HOW TO RETIRE AT AGE 30 (& Live Off Your Investments)

100 Comments

  • In regards to your question, I like my BMW but still a pretty frugal person and investing in stocks and real estate.

  • what calculator did you use to figure out how much you will have after 10 years? is this with additional contributions?

  • Great video man! I've been saving around 40% of my income every paycheck this year. I work around 60+ hours a week. Trying to bump that up to 50% in the coming months

  • 4% Rule is key for anyone trying to FIRE in their 30’s and 40’s. I typically recommend you overestimate your annual expenses for security reasons (i.e. you spend 30k a year but you save enough so that you could spend 40k in an emergency). This gives you more of a cushion in case things go south and usually only takes a few extra years of saving because of compound interest!

  • $100 of expenses = $36,000 more money you need to set aside. Great perspective of thinking!

  • Math: 100 * 25 * 4% = 100. Its 25 times yearly expenses not 30.

    Now I can agree that 25+ like 30 is an better idea, but the you have a 3.33% rule not a 4%.
    4% rule misses to include taxes and other costs in investment.

  • I’m 24 now and I want this lifestyle, I am saving 50% of my income but I’m going to try to bump it up. I’m building a nest egg right now but as soon as I’m done with my Emergency fund, I’m going to open a Roth IRA and will put 100% of my income there. I have enough in my checkings that will last me a few months

  • Great video man, I always try to save 90% of my income, and spend as little as possible. I think that if you want to spend more you need to find ways to MAKE more instead of trying to cut every single little corner.

  • I love the idea but there has to be a balance. You can die the next day and deprive from experience enjoying life.

    Can you include cutting 10% tithing from church 😂😂😂😂

  • i dont think its worth living like a peasant and sacrificing life experiences in your 20s just so you can retire earlier. you will probably get bored by retiring that early anyway if you dont have a plan. dont get me wrong its definitely worth saving and investing as much as possible to give you that freedom in the furture if u want it

  • Unfortunately the 4% rule was made assuming a 30 year retirement. If you're retiring around 30 your retirement will be much longer.

  • AWESOME! Your principles are correct. FIRE is not bad, I wish I knew about when I was younger, but it can have a few issues. ALWAYS live below your means, take on side gigs if you need to, and save and invest well! And the EARLIER you start the better peeps! Good video Ryan!

  • Just invested a majority of my money towards a rental building & will continue to diversify my investments. I’m aiming at having the option of retiring by 26. I am 23.

  • This may sound crazy, but my #1 financial goal is to be a millionaire by 30.

    I’m only at a fraction of that goal – but I believe it’s totally possible with compound interest and extremely hard work 😅

  • I love the FIRE movement. I've reached a financial point where I can work recreationally — I was able to quit my job and now pursue things I'm actually passionate about! Like starting a youtube channel, taking on clients pro bono for causes I care about, etc. I LOVE IT! Great, informative video.

  • Very well rounded video Ryan! Definitely going to utilize real-estate investments to get to that number faster and also go on some vacations every once in a while…

    Keep it up 👍🏼👍🏼

  • The only flaw in this is that once you have enough to maintain your extreme frugal freedom number, the thought of working and sacrificing so much to just end up back where you were being frugal but this time without a job to occupy your time, so you just sit there looking across the room not being able to do anything bc you can’t spend any more than the original freedom number.

  • Best thing to do is to live and work in America, save for 5 years around 200000$ and move to Thailand for ever and live like a king for less than 500$! And travel once in a year!

  • I'm starting this journey right now. I'm 25, making $75,000 a year and saving/investing about 50% of my income (after taxes). Five more years before the deadline. Let's see how far I go

  • I've always been curious what a fire portfolio actually looks like? I know it has to do with vanguard funds like VTI and etc. But what specifically?

  • If you can invest in a good enough real estate market 30 years old is VERY possible. Bigger pockets has interviewed a few mid 20 year olds already there!

