there. One question that I have for you all is regarding 401K and Roth401K. I have access to both and we already maxed out our Roth IRAs. So I was thinking that I could put more money into the 401K and then we leave our jobs roll that over into our IRAs, then do a conversation to a Roth IRA. We expect our income to be a lot lower than what we make now once we move outside the US, so this way we maximize the tax benefit now and then pay taxes at a lower tax bracket when doing the conversation. Does that make sense or should we put as much as we can in the Roth401K and pay taxes now?

[@kerrydyke2050]

Nice video. Asking for some clarification. 1. By stocks do you mean S&P 500 (index). 2. 100% success- meaning you have all the principal left? Or just some money in the account?

[@t4health527]

Is it 4% a year? Or 4% a month? And is it 4% of the whole portfolio or only pull from its growth?

[@jdone7619]

How much did you both start off with before you retired and how long did it take to retire

[@egolessarts]

your hair growing by the second! lol.

[@HansikaBrown]

If you don't find a means of multiplying your income you will wake up one day to realize you didn't plan well

[@OscarCastillo-fl9dw]

What about instead of the 4% rule you can live out of dividends investing instead.

[@kvsk002]

In long-term dividends will be adjusted in share price... So no difference... I think taxes will be more on dividends compared to capital gains.

[@OscarCastillo-fl9dw]

@@kvsk002 i just don’t like the reason of selling your shares to use that 4% rule.

[@SC-4rqub]

How do most of you guys still making profit? Even with the downturn of economy and ever increasing life standards

[@adeya8813]

I think because they mention having 18 months to 2 years in cash to pull from during market downturns. Also, multiple streams of income (real estate & their courses).

[@mlloneyd]

When you retire early isnt their a penalty for removing money from your roth ira early (before 65)? So how does one retire early with this limitation. Trying to understand what early retirement looks like with only having a roth ira.

[@destroya3303]

I don't think they would be pulling from a standard retirement account.

[@reinaisabelle06]

The roth ira had to have been open for 5 years and you will have to be 59 1/2 to withdraw from it without penalty. If you have a roth 401k with an employerr, I suggest you to call the company holding the roth 401k to obtain further information re withdrawals.

[@intownvlogtv8123]

I think you can start withdrawing from your Roth at 591/2 years old.

[@user-vc7cu9ks6y]

No.59 and a half. After 59 and a half there is no penalty

[@jaxonwilson4722]

Hi ! I think it’s 59.5, the exception being the rule of 55, and laddering your 401k🤣😂I took their corse; so, I hope I got this correct.

[@PAULIEL.]

👍👍

[@JockEwing-qi7ih]

Buy Bitcoin and retire early

[@wontbelongnow5567]

It's easy without fire .just save 700000 to 900000 pounds and then yo can spend 30000 pounds a year for 30 years plus you will have intrest to spend too. I've done it for 50 years old with plenty of hard work and overtime and saving .

[@polivios13]

30 years is not enough for early retirement..

[@4u2c95]

Speak for yourself