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Podcast: The Financial Independence Show
Episode: 001 | Lighting the FIRE
Description: What exactly is FIRE?
Financial independence, retire early. Financial independence is based on the 4% rule which was formulated from the Trinity study, the idea is that if you can survive comfortably at a 4% withdrawal rate from your nest egg (invested assets), provided that the assets were invested in low-cost index funds, you essentially never had to work for money ever again.
Which brings in the RE portion (retire early). If you can build up a nest egg with 25 times your annual expenses (inverse of 4%), you could essentially retire early. It just depends on how quickly...