Is Your FIRE Number TOO High? (Can You Retire Sooner?)

Episode #570

Episode Show Notes: https://link.chtbl.com/Money

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What’s your financial independence number (FIRE number)? Are you being too conservative, or are you cutting things close? Do you even have one? Today, we’re taking a deep dive into this hotly debated topic to help you build a nest egg that will support your early retirement!

Welcome back to the “BiggerPockets Money” podcast! How much money do you actually need to retire? For years, the four-percent rule has been the “official” stance of the FI community. But why is it, then, that so many people continue saving and investing when they can comfortably retire? In this episode, Scott and Mindy talk about their own FI numbers, how they calculated them, and how their financial positions have evolved over time. You’ll learn whether the four-percent rule still works today or if you need a larger buffer!

If you’re worried about inflation, one of the best things you can do is keep your living expenses in check. This might seem out of your control, but there are several ways to either lock in certain costs or eliminate them entirely. We’ll discuss the many advantages of a paid-off house, self-managing your rental properties in retirement, and a one-time investment that could help you save thousands of dollars over your lifetime!


00:00 Intro
01:18 Calculating Your FI Number
07:37 Does the 4% Rule Work?
15:32 Locking in Your Expenses
22:40 How to Combat Inflation
31:48 Retiring on a Different Portfolio Mix