Read everything on http://earlyretirementextreme.com. It's basically a recipe on how to retire in 5 years on an sub $100k salary. You may not be open to some of the ideas (the "extreme" in the name suggests that it's not for everyone) but nevertheless it will expand your horizons.
Ask HN: Decade-long plan to FIRE starting just under age 40?
21–30 of 36 posts
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#22Start by considering why you want to retire - is there something you want to do that you can't do while working? If not then you condemn yourself to 10 years of hard work and living in poverty in order to be bored and live in poverty for the next 50 years. A good job can be a source of joy, achievements, self worth, contacts with people and money. I'm a programmer with a relatively low paying but stress-free job and…
I'd add to this as well - if it is something you can't do while working, is it also something you can't do while working say 6 or 9 months out of 12 or even 2 years out of 3? There are probably a lot more options than you think to structure a career in this way.
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#23Earlier quoted context omitted.
This is easy. Just find a job that pays you $350,000 a year.
Just get a job as a SDE in Netflix or Renaissance Technologies. /s
That's is easy (just spend 4 months memorizing algorithms and hack the tech interview). The problem is to keep working on that kind of job for 10 years (after a few months they would realise that the only reason you passed the tech interview is because you memorized algorithms... then you would get FIREd).
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#24Earlier quoted context omitted.
Just get a job as a SDE in Netflix or Renaissance Technologies. /s
That's is easy (just spend 4 months memorizing algorithms and hack the tech interview). The problem is to keep working on that kind of job for 10 years (after a few months they would realise that the only reason you passed the tech interview is because you memorized algorithms... then you would get FIREd).
How many golf balls can you fit into a Boeing 747?
And somehow, this question is related to engineering world class software systems. I’m still trying to figure out how.
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#25Only if you learn to permanently live as a miser. You might have acquired the skill by necessity, but it takes a strong will to keep it up once you have income flowing. The basic math of it would be to earn X, and live off of X/5 (both after taxes). After 10 years you’ll have 40+ years of income accumulated. There’s some additional complexities with health care, but the core plan is to earn, not spend a dime, and get…
This comment should be on top. Most of the FIRE people I know have most of their basic necessities paid by the company they work for (house, car, phone, etc...) That's the easy way to do it.
What type of company pays for the house other than the military?
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#26Earlier quoted context omitted.
This comment should be on top. Most of the FIRE people I know have most of their basic necessities paid by the company they work for (house, car, phone, etc...) That's the easy way to do it.
What type of company pays for the house other than the military?
"Paid by the company they work for" probably means people pay off their mortgage, car loan etc. via the salary that their company pays them.
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#27If you want to retire in 10 years, you'll need to save 65% of your income.
https://www.mrmoneymustache.com/2012/01/13/the-shockingly-si...
It's going to take a huge change in habits.
If you're determined, I would say don't listen to the haters. I've been a member of FIRE since college, downshifted and it's amazing. I never really enjoyed working (actually, hated it) so I get to spend my time on this earth doing what I want to do (read classic books right now.)
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#28FIRE is really only a good idea if you're twenty-something, don't mind being ultrafrugal, and pull $100K+ plus benefits from an industry with low entry requirements (i.e. programming and not law.)
In virtually all other situations, it's a fool's errand. Instead, figure out why you want to retire early.
Imagine you're retiring tomorrow. What are you going to do with your time now? For most people, the answer is either unclear or it's something that you can do at 50-90% while doing a regular job.
Re: Ask HN: Decade-long plan to FIRE starting just under age 40?
#29Earlier quoted context omitted.
This is pretty much it. Let’s say at 50 you’re comfortable living off of 4% of your assets, which should have a reasonably high chance of providing income throughout your retirement without depleting your principal. This 4% is assuming 7% market returns before 3% inflation. How much are you willing to live off as income? If you need $40,000/yr (before taxes) you’ll require $1m in savings. $60,000 requires $1.5m. Tax-…
This is easy. Just find a job that pays you $350,000 a year.
I mean, the goal is to retire in ten years starting from scratch. And that number is assuming you want to have a reliable $80k/yr income without ever depleting your principal.
If it only took the median income, everyone you know would be retired at 35.
The guy asked a question and it was answered. Retiring from nothing in ten years is hard. Retiring from nothing in ten years with an above-median retirement income is even harder. Is that supposed to be surprising?
I’m all ears for your better plan.