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financial independence / early retirement – reddit

This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money.

Before proceeding further, please read the Rules & FAQ.

Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) – quitting your job/career and pursuing other activities with your time. This subreddit deals primarily with Financial Independence, but additionally with some concepts around “RE”.

At its core, FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible. The purpose of this subreddit is to discuss FI/RE strategies, techniques, and lifestyles no matter if you’re retired or not, or how old you are.

FI/RE is about:

Discovering and achieving life goals: What would I do with my life if I didn’t have to work for money?”

Simplifying and redesigning your lifestyle to reduce spending. Your wants and needs aren’t written in stone, and less spending is powerful at any income level.

Working to increase your income and income streams with projects, side-gigs, and additional effort

Striving to save a large percentage (generally more than 50%) of your income to accelerate achieving FI

Investing to make your money work for you, and learning to manage/optimize those investments for the unique nature of FI/RE

Retiring Early

FI/RE is NOT about:

Gaining wealth for the purpose of excessive consumption

Taking the slow road, or the traditional road to retirement

Becoming financially independent requires hard work and a healthy attitude towards money, but also a degree of privilege. When participating on this subreddit, please be mindful of the ways in which you are lucky.

Please read the FAQ and Rules above, then feel free to share your journey or ask for advice!

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Regional FI/RE

Regional Personal Finance

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Lifestyle (frugal) subs

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financial independence / early retirement – reddit

The 7 Stages of Financial Independence | Radical Personal …

You cant go from broke to rich in a single step. Theres no magic fairy who will suddenly transform your financial life for you. You have to do it yourself.

But you can work your way through a path that leads to financial independence and complete abundance. That path has stages and you should celebrate your progress at every stage!

We all begin from a place of dependence on others. You may be a young adult transitioning from under your parents care to being self-supporting. Or you may have hit a rough patch in life as an adult and needed the help and aid of others.

Regardless where youre starting from, the first step is to transition from being dependent on others to being self-supporting and financially solvent.

The first stage of financial independence is to become financially solvent. This means that you are able to support yourself on your own income without the aid of others and that you are current on all of your bills.

There are many strategies that you can employ depending on your starting point. You may need to create an income for the very first time in your life. You may need to transition from an unreliable or low income to a bigger and better income. Or you may need some ideas to renegotiate your debts with your creditors.

It doesnt matter why youre behind. It only matters that you get your income to a point where its equal to or greater than your expenses.

Once youre current on your bills, you need to build a buffer account. Call it what you willemergency fund, rainy day fund, cash reserves, buffer accountthe purpose is the same.

Unexpected problems happen. Unexpected opportunities present themselves. Youll need money. If you dont have any money saved, youll fall behind on your bills and wind up in debt. Or you wont be able to take advantage of a perfect opportunity because you didnt have the cash.

First you figure out how much you need in the buffer account. Then you save it. Then you declare yourself financially stable.

If you have debt, youll probably want to get rid of it. Not all debt is created equal. But youll need to sit down and look at your debts and make a plan to dump the debt thats not getting you closer to financial independence.

That definitely means getting rid of any high-interest rate debt. It certainly means clearing your name from any old, unpaid debts. It probably means dumping any consumer debt tied to depreciating assets. And it likely means having a plan to clear the debt on any productive business or investment assets.

Being debt free means you can enjoy greater freedom and independence in your life. And thats the whole point, isnt it?

Your long-term goal is to de-couple the expenses associated with your lifestyle from your need to work to pay for them. That happens when the income from your investments is sufficient to pay for them.

This happens in stagessmall at first and larger later. The first stage is to have your basic living expenses covered by your investment income.

That means your housing expenses, utilities, food, transportation, and insurance. When these basic needs of life are covered by your investment income youve attained a high degree of financial security.

When your current lifestyle expenses can be met with your investment income, youve reached the point of financial independence! Congratulations!

You can choose to disconnect yourself from work if you want to. But of course you might choose not to.

The key at this stage is simply to know that its up to you!

Its possible that you have some lifestyle goals which are beyond the lifestyle youre currently living.

This might be things you desire to buy, experiences you desire to have, or philanthropic goals you wish to meet.

If so, the important thing is to clarify these goals and fund them with your investment income. At that point in time, youre truly financially free in every sense of the word.

When you reach this stage of your financial journey, youve reached the most challenging stage of all. But it can be a very enjoyable challenge!

Youve accumulated wealth beyond the amount needed to fund your own lifestyle expenses with a comfortable margin of safety.

Now you have to decide how to responsibly manage the surplus. How will you allocate it productively while you control it? And who will control it when youre done with it? How will you assure that the money is used for good and not for evil?

Its a real challenge, but its one faced by all those who have faithfully and steadily built wealth throughout their lifetimes. Its the most important stage of all.

Go here to read the rest:

The 7 Stages of Financial Independence | Radical Personal …

theFIREstarter – Financial Independence. Retire Early

Greetings!

Welcome to theFIREstarter! If you are interested in themes such as Financial Independence, Retiring Early, Downshifting, or simply just working less and living more then please stick around, I think well get on just fine

If all of that sounds right up your alley then you can follow along by:

Subscribing by EmailFollowing me on twitterSubscribing by RSS feed

If you’d rather have a poke around first then by all means do so! You can always subscribe later by using the link at the top right of the menu above.If you want to get the full story you can start from the very first post here or for a more casual read, just see what catches your eye on the list of all posts page.

My thoughts and plans have slightly changed in the few years since I set up the blog, you can learn a little bit more about me and the main points on what those plans were and how they’ve changed here, here, here, here and finally here.

If you’d like to keep a track of new developments, money saving tips, money making tips, my adventures in attempting self sufficiency and simple living, free financial hacks and spreadsheets, and my general musings on Financial Independence, Personal Finance, investing, and the occasional humorous rant, then please consider following along. Those links again:

Subscribe by EmailFollow me on twitterSubscribe by RSS feed

Thanks for visiting!

TFS.x

TFS Jr being very helpful with the Christmas Decorations

Merry New Year folks (sorry, bit late on this one! Some things never change I guess )

I hope you are trudging through the muddy puddle of a month that is January with as much aplomb as I am. Just to be clear, the title of the post refers to the fact that this update will be very short and most likely a bit rubbish rather than the fact that my actual month was rubbish. December was actually really great, had some time off and saw many friends and family. Text book Christmas. Right, onto the financials

Read the rest of this entry

Continued here:

theFIREstarter – Financial Independence. Retire Early

Fast Track Financial Independence (5 steps) | Millennial Money

05 Jul Fast Track Financial Independence (5 steps)Grant SabatierFounder of Millennial Money. Dubbed “The Millennial Millionaire” by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. He’s passionate about helping others build wealth and is addicted to Personal Capital. Latest posts by Grant Sabatier (see all)

One of the most common questions I get is How can I reach financial independence or retire early? While its never been easier to get rich slowly (save 10-20% and invest in index funds), its actually a lot harder to fast track your financial independence (when work is optional). And when I am saying fast track financial independence, I am talking about retiring in 10 years or less from today, even if you are starting with very little. You need to make a lot of money, cut back on your three biggest expenses, invest as much as you can, and keep track of your net-worth using a free tracker like Personal Capital.

