21st Century ‘retirement’ thanks to FI

By | 10th February 2017


In the past, you worked for a number of years(40+) while saving a percentage of your income(say 15%) and then retired at a lower income level than when you were working.

Traditional retirement might have then meant a number of years travelling or pursuing hobbies in your later years.

Now we have the new retirement thanks to FI(Financial Independence):

– you live below your means while working and invest the rest. (Perhaps from 25%-60%)

– when the investment income from your portfolio(at 4%pa) reaches the amount you are living on effectively you can ‘retire’ right then.

However ‘retirement’ may not mean that you never work and just go on permanent holiday – it simply means that money is no longer a requirement to work and you can do as you wish.

You could continue working, perhaps with reduced hours, or you could pursue other areas that interest you – ones that do not provide much of an income but are something you always wanted to do.

There is a crazy statistic – if you can save 65% of your earnings, living on the other 35%, then you can retire in 10.9 years!

We are now having the situation where frugal professionals including doctors and engineers can choose to retire after only being in the workforce for a little over 10 years.

When money is no longer the driving force for work, it opens up a whole world of possibilities…

James McBrearty started his own business from scratch in 2006, to help the self-employed.

He helps people to escape from the corporate world and shares his thoughts here on the changing world of work, technology and personal finances; as well as the occasional travel post.

Over the next 10 years things are going to change significantly. James is a follower of frugality and minimalism; and an advocate of F.I.R.E. to minimise the coming disruption.

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