30: How to Reach FIRE Even Faster With a 401(K) / Superannuation

Girl on FIRE

🎙 The race to FIRE is a tough one. It takes years of dedication to investing and growing your portfolio before you reach financial independence and you can retire early. When you retire early, you need a bigger nest egg because you’ll be drawing income from your investments for decades longer than traditional retirement. And it takes decades to build a portfolio that’s large enough. But what if there was a way to speed up your journey? You might be able to reach FIRE even earlier by taking advantage of a program that’s sitting right under your nose… 🤔

This episode discusses topics like:

🌟 Why simple FIRE calculations on the internet fall short and leave you vulnerable to running out of money or having to go back to work;

🌟 How FIRE works with an age-restricted retirement program like superannuation in Australia or 401 (K) in the US; and

🌟 How much earlier you can retire using a phased approach to early retirement as opposed to the simple FIRE calculations out on the internet (the 25x rule).

Links from this episode:

Retirement Timeline Graphic: https://bit.ly/3i1XkRB

Episode transcript and show notes: https://www.papermoneyco.com/gof30

Get your FREE Investing Starter Guide: https://www.papermoneyco.com/startinvesting

Savings rate and investing rate: https://www.papermoneyco.com/gof19

The 4% rule: https://www.papermoneyco.com/gof23

Calculating your FIRE number: https://www.papermoneyco.com/gof28

Time codes:

00:00 Hello and Welcome!

06:55 FIRE vs Traditional Retirement

08:18 FIRE and Superannuation or 401(K)

10:21 Reaching FIRE and Retirement in Phases

19:52 Simple FIRE Calculation

23:34 Retirement Programs Make FIRE Easier

24:58 Next Weeks’ Episode

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The advice shared on Girl on FIRE is general in nature and does not constitute financial advice. The information shared does not consider your individual circumstances. Girl on FIRE exists purely for educational purposes and should not be relied upon to make an investment or financial decision.