I saved like crazy when I was working so I could retire early, which I did in late 2016 when I was 47. So far, I haven't made any withdrawals from my savings, which is 100% in stock index mutual funds. I've been able to live (frugally) off of my military retirement pay. I don't mind if I die with a large savings. I'll give it to my town school district or local community college. I don't want high consumption in my retirement. I want low stress. I can get that without spending much money.
Michael Gainey Congratulations on early retirements. I am curious have you noticed any dramatic change on your quality of life post early retirement? I for one am scared of getting bored out of death. If this quarantine has teached me anything early retirement is not for me lol. May be I should start spending money more instead of worrying much on retirement.
I think we shouldn’t get hung up on the word retirement. I prefer financial independence. So if you are FI, you decide to work at something or not. If you like the work you do now, stay, but know you have the freedom to walk away. You will have more confidence at work to speak your mind and kiss up less. You can also find some meaningful part time work. I don’t think this corona period is a good comparison to being retired.
Michael Gainey, veteran, retired early and now taking care of your father, you sir have my respect and I hope you enjoy your retirement and the time you have with your father.
I just want to reach out to you and thank you for all that you do. I have watched all of your videos, many of them multiple times. I have never been able to find anyone who cites their work like you do. It is incredible. Your channel has defined the way that I invest all of my money!
Very good and well balanced video. I stepped away from the corporate world at age 38 because of the 4% rule. My approach has always been to adjust my spending based on returns. A trade off I'm willing to make. Also, since "retiring' from the corporate world, i have used some of the portfolio to buy land and i do work on some projects that interest me. Thanks for the video
Congratulations on the new baby. I rarely, if ever, comment on RUclips videos, but I wanted to thank you for your very informative channel. I follow many financial blogs written by respected professionals but I find your videos the most instructive and educational.
I can't really comment on market affects, but Stress Test by Tim Geithner was a really interesting read on the philosophy and impacts of bailouts and government actions during and after the 2008 crisis. It was a great and informative read, even for a non-American (fun fact: the government actually made money on their bailouts).
I'm in my mid thirties and considering an "early" (as in 50-55 year old) retirement. I've read a lot on the FIRE movement but am always left with a "sounds too simple to be true" taste in my mouth. The principle is simple, but thanks for finally putting into a video/words why it's not "THAT" simple either. Super helpful, as always .
Finally, a straightforward video on the topic of retiring early backed up by numbers. I appreciate that you make clear exactly what the risks are for believing in a dated formula. I'll stick to my personal "3%" rule, but who knows, that could change as well. Earned a sub.
This is hands down one of the most in-depth videos that I've ever seen on this topic. My wife and I have started a channel documenting and teaching on how we plan to reach retirement by 40. There are many considerations in this video that we will definitely be taking into account. We invest in real estate as well which could mitigate some of the mentioned risks. Regardless, I truly believe that this 14mins has vastly increased our chances of success on our journey. Thank you! btw, you just gained another sub :)
I didn't see you blink not even ONCE in that video! No matter, I appreciate the insight. I'm investing for my retirement as well and these tips are quite helpful. Thank you
As I watch each of Ben’s video, I have a bet to myself whether he’ll blink once or not. Ratio is about 30% blink videos so far! Seriously, his videos are great.
I discovered your channel today. It's informative, scientifically based, and most importantly does not sell you anything. I love it. Keep them videos coming!
I retired at 60. Paid off the house and all the cars. I live modestly and my costs are about 1500 a month. My portfolio can earn over 2000 a month. I have a pension also at 65. Too many people want too much too fast. Too many people "put on airs" faking the image of being rich by charging everything.
you also will get social security in which by the sounds of it you dont need. you are a prime example of why social security should be an option and not forced.
I think it's important to consider real estate (specifically rental properties) as a retirement investment, especially when retiring early. They allow you to trade a small amount of work in management for a substantially higher rate of return.
Yeah, for sure. If you bought property 50 years ago, let's say, in Detroit, you would be making money hand over fist right now. Prob. you should invest into luxury apartments in pencil towers in NY, they won't be affected by climate change (because of the altitude).
Congratulations on the child Ben! Love your content and keep up the good work. Your videos have helped me understand the markets a lot more and have made me passionate about investing. Thanks!
