The Ultimate Strategy To Retire Before 40
Jun 04, 2023Hello Stoic Investors,
Today I want to blow your mind.
Remember how you’ve been told to stay in school, get a good job, work you’re a** off for your boss and
then retire?
It seems like the world is moving forward while our money strategies are stuck in the 1950s.
Innovation brought us so much potential. So many options.
You want to track your finances?
Pull your phone out of your pocket and download an app.
You want to spend wisely?
Use credit card cashbacks and utilize other unique offers.
You want to invest?
Open a brokerage account in minutes.
But still, most people are stuck when it comes to finances.
However, I’m sensing you’re different.
That’s because you’re actually reading this.
I’m guessing you’re also asking yourself: “Am I meant for a better life? Can I retire before 40?”
Yes you can.
Let me show you something beautiful.
A strategy.
An approach to retire before 40 so you can actually own your time and do what you love.
I’ll be using the power of compound interest to show you what’s possible.
Here we go. Step by step.
Step 1: Define your financial destination.
Determine the peaceful living amount, let's consider $40,000 for this example, but feel free to select a
higher or lower figure.
Step 2: Seek additional funds.
Cutting expenses is good, earning extra money is great, but doing both is absolutely amazing. Pro tip:
Leverage your knowledge for maximum gains.
Step 3: Establish a brokerage account.
This platform enables investment buying and selling. Check out this helpful website:
Step 4: Select the ideal investment.
Consider your risk tolerance and time horizon. For long-term growth, equities like low-cost index funds such
as $VOO (Vanguard S&P500 Index Fund) are recommended for scalable results.
Step 5: Automate and enhance.
Begin by automating monthly deposits from your bank account to the brokerage account. Next, automate
monthly purchases of your chosen investment within the brokerage account.
Step 6: Intensify your efforts.
Explore every possible means to amplify your investments. Your future self will appreciate your dedication.
Step 7: Practice patience.
Financial markets resemble roller coasters, experiencing ups and downs. Stay invested to reap long-term
rewards.
Step 8: Embrace early retirement.
Yes, it's within reach. As your investments grow, they will sustain your desired lifestyle. Enjoy the fruits of
your financial discipline.
I’m assuming you have one more question.
What about the numbers?
If you need $40,000 to live comfortably, you’ll need a $1,000,000 portfolio.
Then you can easily withdraw 4% every year, without impacting the principal.
I already told you how to build such a portfolio. But let me break down the numbers.
You need to invest $1,400 per month to reach that if you start at age 20.
But after 20 years, you’re 100% free.
And I think that’s worth two decades of hard work!
If you need more than $40,000 per year, here is a nice chart showing you how much you’ll need to support your desired lifestyle.
So, note down these points and start investing today:
1. You need a $1m portfolio to retire after 20 years of work
2. To get there, you need to invest $1,400 per month