Honestly, trying to make as much money as you can and reach early retirement can be pretty stressful. There were weeks where I hardly slept and I definitely wasnt chilling as hard as I hustled. Im not going to sugar coat it for youit was the hardest and most intense thing Ive ever done in my life. While I always say that saving is an opportunity, not a sacrifice, trying to essentially go from broke to financial independence in 6 years requires a pretty big sacrifice.

But would I do it again? Absolutely. While tired, I was pretty happy most of the time. I enjoyed the challenge, the discipline, the mistakes, and simply doing something different than 99% of people out there. I like being different and a little weird; its just more fun. Chasing early retirement is definitely not the status quo.

Most people just didnt get it. They thought I was crazy. You save 80% of your income? You have a six figure income so shouldnt you have a nice car? Im sorry, Grant, but why do you live in such a crappy apartment when you make so much money? None of it phased me. I had a goal. Its what I thought about when I woke up and what I thought about when I went to sleep. How was I going to escape the rat race? How was I going to make more money?

Whether you are just starting your financial independence journey or you are deep in it,heres how I was able to fast track and go from broke to financial independence in 6 years. This is what I did and what I wished I did (like sleeping more and learning when to treat myself sometimes).

In 2010 when I started my financial independence journey, I didnt set a goal for how long it would take. All I knew was that when I did the math I was never going to be able to retire if I was only able to save 5-10% of a $40,000 $50,000 income.

The math I did was pretty simple. If I was able to save $5,000 per year maximum, even with an expected compounding rate of 6%, I would have about $433,000 in 30 years. While that might seem like a lot of money today,its not going to be that much in 30 years, because of two expected variablestaxes and inflation. You will need to pay tax on that money when you take it out, assuming a 30% tax rate that cuts the after-tax value to $308,000, which when adjusted for 2% annual conservative inflation amount (it could be higher than this even!), then the future value of that money after taxes and inflation is approximately $170,000.

While $170,000 is still a lot of money, its not going to be in 30 years. It definitely wont be enough to live on for 20+ years.

Typical wisdom is that you need 25x your annual expenses to retire early. When I did this calculation, I anticipated my annual expenses would be at least $50,000 in the future (who knows if I will actually be able to live off $50,000 in the futureI sure hope so!). But it was the best starting point I had, so by simply multiplying 25x by $50,000, I determined that I would need to save $1,250,000. Thats a big number, but it was my target.

You can sit down with a piece of paper and see how much money you need to retire early by checking this calculator I built.

Keeping a budget is really hard and its what stops most people from really fast tracking their financial independence. Of course, its important to keep track of your money, but if you really want to save, then you need to look first optimize your three biggest expenseshousing, transportation, and food.

The average American spends 70% of their money on housing, transportation, and food, so if you can spend less on them (say 25% or so, then you can bank the difference). If you move to a smaller apartment, walk to work, and cook at home, you could realistically increase your savings rate to 25%+ or even higher.

By reducing what I spent on my housing, transportation, and food costs, I increased my savings rate to 40% and sometimes as high as 80% while I was fast tracking my financial independence. The only way I was able to fast track was by cutting way back on my living expenses and investing the difference. If you want to save money on housing (typically your biggest expense), check out how to live rent free and the fundamentals of house hacking.

At the end of the day it comes down to a personal choice, but I was happy moving to a smaller apartment, moving closer to my office, and eating out less, to bank the difference. And I definitely was able to bank the differencesaving at least an additional $13,000 per year by cutting back. While I dont have the exact figures, I estimate that cutting back for 2 years, before buying my first home, I was able to save about $25,000 that I invested in 2011 and 2012, and that cutting back is now worth more than $100,000 in my investment accounts. Im going to continue to let it grow and hopefully making that decision 2 years ago will compound in 20 years into a lot more money. It was totally worth cutting back on my three biggest expenses. Try it out.

After doing the simple math that making $50,000 was definitely not going to be enough to fast track my financial independence, I knew I had to make a lot more money to invest. I startedside hustlingintensely in 2010, back when it was just called freelancing or gigging. Ive probably had over 25 different side hustles over the past 7 years, but the smartest thing I did was invest as much money of my side hustle money as possible.

One day in 2011, I sold a $50,000 website project, then that same day, someone who lives in my building posted on the community message board looking for someone to watch his cat for the next few days for $60. I was around for the weekend, so I jumped on it. Two days later, I sold one of my mopeds for a $300 profit. The next week, I resold 4 tickets to a Kanye West show for $550 profit.

A few weeks later, I took the $60 + $300 + $550 = $910 and the $50,000 x .70 = $35,000 after estimated taxes, and put the $35,910 directly into my Vanguard Total Stock Market Index fund from my phone. This was all side income, which I was investing 100% of at the time to fast track my financial independence.

Today, as Im writing this in 2017 that $35,910 is now worth about $108,000. The $910 alone that I made on the side increased in value to over $2,700. Not bad for building a website, watching a cat, selling a few tickets, and flipping a model.

At the height of my side hustling, I had seven pretty consistent income streams and was only living off one of them. The rest went right into investments. Every day I look for money making opportunities like this and then I do the most important step of allinvest it, so it can grow.

First, its essential to switch from a saving to an investing mindset. Its not possible to fast track financial independence by keeping your money in a savings accountinvesting is an essential ingredient. I have made more money through investing than anything else and most of it in my sleep! Just recently, I was looking at my investing returns over a 90 day period and realized that I had made over $15,000 in gains from one of my investments, which is more money than I made in 6 months working at my first job after college. If you really want to make money, then you need to be investing as much money as you can.

As Ive written about before, if you increase your savings/investing rate 1% every year, you can retire up to 2 years earlier, or if you save just 5% more then you could retire 10-15 years earlier. The math is pretty simple and the higher your % saving/investing rate, the faster you will able to reach financial independence. During my most intense months, I was saving 60%+ of my income and 100% of my side hustle income. Earlier this year, I tested myself and was able tosave 82% of my total income. While that might be a little extreme, it makes a massive difference for your future net-worth.

Remember what I said about living differently? A 50% saving/investing rate is more common than you would think amongst the FIRE (financial independence early retirement) crowd. I know a lot of people that save this much each month because they get it. Saving 50%+ of your income is definitely going against the status quo, but thats how you fast track wealth. If you want to go deeper, here are two posts onhow much money you should be savingandmy investing strategy.

At 24 years old, with no money, I had no idea how I was going to save my target $1,250,000.Its been shown in a bunch of research studies that our brains cant actually comprehendthat much moneythe numbers are too large and abstract to most people. It was daunting, to say the least.How was I going to make all that money?

This is why a lot of retirement calculators just arent that effective. They tell you that youll need $2,000,000 saved in 30 years, but dont break down the steps to get you there.

Recent psychology research also highlights that our brains work best when we break down large goals into daily goals. I figured out that to reach $1,250,000 in 30 years (expecting a return of 6-7% per year) using my investing strategy, I would need to save $50 per day to retire in 30 years. Every dollar I could save after $50, I would be fast-tracking my financial independence. Its also worth noting that I didnt start at $50 per day, I scaled up to it starting at $5 per day and then pushing it a few dollars more when I could.