What I like about the 4% rule is that it introduced me to the possibility of early retirement. While I'll tell people that I'll retire at 50, for numerous reasons I don't tell them that I'll probably start doing something part time that I enjoy. Also I don't have to rely on that fund to cover me from 50 until death, since my government guaranteed pension will kick in at 70 and it'll be enough for living expenses. The goal of my FIRE journey (or more realistically just FI journey) is to have options and freedom.
That is the most intelligent piece I saw on early retirement. I ‘kind of’ retire early at 46. My investment are enough to live very frugally if necessary but I adjust my spending depending on my income. That give me the liberty to choose to work for things that are fun, but maybe less secure. So far (4 year), I didn’t touch my investment. To adjust your spending and to maintain some income give a whole different picture. How did I keep a precise image financially... a simple Excel sheet that model a life expectancy to a 100 years.
Congrats on the baby Ben! Take your time and come back when you are ready. Your content is the best one in YT on investment topic with it's quality and great delivery - i feel lucky to find your channel, the best subscription so far for me. Srsly recently it is the only reason why I am opening YT is to check if there is smth new from you.
@@BenFelixCSI On page 2 of section 7 ("market portfolio"), he literally dismisses the idea of factors and factor tilted portfolios, and says that they will be arbitraged away. Thoughts?
I'm work like financial advisor in Brazil and I know that it's impossible compare these stocks and bond's informations with here, but i'd like to say that this video is so necessary for everyone to understand that nothing is free or easy. Thank you for that, Ben
Congrats on the new baby Ben! This was very eye-opening and made me happier to have a 100% stock portfolio for the next few decades. Very much agree with the fact that retiring early and not doing anything will not bring satisfaction as most people will get bored and in turn probably become unhappy. Finding something you love to do and earn some sort of income will always be crucial.
You may not have realized it at the time, but you've been producing content relevant to the current moment for years. Covid19 scared me into taking my financial future more seriously, and your videos about market timing, stock picking, and index investing have steered me away from bad strategies and given me the confidence to stay committed to good strategies even with all the uncertainty. By all means if you have more topical content in mind then I'm sure I'll enjoy it, but I encourage you to stay committed to your long term content strategy even in a volatile youtube video market :) Also, if you're taking requests, I could use a video on tax efficiency - tax harvesting, implications of taxes on asset allocation, and so on. This is the stuff that I find most daunting about managing my own investments.
Congrats Ben! 👶🏼 Your content is relevant! I’m in the early stages of figuring out retirement and FI. Vanguard’s dynamic approach is news to me. Thanks for mentioning it.
This is fantastic! I am hoping to be FIRE in the next 10 years. But even more so after watching this video, it supports my idea to cut my hours back but still work enough to sustain the level of income that I will eventually withdraw at the 4% rule.
Been doing calcs and I personally will be utilizing the 3% rule in early retirement because I want to have a good mindset while running a small business. Not needing to work for money, but doing something low effort and no commitment to keep me engaged and reduce risk. It's more conservative and almost always a better choice to go above what you think you'll need to have.
what sort of business can you give me the style without giving too much away? I would be interested in a low effort type thing for retirement too but of course thats many years from now and wouldnt want to steal your idea regardless just the overall concept haha
@@RenaissanceAnon I have a few now. 1) RUclips channel 2) Reselling items online from garage sales 3) Exotic plant sales. RUclips = lots of upfront effort and honestly more difficult than people give credit for Ebay/Amazon = lots of knowledge needed on what's valuable. Often a lot of mistakes made when first starting by over-paying for items. Online scammers are more common than you would think lol. Additionally, house can become cluttered if not organized properly with shelving units (Keep in basement with shelves if possible). Plants = Finicky sale cycles & moderate amounts of care needed to keep them alive and growing. Plant customers are surprisingly picky. Plan on getting up to the 3% withdraw rate placed in investments, then quitting my regular job & only using the investment money + 3 low effort businesses to retire on. I'm only being so conservative because I'm planning on retiring before 40 years old. Current savings rate is ~75% with maxing out 401K, Roth IRA, and HSA tax advantaged accounts.
Wow four kids and you find time to do this and work... Damn you got alot of energy bud. I got two kids and I'd struggle! Congrats on on the new little one!
