The Mad Fientist’s New Rule To Retire Early Even Sooner

Рет қаралды 61,324

Күн бұрын

Episode #428
If you want to retire early, the Mad Fientist is your guide. For over a decade, Brandon, more commonly known as the “Mad Fientist,” has been running simulations, experiments, and exercises to discover which road to early retirement is the fastest. Now, in his forties, Brandon has time to reflect on what worked, what didn’t, and his regrets on the sprint to early retirement and financial freedom. And he’s also got a new update that’ll make your early retirement journey smoother.
After tinkering with the beloved and rarely challenged 4% rule, Brandon decided it was time to sit down and calculate how much you really need to retire early. For decades, financial freedom chasers have been breaking their backs, trying to have as much stashed away as possible to enjoy their well-earned time off from work. But, it turns out that this number might be overinflated, and you can retire with much less than you think. That means your early retirement timeline just got a LOT shorter.
In this episode, Brandon will describe why the 4% rule may be a bit too rigid, how to ensure you’ll have enough during early retirement, what to do during a market crash or correction, and why spending thousands of dollars on a coffee machine isn’t such a bad idea. If you want to maximize enjoyment in early retirement, instead of building a big bank account you probably won’t use, stick around!
Show Notes at:
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Accessing Retirement Funds Before Age 59½: www.biggerpockets.com/blog/bi...
Backdoor Roths, Mega Backdoor Roths, and Roth Conversion Ladders: www.biggerpockets.com/blog/bi...
Is It Time to Give Up on Financial Independence?
www.biggerpockets.com/blog/bi...
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Hear Our Interview with "Just Keep Buying" Author, Nick Maggiulli:
www.biggerpockets.com/blog/mo...
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The Problem with the 4% Rule (and Why You Could Retire Even Sooner):
www.madfientist.com/discretio...
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Website: www.madfientist.com/
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00:00 Intro
05:06 Money Moment
05:56 A LOT Has Changed
08:54 The New 4% Rule
25:57 What to Do During a Crash
37:19 Early Retirement Rules of Thumb
42:19 The Skill of Spending
58:45 Connect with Brandon!
01:00:04 Crossing The 4% Rule Hurdle

Пікірлер: 85

@melissagorgeous16 Жыл бұрын

Working by choice is liberating.

@masterfiddler11 4 ай бұрын

I’ve been living a FIRE lifestyle and goals for about 10 years alone (ie, not following the community in any way). Suddenly I see this video and realize how much I’ve lost by not utilizing ideas from others (or sharing my own) - it’s amazing how FIRE is such an independent journey but we can share so much by communicating. Thank you for this video, it really spoke to me!

@TheRetirementality Жыл бұрын

Great stuff. I always love it when someone challenges the 4% rule and the "conventional" thinking of the FIRE movement. It's what I try to talk about on my channel too. There are a lot of different ways to FIRE and they are all great. I think the biggest problem with the FIRE movement is trying to make it look too easy, and people trying to do it too soon. They will be in trouble later in life and this no bueno.

@danielitooh Жыл бұрын

This is imo one of the best videos not only on your chanel but generally within the whole FI topic i have found so far. There are so many balanced insights from diversifying portfolio, feeling fulfilled in life, the necessity to being able to adapt to asset performance as well as smart directions on how to approach spend and pleasure in a way which might contribute not deteriorate the financial stance. Its a pity you have not shown any of the data you were referring even though the episode is > 1hrs long.

@JoseRodriguez-yr9uv Ай бұрын

Some of the clearest and most practical examples and advice the FI community

@JMM3289 11 ай бұрын

Mindy you look great! I also love your bubbly personality. You are so nice to every guest. You and Scott both do a great job! Keep up the great work!

@holdencawffle626 8 ай бұрын

Um....no

@christinab9133 Жыл бұрын

Always love seeing Brandon! Very timely for me. We r in the beginning stages of fi and spending more than usual this year on a 1,000 room renovation (floor) for my kids room and some family vacations. Hard for me to feel good about spending the money but I’m trying to remember that the memory dividends are what are important 😅

@sstewart8503 Жыл бұрын

This is now my favorite episode. The only disagreement I had was actually with Scott’s assessment of housing pricing. First, even for stocks I still look back at 2019 pricing because of the hyper inflated prices the last few years. Also, the other factor is the median income of an area and available units. Investors have been using housing as an inflation hedge and not setting at a fair market price if you include owner occupants. So housing prices are over priced and more inflated then just inflation factors.

