Recently I've been asked by several people about the FIRE movement. Financial Independence and Retire Early. This strategy relies on increasing percentage of salary in savings, reducing expenses, and assuming a compounded rate of return. Then when they have 25 times their desired retirement salary, they achieve the FI. So, does the math add up? Does the 4% rule still work? And what might they and aspiring retirees be missing? Sequence of returns may play a larger part plus the 10 years prior need to achieve the right compounded growth rates.

What is the FIRE movement?

Using 25 times desired retirement income to determine assets needed

What is the 4% withdrawal rate mean?

Is 4% still doable given lower intertest rates

Different stages including accumulation, base maximization, and distribution

How does inflation affect the 4% withdrawal strategy?

Sequence of returns comparison

Is it better to lose early or late once in retirement?

Mistakes aspiring FIRE movement might overlook

How to calculate future values with compounded growth rate and deposits

Are medical costs underestimated by FIRE followers?

Mentioned in this Episode:

Free Chapter Broken Pie Chart: https://www.book2look.com/book/YcqUhbCrtN

CNBC How social security benefit amounts are calculated https://www.cnbc.com/video/2020/01/02/how-social-security-benefits-are-calculated-on-a-40000-salary.html

Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

Contact Derek www.razorwealth.com