Ben, This was your best video to date! The 4% number is silly. All the people I know of, that are currently FIREing, are earning income, so they aren't really retired in the traditional sense of "Del Boca Vista". :) Personally, I don't see how someone can truly "retire" at 40 and do nothing. The dynamic Vanguard model makes logical sense. Most people probably spend less when the markets aren't performing well and spending more when they are. I know this is what my retired parents do, even though they don't have to. It just feels natural to spend less during bad times. If I'm not mistaken, the dividend yield on the Vanguard Canada FTSE etf is about 3.5% now, so, in theory, a retiree could just spend the dividend and never touch the principal. Historically, the yields on large caps have risen around the level of inflation. Tax would be also a consideration. Tax on $40K/year in dividends, in Canada is virtually zero. If I was going to retire at 40, I would consider going 90% large cap index and 10% cash and forgo bonds altogether. I think your best point was the last one. If the person has skills, they are much better protected but I still think it's better to add value to the world and being at least a little productive.
@Ben Felix Why not live off of cash flowing investments instead while keeping the principal secure? Ie: REIT's, dividend yielding stocks, bonds, or even rental properties (assuming that the property is cash flow positive). A diverse mixture of these assets can easily yield a 3-4% cash flow return which a retiree would seek annually while not having to ever touch the principal so long as they keep a reserve fund for emergencies where there may be a dividend freeze or vacancy in their rental property.
Ben, your videos are so well-redearch and you are so on top of your game. So pleased to see a fellow Canadian so knowledgable and well-spoken. P.S. Also love your podcasts. P.S.2. Congrats on your new baby. 🙂
4th!!! Congrats to you and your wife. We use a variation of the floor and ceiling idealogy proposed by Guyton and Klinger. They called it "guardrails" and it works excellent. It's very important for folks to get away from the theoretical idea of a "fixed" spending plan. A very long retirement requires either a very large buffer or the ability to dramatically reduce spending. The later I suggest very few people can do in reality. Keep the great videos coming!
I really appreciated this video! You lay out really helpful ways to think about what's important to different types of people. For myself, I am a young worker who doesn't even know exactly what I want from "retirement" but I do think that financial independence a healthy way to be stable.
I'm Brazilian and despite your focus on the Canadian investor I must say to you that it has been very usefull to me as a knowledge of investment in general and made me reconsider all of my previous thoughts (like Brazil isn't the only market that I can invest) about it. Thank you for so great content !
Great video, as always, Ben. Learned some things I didn't know about the 4% rule, which is cool. I have seen some of the FIRE websites talk about the potential for failure of the 4% rule and ways to mitigate that. One would be that most folks (even those who retired in their 30's or 40's) will collect Social Security. Another is (as you suggest) making money after retiring from the full time job. If someone retires early, they are likely very hard working, talented and industrious. Given these traits, I would expect most FIRE devotees will find a way to earn some extra bucks once they quit the 9 to 5. Another is being flexible with your spending. You might spend the full 4% (or even 5 or 6%) during highly profitable years and reduce down to 2 or 3% when times get tough.
Hi Ben! This is my first time to your channel. Thank you for posting this video. It is definitely relevant. My friend and I were just having a discussion about the 4% rule and your video really helped break things down. Thoroughly enjoyed this!
Congratulations to you and your wife for the new baby! Please don't follow Elon Musk's naming convention. Great video! Really changed my mind about the 4% rule, on which I was counting on to retire at age 55. The advice at the end of the video is the best. I'll just find something I love that I can do after 55, something that can generate a little bit of income. Probably will move back to the Dominican Republic and run a coffee shop by the beach. (I'm a software engineer working in the US)
Great video as usual Ben! Love the material where you need out on different papers discussing their conclusions. One quick suggestion if some of these papers are publicly accessible if you could put them in the description that would be great. I would love to read some of these papers but afraid I will quickly realize I am way over my head.
Great video. I'm off to calculate what 2.5% looks like for me. I'm almost 40 and there are a lot of people around me who aren't interested in thinking about how they will afford retirement. Wish there was a way to shift that thinking.
Best rule for me going forward is to not have a mortgage at retirement. If you could either save up enough money or sell a home you have been living in for a while for a nice profit, you could easily buy a "smaller" home for cash and do away with mortgages entirely. Living in or close to a city where owning a car is not required would also save you a lot of money in retirement. Basically, if you could just worry about food, utilities, and taxes, and medical expenses in retirement, the 4% rule can easily work itself out. Keep an open mind in retiring abroad where the cost of living and cost of healthcare is much lower. Not to mention, you will find the quality of healthcare is so much higher in other countries.
the car part seems negligible if you own, and it's kept in good shape. insurance at that age can't be that expensive, and you drive (use gas) as much as needed. i think having a car is a good backup to public transportation and other unforeseen instances.
