Anyone FIRE before 40 year old?

[Dividends Warrior]

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

But I couldn't resist collecting rental income from malls, offices, warehouses, business parks, hospitals and data centres.

 

[soneat]

1. Retired early/mid 40s in the midst of the initial covid outbreak in 2020. Was a normal salaried employee with average pay.
2. Investment is predominantly around SG: banks and reits. Boring, nothing fanciful.
3. Discipline and effort in understanding what you are investing in is crucial.
4. Achieved passive income >2x expenditure.
5. "Full" family structure with elderly parents and children (capable).
6. Recently (2022) rejoined the workforce (by choice). 100% salary goes back into warchest. =)

Wouldn't be answering any questions directed at me but I would advice:

1. If you want to achieve a certain state, you need to plan and work towards the plan.
2. Don't ever have the impression that by following a certain person exactly, you can achieve whatever that person has achieved. This wouldn't happen as all situations are unique. It is better to study his habit and adapt to your own personality.
3. It is important to test whether your FI is resilient against tough market conditions.
4. Achieving true FI is difficult but not impossible.

 

[TehSi99]

1. Retired early/mid 40s in the midst of the initial covid outbreak in 2020. Was a normal salaried employee with average pay.
2. Investment is predominantly around SG: banks and reits. Boring, nothing fanciful.
3. Discipline and effort in understanding what you are investing in is crucial.
4. Achieved passive income >2x expenditure.
5. "Full" family structure with elderly parents and children (capable).
6. Recently (2022) rejoined the workforce (by choice). 100% salary goes back into warchest. =)

Wouldn't be answering any questions directed at me but I would advice:

1. If you want to achieve a certain state, you need to plan and work towards the plan.
2. Don't ever have the impression that by following a certain person exactly, you can achieve whatever that person has achieved. This wouldn't happen as all situations are unique. It is better to study his habit and adapt to your own personality.
3. It is important to test whether your FI is resilient against tough market conditions.
4. Achieving true FI is difficult but not impossible.

Yes, agreed.

FI is not easy but difficult. It is many small right decisions that add up over long term. I would say luck plays a part too.

In addition, listening to the right advise too.

 

[limster]

Yes, agreed.

FI is not easy but difficult. It is many small right decisions that add up over long term. I would say luck plays a part too.

In addition, listening to the right advise too.

I agree. there is some luck involved, but there is also the cumulative effect of many small decisions.

if you have the ability to plan and the discipline to follow your plan, FI is achievable as long as you set realistic goals (eg: far easier to FIRE at age 50 than at age 40).

if you plan for FIRE at age 50, you may get some luck along the way that brings your FIRE forward by a few years (eg: you managed to pick a multi-bagger stock), but you didn't take unnecessary risks to get there.

I reached my FI target end-2021, however, I realise that I also have to develop my "health independence" and "mental wellness independence." In that I keep myself healthy in terms of fitness and weight, and various health-related KPIs.

while some pride themselves in spending as little as possible even if their income goes up, I feel it is ok to spend more "health" by eating more healthy foods. For example, spending more money on fish versus red meat, more variety of vegetables and fruit.

 

[starlight318]

Will reach FIRE goal by 47/48 if I don't get retrenched. Average earner, single w no dependants though. A couple of years more to go and shall see if I can still stick to my plan when the time comes.

 

[churnmaster]

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.

I completely agree with this. Many youngsters and not so young are chasing FIRE with some absolute number in mind and constantly worried about SWR and whether they will have enough for the rest of their lives. Some talk of living in frugality while others talk of being a loner (with no family and dependents). Most are so worried about their future that they are ignoring their present in the pursuit of their goal to FIRE. They fail to realize that YOLO and thus make the best of this life while maintaining good physical and mental health and pursuing something that you are really passionate about.

I have some friends who just like you never worked for anyone else and pursued entrepreneurship. They struggled and slogged for almost a decade before seeing some real success. They were FI from day one without any great bank balance. Instead they had to borrow from others to pursue their passion and realize their dreams. Today they are mostly multi millionaires and RE is not for them as they would never retire.

