People used to save throughout the history, but this is a, sort of, - new movement. Through dedication and patience, some of millennials, manage to retire by the age of 30. What fascinates me, that for 10 years, people blindly follow the same formula, never questioning, - ,,Could it be done - better & faster... ?'' Anyway, kudos for discipline and willingness: https://en.wikipedia.org/wiki/FIRE_movement One person did that in public, shared his journey etc in our country, from 200 000 euros, hes receiving, 600 (slightly less than average salary here) euros a month, which is equal to 4% per annum returns, less or more. (they focus on the monthly amount rather than returns in % ) If you calculate inflation, well, not that much of the growth is left. And it begun right after 08. All of them, haven't seen, bears in action... Yet. The author is funny tho : ,,Start at 5, retire by 15. Start at womb, and retire by 10'' Wish them only the best, 10x better than uploading one-self with life long student/mortgage/car loans and consumer mindset.
[QUOTE="Nobert, post: 4975490, member: 508658" Wish them only the best, 10x better than uploading one-self with life long student/mortgage/car loans and consumer mindset.[/QUOTE] Couldn't agree more. However, it's a bit of a peiveledged situation where they are enjoying strong economy, longest bull market, and probably support from well to do parents. It's much easier to YOLO it.
Your Money or Your Life by Joseph R. Dominguez is a great book on this subject. I believe he coined the term Financial Independence. Its an older book but a great read. He was a wallstreet analyst who retired at 31. The real trick is to work / save in the West and then once you reach the cross over point you move to a developing nation.... AKA earn in USD and spend in Thai Baht
Yeah... https://www.youtube.com/user/chardonnay112 Anyway, back to serious business , here's another good book for any beginner - beautiful story and narration : (it's ironic, the story takes place in desert region, while i finished it 3 times in -30 below zero job, few years ago) Great point, also keeping in mind the fact, as @qlai mentioned, millennials are the generation, that lives longest with their parents (average up to 30) But we gonna see, at least some say, diminishing returns in the next decades, new crashes, and other bubbles like cannabis or cryptos, so the very foundation of this movement, will be shaken and tested. (again, the worthless game of predictions)
4% is not a fail safe withdrawal rate by any means. Mathematically, the safe withdrawal rate is 3% (2.8% if inflation is taken into account), and the bullet-proof withdrawal rate is 2%. At 4% it should read "start at 20, retire in poverty at 30, be broke by by 40 or 50. Start over again." Do you want to retire on $280,000/year? Better wait until you have $10,000,000 in principle. There are certainly ways to achieve it with far less, but that requires one to use financial instruments only those with money use. The rest of you are on the Dave Ramsey/Suze Orman hamster wheel supporting the government, your baker, and your broker.
Easy to retire at 30 if your one of the many wimpy millennial's that never left home. Always a good idea to pay yourself first & well, avoid debt like a plague, & trade/invest wisely.The power of compounding fast tracks financial independence.
The eighth wonder of the world according to Einstein. Even better for those who understand why and how to achieve uninterrupted compounding.
Anyone who wants to retire at 30 years of age clearly does not have a wife and kids, thus not fully realizing the value of having a reason to leave the house the each day.