Research also highlights that we should accomplish these daily goals through better habits. The key to building wealth is really in our daily habits. The better our money habits, the more money we will make, save invest, and grow. To go deeper, here are mybest money habits.

The five steps I used to fast track financial independence are simple in theory but can be difficult in practice. Like many things in life, its all about the effort and execution. You need to be consistent. Consistency is more important than anything elseyou cant just follow these steps for a few months. If you want it, youll prioritize it. You can also start as slowly or quickly as you want.

In 2010 when I made the decision to chase financial independence, I jumped in 100%, but thats just what I needed to do to get going.The key to building any sustainable results is to start at your own pace, start making more money where you can, and really push your investing percentage higher 1% at a time. It really adds up and every $1 you are investing today will compound as long as you keep it invested. As Ive mentioned before every $1 I invested in 2010 is worth almost $4 today.

It took almost all of my energy for six straight years to go from broke to financially independent. I also got lucky the stock market has grown so much over the past 7 years, but I was ready. Building wealth is about controlling as many of the variables as you can and then letting it grow.

NEW POSTS | MEMBERS ONLY | EXCLUSIVE CONTENT

Success! Now check your email to confirm. FIGHTING THE SPAMBOTS!

See the rest here:

Fast Track Financial Independence (5 steps) | Millennial Money

theFIREstarter – Financial Independence. Retire Early

Greetings!

Welcome to theFIREstarter! If you are interested in themes such as Financial Independence, Retiring Early, Downshifting, or simply just working less and living more then please stick around, I think well get on just fine

If all of that sounds right up your alley then you can follow along by:

Subscribing by EmailFollowing me on twitterSubscribing by RSS feed

If you’d rather have a poke around first then by all means do so! You can always subscribe later by using the link at the top right of the menu above.If you want to get the full story you can start from the very first post here or for a more casual read, just see what catches your eye on the list of all posts page.

My thoughts and plans have slightly changed in the few years since I set up the blog, you can learn a little bit more about me and the main points on what those plans were and how they’ve changed here, here, here, here and finally here.

If you’d like to keep a track of new developments, money saving tips, money making tips, my adventures in attempting self sufficiency and simple living, free financial hacks and spreadsheets, and my general musings on Financial Independence, Personal Finance, investing, and the occasional humorous rant, then please consider following along. Those links again:

Subscribe by EmailFollow me on twitterSubscribe by RSS feed

Thanks for visiting!

TFS.x

TFS Jr being very helpful with the Christmas Decorations

Merry New Year folks (sorry, bit late on this one! Some things never change I guess )

I hope you are trudging through the muddy puddle of a month that is January with as much aplomb as I am. Just to be clear, the title of the post refers to the fact that this update will be very short and most likely a bit rubbish rather than the fact that my actual month was rubbish. December was actually really great, had some time off and saw many friends and family. Text book Christmas. Right, onto the financials

Read the rest of this entry

Continued here:

theFIREstarter – Financial Independence. Retire Early

Fast Track Financial Independence (5 steps) | Millennial Money

05 Jul Fast Track Financial Independence (5 steps)Grant SabatierFounder of Millennial Money. Dubbed “The Millennial Millionaire” by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. He’s passionate about helping others build wealth and is addicted to Personal Capital. Latest posts by Grant Sabatier (see all)

One of the most common questions I get is How can I reach financial independence or retire early? While its never been easier to get rich slowly (save 10-20% and invest in index funds), its actually a lot harder to fast track your financial independence (when work is optional). And when I am saying fast track financial independence, I am talking about retiring in 10 years or less from today, even if you are starting with very little. You need to make a lot of money, cut back on your three biggest expenses, invest as much as you can, and keep track of your net-worth using a free tracker like Personal Capital.

Honestly, trying to make as much money as you can and reach early retirement can be pretty stressful. There were weeks where I hardly slept and I definitely wasnt chilling as hard as I hustled. Im not going to sugar coat it for youit was the hardest and most intense thing Ive ever done in my life. While I always say that saving is an opportunity, not a sacrifice, trying to essentially go from broke to financial independence in 6 years requires a pretty big sacrifice.

But would I do it again? Absolutely. While tired, I was pretty happy most of the time. I enjoyed the challenge, the discipline, the mistakes, and simply doing something different than 99% of people out there. I like being different and a little weird; its just more fun. Chasing early retirement is definitely not the status quo.

Most people just didnt get it. They thought I was crazy. You save 80% of your income? You have a six figure income so shouldnt you have a nice car? Im sorry, Grant, but why do you live in such a crappy apartment when you make so much money? None of it phased me. I had a goal. Its what I thought about when I woke up and what I thought about when I went to sleep. How was I going to escape the rat race? How was I going to make more money?

Whether you are just starting your financial independence journey or you are deep in it,heres how I was able to fast track and go from broke to financial independence in 6 years. This is what I did and what I wished I did (like sleeping more and learning when to treat myself sometimes).

In 2010 when I started my financial independence journey, I didnt set a goal for how long it would take. All I knew was that when I did the math I was never going to be able to retire if I was only able to save 5-10% of a $40,000 $50,000 income.

The math I did was pretty simple. If I was able to save $5,000 per year maximum, even with an expected compounding rate of 6%, I would have about $433,000 in 30 years. While that might seem like a lot of money today,its not going to be that much in 30 years, because of two expected variablestaxes and inflation. You will need to pay tax on that money when you take it out, assuming a 30% tax rate that cuts the after-tax value to $308,000, which when adjusted for 2% annual conservative inflation amount (it could be higher than this even!), then the future value of that money after taxes and inflation is approximately $170,000.

While $170,000 is still a lot of money, its not going to be in 30 years. It definitely wont be enough to live on for 20+ years.

Typical wisdom is that you need 25x your annual expenses to retire early. When I did this calculation, I anticipated my annual expenses would be at least $50,000 in the future (who knows if I will actually be able to live off $50,000 in the futureI sure hope so!). But it was the best starting point I had, so by simply multiplying 25x by $50,000, I determined that I would need to save $1,250,000. Thats a big number, but it was my target.

You can sit down with a piece of paper and see how much money you need to retire early by checking this calculator I built.

Keeping a budget is really hard and its what stops most people from really fast tracking their financial independence. Of course, its important to keep track of your money, but if you really want to save, then you need to look first optimize your three biggest expenseshousing, transportation, and food.

The average American spends 70% of their money on housing, transportation, and food, so if you can spend less on them (say 25% or so, then you can bank the difference). If you move to a smaller apartment, walk to work, and cook at home, you could realistically increase your savings rate to 25%+ or even higher.

By reducing what I spent on my housing, transportation, and food costs, I increased my savings rate to 40% and sometimes as high as 80% while I was fast tracking my financial independence. The only way I was able to fast track was by cutting way back on my living expenses and investing the difference. If you want to save money on housing (typically your biggest expense), check out how to live rent free and the fundamentals of house hacking.

