by ekns on 12/22/21, 4:13 PM with 36 comments
I did get lucky this year with GME but it turns out that trading is not for me so I lost most of it. Now even crypto is too mature so there's not that much potential left (relatively speaking). Do I just need to continue grinding boring work for the next 10+ years to get back to previous highs or more, to finally stop doing "useless" work?
by softwaredoug on 12/22/21, 5:10 PM
* Build your personal brand, blog, code open source, write a book, etc. Be known for something specific and valuable
* Get a great job at larger tech co, probably American based given salary differences, especially if its in your area of expertise, then you can negotiate more salary and stock
* Cut down a lot on your personal expenses
In short be prepared to invest a lot of your personal time and have a lot less fun in the near term.
TBH most of the people who have 'retired early' got lucky in the sense that they either joined a startup and had a great exit or joined a FAANG in the mid 2000s and worked there for 10-15 years and watched their stock grow and grow...
OTOH, you can just choose to work your hours, have a sustainable and fun life, disconnect and work on preventing burnout, and just roll with the tech lifestyle
by treebog on 12/22/21, 5:24 PM
by exdsq on 12/22/21, 6:09 PM
What I'd do first is max my tax-free savings account (a stocks & shares ISA in the UK). That's 20k a year. Assume that grows at the rate of the S&P 500 and you'll have just under 300k in 10 years, or 25k a year interest which covers your living expenses but doesn't take into account inflation (and assumes the market performs).
Now you have 15k left per year. Make sure that you're living life and not just saving away - spend some of this on hobbies and enjoy your time. Maybe you have 5k left after that, maybe 10k, who knows. Either way, depending on your risk appetite you can either invest the remaining amount into an ETF, save it as cash for a rainy day, buy individual shares, or go into crypto.
I have worked in crypto for several years now and I don't pretend I understand the market, it may as well be gambling, but if I was to give blanket advice I'd suggest following dollar-cost-averaging across as many coins as you can to get the best chance of success there.
All-in-all though, think about what you want to do when you retire. Is it to start a hobby? Spend time at the beach? Play video games? Work out why you want to retire early and see how you can improve your situation to allow yourself to do that now. It could be that freelancing half a year for 50-60k and spending half a year on your hobbies is better than living cash-strapped till 2031 so you can retire.
by GoldenMonkey on 12/23/21, 3:05 AM
This is where the real wealth is created.
Sure, if you’re a school teacher. Slow and steady savings is the way.
Not when you are a software developer with skills to create wealth…
And you can join a more established startup, to improve your odds.
by groone on 12/22/21, 6:13 PM
Felt that IT career is making me miserable so was not sure how long I can keep at it even though it pays really well.
Started with my own real estate so there is no rent payment and equity is built up instead. Then got lucky with TSLA (not with GME).
Just retired with somewhere between few years to a decade or runway (depends on stock market) Now I am interested in markets. Have been following markets for about 3 years and plan to test my cleverness and do more active trading/calculated gambling to get to Financial independence. Or return to work when my runway ends.
This channel has been a great learning source and he has a lot to say about building wealth and trading. https://www.youtube.com/c/MeetKevin I think I have done it as soon as possible for me. Took a decade if not counting the financial crisis years. Good luck!
by hindsightbias on 12/22/21, 4:26 PM
by nmhancoc on 12/22/21, 6:16 PM
If you save 35k per year and have living expenses of 25k per year (60k - 35k = 25k), then you have a 58.3% savings rate (net of taxes). My math has you FI in 14 years assuming a 5% return net of inflation, or 13 years with a 7% return net of inflation.
If you can augment that 35k per year savings by working part time it can be even faster. Assuming the same implied hourly rate at 120k per year ($60/hr), and an extra 20 hr/wk of work, AND a 50% tax rate, that yields an extra 30k per year of savings.
That would bump the savings rate to 72.2%, which would drop the estimated time to retire to 9 at a 5% return net of inflation or 8 years at a 7% return net of inflation instead of 14 or 13 years. Thus saving 5 years.
At a 20% rate of return net of inflation, just for example, the 8 or 9 year time would drop to 6 years, so the yield on your investments probably isn't going to be a primary driver of the time until retirement. Savings rate is a much bigger driver.
by vaidhy on 12/22/21, 5:25 PM
If you are single, ok cutting your expenses and live very frugally, then you need very little money to make a living. If you are not single, check with your partner :). Kids add a lot more expense. If you can afford it, take a sabbatical and see if that works.
by mettamage on 12/22/21, 9:23 PM
I am almost there (I am at 24 vacation days) and I just am 3 years into my career.
I am from western europe.
by codingdave on 12/22/21, 6:37 PM
1) Make a lot of money.
2) Minimize your expenses.
People often forget just how powerful #2 can be. Don't neglect that side of the coin.
by odonnellryan on 12/25/21, 4:22 AM
by kleer001 on 12/22/21, 5:56 PM
No it isn't. Who told you that? It's only just been adopted in a couple countries. We've got a long way to go. Don't let FOMO get you.
Get yourself a Bitcoin wallet, buy, and hold. Then see where we're at in 10 years. An no, don't mess with the rest.
by alexmingoia on 12/23/21, 6:08 AM
If I could do it all again (no wife, kids, or fear) that’s what I would do.
by smarri on 12/23/21, 8:19 AM
by vimy on 12/23/21, 3:08 PM
by ryanmercer on 12/23/21, 11:44 AM
by launchiterate on 12/23/21, 4:02 PM
by cloudengineer94 on 12/22/21, 9:20 PM
by senu on 12/23/21, 8:19 PM
by cpach on 12/22/21, 4:44 PM