🔥 STEP 1: Know your FIRE number This is the total amount you need invested to retire early or live without working. 👉 Formula: Annual Expenses × 25 = FIRE Number If you spend $80,000/year → $80,000 × 25 = $2,000,000 FIRE Number Why ×25? It’s based on the 4% Rule (see below). 💸 Step 2: Understand the 4% Rule This rule says you can safely withdraw 4% of your portfolio every year and your money should last 30+ years (assuming a balanced investment strategy). So with $2,000,000 invested, you can take out: ✅ $80,000 per year ✅ Or ~$6,600/month And your investments (stocks, ETFs, etc.) should grow enough to replenish what you take out. 📈 Step 3: Invest Smartly To live off investments, your money should be in: - Low-cost index ETFs (like $XEQT, $VFVor$VEQT) - Dividend stocks or ETFs (like $VDY, $XEI$ZWC) for income - A mix of equities and bonds if you’re closer to retiring This gives you: ✔️ Growth over time ✔️ Passive income ✔️ Reduced risk with diversification 🛠️ Tools to Make It Easier: - Use a Budget Tracker to know your yearly expenses - Track your portfolio on Blossom - Automate investments monthly with apps like Wealthsimple @blossom FOLLOW ME
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7 Comments
Farmer Nappy@farmernanppy · 1mo
Mine is 250k goal not even close atm
Stephanie @stephanie79 · 1mo
Should you be using your after tax spend? Ans how does that factor in if the RRSP will be taxed?
Wajih @wajih26 · 1mo
@ All, Plz suggest some nice budget tracker free apps 🙏
DarkOctober @darkoctober · 1moEdited
Cool my FIRE number is 600k and I'm at 106k. Getting there slowly. But i think to be safe, I'll aim for 800k.
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