At the end of the day it comes down to a personal choice, but I was happy moving to a smaller apartment, moving closer to my office, and eating out less, to bank the difference. And I definitely was able to bank the differencesaving at least an additional $13,000 per year by cutting back. While I dont have the exact figures, I estimate that cutting back for 2 years, before buying my first home, I was able to save about $25,000 that I invested in 2011 and 2012, and that cutting back is now worth more than $100,000 in my investment accounts. Im going to continue to let it grow and hopefully making that decision 2 years ago will compound in 20 years into a lot more money. It was totally worth cutting back on my three biggest expenses. Try it out.

After doing the simple math that making $50,000 was definitely not going to be enough to fast track my financial independence, I knew I had to make a lot more money to invest. I startedside hustlingintensely in 2010, back when it was just called freelancing or gigging. Ive probably had over 25 different side hustles over the past 7 years, but the smartest thing I did was invest as much money of my side hustle money as possible.

One day in 2011, I sold a $50,000 website project, then that same day, someone who lives in my building posted on the community message board looking for someone to watch his cat for the next few days for $60. I was around for the weekend, so I jumped on it. Two days later, I sold one of my mopeds for a $300 profit. The next week, I resold 4 tickets to a Kanye West show for $550 profit.

A few weeks later, I took the $60 + $300 + $550 = $910 and the $50,000 x .70 = $35,000 after estimated taxes, and put the $35,910 directly into my Vanguard Total Stock Market Index fund from my phone. This was all side income, which I was investing 100% of at the time to fast track my financial independence.

Today, as Im writing this in 2017 that $35,910 is now worth about $108,000. The $910 alone that I made on the side increased in value to over $2,700. Not bad for building a website, watching a cat, selling a few tickets, and flipping a model.

At the height of my side hustling, I had seven pretty consistent income streams and was only living off one of them. The rest went right into investments. Every day I look for money making opportunities like this and then I do the most important step of allinvest it, so it can grow.

First, its essential to switch from a saving to an investing mindset. Its not possible to fast track financial independence by keeping your money in a savings accountinvesting is an essential ingredient. I have made more money through investing than anything else and most of it in my sleep! Just recently, I was looking at my investing returns over a 90 day period and realized that I had made over $15,000 in gains from one of my investments, which is more money than I made in 6 months working at my first job after college. If you really want to make money, then you need to be investing as much money as you can.

As Ive written about before, if you increase your savings/investing rate 1% every year, you can retire up to 2 years earlier, or if you save just 5% more then you could retire 10-15 years earlier. The math is pretty simple and the higher your % saving/investing rate, the faster you will able to reach financial independence. During my most intense months, I was saving 60%+ of my income and 100% of my side hustle income. Earlier this year, I tested myself and was able tosave 82% of my total income. While that might be a little extreme, it makes a massive difference for your future net-worth.

Remember what I said about living differently? A 50% saving/investing rate is more common than you would think amongst the FIRE (financial independence early retirement) crowd. I know a lot of people that save this much each month because they get it. Saving 50%+ of your income is definitely going against the status quo, but thats how you fast track wealth. If you want to go deeper, here are two posts onhow much money you should be savingandmy investing strategy.

At 24 years old, with no money, I had no idea how I was going to save my target $1,250,000.Its been shown in a bunch of research studies that our brains cant actually comprehendthat much moneythe numbers are too large and abstract to most people. It was daunting, to say the least.How was I going to make all that money?

This is why a lot of retirement calculators just arent that effective. They tell you that youll need $2,000,000 saved in 30 years, but dont break down the steps to get you there.

Recent psychology research also highlights that our brains work best when we break down large goals into daily goals. I figured out that to reach $1,250,000 in 30 years (expecting a return of 6-7% per year) using my investing strategy, I would need to save $50 per day to retire in 30 years. Every dollar I could save after $50, I would be fast-tracking my financial independence. Its also worth noting that I didnt start at $50 per day, I scaled up to it starting at $5 per day and then pushing it a few dollars more when I could.

Research also highlights that we should accomplish these daily goals through better habits. The key to building wealth is really in our daily habits. The better our money habits, the more money we will make, save invest, and grow. To go deeper, here are mybest money habits.

The five steps I used to fast track financial independence are simple in theory but can be difficult in practice. Like many things in life, its all about the effort and execution. You need to be consistent. Consistency is more important than anything elseyou cant just follow these steps for a few months. If you want it, youll prioritize it. You can also start as slowly or quickly as you want.

In 2010 when I made the decision to chase financial independence, I jumped in 100%, but thats just what I needed to do to get going.The key to building any sustainable results is to start at your own pace, start making more money where you can, and really push your investing percentage higher 1% at a time. It really adds up and every $1 you are investing today will compound as long as you keep it invested. As Ive mentioned before every $1 I invested in 2010 is worth almost $4 today.

It took almost all of my energy for six straight years to go from broke to financially independent. I also got lucky the stock market has grown so much over the past 7 years, but I was ready. Building wealth is about controlling as many of the variables as you can and then letting it grow.

NEW POSTS | MEMBERS ONLY | EXCLUSIVE CONTENT

Success! Now check your email to confirm. FIGHTING THE SPAMBOTS!

Excerpt from:

Fast Track Financial Independence (5 steps) | Millennial Money

3 Ways to Achieve Financial Independence – wikiHow

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Three Methods:Living Within Your MeansMaximizing Your IncomeDeveloping Wise Savings StrategiesCommunity Q&A

However you interpret the concept, financial independence requires a lifetime of responsible, well-informed financial decision-making. For some, the term might indicate the moment you will no longer rely on your parents to cover all of your expenses. If this is a goal of yours, check out How to Start Saving to Become Independent. Later in life, the mention of financial independence may conjure the aspiration to cover living expenses without working, as many people hope to do during retirement. Whatever your personal goal, there are sound financial strategies you can implement at any age that will readily help to increase your financial independence.

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Set specific goals and stick with the plan. Understand that achieving financial independence is a long-term process. Speed bumps on the road to financial independence are inevitable. Overcome temporary setbacks by sticking to a responsible financial plan. If you focus on each financial goal you set for yourself, always look for options to increase your income and reduce your expenses, and save strategically, youll steadily improve your financial stability.

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3 Ways to Achieve Financial Independence – wikiHow

Independence Financial Group – yourifg.com

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Victoria Mutual Resources | Home of Financial Independence

We all have dreams that we want to fulfill and here is where you can start making those dreams a reality.

At Victoria Mutual, we believe that Financial Independence means having clear financial goals, documenting specific plans towards achieving these goals and being satisfied that you are making progress towards these goals.

We have customised products and services combined with the proven expertise to help you to build your Financial Independence.

Are you ready for the journey?

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Victoria Mutual Resources | Home of Financial Independence

Could this miner help you secure financial independence faster than … – AOL UK

With its story capturing the imagination of so many private investors, it’s no real surprise that 1.2bn cap polyhalite producer SiriusMinerals(LSE: SXX) remains one of the most traded stocks on the London Stock Exchange.

Last week’s interim results made reference to “excellentprogress” being made on the company’s Woodsmith Mine and associated infrastructure with development progressing on time and on budget.

Having completed all highways and enablement works and most of the preparations at the site, CEO Chris Fraser stated that the company now eagerly anticipated the commencement of shaft sinking activities. He also reported that Sirius was continuing to engage with commercial partners around the globe and that interest in the company’s POLY4 product “remainsstrong”.

