I've decided that I want to retire early!!

@downtoinvest

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Why it worked

The video provides high-value, actionable financial education using clear, simple math that makes an intimidating topic feel accessible and achievable.

Summary

The creator explains the concept of FIRE (Financial Independence, Retire Early) and Coast FIRE, detailing the math behind calculating a retirement number. She shares her personal goal of reaching Barista FIRE by age 50 and promises a follow-up video on her specific investment strategy.

Structure

1Introduction to the goal of early retirement
2Defining FIRE and Coast FIRE
3Explaining the math and assumptions used
4Calculating the specific $2.4 million target
5Discussing the Barista FIRE lifestyle
6Teasing the next video on investment strategy

Call to action

follow for the tea on my investments

On-screen text

I want to retire early!! Hitting COAST FIRE at 32 Financial Independence Retire Early FDGRX (my main holding) 11.5% real return on avg annual spend x 25 $96,000 x 25 = $2.4 million Fat FIRE Chubby FIRE Lean FIRE Barista FIRE follow for the tea on my investments

Original caption

I had honestly never calculated my FIRE number or COAST FIRE number before the other day. I use other tools online to plan for my retirement which I'll share in a later video. #fire #retireearly #investingforbeginners #retirementplanning 🤍

More from @downtoinvest

More breakout videos from this creator.

Transcript

I've decided that I want to retire early!! Hitting COAST FIRE at 32. I've decided that I want to retire at 50 and I figured out exactly how much money I need so I can make that happen. I'm gonna show you how I calculated it so you can do it too. Just for a little background, your FIRE number is the amount of money you need to have saved and invested so you never have to work again. I'm making these two assumptions: an 8% average annual return in the market and a 4% withdrawal rate. That's the money I'm actually gonna be living off of. The rest is gonna stay invested to offset inflation. So, how do you actually calculate your FIRE number? You take the amount of money that you want to live off of every single year and you multiply that by 25. My number came out to $2.4 million. Now, my plan is not to retire at 50 and do absolutely nothing because I think I would be super bored. There are so many different versions of the FIRE movement, so I'm likely targeting Barista FIRE, which just means I wanna make full-time work optional. And if you're curious, in the next video, I'm gonna be sharing exactly how much I have to invest before my 32nd birthday, which is next year, to be able to hit Coast FIRE.