Save Hard:
Save Hard can be achieved by either earning more or spending less. Comparing the two it's probably more important to spend less than earn more reinforced by this worked example.
Big amounts matter but so do small amounts.
If you want to build long term wealth then you must avoid instant gratification through debt.
Invest Wisely:
Take advantage of the Miracle of Compound Interest and understand how to calculate investment return.
Don't make the same mistakes I did which included attempting to trade rather than invest, not considering investment expenses and not understanding contango. In hindsight I also should have also probably bought a home while chasing FIRE. That said these errors pale into insignificance when weighed against the fact that I started.
There may be a cheaper alternative than that fund that is to good to be true. If you decide to take that cheaper alternative and Index through low cost trackers or ETF's then some UK Index data may prove useful.
Take some responsibility instead of acting like a victim.
Investments:
- Previous issues of NS&I Index Linked Savings Certificates and why I hold them.
- Real Estate does not always go up.
- Investing for Income via Investment Trusts.
- Investing for Income via Higher Yielding Shares.
- Should I buy Emerging Market or Mature Market Equities.
Investment wrappers:
- Is a pension right for everyone?
- The cheapest low cost Self Invested Personal Pension (SIPP).
- Why using your ISA allowance yearly is so important.
The decision that you now have enough assets (The Retirement Number) in place to never have to work again is a crucial one. The 4% Rule could be an appropriate place to start your journey to calculate how big that Retirement Number needs to be but if you're a UK Investor that might be to bullish a Number. Once you've calculated that number check and double check it's enough, think about the probability of success and maybe even think about insurance policies. This is worst case thinking though and it's likely you'll have plenty.
Why dividend reinvestment is crucial if you are to increase your chances of early retirement.
Sometimes it's best to keep investing (including for retirement) simple stupid.
Why dividend reinvestment is crucial if you are to increase your chances of early retirement.
Sometimes it's best to keep investing (including for retirement) simple stupid.
Modelling early retirement extreme vs early retirement vs typical retirement vs late retirement. I'll take early retirement thanks.
The method I'm currently considering to transition to retirement which includes considerations on whether I should buy an annuity or enter income drawdown once I reach the appropriate age.
The method I'm currently considering to transition to retirement which includes considerations on whether I should buy an annuity or enter income drawdown once I reach the appropriate age.
Firstly your journey has been a great achievement, well considered and even better executed. Well done.
ReplyDeleteThe point at which you reach FIRE is the time a big decision needs to be made, particularly like us, if you are young.
Currently like me, you are at FIRE but this means you effectively have a dual income...what you earn and the big pot of increasing wealth from the accrued wealth.
Actually leaving the job will hugely reduce the inflow of wealth. An extra week, month, year at work almost now disproportionately increases your wealth compared to when you started the journey.
I set an age limit rather than a financial amount when I would leave work. Not as scientific of course but it means (within a month or so) I will stick to that. You have arrived at your destination but maybe it's too early for you....as you still hang on for the reasons you have given?
I leave around July 2018....hope to be reading about your life in retirement before then.
Phil321