Congrats on the baby! I hope its first words are: well diversified index portfolio. Just a few days earlier I remember thinking about all those FIRE cases that news outlets reported on when the market was at a high, how hard it must be for them to account for such an event like COVID.
Congrats on the new arrival - hope the family is doing well during lockdown. Agree with you re 4% rule and you have articulated the risks really well. I don't think retirement should be strictly retirement but instead provide freedom and to work on projects and areas that provide more than just money.
You got my like because of that Traxxas behind you! :p btw, I subbed to this channel due to very valuable and usable contents. I was not aware of these though I'm half way to my 40s. Thanks for sharing these vital info.
Very good point at the end, it really pays to continue doing some kind of work in retirement - it's also good for your health and mental well-being. This is amplified in early retirement situations.
Here in Dec. 30, 2022: I heard recently there was a publication that set 2.75% as the safe withdrawal rate going forward, even for those on track for regular retirement, not early. I just saw you popped up with a similar video (over in my playlist)- heading over to watch it now. 🙂
Just realized that my favorite RUclipsrs are Canadian....
Richard & Ben what a duet.
Probably cuz they are less slimy than americans.
What are the other ones?
@@qjsharing2408 Has to be NL
I saved like crazy when I was working so I could retire early, which I did in late 2016 when I was 47. So far, I haven't made any withdrawals from my savings, which is 100% in stock index mutual funds. I've been able to live (frugally) off of my military retirement pay. I don't mind if I die with a large savings. I'll give it to my town school district or local community college.
I don't want high consumption in my retirement. I want low stress. I can get that without spending much money.
Nice Michael. Sounds like you really got the message. I'm 47 myself but still have many years of work ahead unfortunately.
Michael Gainey Congratulations on early retirements. I am curious have you noticed any dramatic change on your quality of life post early retirement?
I for one am scared of getting bored out of death. If this quarantine has teached me anything early retirement is not for me lol. May be I should start spending money more instead of worrying much on retirement.
I think we shouldn’t get hung up on the word retirement. I prefer financial independence. So if you are FI, you decide to work at something or not. If you like the work you do now, stay, but know you have the freedom to walk away. You will have more confidence at work to speak your mind and kiss up less. You can also find some meaningful part time work. I don’t think this corona period is a good comparison to being retired.
Michael Gainey, veteran, retired early and now taking care of your father, you sir have my respect and I hope you enjoy your retirement and the time you have with your father.
Great attitude, congratulations!
I just want to reach out to you and thank you for all that you do.
I have watched all of your videos, many of them multiple times.
I have never been able to find anyone who cites their work like you do. It is incredible.
Your channel has defined the way that I invest all of my money!
Congrats Ben! Really liked that intro, connects you to your audience - would like to see more of that style in the future
Ben,
Heartfelt congratulations with your new baby born. I wish you and your family all the best in health and happiness.
Very good and well balanced video. I stepped away from the corporate world at age 38 because of the 4% rule. My approach has always been to adjust my spending based on returns. A trade off I'm willing to make. Also, since "retiring' from the corporate world, i have used some of the portfolio to buy land and i do work on some projects that interest me. Thanks for the video
Congratulations on the new baby. I rarely, if ever, comment on RUclips videos, but I wanted to thank you for your very informative channel. I follow many financial blogs written by respected professionals but I find your videos the most instructive and educational.
Thank you!
Congrats on the baby Ben! A question for some possible content: How do government bailouts and other similar government actions affect markets?
I can't really comment on market affects, but Stress Test by Tim Geithner was a really interesting read on the philosophy and impacts of bailouts and government actions during and after the 2008 crisis. It was a great and informative read, even for a non-American (fun fact: the government actually made money on their bailouts).
I am working on content related to this.
Riley F well of course Tim Geithner would say that. He was one of the architects of the whole wall st bailout along with bernanke
Ben Felix I look forward to watching it!
Great question! Looking forward to a video of Ben about this.
I'm in my mid thirties and considering an "early" (as in 50-55 year old) retirement. I've read a lot on the FIRE movement but am always left with a "sounds too simple to be true" taste in my mouth. The principle is simple, but thanks for finally putting into a video/words why it's not "THAT" simple either. Super helpful, as always .
