The Simple Maths of Financial Independence

Financial independence is a dream for many, but how much do YOU need to reach FIRE? In this video I explain the simple maths of financial independence.

TIMESTAMPS:

0:00 Start
1:01 How Much Do You Need To Retire Early?
3:38 How To Work Out Inflation Adjusted Income Target
4:20 The 4% Rule - Is It Valid?
6:37 How To Work Out Your Capital Target
7:43 How To Adjust Your Target If It Is Unrealistic
8:57 How To Use Pensions To Lower Your Contribution Costs
10:45 Tax Considerations & How To Utilise Different Wrappers For Early Retirement
*** ABOUT ***

As a financial planner I've spent much of my professional life helping people achieve financial independence early tax efficiently.

The FIRE movement (financial independence retired early) is all about achieving financial freedom, but if you've asked yourself:

How much do I need to retire in 20 years' time? 🤔
How much will things cost? 🤔
What will I be doing? 🤔

The simple answer is you CAN'T know these things, but taking that shouldn't stop you taking positive action towards financial independence.

We must make assumptions because we can't know what growth rates will be, what inflation rates will be or how our circumstances will change. But taking some action will give you a far higher probability of achieving financial independence than taking no action.

In this video I explain:

✅ What target to set yourself for determining how to retire early.
✅ How much money you need to generate this income (Is the 4% Rule valid?).
✅ What sorts of tax wrappers to use and in what proportions to reach early retirement.

Understanding how to achieve financial freedom is beyond the scope of a single video, but the information provided will help get you on the right path.

ISAs (Individual Savings Accounts) and pensions in the UK provide generous contribution allowances, and will allow many people to achieve tax free financial independence, or certainly very low tax.

There are many other investment vehicles available though which allow you to utilise tax allowances and reliefs.
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**** DISCLAIMER ****
The content in this video is provided for information and entertainment purposes. It should not be construed as direct or indirect financial advice. You must throughly research any potential financial or investment decision and fully understand the risks before taking it. If in doubt, you should seek individual advice from a professional adviser.
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Видео The Simple Maths of Financial Independence канала Chris Bourne - Tax Free Investing Expert