Of course, there’s still a very long way to go and many hurdles to overcome before the mine becomes operational, which probably explains why the share price is still struggling to stay above the 30p mark. Nevertheless, I remain bullish on Sirius and its ability to grow its investors’ wealth steadily over the next few years, particularly with the company now comfortably occupying a space in the relatively stable FTSE 250 index following its move from the junior market.

For those who simply can’t wait for next four years to elapse however, there may be an alternative.

It may be a minnow compared to Sirius butBluejayMining(LSE: JAY) is quickly winning friends thanks to the potential of its relativelylow-cost Pituffik Titanium project in Greenland –independently verified as being the highest grade ilmenite mineral sand deposit in the world.

According to today’s interim results, Bluejay’s work programme for the year is now “welladvanced” with managementaiming to begin constructing the mine plant in early 2018 and a full exploration licence expected during H1.Offtake discussions with potential customers are progressing and likely to conclude within the next 3-6 months.

Thanks to the levels of visible ilmenite concentrations being so great, Bluejay’s proof-of-concept bulk sampling programme is also “exceedingexpectations” to such an extent that stockpiling is now forecast to begin far earlier than planned assuming production rates can be maintained. This puts Bluejay in an excellent position to begin selling its product as soon as the relevant licence is received.

Like Sirius, Bluejay’s project has been warmly received by the local community as well as many government and environmental agencies. June’s oversubscribed placing — allowing Bluejay to boast a net cash balance of 5.8m at end of H1 — also means the company’s popularity among institutional investors (including Prudential plc) continues to grow.

The shares have climbed over 200% since last August, leaving the company with a market cap of 136m. Based on comments from CEO Rod McIllree however, the coming months could be “equallytransformative”. In time, he believes that the Pituffik project could completely transform the titanium industry. All this before Bluejay’s wider asset portfolio in Greenland and Finland is even considered.

While mining projects carry significant risk, both Bluejay and Sirius could be excellent medium-to-long term investments for those determined to become financially independent. That said, while the North Yorkshire Moors are a far more hospitable environment than that faced by Bluejay, it could be that the latter’s relatively simple production model could reward holders a lot sooner.

With their ability to generate huge capital gains for investors, it’s no surprise that mining stocks appeal to those investors keen to secure financial independence sooner rather than later.

Despite this, there are also far less risky ways of obtaining financialfreedom, some of which are outlined in a BRAND NEW special free report from the Motley Fool’s analysts.

The Foolish Guide to Financial Independence is available completely FREE of charge and comes without any obligation.

Grab your copy here.

Paul Summers owns shares in Sirius Minerals. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes

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Could this miner help you secure financial independence faster than … – AOL UK

Solutions 4 Financial Independence: 8/22/17 – WDTV

BRIDGEPORT, W.Va (WDTV)- Question: My dad recently passed away. He had a Roth IRA as well as a 401(k). As a non-spouse beneficiary, can I roll over the accounts into my personal Roth IRA and 401(k) accounts?

Answer (John Halterman, Beacon Wealth Management): “Let’s start with, can you roll the money over into your personal account? That answer is actually no. Only spouses can roll over a Roth IRA into their own Roth IRA and a 401(k) can be rolled over into your own Ira. But in this type of situation since you are not a spouse, what do you need to do is what we call an inherited Roth IRA or an inherited IRA. So both of those can be rolled over into an account, it’s going to be in your name, just not going to be in your personal Roth IRA and 401(k).”

Q: How with the taxes affect me?

Answer (John Halterman, Beacon Wealth Management): “The Roth IRA, because it’s a Roth IRA, it’s actually going to be tax-free in the future to him. When you rollover money into an inherited, you do have to take what we call the required minimum distribution. But in the Roth portion, because of the tax for account there will be no taxes. Now for the 401(k), because it’s going into an inherited IRA, and you have to take required minimum distributions, those will be taxed as ordinary income. One’s tax-free and one’s going to be taxed.”

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Solutions 4 Financial Independence: 8/22/17 – WDTV

Money Money Money: Here’s how one can achieve financial independence – Moneycontrol.com

Aug 19, 2017 04:43 PM IST

Independence, the true meaning of this word dawns upon us only when we don’t have it. This holds true for a nation, it holds true in our lives and it also holds true with respect to money and our finances. As India celebrates yet another year of independence, Money Money Money explores the concept of financial independence with Anuradha Rao, MD & CEO at SBI Funds Management Private Limited.

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Money Money Money: Here’s how one can achieve financial independence – Moneycontrol.com

How to retire early with financial independence in 3 steps – NBC2 News

NEW YORK (CNNMoney) — Millennials are the first generation to shun traditional retirement and seek financial freedom instead — when income from savings is enough to cover expenses, and working becomes a choice, often long before the age of 65.

Becoming financially independent and retiring early, a process known as FIRE, can be achieved at any income level by saving a high percentage of your salary, or cutting your expenses — or both. CNNMoney profiles people who’ve reached financial independence early and on their own terms.

On a recent Wednesday afternoon, 29-year-old J.P. Livingston sat at an outdoor cafe in New York’s West Village, wrapped in a cozy sweater, sipping tea and talking about her current project: retirement.

Livingston says she quit the workforce last year with $2.25 million after working in finance for only 7 years.

Let the Baby Boomers have their “retirement,” with its delayed gratification and uncertain benefits, say an increasing number of young people like Livingston. Instead, they are gaming their income, saving rates and investments to become financially independent and retire early — a process known as FIRE.

While Americans commonly spend most of what they earn and fall short on traditional retirement savings, today’s young people are the first generation to plan for financial freedom: 63% of affluent Millennials prefer financial freedom over retirement, while 37% are saving to leave the workforce altogether, according to a study from Merrill Edge.

Anyone can achieve financial independence simply by saving a lot. Most people who are able to quit the workforce at a very young age do it by saving at least half their income.

And Livingston sets the bar pretty high. She saved at least 70% of everything she made for 7 years. And she chose a career — and a city — that would help her do that by maximizing her income, despite the high cost of living.

She had a mission. What else would you call it, when you start planning your retirement as a teen?

“I’ve wanted to be financially independent and retire early for years,” Livingston said, recalling wandering around bookstores as a tween and being drawn to books on early retirement.

Sure, she had a few things going for her — more than most: She managed to graduate from Harvard University in three years with no debt and some savings. She also landed a very high-paying job in finance that came with a six-figure income that increased exponentially over time. And she had a plan that made it possible for her to reach financial independence before she and her husband started a family and expenses inevitably grew. (A new project for her retirement: having a baby. She recently learned she’s pregnant.)

But her nest egg is self-made. Even though her husband still works, Livingston’s own savings are enough to cover both their living expenses — around $67,000 per year — for the rest of their lives.

“I came from a family that grew up really poor,” said Livingston, who now writes under that pen-name on her blog about retiring early, TheMoneyHabit.org. “My family constantly reminded me that it was important to focus on providing for yourself.” She prefers to remain anonymous to protect her privacy in revealing sensitive financial information. (CNNMoney has independently confirmed her identity.)