Those are eyes that didn’t get much sleep Ben 😉. Congratulations!!
😛🙂👍
Finally, a straightforward video on the topic of retiring early backed up by numbers. I appreciate that you make clear exactly what the risks are for believing in a dated formula. I'll stick to my personal "3%" rule, but who knows, that could change as well.
Earned a sub.
Congratulations on the new addition to your family Ben!
This is hands down one of the most in-depth videos that I've ever seen on this topic. My wife and I have started a channel documenting and teaching on how we plan to reach retirement by 40. There are many considerations in this video that we will definitely be taking into account. We invest in real estate as well which could mitigate some of the mentioned risks. Regardless, I truly believe that this 14mins has vastly increased our chances of success on our journey. Thank you! btw, you just gained another sub :)
Congrats on your 4th child Ben! You are a legend in the FIRE movement all the way over here in Australia. Keep up the great work.
I didn't see you blink not even ONCE in that video! No matter, I appreciate the insight. I'm investing for my retirement as well and these tips are quite helpful. Thank you
As I watch each of Ben’s video, I have a bet to myself whether he’ll blink once or not. Ratio is about 30% blink videos so far! Seriously, his videos are great.
First of all, congratulations to your newborn. Many thanks for your Videos Ben. They are just awesome. Keep going!
This analysis is clearly flawed as it neglects to account for a relevant number of BINGO winnings.
Add the wins to the fact that a lot of bingo places sell meals and drinks super cheap, and finger food for free, and you're golden.
This is truly a deficit in Ben's investment plan.
Lol... and pull-tabs
I have laughed so much more than I should have because of this thread.
Bingo cards are definitely a cornerstone of any retirement portfolio....
I discovered your channel today. It's informative, scientifically based, and most importantly does not sell you anything. I love it. Keep them videos coming!
@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿
this may be the best financial channel on youtube.
I retired at 60. Paid off the house and all the cars. I live modestly and my costs are about 1500 a month. My portfolio can earn over 2000 a month. I have a pension also at 65. Too many people want too much too fast. Too many people "put on airs" faking the image of being rich by charging everything.
you also will get social security in which by the sounds of it you dont need. you are a prime example of why social security should be an option and not forced.
I think it's important to consider real estate (specifically rental properties) as a retirement investment, especially when retiring early. They allow you to trade a small amount of work in management for a substantially higher rate of return.
Yeah, for sure.
If you bought property 50 years ago, let's say, in Detroit, you would be making money hand over fist right now.
Prob. you should invest into luxury apartments in pencil towers in NY, they won't be affected by climate change (because of the altitude).
Congratulations on the child Ben! Love your content and keep up the good work. Your videos have helped me understand the markets a lot more and have made me passionate about investing. Thanks!
What I like about the 4% rule is that it introduced me to the possibility of early retirement. While I'll tell people that I'll retire at 50, for numerous reasons I don't tell them that I'll probably start doing something part time that I enjoy. Also I don't have to rely on that fund to cover me from 50 until death, since my government guaranteed pension will kick in at 70 and it'll be enough for living expenses. The goal of my FIRE journey (or more realistically just FI journey) is to have options and freedom.
Same line of thought
ever get concerned the govn won't or won't be able to provide their end of the contract when you're 70? i think about this often
That is the most intelligent piece I saw on early retirement. I ‘kind of’ retire early at 46. My investment are enough to live very frugally if necessary but I adjust my spending depending on my income. That give me the liberty to choose to work for things that are fun, but maybe less secure. So far (4 year), I didn’t touch my investment. To adjust your spending and to maintain some income give a whole different picture. How did I keep a precise image financially... a simple Excel sheet that model a life expectancy to a 100 years.
Congrats on the baby Ben! Take your time and come back when you are ready. Your content is the best one in YT on investment topic with it's quality and great delivery - i feel lucky to find your channel, the best subscription so far for me. Srsly recently it is the only reason why I am opening YT is to check if there is smth new from you.
Congrats on the new baby. Hope baby is doing great.
Would love to hear more about those "mathematicaly dense solutions"
From what I've seen these just involve moving to bonds as you retire, and then back to stocks as you get older.
Google “bond tent” and “sequence of returns risk”. Kitces has a great write up on it.