@andreahuss3156 Жыл бұрын

I love Brandon! He’s my inspiration. Thank you for having him back on. ❤

@chrisharris4223 11 ай бұрын

I like the 5% with 40% discretionary balance, that could work well 👍 great video, really thought provoking

@cathyanderton1583 Жыл бұрын

6 minutes in and Brandon still hasn't appeared Why do these type of shows take so long with their intros?

@zsi 5 ай бұрын

Because they know there are people who are tuning just to hear Brandon. They want to ensure everyone hears the other stuff, too.

@AverageJoeDividends 4 ай бұрын

It's called House Keeping.

@daniellubowa595 Жыл бұрын

Innovative!

@ayannafit2441 6 ай бұрын

Yeah, I think the one thing I kinda regret passing on is going to jitsu nationals with my club back at uni but that mostly because my current place (mived countries) diesnt have those nationals.

@VNAV_PTH 11 ай бұрын

Has anyone any sense about how the cost of travel is gonna change (or not change) in the future?

@Mirkinball Жыл бұрын

Why on earth would someone go through all of the time and effort to amass one million dollars just to earn the privilege of constantly worrying about market downturns and if it will last the rest of their lives when they can invest in a basket of solid stocks that all pay dividends?! If the dividend portfolio yields 6% (a very realistic assumption) then one million would give you sixty thousand dollars in dividends annually. And you would never have to touch the principal.

@LibermanConsultingLLC Жыл бұрын

Good point.

@LibermanConsultingLLC Жыл бұрын

@@vulpixelful You are correct. But tax is a fraction of the dollar. And that is the price to pay for your freedom. In the USA a money you don't pay tax on is not spendable. Dividend stocks allow you to generate dividend income while your money is invested in these individual dividend stocks and continue to appreciate in value. You generate income from these dividends and don't worry about selling your stocks when the market is down. And of course these dividends are taxable if you invest in your brokerage taxable account even if they are reinvested. Yes some investors don't like dividend stocks because of they are taxable. Investing in growth stocks that do not pay dividends could be compared to holding on to a real estate and not renting it out for rental income in the meantime. Some people might worry about tax because of the wealth they accumulated but to many others, trying to minimizing their taxes could hinder their abilities to make more money.

@earlyretirement1459 Жыл бұрын

@@vulpixelful Qualified dividends (the vast majority of stocks) are currently treated the same as Long-term capital gains. REIT dividends are taxed as income, however

@Ricky--Bobby Жыл бұрын

Which long term stocks IBM, UPS, O,?

@LibermanConsultingLLC Жыл бұрын

@@Ricky--Bobby I am not sure I understood your question. When it comes to choosing dividend stocks, I like to set a minimum dividend I would not go under. then the company should have gone public before 2000. The maximum chart from when the company went public to now should show upward growth. Then when the current stock price is close to its 52 weeks low, it is the time to purchase some shares. For upward growth stocks I can accept 3%+ annual dividend. For stocks that has growth and dip type of chart, I expect higher dividend rate but the chart should still show growth meaning the dip in the chart should not go as low as the original price when the company first went public. You want dividend income but you still want your investment to build equity overtime. To answer your question but it just my personal opinion: IBM, UPS, and O all have upward growth and both IBM and O pay 4%+ annual dividend. UPS pays around 3%+. All 3 went public by 2000. I would say all are good to invest in long-term. And they are in different sectors thus diversifying your portfolio.

@sameersmerchant Жыл бұрын

New outro!

@serialmigrant Жыл бұрын

Any book recommendations on how to manage the portfolio? 60/40 bonds index funds ok... But there is more then one index fund out there.

@scotttrench4169 Жыл бұрын

Try the Simple Path to Wealth by JL Collins!

@TheGreatAgnostic 2 ай бұрын

As a Canadian, I find a lot of Americans focus almost entirely on investing in the US market. I think global diversification is important. For example, I use an asset allocation ETF where the holdings are based 1/3 each In Canada (my home country), the US, and the rest of the world. Maybe an America can justify a 50/50 split, but I think that international representation is a plus to diversify the returns and mitigate risk.