 

[churnmaster]

1. Retired early/mid 40s in the midst of the initial covid outbreak in 2020. Was a normal salaried employee with average pay.
2. Investment is predominantly around SG: banks and reits. Boring, nothing fanciful.
3. Discipline and effort in understanding what you are investing in is crucial.
4. Achieved passive income >2x expenditure.
5. "Full" family structure with elderly parents and children (capable).
6. Recently (2022) rejoined the workforce (by choice). 100% salary goes back into warchest. =)

Wouldn't be answering any questions directed at me but I would advice:

1. If you want to achieve a certain state, you need to plan and work towards the plan.
2. Don't ever have the impression that by following a certain person exactly, you can achieve whatever that person has achieved. This wouldn't happen as all situations are unique. It is better to study his habit and adapt to your own personality.
3. It is important to test whether your FI is resilient against tough market conditions.
4. Achieving true FI is difficult but not impossible.

Very well articulated.

 

[infernolord]

Not many can achieve this in SG.

I just have my new born baby.
how to fire.. haha burn myself..

 

[DevilPlate]

1. Apply BTO and upgrade to new EC and then downgrade to HDB
2. Max out SA as soon and aim for ERS CPF Life
3. DCA into world index etf

Possible for DINK before 50yo.

Personally do not see the point of some articles talking about extreme saving to FIRE and then live frugally for the rest of the life.

 

[Carrot010]

1. Apply BTO and upgrade to new EC and then downgrade to HDB
2. Max out SA as soon and aim for ERS CPF Life
3. DCA into world index etf

Possible for DINK before 50yo.

Personally do not see the point of some articles talking about extreme saving to FIRE and then live frugally for the rest of the life.

Think depend on the type of FIRE each individual chooses.

Property has to depend on luck. Do not chiong in even it is E.C and sure huat......

https://www.edgeprop.sg/property-news/opinion-why-buying-executive-condo-not-sure-win
Always have plan B or C in place.

 

[soneat]

One thing which I would like to highlight is the importance of habits. Prior to my retirement (<2020), the people around me in their 40s/50s usually will have meals at canteen/food court. One typical lunch can be like S$4 with a drink S$1.20. For a typical day, the expense of eating out is <S$8. I think most of us are doing OK, already FI/semi-FI.

Now that I rejoined the workforce, my colleagues who are more junior, are mainly in their 20s. Every lunch must be in restaurant ('cause YOLO, so must enjoy life -> their logic) S$40++, this is followed by bubble tea (the fanciful) which is like S$8 or S$9. One typical meal is typically >S$50. The funny thing is most of the time, the restaurant food is so so and we have to waste time queuing for seats. These are also the people who talk about crypto, US stocks days in day out (and are bleeding).

With their way of handling and spending money, it is almost impossible to achieve FI.

 

[DevilPlate]

Think depend on the type of FIRE each individual chooses.

Property has to depend on luck. Do not chiong in even it is E.C and sure huat......

https://www.edgeprop.sg/property-news/opinion-why-buying-executive-condo-not-sure-win
Always have plan B or C in place.

I do not know of any EC that lose $$.

Even recent EC like Copen Grand and Tenent selling at $1300psf most likely can profit 300-400 psf 9 years later upon MOP imo.

Yes, those who bought 2k psf++ OCR new launch like AMO/Sky Eden/Lentor Modern very likely to be unprofitable.

**However, not everyone is eligible to buy new EC if they bust the income ceiling

 

[wira]

very inspiring to hear some of the FIRE success stories !!!

 

[TehSi99]

One thing which I would like to highlight is the importance of habits. Prior to my retirement (<2000), the people around me in their 40s/50s usually will have meals at canteen/food court. One typical lunch can be like S$4 with a drink S$1.20. For a typical day, the expense of eating out is <S$8. I think most of us are doing OK, already FI/semi-FI.

