Being financially independent means having enough passive income to cover your essential or desired living expenses. A common guideline is to aim for a net worth equal to 25 times your annual expenses, often used as a baseline for achieving financial independence. However, this approach is overly simplistic because it depends on the composition and […]
A Net Worth Equal To 25X Expenses Is Not Enough To Retire Early Read More »
The traditional retirement age of 65 has its roots in historical, economic, and social developments that shaped modern retirement systems. One of the key milestones was the introduction of Germany’s social insurance program in 1889 under Chancellor Otto von Bismarck. This system established 70 as the retirement age, later reduced to 65 in 1916, setting
Reducing The Traditional Retirement Age From 65 To 55 Works Read More »
The 401(k) contribution limit for employees in 2025 has increased to $23,500, up from $23,000 in 2024. The employer contribution limit also rises to $46,500, bringing the combined employee and employer 401(k) contribution limit to $70,000 for 2025. Don’t underestimate the power of employer 401(k) contributions, especially as you advance in your career. As you
2025 401(k) Contribution Limits: Bigger Savings, Better Retirement Read More »
Dear Financial Samurai Readers, This week, I’ve been digging into what might happen if Goldman Sachs’ forecast for a 3% average annual return over the next decade proves true. Interestingly, most readers are skeptical. Yet, if you invested in Q1 2000, it took until November 2012 to actually see returns! So I wonder—are nonbelievers too
Newsletter For October 27, 2024: Low Returns, Retirement Busy Read More »
Before retiring in 2012, I didn’t fear boredom or loneliness. It never occurred to me that I would be bored with so much potential freedom. My main fear was whether giving up a steady paycheck was an impetuous move that could lead me to financial ruin! After I left work, I found myself telling my
Overwhelmed, Not Bored: An Unexpected Challenge Of Retirement Read More »
This guest post is by Vaughn, a long-time Financial Samurai reader who retired at 44 and is now 55. Vaughn’s early retirement was driven by necessity rather than choice due to a congenital bone disease. Fortunately, his high income during his working years secured a solid SSDI benefit, and his mother’s foresight provided future rental
An 80/20 Stock-Heavy Portfolio In Retirement Might Be Ideal Read More »
There are two things most financially-conscience people aspire to: retiring rich or retiring early. But which is better? Many people who haven’t retired believe early retirement sounds fantastic, especially since so many are disengaged from work. On the other hand, who wouldn’t want to retire rich? However, to retire rich, you typically have to work
Why Retiring Early Is Obviously Better Than Retiring Rich Read More »
If you’re increasing your safe withdrawal rate for retirement now, you’re likely making a mistake. You might be inadvertently top-ticking the market as the Fed embarks on what is likely a multi-year rate cut cycle. One of the main reasons the Fed is cutting rates is due to growing weakness in the labor market. Inflation
Increasing The Safe Retirement Withdrawal Rate At The Wrong Time Read More »
In 2009, I helped kickstart the modern day FIRE movement by chronicling my FIRE journey on Financial Samurai. I made a proposal that in ordered to be financially independent and retire early, you must have enough passive income to cover your basic living expenses. Then I suggested everybody try and negotiate a severance if they
What Financial Independence Retire Early (FIRE) Haters Say Read More »
In 2023, I significantly impacted our passive income, causing our household to technically lose its financial independence. Prior to this, we had been financially independent since 2012, when I left my banking job. My goal now is to regain financial independence by December 31, 2027. To achieve this, I need to restore the ~$150,000 in
The Grind Back To Financial Independence: Early Stages Complete Read More »