Please do not hold me liable if you injure yourself reading this material :)
web.stanford.edu/~wfsharpe/RISMAT/
@@BenFelixCSI i wont 😂 thanks. Keep up the great work
@@BenFelixCSI On page 2 of section 7 ("market portfolio"), he literally dismisses the idea of factors and factor tilted portfolios, and says that they will be arbitraged away. Thoughts?
Congratulations on your new family member. Best of luck to you, your wife and kids Ben. Thanks for the content.
Super super helpful analysis. Thank you!
I'm work like financial advisor in Brazil and I know that it's impossible compare these stocks and bond's informations with here, but i'd like to say that this video is so necessary for everyone to understand that nothing is free or easy. Thank you for that, Ben
Congratulations on the new addition Ben and I appreciate that’s it’s challenging to produce content. Very beneficial. Thank you.
Congratulations for the new baby! Love your channel.
Always love your videos. Aand congrats on the 4th baby. Hope the newborn and your family are healthy and safe
Congrats on the new baby Ben! This was very eye-opening and made me happier to have a 100% stock portfolio for the next few decades. Very much agree with the fact that retiring early and not doing anything will not bring satisfaction as most people will get bored and in turn probably become unhappy. Finding something you love to do and earn some sort of income will always be crucial.
Congratulations on the baby Ben. It's the best feeling in the world. :D
Congrats Ben on the baby. Wishing safe health in this period.
4th!? Wow, congrats boss. Thanks for releasing, I love these videos. Keep it up!
Congratulations on the baby! Enjoy the time home, look forward to more vids.
You are quite the role model for me. Congratulations on your family and your other success. Greetings from Germany.
1800 likes/4 dislikes? This is the best ratio on RUclips! Thanks, top content as always
You may not have realized it at the time, but you've been producing content relevant to the current moment for years. Covid19 scared me into taking my financial future more seriously, and your videos about market timing, stock picking, and index investing have steered me away from bad strategies and given me the confidence to stay committed to good strategies even with all the uncertainty. By all means if you have more topical content in mind then I'm sure I'll enjoy it, but I encourage you to stay committed to your long term content strategy even in a volatile youtube video market :)
Also, if you're taking requests, I could use a video on tax efficiency - tax harvesting, implications of taxes on asset allocation, and so on. This is the stuff that I find most daunting about managing my own investments.
Congrats Ben! 👶🏼 Your content is relevant! I’m in the early stages of figuring out retirement and FI. Vanguard’s dynamic approach is news to me. Thanks for mentioning it.
Congrats on the new baby!!! Thanks for the always amazing content.
Fantastic video and congrats to you . Thank you for this video, I have shared this with my friends who are basing retirement on 4% rule
Usually I dont comment on youtube. But you leave me with no choice. Thanks for the great content and keep up with that good work. Stay healthy.
Thanks for the rare comment!
This is fantastic! I am hoping to be FIRE in the next 10 years. But even more so after watching this video, it supports my idea to cut my hours back but still work enough to sustain the level of income that I will eventually withdraw at the 4% rule.
I really appreciate this more balanced look at the 4% rule. I feel like you could easily make a video that spanned several hours on the topic.
Congratulations on your new baby! Looking forward to more content when you are ready.
Been doing calcs and I personally will be utilizing the 3% rule in early retirement because I want to have a good mindset while running a small business. Not needing to work for money, but doing something low effort and no commitment to keep me engaged and reduce risk.
It's more conservative and almost always a better choice to go above what you think you'll need to have.
what sort of business can you give me the style without giving too much away? I would be interested in a low effort type thing for retirement too but of course thats many years from now and wouldnt want to steal your idea regardless just the overall concept haha
@@RenaissanceAnon I have a few now. 1) RUclips channel 2) Reselling items online from garage sales 3) Exotic plant sales.
RUclips = lots of upfront effort and honestly more difficult than people give credit for
Ebay/Amazon = lots of knowledge needed on what's valuable. Often a lot of mistakes made when first starting by over-paying for items. Online scammers are more common than you would think lol. Additionally, house can become cluttered if not organized properly with shelving units (Keep in basement with shelves if possible).
Plants = Finicky sale cycles & moderate amounts of care needed to keep them alive and growing. Plant customers are surprisingly picky.
Plan on getting up to the 3% withdraw rate placed in investments, then quitting my regular job & only using the investment money + 3 low effort businesses to retire on.
