Ask HN: Decade-long plan to FIRE starting just under age 40?

I'm trying to get some idea at how old is usually the target for financial independence and how much does it actually depend on your current age if you haven't started your investments yet.

Currently I'm 38yo, out of work and my net worth is just under $1k. So I know the first step is simply to get employed for stable income- I don't have the mindset to run a business. I also don't know many people in high or low places- I like to keep to myself whatever chance I get.

But regardless, is a 10 year plan from zero to FIRE feasible? Can people still FIRE under 50 if they started their financial plan just before 40?

Your constraints:

1) You cannot run a business.

2) You have practically no net worth.

3) You do not have a network of good contacts.

4) You are 38.

5) You are jobless now.

Considering all your constraints, here is a path to consider:

1) Have an open mindset. This is the MOST important tip. Do not let your past determine your future.

2) Be consistent. Have an accountability partner to make sure you are working towards your goal every single day.

2) Master one or two specialized skills which are in-demand the most, pay the most, and are likely to be there for the next ten years. Do not learn them, master them.

3) Build projects in those areas.

4) Whenever you have questions, ask. Ask the top people working in those areas. Make a note of the helpful ones.

5) Interact with, and help people who are working in those areas, whenever you get a chance. Attend every webinar, conference and meetup. Nowadays, it is easier because you are not constrained by geography.

6) Once you have achieved near-mastery, start applying for jobs in those areas. At the same time, keep building projects. Do not slack off on either one.

7) Once you get a job, make sure to save as much as you can. Do not end up with a low net worth ever again. Learn more and more at the same time.

8) Get better jobs. Your only criteria for switching jobs should be more salary.

Not stock options. Do not gamble, your life is passing you by.

Not titles, unless you have a clear plan to leverage your title into a better paying job.

Not "job safety" - it is never safe. You being in an in-demand area is your job safety.

9) Put your money in low risk investments. Google "best low-risk investments" - there are many sites with lists. Invest in near-zero risk investments and park your money there. Do not touch it.

If you really, really decide to invest in stock market:

Look at the general trend of stock market. Invest only when it is going up. Never bet against market. If you invest, buy only stocks or indices you plan to hold for ten years. Never sell. Make sure to have stop losses added to do that for you. When those stop losses get executed frequently, get out of the market. Do not try to do value plays. You may not live enough to see the market reversal.

Stay away from cryptocurrencies, GME, BB, .... They are not for you. If you want to join the fun, buy ONE stock or one cheap cryptocurrency. Just one. That will give you the same thrill, without the associated risk.

10) Retire at the age of 48 or 49 and make a "Thank you HN" post here.

Okay, you need to get yourself over to the reddit FIRE group.

Here’s some resources:

Reddit FIRE: https://www.reddit.com/r/financialindependence/

Practical FIRE blog: https://www.mrmoneymustache.com/blog/

Poor Richard’s Retirement: https://www.amazon.com/gp/aw/d/B0725GG5LK/ref=tmm_kin_title_...

What you need to save: https://fourpillarfreedom.com/the-financial-independence-gri...

I think you will succeed in getting close to being financial secure simply because you have no choice. Thirty eight is late to the party, but the pressure is on.

Ten year plan sounds aggressive (again, what choice do you have), and will probably require aggressive investing.

One thing I think you can do is eliminate the notion of age. Having a home asset should be a good enough goal. If you can drop a big down payment on a home or outright buy a condo after 10 years of saving, then you can reasonably expect to not have large mortgage/rent to worry about later in life. If that stops being a worry, the need for a job starts to become less of a worry. By that time, you should hit retirement and ride the social security checks until the end.

The goal should be to remove the dependency on the economy for your livelihood.

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-advantaged savings like a Roth IRA improve things here a bit but we can ignore it for a general ballpark idea.

Let’s say you’re frugal and only need $40,000. You’ll have to save up $1,000,000 in invested assets over a decade. Given expected 4% inflation-adjusted returns, this works out to around $85,000 in savings each year (adjusted upward 3% each year for inflation).

In order to afford those savings, after tax and $40,000 in annual expenses, I’d guesstimate you’ll likely need somewhere in the ballpark of $150,000/yr of income. Again, adjusted upward 3% every year for inflation.

By the same math, if you want to live off $80,000 a year, you’ll probably need to earn $350,000 or more annually over that decade. The number more than doubles because of the increased taxes at those kinds of incomes.