Livingston’s fast-track to financial freedom was strategic, with each stage building on the next. First, she focused on her income, then on building her savings, followed by investment growth. Now that she’s reached retirement, she’s focused on tax optimization.

Here’s how she did it.

Super-charge your income

Instead of moving to an area with a low cost of living (an easy way to slash expenses), Livingston doubled down on New York City.

“You can find the best job opportunities here,” Livingston said. “I couldn’t have found my job in Omaha, Nebraska. Maybe in Chicago, but I’d be paid less. I was paid the most here.”

She worked hard to continually boost her income, which came through salary, raises, bonuses and commissions. When she first started working she was earning six-figures right out of the gate. Her starting salary was $60,000, plus incentives, which could easily double her yearly pay. But it only went up from there. Over the years, she increased her salary significantly, earning promotions with raises upwards of 30% along the way. By the time she quit her job, her paycheck was in the mid-six-figures.

A major feather in her cap was not having any debt, especially student loans.

“I was very aware of how expensive Harvard was,” said Livingston. “I decided I should just get out early.” She paid for school through scholarships and her family’s savings. Graduating early allowed her to avoid paying additional expenses and move directly into earning an income.

Even if you go to a less expensive school, she says, if you can get it together to graduate a year early, you can avoid taking a loan for that year or, if you have the savings, “you can park that $20,000 in the market and start earning.”

Crank the savings rate sky-high

Livingston’s hard-core formula to reach a 70%-plus savings rate: income minus expenses equals savings.

When friends called her to go out, she’d steer them toward the most affordable social engagements: “I’d love to see you! Can I join you for drinks after? Or are you free for brunch?”

In addition to offering her a high income, New York’s higher density offered her ways to save. She was able to live car-free and found that higher earning people getting rid of great stuff led to super deals on Craigslist or curbside.

“We had a gorgeous, pristine storage bench my roommate found on the street with a ‘free’ sign on it,” she said. “It was one of the nicest pieces of furniture in the whole apartment.”

She also had a broad choice of living situations. She opted for a third-floor walk-up where she had a mattress on the floor and paid $1,100 a month, her first year out of college. After that she moved to a 325-square-foot fifth-floor walk-up where she still lives with her husband and dog.

While building up her savings she started out living on $25,000. Even as her salary grew, her spending only went up to $30,000 a year.

“Incremental improvements that you build into your routine will pay out not just once, but it will pay off multifold,” says Livingston. Lowering your rent by adding another roommate, saying you’ll only meet friends for brunch, coffee or drinks (as opposed to more expensive dinners), “that will keep paying off for you year after year.”

Grow the money

But you’re not going to get to $2.25 million just by skipping a few dinners. About 60% of Livingston’s net worth came from savings, and about 40% came from investing, primarily in a combination of low-cost index funds, options and municipal bonds, depending on the market.

Her expertise in the financial industry certainly helped juice her investment returns.

Once your savings are substantial, she says, the tweaks you make to your investments will have much more impact than any changes to your spending or saving habits.

For example, if you earn $70,000 a year and have regularly saved a significant portion for a few years, you may have between $120,000 to $150,000 in savings. If you can get a 10% return on your investments, you’ll add $12,000 to $15,000 to your savings.

Among the proponents of FIRE, who support each other on various spaces on-line, Livingston’s accomplishment is called “Fat FIRE,” which is like FIRE, but with much bigger monthly budgets, and therefore much larger nest eggs.

She and her husband now live on $67,000 a year, an annual budget others on the path to FIRE may balk at as very high.

“That buys us a lot of cushy luxuries which include maid service and sending laundry out,” she said. “We skimp on a lot of things, but those actually end up being quite affordable in Manhattan because of the density, and are offset by the cheap rent we pay.” Plus: they don’t have a washing machine.

While her expenses are completely covered by her savings, her husband still works, but by choice.

These days Livingston is working on growing her money and helping others to do the same through her blog.

“The you that is intentional with your money and constantly looking for improvement will be that much wealthier than the one that isn’t, whatever your starting circumstances may be.”

By Anna Bahney

The CNN TM & 2017 Cable News Network, Inc., a Time Warner Company. All rights reserved.

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How to retire early with financial independence in 3 steps – NBC2 News

CNNMoney readers react: She retired at 28 with $2.25 million – Aug … – CNNMoney

The story got people talking.

Many CNNMoney readers viewed Livingston as an outlier with advantages that most people don’t have because she graduated from Harvard with zero debt and had an extremely high income.

RadicalM0derate says on Twitter: “So to retire young: get into Harvard & pay for it through scholarships and family $; save most/all of your 6 figure income for 10 yrs. Easy.”

To be sure, Livingston is in a rarefied group.

The acceptance rate this year at Harvard is 5.2%, according to Harvard. And getting any degree debt free is far from the norm: The average student debt tops $30,000.

Plus, Livingston’s mid-six-figure income put her squarely in the 1%. Most people earn something closer to the median income, which is $56,500, according to the Census Bureau.

Full story: She retired at 28 with $2.25 million

But some readers found her story inspiring, and the lessons applicable.

As Anton Mykytenko posted on Facebook, her experience, while on one end of the spectrum, is scalable: “Regardless of whether or not she received some help, she still worked to find the place where she’s paid the most versus her living costs, saved up 70% of her income, and planned early. No matter your situation, these are still things you can apply to your life. Think about how what she did can help you get ahead instead of getting outraged.”

Many people have achieved financial independence on much lower incomes, like this couple we profiled in June. While age 28 is extreme, those with lower incomes might be able to do it by 35 or 40, or by moving somewhere with a lower cost of living, or learning to live on less.

Other readers pointed out that Livingston can’t be financially independent if her spouse still works.

“She is not really retired she got married & plans on having kids & her husband still works. Like many families,” writes Patrick Landers on Facebook.

But Livingston’s savings are enough to cover both her and her husband’s expenses regardless of his income. (Plus, he has some savings of his own).

Some readers questioned whether financial independence is possible for someone who didn’t go to Harvard, and isn’t in the 1%.

One Reddit user thinks it is: “I live in NYC. $2 million is our number and we are 3/4 of the way there. Of course I made less than this woman for my entire career, went to SUNY, and still spent much of my time and money partying when I was her age. But I’m 44 and almost there.”

Related: How to become financially independent in 5 years

At such a young age, is $2.25 million really going to be enough to last for the rest of her life?

As Matthew Coldrick replied on Facebook, “Most people need that much to retire at 60. Good luck making $2m last 60 years.”

With a nest egg of $2.25 million to live on for the next 60 years, she could take out $88,800 annually or about $7,400 a month from age 29 to 89, assuming a 4% growth rate. Not living large, but certainly better off than many people, especially considering she isn’t even working.

So Livingston feels set at 29 years old with her pot of gold. Many readers wanted to know: then what?

Karren Omeara asks on Facebook: “So than what do you do with at least 50 years left?”

“Live” replied Deborah Toomey.

Even by making a few tweaks to your current finances — saving 20% for retirement instead of 10%, looking to used goods instead of new, cutting entertainment expenses, investing what you have in a way that suits your risk-tolerance — you can still get to the retirement you’re looking for. Whether it is at 28 or 58, it’s your journey, better to have more control over it now than less later.