  • Stupid tbh i work in finance im 22 and this trend to retire early is stupid. If you enjoy your work whats the problem? Some people actually enjoy working and dont actually care from money. My dad and grandfather were both property developers and investing is ingrained in me. Doesnt mean i want to live off them or their investments. Theres a difference between living to work and working to live

  • Such a flawed system. Expenses increase with age. Why? Well think about this we all age and have health problems so healthcare alone goes up

  • If I invest $100,000 and earn capital gains on my investment, say it grows to $120,000. In my everyday life, I’m not getting any income from this am I? Yes it’s an asset but it won’t help me buy my groceries… until I cash out? When am i supposed to cash out in life. Are dividends the only way to literally get a steady income from stocks? Am I missing something?

  • Using this strategy you will have to live with so little money not only for 10 years but for the rest of your life. Does it worth it?

  • I like the financially independent part but I'm not a fan of the retire early half. I get bored if I take more then 4 or 5 days off in a row, excluding traveling. I don't want to quite my job but I hate that I NEED to be there too.

  • The fire movement is very important. After getting rejected and going thru multiple job interviews, I am definitely going save heavily. Also, thank you for inspiring to invest and start a Youtube channel. Maybe we can collaborate.

  • Great video…but really guys im 36….what the hell would i do for the next 70 yrs matching inflation. What becomes your lifes purpose…please dont respond if your still under 32 yrs old 🤣🤣😂

  • I never liked FIRE. It is in my humble opinion FIRE just sell people an unrealistic dream. Why am I so negative? Because the movement is skewed by the stock market returns of the past 10 years. Lets for argument's sake say you invest in the SAP 500 and not in a world index (which is much safer), and let us assume that the SAP 500 doesn't meet the same fate as the Japanese index. Based of current SAP growth your expected return over the very long term is 5% a year if you average in.
    That 5 % is adjusted for inflation. A conservative estimate for inflation is 3% a year. However, it could be much higher (money printing anyone?) if you just retire for 10 years this is not a concern, but if you are retired from 30-100 it is going to destroy you. Already your 4% rule is a 2% rule.
    The stock market can also get cut in half at any time, and historically it can take up to 30 years for the market to recover, with an average return of 0%, so you cannot expect a quick recovery. So you should prepare for that 50% drop. So your portfolio should be twice as big when you are selling assets. So now the 4% rule is a 1% rule.
    Then most people are going to want a family at some point. So your expenditures are going to double. So realistically you can't expect to safely withdraw more than 0.5% of your assets and expect to never run out of money. In practice, this mean that you will even have to reinvest some of your dividends to keep up with inflation.
    Let me take an example
    My monthly expenses are 1500USD. with an inflation-adjusted return of 2% I need a minimum of 1.000.000 invested, expecting a possible 50% drop you would need 2.000.000 invested to safely retire and never run out of money, Following the 30% rule of having 30 times your yearly expenses you would only have 540.000 and run out of money after 45 years, assuming that the market doesn't crash. If the market would cut your money in half you would have money for 19 years. Even if returns doubled after the crash, to 5% adjusted for inflation you would only have money for 28 years because you are forced to sell cheap.
    If you are looking to retire early a globally diversified dividend portfolio is probably better and safer. If your portfolio yields a 4% dividend and the companies just keep up with inflation you can the dividends instead, and protect yourself from a crash, mostly because you don't have to sell any assets.

  • I'm 22, currently living with my parents, so ican save up to 70% of my income. i plan to invest on livestock hahahaa so they lay more lifestock and i can sell their kids for living :)))

  • That’s cool but why? You would be lonely because all your friends will be working while you’re at home pinching pennies because you decided to retire early.

  • Well I’m 19 and earn 0 lol…

    And if I was to get a job now I’d earn €24k

    Even if I live of 1k it’s gonna take me 18years… I really gotta move to a better country

  • Correct me if I'm wrong but that 4% study said that 4% is the safe withdrawal rate for a 30-year retirement (60-90 for example). If you retire at 30 that's like a 50-60 retirement so your safe withdrawal rate % would have to be much higher to increase the chances of never running out of money in retirement. This is a small but VERY important correction as those who retire so early with a decent nest-egg assuming 4% withdrawal is safe could be left with no money and having to change their plans. The Trinity study shows that for a retirement period of 50 years, the chance of the portfolio completely running out of money is 30% if taking 4% per year and 15% failure rate for a 40 year retirement. The 4% rule is good for those who retire at typical retirement ages, but for FIRE this just doesn't apply the same way. SOURCE: https://www.pwlcapital.com/fire-heres-why-the-4-spending-rule-does-not-apply-to-you/

