They Don’t Need More Money, But He Wants More

My friend Jim retired from his career at the same age and around the same time that I did. He did, however, retire with a smaller budget in mind and less of a cushion to accommodate life’s potential changes.

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.

Below, he describes why they’re good right now, why it wouldn’t hurt to have more, and the different ways in which they could get more.

They Don’t Need More Money, But He Wants More

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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.

Why we don’t need more money…

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?

Why do I want more money…

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