Anyone FIRE before 40 year old?

[jasonlim1988]

Age and net worth .
Share how u got there and how u maintain ur life and net worth.

No FIRE post 50 year old.
because technically u are just inline with retirement age before pap increase social retirement age to 99.


More I read about fire,more seem like a fairy tale.
Higher net worth u go, lower the quality of life to fit into fire status quo.

 

[homer123]

Age and net worth .
Share how u got there and how u maintain ur life and net worth.

No FIRE post 50 year old.
because technically u are just inline with retirement age before pap increase social retirement age to 99.


More I read about fire,more seem like a fairy tale.
Higher net worth u go, lower the quality of life to fit into fire status quo.

In reddit thread, I have seen comments from FIRE folks who retired around 40s returning back to work or part time work after the bear market decimate their portfolio.. Retiring early around 50s is more sensible as one is not too old to do stuffs and not too young to wait for retirement fund or pension to be available at around 60+.

 

[andyhtc]

If one FIRE too early, the majority of the people who are free to mix around with them are little kids and the elderly. Those in their age group are mostly still busy working. This is not going to be very fun...

 

[limster]

Agreed. Its much easier to meet up with your friends in your 50s even if they are still working:

(1) their children will have completed O levels. for A level/poly, children are much more independent, so parents have more free time.
(2) They are likely to be in 'cruise' / 'coasting' mode in their career in their 50s, so they know how to take care of themselves, lunch is 2 hours, able to leave office at 5pm/6pm sharp.

 

[havetheveryfun]

Previously hard to FIRE because you could only get 4% returns in stocks which anytime can get decimated.

But now you can get 3-4% off savings... of cos there still a chance the bank close down but the risk should be lower than stocks being decimated. So the question is only whether the 3-4% Interest rates can remain for a long time..

 

[BBCWatcher]

Previously hard to FIRE because you could only get 4% returns in stocks which anytime can get decimated.

When was that?

 

[revhappy]

When was that?

Last year. Equity and bonds forward returns are based on valuations and bonds were extremely overvalued thanks to financial repression by central banks and stocks basically using the risk free rate for discounting, so stocks were also overvalued. Anybody who retired based on last year with a high 4% withdrawal expectation, would have their retirement screwed now.

But right now, long term bond yields are very attractive. You can now create a 60/40 portfolio where both the bonds and the stocks valuations are much better.

 

[havetheveryfun]

When was that?

my meaning is that 4% return was only possible in stocks and other instruments, of cos it can be higher. but it was not possible with pure cash instruments such as bonds, fixed deposits.

 

[revhappy]

If you retired in the year 2021 end, it was the worst case scenario for sequence of returns risk.
2022 is year 1 of SORR down year.
2023 is likely to be year 2 of SORR down year.
I think until 2025 markets are going nowhere.
So these are actually the best years to keep working and investing into the markets as much as you can.
People who have like a 1million portfolio now and planning to work until 2030, could easily hit 2.5-3 million by 2030 and it would be a great time to retire.

 

[Dividends Warrior]

Age and net worth .
Share how u got there and how u maintain ur life and net worth.

No FIRE post 50 year old.
because technically u are just inline with retirement age before pap increase social retirement age to 99.


More I read about fire,more seem like a fairy tale.
Higher net worth u go, lower the quality of life to fit into fire status quo.

Most people are not able to stay the course on building passive income. Too boring, too slow. Easily distracted by the 'flavour of the moment'. In a tortoise vs hare race, most young adults are hares. Crypto, NFTs, hyped-up tech start-ups. Prefer to YOLO.

In order to really FIRE comfortably, one has to ignore the noise and stay laser-focused.

 

[revhappy]

Most people are not able to stay the course on building passive income. Too boring, too slow. Easily distracted by the 'flavour of the moment'. In a tortoise vs hare race, most young adults are hares. Crypto, NFTs, hyped-up tech start-ups. Prefer to YOLO.

In order to really FIRE comfortably, one has to ignore the noise and stay laser-focused.

If you are not working and you are dependent on your portfolio to produce returns, you will have a too much time and more likely to tinker with your portfolio and screw it up. When you are working, you have less time to spoil the portfolio and also even if you spoil, you have better chance of making up for it with new savings. So this says the odds are heavily tilted towards working or doing something so that you can shift your focus away from portfolio management.

 

[rrr2015]

hopefully this not another TS ask & disappear kind of thread

 

[reddevil0728]

more sensible to just keep working but not be beholden by anything cause can FIRE

 

[wira]

Probably only way to FIRE in 40s is only if no kids and parents not dependent on you ( totally no dependents )

 

[3dfxplayer]

Retired in my 40s, networth marked to market currently around 7.5m, was a full time daytrader/investor for many years. Currently only holding investment grade bonds of various duration and cash, with the very occasional long in stock index futures to gain some short term exposure to stocks, basically a flexible barbell retirement portfolio that I spend very little time maintaining.