Now that I rejoined the workforce, my colleagues who are more junior, are mainly in their 20s. Every lunch must be in restaurant ('cause YOLO, so must enjoy life -> their logic) S$40++, this is followed by bubble tea (the fanciful) which is like S$8 or S$9. One typical meal is typically >S$50. The funny thing is most of the time, the restaurant food is so so and we have to waste time queuing for seats. These are also the people who talk about crypto, US stocks days in day out (and are bleeding).

With their way of handling and spending money, it is almost impossible to achieve FI.

Yes, young people nowadays are easily in credit card debts due to such lifestyle. And the worst is that everyone follows everyone leading such lifestyles.

 

[homer123]

One thing which I would like to highlight is the importance of habits. Prior to my retirement (<2020), the people around me in their 40s/50s usually will have meals at canteen/food court. One typical lunch can be like S$4 with a drink S$1.20. For a typical day, the expense of eating out is <S$8. I think most of us are doing OK, already FI/semi-FI.

Now that I rejoined the workforce, my colleagues who are more junior, are mainly in their 20s. Every lunch must be in restaurant ('cause YOLO, so must enjoy life -> their logic) S$40++, this is followed by bubble tea (the fanciful) which is like S$8 or S$9. One typical meal is typically >S$50. The funny thing is most of the time, the restaurant food is so so and we have to waste time queuing for seats. These are also the people who talk about crypto, US stocks days in day out (and are bleeding).

With their way of handling and spending money, it is almost impossible to achieve FI.

Nowadays , I am happy to see people spending money. it is best that young people don't retire young and continue to work for as long as possible. It is good for the economy and also my stock portfolio..

 

[hwmook]

I do not know of any EC that lose $$.

Even recent EC like Copen Grand and Tenent selling at $1300psf most likely can profit 300-400 psf 9 years later upon MOP imo.

Yes, those who bought 2k psf++ OCR new launch like AMO/Sky Eden/Lentor Modern very likely to be unprofitable.

**However, not everyone is eligible to buy new EC if they bust the income ceiling

Don't be silly, every year 4% interest for 9 years, how are you going to make money from that 1300psf EC? Don't just look at absolute value and think XXX make money from property. It's all relative to the price index and cost of borrowing.

 

[Dividends Warrior]

Nowadays , I am happy to see people spending money. it is best that young people don't retire young and continue to work for as long as possible. It is good for the economy and also my stock portfolio..

Exactly my thoughts! I always say other people's spending is my dividends. If everyone is frugal like me, the economy gonna suffer. I always encourage people to spend.

 

[Dividends Warrior]

Now that I rejoined the workforce, my colleagues who are more junior, are mainly in their 20s. Every lunch must be in restaurant ('cause YOLO, so must enjoy life -> their logic) S$40++, this is followed by bubble tea (the fanciful) which is like S$8 or S$9. One typical meal is typically >S$50. The funny thing is most of the time, the restaurant food is so so and we have to waste time queuing for seats. These are also the people who talk about crypto, US stocks days in day out (and are bleeding).

With their way of handling and spending money, it is almost impossible to achieve FI.

This is why I am vested in retail mall REITs. I need these young adults to spend spend spend!
Ok, sometimes I support my vested malls too. But not too much.

 

[limster]

Exactly my thoughts! I always say other people's spending is my dividends. If everyone is frugal like me, the economy gonna suffer. I always encourage people to spend.

yup, the so-called Paradox of Thrift (if you're Keynesian)

good to encourage these youngsters to spend locally on food and services to boost the economy! Hopefully they will have no money left over to bid for COE, so COE prices can come down...

 

[DevilPlate]

Don't be silly, every year 4% interest for 9 years, how are you going to make money from that 1300psf EC? Don't just look at absolute value and think XXX make money from property. It's all relative to the price index and cost of borrowing.

That’s if the mortgage interest rate stay above 3% on average for the coming decade. However, many of us has benefitted a decade of average 1.5% or less.

Personally, I would be happy if interest rate stay elevated for the next few decades but most likely the FED will slash down rates again during the next recession.

”Don’t be silly” is really uncalled for though.