Financial Independence Retire Early

How can one achieve FIRE? Today that is the topic that we will tackle. Is it realistic in our normal daily lives and is it possible for us to achieve that in an expensive country like Singapore? We shall find out in this email.

Financial Independence Retire Early means to quit your job and retire before the retirement age of 65. In order to do this, you will need to save 70% of your income and withdraw only 3-4% of your portfolio annually in order to achieve financial freedom. The Trinity study states that this safe withdrawal rate will allow people to retire indefinitely into the future without having to worry about money. There are many proponents of FIRE which include Mr Money Mustache, a popular blog on the FIRE movement which you can read further about.

But how realistic is it to retire in an expensive country like Singapore where the inflation rate is at 5%. The reality is that not many people are able to do it. This is especially so if one wants to have kids and a big house to settle down. The cost of childcare is skyrocketing with prices of BTO flats hitting $800k in the latest exercises.

While one can live a simple life if they are single, it is terribly hard to do so if one has a family in Singapore. While not impossible, it is hard to reach even $1 million dollars considering the fact that transport costs have gone up and groceries are becoming more expensive.

However, it is a free country and you should be able to pursue any goal that you want to. Keep in mind that 25x your annual expenses is the goal to achieve if you want to FIRE. If you’re interested in wealth manifestation, click on the link.

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