CNNMoney (New York) First published August 4, 2017: 3:52 PM ET

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Gain Financial Independence Attend a FREE Educational Event – FOX31 Denver

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Do you wish you could find financial independence? Are you struggling to save money, and if you can save, watching it go up and down in the stock market? Then it’s time to take charge and do something for yourself and your family. Our Financial Planner is going to show you how to get started right away, no more procrastinating! Joseph Quijano is a Certified Financial Planner, published author, and National Financial Educator. He’s hosting three FREE educational events to show you how to make your money work for you. Joseph joined us this morning to talk about how he can change your life.

The free seminars are happening Tuesday, July 18 at 6:30 p.m. in Northglenn; Wednesday, July 19 at 6:30 p.m. in Lakewood; and Thursday, July 20 at 6:30 p.m. in Centennial. Seating is limited.

If you want to find financial independence, make and save more money, and have tax-free paychecks for life at retirement, call (877)299-9957 to reserve your seats for one of the three educational and life-changing events. If the line is busy, you can also register online at BecomeTheBanker.org/Register. If you’re one of the first 10 callers to register, you will receive a free report on “How to Turbo-Charge Your Retirement.”

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Gain Financial Independence Attend a FREE Educational Event – FOX31 Denver

Independence Financial Group

Welcome to our Web site, where youll find a wealth of information in the form of newsletters, articles, calculators, and research reports.

We hope your visit will help you understand the opportunities and potential rewards that are available when you take a proactive approach to your personal financial situation. We have created this Web site to help you gain a better understanding of the financial concepts behind insurance, investing, retirement, estate planning, and wealth preservation. Most important, we hope you see the value of working with skilled professionals to pursue your financial goals.

Were here to help educate you about the basic concepts of financial management; to help you learn more about who we are; and to give you fast, easy access to market performance data. We hope you take advantage of this resource and visit us often. Be sure to add our site to your list of “favorites” in your Internet browser. We frequently update our information, and we wouldnt want you to miss any developments in the area of personal finance.

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5 powerful steps towards financial independence and retiring early … – AOL UK

Many people dream of retiring early with enough money to be able to do as they please for the rest of their lives. Turning that dream into reality is possible, as long as you take it seriously and commit to taking action.

I reckon that if you take these five steps you’ll be well on your way to creating the conditions necessary for you to retire early and be financially secure. It probably won’t be easy to achieve, but with persistence and determination, I’m sure you can make it happen.

Many fail to achieve financial freedom because deep down they don’t really believe they can do it, so they end up fighting against self-sabotage.

Accumulating a fortune seems like a daunting task when you are at the beginning of the journey, and I reckon many people have a tendency to give up in a thousand little ways along the way. Perhaps you end up blowing your savings on that holiday of a lifetime. Perhaps you keep on doing that kind of thing. If you’re striking for early retirement, that’s self-sabotage.

To be successful, I think step one is to adopt a mindset of belief and determination that will guide you on your journey and help you make better choices along the way.

With your can-do mindset in place, step two is to grab your finances by the whatsits and get in control of debts and outgoings with the aim of living below your means. It’s a well-touted concept, but it works.

Spend less than you earn and cultivate a saving habit. Plan to save, and work your plan as hard as you can. If you do that, the magic starts to happen.

This is like step two, but magnified then put into action and underlines just how important control of yourmoney is. With your domestic finances working better, step three is to really toughen up and act decisively, bearing down on personal outgoings and making hard choices. Hone the management of domestic finances until they work like a well-oiled machine so you can squeeze every penny possibleout of the leaky bucket and direct it towards your dream of financial freedom.

I’m not suggesting a life of total abstinence and austerity, just a measured, balanced and controlled approach to your finances with you firmly in charge. Every pound counts because those pounds will compound over time into many more pounds.

Now that you’ve fixed all the leaks in your domestic budget step four is to direct your creativity to earn more income. Direct the surplus you earn straight to building up your savings and don’t be tempted to self-sabotage by raising your standard of living and spending if you are already enjoying a happy and fulfilling lifestyle.

After applying yourself to building up your saved capital, step five is to make that money work hard for you by looking for ways to compound it, such as investing on the stock market.

Over time, shares have outperformed all other asset classes and you can get involved by using such vehicles as low-cost index tracking funds, managed funds, directed stock-picking services such as those offered here at the Motley Fool, or by embracing the concept of private investing completely and picking your own shares and investments.

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5 powerful steps towards financial independence and retiring early … – AOL UK

The easy way to financial independence – AOL UK Money – AOL.co.uk – AOL UK

Financial independence might seem like an impossible dream for many, but if you put in place a set saving-and-spending plan, and stick to it, you will be surprised how quickly financial independence can become a realistic goal.

A strict budget and savings plan is the first stage of building your wealth. The next step is investing to make your money work harder for you.

The great thing about investing is that your money can work for you even when you’re asleep. Your earnings ability will no longer be constrained by your working hours. Instead, you’ll be able to benefit from the profits of other companies and other workers.

Dividends and dividend stocks play a crucial role here. Many studies have shown that dividends provide the bulk of investment returns for investors over the long term and by reinvesting your dividends you can achieve investment returns that are far greater than the market average.

For example, if you have a 1,000 investment in a company that yields 5% per year, you would receive 50 per annum in dividends, much more than the current level of interest available on most savings accounts. If the dividend payout remained unchanged for 10years, and for argument’s sake, the share price also remained unchanged, without reinvestment you would receive a total of 500 over the life of the investment, a return of 50%.

However, if you were to reinvest these funds at the end of the period, your investment would have grown to 1,551, an extra profit of 51.

This basic example illustrates just how powerful the strengthof dividend reinvestment can be. To add to the example, let’s say the value of the share in question rose by 5% every year. This capital growth combined with dividend reinvestment makes a super-potent combination. According to my figures, in this example, if the dividend is paid only once a year, within a decade the combination of capital gains and income will have turned theinitial 1,000 investment into 2,236. Most companies don’t pay out the same dividend every year. They try to increase the per-share dividend by at least the rate of inflation.

So, let’s assume that the company in our example increases its dividend payout by 5% per annum. In this scenario, assuming dividends are reinvested, a steady share price growth rate of 5% per annum and dividend growth, 1,000 will become 2,407 by the end of the decade sample period, almost 1,000 more than the example with no dividend reinvestment.

These are only simple examples but they clearly illustrate how important dividends are and how easy it is to build wealth by concentrating on the power of dividends and dividend reinvestment. If you’re looking to achieve financial independence, this is one shortcut that you definitely shouldn’t avoid. You should try to take as much advantage of the power of dividends as possible.

Dividends are essential if you want to achieve financial independence. If you’re looking for more tips on how to improve your financial position, the Motley Fool is here to help withthis brand new free report titled The Foolish Guide To Financial Independence,

The report is packed full of wealth creating tips and,to help on your way, isentirely free and available for download today.

So if you’re interested in exiting the rat race and achieving financial independence, click here to download the report.