  • A word of caution: The 4% rule states that you can withdraw 4% from the total value of your retirement savings in the first year that you retire in a 50/50 Bond/Stock ratio. Then, you can continue to withdraw the same amount, adjusted each year for inflation, each following year and have a reasonable level of assurance that your portfolio will last 30 years. If you retire at 30 and you expect your retirement to last longer than 30 years, the chances are high that this strategy will not work and you will run out of money in your 60's.

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  • Is living off $1400 a month possible for 10 years? Yes. Keep in mind that you will be living off $1,400 a month when you retire as well.

  • I wouldn't want to actually retire at 30. I just want the freedom to choose whether to have an active income or not. At that point I'd probably find some sort of enjoyment in my job lol

  • Being frugal and living below your means is really the secret sauce of the FIRE movement

  • It depends. If you make a 4% return per year and you need 1000 euro's or dollars per month its: 25.000 dollar needed per month times 12 is: 300.000(300.000/100 X 12 = 12.000 per year.. If its 2% you need 600.000 in stocks. Of course compounding intrest makes things easer if things increase every year;)

  • no friends + no girlfriend= no couch no tv in the living room and just your room your bed and your bathroom and the likeliness of eating out decreases which means more saving to invest in real estate someday.
    PS: im 18 and ugly af so this is all easy for me. before you protest and say its sad i find comfort in being alone lol less hurt less money spent.

  • Eating can beans and no vacations? Not the lifestyle most of the peopleI know in fire movement lives. Learn how to credit card hack. You can make amazing meals on the cheap.

    Your numbers appear off on the 4% rule unless you're taking taxes in account.

  • This can also be done for people who make less than $30000 a yr before taxes. I make about 1800 a month. It will take time, you may not retire before 30 but investing helps. I invest about $200 a paycheck.

  • So how much money do you need make a year to make this work? Is there an actual number or does any amount of income actually work? I’m a frugal person by nature so I think I could do this but I only make around 35k a year

  • I make net 100k a year and save about 40% I figure i could retire in 7 mores years, but i never would, i like making money and i like feeling accomplished. The idea of not making gains makes me sick. I'll work till i die and after i die, i'll be working there too.

  • what type of account should you invest in after you max out a roth ira? You have to pay taxes on other retirement accounts?

  • I've been planning a hybrid approach and planning on Fat FIRE instead of the Lean FIRE most people in this community aim for. Gives more cushion and peace of mind long term, while not being so restrictive. So goal will be to retire around 55ish with 5-7 million. Saving is key, but working hard to make more should also be a focus.

  • This isn’t right at all. That study was done with 65 year olds dying at I don’t recall. It wasn’t done with young people retiring.. the risk goes up with every year someone planned to retire earlier planned to live off this.

    The statistic was about a 2% failure rate at retired at 30 with a withdrawal of 2%!!!

    So that means you need double what you recommend and that means double the work or half the amount they first calculated…. so basically you need 6 mill to live a normal life. So everyone knows

  • Good Morning Ryan I thought I would post some better Investment with Mutual Funds that could help people get to where they want to be faster, I hope you don't mind have a great weekend Dave. Here they are I have a lot of these. https://bic.financial-planning.com/slideshow/top-funds-for-the-past-40-years?fbclid=IwAR2gj7laQQp3kQ6mel5aSeT221VfKjbQPJDOd1sATqTBH-_rxFX8NG_eNGE By the way these are yearly averages and sometimes the produce returns of over 50% but this is not normal the average is around 12-16%

  • I’m 23 and working towards becoming a licensed plumber. I don’t really have much to start investing with but I want to start. I have no clue how tax’s and such things work

  • People need to realize that by doing this, you limit yourself by having to exclude doing some extra activities, like going out to have a nice dinner, social life, more expensive clothing. Not that you always need expensive stuff but treating yourself might be difficult. But if you're fine not caring about those things, than you are good to go 👍

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