I'm only being so conservative because I'm planning on retiring before 40 years old.
Current savings rate is ~75% with maxing out 401K, Roth IRA, and HSA tax advantaged accounts.
I'VE BEEN WAITING FOR THIS VIDEO FOR SO LONG. 😭
Excellent as always Ben. Thank you. Straight forward, practical approaches backed by research and data....
👍
Wow four kids and you find time to do this and work... Damn you got alot of energy bud. I got two kids and I'd struggle! Congrats on on the new little one!
Ben,
This was your best video to date!
The 4% number is silly.
All the people I know of, that are currently FIREing, are earning income, so they aren't really retired in the traditional sense of "Del Boca Vista". :)
Personally, I don't see how someone can truly "retire" at 40 and do nothing.
The dynamic Vanguard model makes logical sense. Most people probably spend less when the markets aren't performing well and spending more when they are. I know this is what my retired parents do, even though they don't have to. It just feels natural to spend less during bad times.
If I'm not mistaken, the dividend yield on the Vanguard Canada FTSE etf is about 3.5% now, so, in theory, a retiree could just spend the dividend and never touch the principal. Historically, the yields on large caps have risen around the level of inflation.
Tax would be also a consideration. Tax on $40K/year in dividends, in Canada is virtually zero.
If I was going to retire at 40, I would consider going 90% large cap index and 10% cash and forgo bonds altogether.
I think your best point was the last one. If the person has skills, they are much better protected but I still think it's better to add value to the world and being at least a little productive.
Thanks RazoRock!
@Ben Felix Why not live off of cash flowing investments instead while keeping the principal secure? Ie: REIT's, dividend yielding stocks, bonds, or even rental properties (assuming that the property is cash flow positive). A diverse mixture of these assets can easily yield a 3-4% cash flow return which a retiree would seek annually while not having to ever touch the principal so long as they keep a reserve fund for emergencies where there may be a dividend freeze or vacancy in their rental property.
Ben, your videos are so well-redearch and you are so on top of your game. So pleased to see a fellow Canadian so knowledgable and well-spoken. P.S. Also love your podcasts. P.S.2. Congrats on your new baby. 🙂
4th!!! Congrats to you and your wife. We use a variation of the floor and ceiling idealogy proposed by Guyton and Klinger. They called it "guardrails" and it works excellent. It's very important for folks to get away from the theoretical idea of a "fixed" spending plan. A very long retirement requires either a very large buffer or the ability to dramatically reduce spending. The later I suggest very few people can do in reality. Keep the great videos coming!
Congratulations to the family! Thank you kindly for the awesome video
I really appreciated this video! You lay out really helpful ways to think about what's important to different types of people. For myself, I am a young worker who doesn't even know exactly what I want from "retirement" but I do think that financial independence a healthy way to be stable.
I'm Brazilian and despite your focus on the Canadian investor I must say to you that it has been very usefull to me as a knowledge of investment in general and made me reconsider all of my previous thoughts (like Brazil isn't the only market that I can invest) about it. Thank you for so great content !
Thanks Ben. God bless you and your growing family. Your work has really helped me and my family. We appreciate you.
Congratulations on your baby Ben! Wish your family all the best.
Well that was better than expected. New sub!
@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿
Congratulations on your new baby! xxx great reason for taking a breather...
Great video, as always, Ben. Learned some things I didn't know about the 4% rule, which is cool. I have seen some of the FIRE websites talk about the potential for failure of the 4% rule and ways to mitigate that. One would be that most folks (even those who retired in their 30's or 40's) will collect Social Security. Another is (as you suggest) making money after retiring from the full time job. If someone retires early, they are likely very hard working, talented and industrious. Given these traits, I would expect most FIRE devotees will find a way to earn some extra bucks once they quit the 9 to 5. Another is being flexible with your spending. You might spend the full 4% (or even 5 or 6%) during highly profitable years and reduce down to 2 or 3% when times get tough.
That's very good research, I'm glad you've published it!
Congratulations from Spain Ben, thank you for your content.
Hi Ben! This is my first time to your channel. Thank you for posting this video. It is definitely relevant. My friend and I were just having a discussion about the 4% rule and your video really helped break things down. Thoroughly enjoyed this!
Congrats on the new baby (and on the continuous stream of good videos)!
Congratulations on the baby!!
Congratulations on your fourth!!! Loving your channel!