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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The easy way to financial independence – AOL UK Money – AOL.co.uk – AOL UK

Celebrating Independence – Jewish Link of New Jersey

For the history buff and obedient American patriot Independence Day means commemorating the adoption of the Declaration of Independence on July 4, 1776. For many, Independence Day means the start of summer season. Whether that is met with joy because the kids are being sent off to camp, or whether its cause for celebration because you get to relocate to a bungalow colony full of summer friends and memories; or whether you get a little bit of reprieve from your normal all year-round working schedule it is certainly a time that is appreciated by many.. Independence is certainly something that everyone can appreciate.

It is also a milestone in the calendar where one can realize that half the year has gone by, and its a good time to revisit financial considerations that one might be trying to achieve. When it comes to finances however, there is no unanimous definition of what financial independence is. For some, financial independence is achieved when your passive income streams cover all your living expenses. For others, it means not having to work another day of their life. Some, wont feel financially independent until they are completely free from the constraints of debts. For many, financial independence might simply mean having the ability to make life decisions with money not being a determining factor. As you can see, it means to different things to different people – and certainly becomes a moving target with the different stages of ones life.

When it comes to homeownership, the resounding consensus that I hear from almost all my clients is that their goal of owning a home is to have no mortgage whatsoever. A lofty goal indeed. People assume that I am biased because I am in the mortgage business, but I quickly explain that I receive no financial benefit whether someone maintains or pays off their mortgage whatsoever. In fact, when I further discuss financial considerations, debts, income, cash flow analysis, retirement goals, life plans, investment strategies, reserve funds, and the like most people are shocked to learn that a mortgage is perhaps the safest, cheapest, and most lucrative debt out there.

There are many examples that support this theory, but for the purposes of this short article I will touch on a few core items. First, the a very common misconception of Building Equity. Everyone wants to build equity, and thats typically the main financial reason that drives renters to buy a new house. By definition, having a big mortgage is counter to the premise of building equity because the bigger the mortgage, the lower the equity. Ric Edelman, a financial advisor whose principals of finance I very much agree with and concur, has much to say on the topic of mortgage debt. Edelman is widely regarded as one of the nations top financial advisors, having been named in 2016 among the countrys Top 10 Wealth Advisors by many acclaimed publications and organizations.

Ric has a great illustration that speaks to the core misconception of equity building. Lets say someone were to buy a house for $300,000, and get a $250,000 mortgage at 4% fixed over 30 years. By making regular mortgage payments, the loans balance in 20 years will be just $117,886. The theory is, that equity grows as you pay off the mortgage and thereby the faster you pay off the mortgage, the faster your equity will grow. But this logic fails to acknowledge that this is not the only way you will build equity in your house. Thats because your house is almost certain to grow in value through appreciation. If that house rises in value at a modest rate of 3% per year, it will be worth $541,833 in 20 years! Youll have nearly a quarter million dollars in new equity even if your principal balance didnt budge. That is the real objection as to why renting is a waste of money.

Another common misconception about the financial independence of mortgages is that borrowers are always looking to minimize interest expenses. Obviously no debt whatsoever is a remarkable goal for everybody, but not very likely for the average citizen. As many know, a mortgage interest is tax-deductible, and thereby tax-favorable, as Edelman likes to say. Specifically, if youre in the 35% tax bracket, every dollar you pay in mortgage interest saves you 35 cents in federal income taxes. Many of the savings and deductions apply on state income taxes level as well. Say youre in the 33% tax bracket and you get a 5% mortgage, the true interest rate on that loan is really 3.35% after taxes. To put that into a visual perspective, if you invest money and earn 5%, your profits are taxed at only 20%, and your after-tax profit is 4.00%. Thus, even if your investments earn no more than what you pay for your loan, youre still making a profit!

It is very challenging to truly relate fully how a mortgage does not impact financial independence, and in fact will more often than not if utilized properly will be able to assist someone to achieve their financial objectives much faster and more lucratively if utilized properly. I love watching peoples faces when I am able to show them how so it truly brings great satisfaction to my work. Its certainly worth a phone call. Special shout out to the Ciment Family!

By Shmuel Shayowitz

Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience including licenses and certifications as certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at [emailprotected]

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Celebrating Independence – Jewish Link of New Jersey

These 5% dividend yields could help you win financial independence – AOL UK

Investing in companies with the ability to deliver rising dividends over many years can be a powerful way to build wealth. Share price gains often follow dividend growth, creating impressive total returns.

What’s more difficult is to find companies with high yields that still have growth potential. In today’s articleI’m going to take a look at two very different dividend growth stocks, each of which offers a dividend yield of about 5%.

Pub group Greene King (LSE: GNK) appears to be making a decent job of running a fairly traditional business. Sales rose by 6.9% to 2,073m last year, while the group’s underlying operating profit climbed 4.9% to 392.2m.

Adjusted earnings per share were 1.3% higher at 69.9p, while the dividend was lifted 3.6% to 32.05p per share for a yield of 4.7%. Return on capital employed, a useful measure of profit for a business with lots of fixed assets, was unchanged at 9.4%. That’s respectable, if not spectacular.

Greene King shares have traded unchanged since the figures were released this morning, but there was some bad news. The group’s operating margin fell by 0.3% to 18.6%, due to cost pressures and the brand conversion costs resulting from the acquisition of Spirit pubs.

The firm was also forced to book an impairment charge of 58.6m against the book value of its pubs, due to “changes in the local trading environment”. A further 34.9m of impairment was recorded against sites that were closed or sold last year. These suggest to me that market conditions remain tough for pubs.

However, Greene King’s underlying business appears to be trading well and delivering fairly stable profits. For investors seeking income, I think that the forecast P/E of 9.7 and prospective yield of 4.8% could be an attractive long-term entry point.

Air Partner (LSE: AIR) may not be a name you’re familiar with. It’s a specialist aviation services company which provides charter services to governments, corporate customers and high net worth individuals. The group also includes an aircraft re-marketing business and consultancy services.

The firm is listed in the FTSE Fledgling index and currently has a market cap of just 61m. But it’s not a fly-by-night newcomer as it was founded in 1970 and has been public since 1989.

Recent performance has been strong. Underlying pre-tax profit rose by 17% to 5.1m last year, while underlying earnings rose by 10% to 6.5p per share. Shareholders enjoyed a 7.2% dividend hike last year, giving a total payout of 5.2p per share. That’s equivalent to a 4.6% yield at the current share price of 114p.

Air Partner has made several acquisitions over the last few years. These are helping to broaden the range of related services it offers and may deliver more stable profit growth. Although the company’s profits are likely to slump during recessions, its long history suggests to me that this business has staying power.

Analysts covering the stock expect underlying earnings to rise by 20% to 7.8p per share this year, putting the stock on a forecast P/E of 15 with a prospective yield of 4.7%. I believe this business could be a long-term growth story, and is worth a closer look.

Investing in stocks such as Air Partner and Greene King could help you build a stock portfolio to fund your retirement. But if you really want to beat the market and retire early, I believe you need a clear plan.

In The Foolish Guide To Financial Independence, our investment expert Mark Bishop explains how he believes you shouldinvest to maximise your chance of an early retirement. Mark’s tips include stock suggestions and ideas to help boost your saving power.

This exclusive report is free and without obligation. To download your copy today, click here now.

Roland Head owns shares of Air Partner. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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These 5% dividend yields could help you win financial independence – AOL UK


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