After a couple of years living the FIRE lifestyle between the U.S. and Panama, they have more money than ever. While they don’t necessarily need more money, he can’t help but want more.
Here’s the deal, if you’re unfamiliar, a lot of the FIRE community follows the idea of the 4% rule. In a nutshell, a study was done years ago that showed that you should be able to pull 4% per year (adjusted for inflation) out of an investment portfolio every year without running out of money over a 30-year time frame.
There are several caveats to this rule of thumb and there are plenty of arguments as to why you should make your withdrawal rate more or less. Regardless, it’s a great starting point in trying to determine how much money you’ll need to be financially free.
Sounds pretty good, Jim. Seems like you guys are living the dream… why do you need more money then?