The most clear and complete video I've seen on the topic. Thanks very much for the great work!
Congratulations to you and your wife for the new baby! Please don't follow Elon Musk's naming convention.
Great video! Really changed my mind about the 4% rule, on which I was counting on to retire at age 55. The advice at the end of the video is the best. I'll just find something I love that I can do after 55, something that can generate a little bit of income. Probably will move back to the Dominican Republic and run a coffee shop by the beach.
(I'm a software engineer working in the US)
Holy, this video came unexpected. Just saved my day :D
Congrats Ben. Thanks very much for the content. You're putting money into our pockets!
Cool for my little girl I have the same coloured soft foam tiles you have. Congratulations for your wonderful newborn. ;)
Great video as usual Ben! Love the material where you need out on different papers discussing their conclusions.
One quick suggestion if some of these papers are publicly accessible if you could put them in the description that would be great.
I would love to read some of these papers but afraid I will quickly realize I am way over my head.
As always when I finish watching one of your videos I am both smarter and sadder.
right :) sadder because got the knowledge bit late. thats me.
Congrats on your 4th kid! What a blessing!
Congratulations on the new addition to your family!
Congrats on the new baby! Great content. I really appreciate this channel and the podcast. Keep up the good work!
@Ben Felix Your account got hacked I think.
Love the videos. Congratulations on the baby!
Great video. I'm off to calculate what 2.5% looks like for me. I'm almost 40 and there are a lot of people around me who aren't interested in thinking about how they will afford retirement.
Wish there was a way to shift that thinking.
andrewdacosta83 I suspect as the we hit turbulence with the dollar, more and more will start thinking about it
Congrats on the new baby. Excellent vid btw 👍.
Best rule for me going forward is to not have a mortgage at retirement. If you could either save up enough money or sell a home you have been living in for a while for a nice profit, you could easily buy a "smaller" home for cash and do away with mortgages entirely. Living in or close to a city where owning a car is not required would also save you a lot of money in retirement. Basically, if you could just worry about food, utilities, and taxes, and medical expenses in retirement, the 4% rule can easily work itself out. Keep an open mind in retiring abroad where the cost of living and cost of healthcare is much lower. Not to mention, you will find the quality of healthcare is so much higher in other countries.
the car part seems negligible if you own, and it's kept in good shape. insurance at that age can't be that expensive, and you drive (use gas) as much as needed. i think having a car is a good backup to public transportation and other unforeseen instances.
Hey! Congrats for the baby! :)
And thanks for the videos
Congrats on the baby! I hope its first words are: well diversified index portfolio.
Just a few days earlier I remember thinking about all those FIRE cases that news outlets reported on when the market was at a high, how hard it must be for them to account for such an event like COVID.
I had to switch accounts so I could like twice. As always great content. Congrats on the baby Ben.
Congratulations for the baby!
Ben, your videos are amoung the most useful on RUclips.
It's amazing you still produce them with 4 babies)) Please keep going.
Lyubomyr
Congrats on the new arrival - hope the family is doing well during lockdown. Agree with you re 4% rule and you have articulated the risks really well. I don't think retirement should be strictly retirement but instead provide freedom and to work on projects and areas that provide more than just money.
You got my like because of that Traxxas behind you! :p
btw, I subbed to this channel due to very valuable and usable contents. I was not aware of these though I'm half way to my 40s. Thanks for sharing these vital info.
It’s an Arrma Kraton 6S. I’m glad you’re enjoying the content!
@@BenFelixCSI Oh correct, anyways keep the informative content up as I keep telling my friends about your channel. Great stuff! :)
congrats on your BABY!!! keep the good ideas coming :)
Congrats on the baby to you and your wife! God bless your family
Awesome content and congratulations on the new baby
Congrats on the new addition!!!
Thank you for sharing. Good to see your take on things
Very good point at the end, it really pays to continue doing some kind of work in retirement - it's also good for your health and mental well-being. This is amplified in early retirement situations.
Here in Dec. 30, 2022: I heard recently there was a publication that set 2.75% as the safe withdrawal rate going forward, even for those on track for regular retirement, not early. I just saw you popped up with a similar video (over in my playlist)- heading over to watch it now. 🙂
If you plan to be retired for 30 years 2.75 % is less than just beating inflation. You would have to spend less than 1/30?
Congratulations on the new born :) and thanks for the video productions :)
Congratulations on the new baby!