Here is your step by step guide to learning how to retire by 30 years old – Enjoy! Sign up to Morning Brew for free today: https://cen.yt/morningbrewgraham Thanks! Add me on Instagram: GPStephanAdd me on Instagram: GPStephan
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First thing to know: The FIRE Movement
This stands for Financially Independent Retired Early, and it’s a community of people who dive into the analytics of EXACTLY what you’ll need to be able to retire at any age.
All you need to know for retirement comes down to a few things:
How much money do you NEED to spend every year, how much do you CURRENTLY have saved, and lastly – how much money do you currently make? If you know the answers to those 3, it’s going to tell you EVERYTHING you need to know to be able to retire by 30.
To start, how much money you SPEND is going to be the most important variable of this entire calculation.
Generally speaking, if you’re under 30 years old and you want your your money to last you INDEFINITELY without ever running out – you’ll need to only spend 3% of what you have invested, each year.
Now, how much you spend is going to GREATLY influence how much you’ll need to retire…because, for every $100 per month the spend, you’ll need $40,000 invested in order for that $100 per month to last you forever.
NEXT – HOW MUCH MONEY DO HAVE SAVED UP AND INVESTED?
Whatever that amount is…divide that by 33, and that’s how much income your investments will be able to replace. From there, you’ll need to do the super easy math to figure out how much more you’ll need in order to retire…all you need to do is take how much money you spend every year, multiply it by 33…and however much that is, is how much money you’ll need before you can call yourself “Retired.”
This is based on what’s known as the Trinity Study, which analyzed the investment portfolios of stocks and bonds throughout every year in history, and calculated how much you could spend from your investment throughout a 30 year retirement – and that study found that you can spend 4% of your portfolio every year, and still have that money last you 30 years.
However, a 30 year retirement isn’t going to be long enough if you plan to start that retirement at 30 years old…so, in order to preserve more capital so you can retire for a longer period of time…a 3% withdrawal rate was recommended.
https://thepoorswiss.com/updated-trinity-study/
https://www.thebalance.com/how-much-can-you-withdraw-from-your-retirement-portfolio-453997
And finally – the last factor in the equation – how much money do you currently make?
This is going to determine how long it’s going to take you to hit your target retirement number, and whether or not you’ll have to earn more money to get there sooner.
HOW TO GET THERE: SAVING MONEY.
The Blogger MrMoneyMustache did the calculation for us, and found out how many years you’ll need to work in order to retire compared to how much money you save. Using the 4% rule, he determined that – if you save and invest 70-90% of your income, you would be able to effectively retire within 10 years of working.
Practically, if you want to do this by 30 years old – you’ll either have to MAKE A LOT OF MONEY, or you’ll need to SPEND VERY LITTLE MONEY – but, assuming you guys just want to make a whole bunch of money as fast as possible to be able to retire, I’ll give you the honest run down on MAKING AS MUCH AS POSSIBLE:
Your BEST SHOT at being able to retire by 30, and make a LOT of money, is to work a job that pays you based on YOUR RESULTS, not how much TIME you put in. And at the end of the day – if you want to make a LOT of money just to be able to retire quickly – de-couple the idea that the more time you work, the more money you make – because that’s very much NOT true, at all.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
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I keep telling my kids this and sharing your videos. I learned this late in life but I am planning to retire next year at the age of 54. Way better then 67.
BUT GRAM IM ABOUT… 😂
Thanks for this valuable information Gram, keep making videos.🙏
I was able to reach financial independence @34 years old. When you decide to peruse Financial independence its important to stick to a budget even if you get raises at your job. Also it is very important to reduce your taxes so that you get to keep all the hard earned money you have made in your pockets. Good luck to anyone trying to become financially independent. It is very possible especially if you have a plan.
9:33
Well I’m 16 soo…. I got 14 years
currently 32 years old and this video didn't help darn it
currently 19 years old & investing. ill update every couple years!!!
I'm actually implementing this advice, but I'm a bit late because I'm 23 1/2 but I'll be tracking my progress.
I'm 30 too late for me lol
I actually like that you remind me to smash that like button, sometimes I forget lmaoo
What if we are already 30?
If you plan to retire at 65 when you are around 18-30 you need to reevaluate your plans.
Wish I knew about this stuff
none of it will matter when the world ends
31y 31k debt zero saving living pay to pay
Eww
Have fun procrastinating your moment on YouTube
Any indian's in the chat or am i the only one watching him.
Omg, that means i just only have 10 yrs to work my butt off so i could be able to live for 70 yrs??😭….Damn, i better get to working
😡 🤑
1:06 help my like button is white what should i do i will always be broke
oh, hi algorithm
how about the 30% you lose in penalty's and taxes for an early withdraw?
As long as I can just work part time as something to do to pay for the essentials and live life have more time that’s all that matters I don’t really expect to fully go from work absolutely a little job too I can talk to a few people and everything just don’t like working all the time and have no time off get a little weekly paid job that would be lovely that’s my aim
Saw another comment say this, but I am also 19, and will check back in a 10 yrs. Good luck everyone! We got this!
Bruh turn the fucking volume down on the like button ding
Hey graham, give me tips on making more money and saving more money while in college
the thumbnail was like just work 20 minutes and the retire
Your advice to be a creator and less of a consumer is exactly what I needed to hear. Thank you Graham!
Start at birth retire at toddler (20 step guide course in bio) – some YouTube ad scammer probably
gram I'm retired and living off social security I'm only 31 😭
People often forget about the military’s amazing retirement opportunities. After 20 yrs you can earn a pension of 40% your base pay. If you retire as an O-5 with 20+ yrs experience you can earn around $47k per year for the rest of your life. Not to mention the TSP (roth or traditional 401k) and the healthcare benefits.
Your videos are awsome! You don’t waste people’s time! You get straight to the point!
30 years?? i want to know how to retire when im 20!
i’m 20 right now i’ll let you guys know if i’m financially independent by age 30 see you 10 years from now
Fantastico video
you need to make a video regarding FIRE with Real Estate! numbers are WAY WAY different, with a 20% down payment on a 120,000 townhome, can net cashflow 750 a month! thats a 37% ROI! of course real estate is a more active investment but a property manager can take alot of your plate and not hurt you ROI too much! i encourage anyone to fight me.
In all. DONT WASTE MONEY LIKE A DUMBASS.
seen this im 18 now and i have 20k lets go it is FIRE time
Inflation : allow me to present myself
Im glade I'm learning this at 16
Wait, average income is 61k? Good lord I've been at 20k-25k for about 10years now
Hard work and knowledge only take you so far. Opportunity and circumstance play a far bigger role in success than people care to admit. Keep your character and integrity, that’s all that really matters anyway.
I’m actually going to implement this advice..I’ll comment back in 12 years. Currently 17 now!
Where do you put your savings to earn the most out of it over 10 -15 years ?
lmao…you caught me zoning out lol