Lifestyle hasn't really changed much since I got to 2m, and going from 2 to 10m networth didn't make me lust after fast cars or bungalows. Perhaps this has something to do with me being a trader for many years, experienced traders understand that capital preservation is key to long term success, wealth can sometimes be ephemeral so they know not to spend large sums of money on stuff they do not really need or want.

 

[3dfxplayer]

Most people are not able to stay the course on building passive income. Too boring, too slow. Easily distracted by the 'flavour of the moment'. In a tortoise vs hare race, most young adults are hares. Crypto, NFTs, hyped-up tech start-ups. Prefer to YOLO.

In order to really FIRE comfortably, one has to ignore the noise and stay laser-focused.

Young people who are looking to FIRE before 40 should not be focusing on passive income, thats more for capital preservation, not wealth building.

 

[revhappy]

Retired in my 40s, networth marked to market currently around 7.5m, was a full time daytrader/investor for many years. Currently only holding investment grade bonds of various duration and cash, with the very occasional long in stock index futures to gain some short term exposure to stocks, basically a flexible barbell retirement portfolio that I spend very little time maintaining.

Lifestyle hasn't really changed much since I got to 2m, and going from 2 to 10m networth didn't make me lust after fast cars or bungalows. Perhaps this has something to do with me being a trader for many years, experienced traders understand that capital preservation is key to long term success, wealth can sometimes be ephemeral so they know not to spend large sums of money on stuff they do not really need or want.

Wow, were you an institutional trader or trading your own money? Also how much of your networth is trading profits/investment gains v/s salary/bonus?

 

[jasonlim1988]

.

Retired in my 40s, networth marked to market currently around 7.5m, was a full time daytrader/investor for many years. Currently only holding investment grade bonds of various duration and cash, with the very occasional long in stock index futures to gain some short term exposure to stocks, basically a flexible barbell retirement portfolio that I spend very little time maintaining.

Lifestyle hasn't really changed much since I got to 2m, and going from 2 to 10m networth didn't make me lust after fast cars or bungalows. Perhaps this has something to do with me being a trader for many years, experienced traders understand that capital preservation is key to long term success, wealth can sometimes be ephemeral so they know not to spend large sums of money on stuff they do not really need or want.

not easy bro and congrats!

when did u go full time?
U in a 25% draw down this year?
no intention to diverse into other asset class?
what's your advice to people who wants FIRE but have not reach 2m or their capital goal ?

 

[3dfxplayer]

Wow, were you an institutional trader or trading your own money? Also how much of your networth is trading profits/investment gains v/s salary/bonus?

My own money, 99% of it came from trading/investment gains.

.


not easy bro and congrats!

when did u go full time?
U in a 25% draw down this year?
no intention to diverse into other asset class?
what's your advice to people who wants FIRE but have not reach 2m or their capital goal ?

Thanks...

I went full time in 2006, I started out doing structured warrants arbitrage on SGX, back then it was a very inefficient market, there were ways to make a lot of money with very little risk, that was what earned me my first pot of gold. From there I went on to trade international markets after the 2008 financial crisis.

My bond portfolio is down about 20% ytd, which I do not care about since they will all mature in 4-13 years and make me whole again. There are other reasons for the drop in NW, for example I got close to 10m last year but ended the year well off the high-water mark due to some trading losses in momo names.

No intention to diversify for now, I know how bonds work and they serve me well.

FIRE is not the ultimate end game of life, most people think of FIRE as a way to escape the daily drudgery of life so they get frustrated when FIRE is not possible, well why not find something you love and do that instead? That way you can continue to work towards your FIRE goal and be happy at the same time.

 

[wira]

My own money, 99% of it came from trading/investment gains.



Thanks...

I went full time in 2006, I started out doing structured warrants arbitrage on SGX, back then it was a very inefficient market, there were ways to make a lot of money with very little risk, that was what earned me my first pot of gold. From there I went on to trade international markets after the 2008 financial crisis.

My bond portfolio is down about 20% ytd, which I do not care about since they will all mature in 4-13 years and make me whole again. There are other reasons for the drop in NW, for example I got close to 10m last year but ended the year well off the high-water mark due to some trading losses in momo names.

No intention to diversify for now, I know how bonds work and they serve me well.

FIRE is not the ultimate end game of life, most people think of FIRE as a way to escape the daily drudgery of life so they get frustrated when FIRE is not possible, well why not find something you love and do that instead? That way you can continue to work towards your FIRE goal and be happy at the same time.

wow you're our hero !
May i know how do you spend your retirement time and did you manage to find your passion during retirement ?

Am still very scared of retirement as dont really have any passion or hobbies to occupy my time.