@MN-wg8qd Жыл бұрын

I think its great to get out of the full time grind earlier so that you can really start building and living your retired life to the max (not that you can't do many important things while still working). Flexibility is key. We're early 30s and halfway to our number. I'm hoping to grind out another 2 years or so and then work short term/project based gigs only while compounding takes care of things. If the market tanks I can always work more, but the important part is getting out of the whole rat race of 2k hours per year which is totally unhealthy and unbalanced imo. 4 weeks of vacation is work/life balance? Yeah right

@MegaKg9 9 ай бұрын

I hear you brother

@sarahgrillo9915 Жыл бұрын

If you are new to the “fire” movement where would you begin?

@sarahgrillo9915 Жыл бұрын

@@evasanz3466 thank you.

@discoveringhealthandfinanc8328 Жыл бұрын

I would say to crunch the numbers. Find out what your FI number is. Does paying off all of your debt make sense before investing? It depends. If you have credit card debt at 20% APR then absolutely pay that sucker off but if you have a mortgage at under 3%, I wouldn't rush to pay that off. Ultimately it depends on you and your lifestyle. Even Mindy and her husband still have mortgage debt on their rentals and they are not rushing to pay it off. They are leveraging "good debt" to build wealth. Everyone's situation can and will be different

@OriginalDemGunz 11 ай бұрын

Evaluate Food Transportation and shelter see where you can trim some fat

@odnilniloc 9 ай бұрын

Agreed, crunch those numbers. First port of call after that is to reduce your spending/expenditures as much as possible, without being overly drastic. Those two steps are very important and will lay a good foundation for your journey to F.I.

@TheDuke792 9 ай бұрын

Having an investment adviser is the best way to go about the market right now especially for near retirees

@ThomasColt 9 ай бұрын

People downplay planner’s role, until they are burnt by their mistakes. That’s why I’ve been working with expert planners like LUCY ROSE CARTER

@TheRothschild770 9 ай бұрын

I know Lucy, she is a CFP and I first saw her on the BBC talking about the crypto and real estate. And I just had to look her upon the WEB. I’ve made real good money since.

@SeanJohns-ze8ie 9 ай бұрын

Is it possible to get in contact with someone like that?

@RobertDamanii 9 ай бұрын

LUCY ROSE CARTER GOOGLE the name

@RoseBalerus 9 ай бұрын

I wonder where she gets her analysis from. I’m very impressed with her resume

@Ricky--Bobby Жыл бұрын

Where is best place to park 1 million

@gomesplace7308 9 ай бұрын

Any solution as to where to park 1m

@odnilniloc 9 ай бұрын

In my bank account 😂

@tintinet 7 ай бұрын

Depends on time frame- less than 3 years T Bills; 3-5 years 60%/40%; more than 5 years 80/20; more than 10 years 100% stocks

@11227denis Жыл бұрын

49:05 hogwash. Judgement is necessary. Keeps people good and honest. Mr. Money Mustache has spent a decade taunting truck owners and gas guzzlers in the name of environmentalism. His Tesla choice has hypocritical environmental and humanitarian consequences and he should be judged. Judged by his own standard.

@Big_delta 6 ай бұрын

I always appreciate analysis... But this guy took an unbelievably complex way to overcomplicate the 4% rule. There are better, simpler withdrawal strategies.

@jassminekharbat7289 8 ай бұрын

Who is Mindy?

@ChrissyCAGirl 5 ай бұрын

Retirement but he does a podcast, writes books. Sounds like he is self employed but not retired.

@Dont_Call_It_Hybrid 3 ай бұрын

There’s a huge difference between having to work and choosing to work.

@gordonpi8674 2 ай бұрын

Not in any connection with the title. Total waste of time!

@ryanbaileyboxing 11 ай бұрын

My favorite finance channels: Bigger pockets money, Mondays: Earn your leisure market Mondays Tuesdays: Wallstreet looks like us now network, Reppond Investments Wednesday: Reppond investments Also, melanin money podcast and peter Schiff show, wealthion, Joseph Carlson For crypto: Ivan on tech, crypto banter, cryptosrus Make my week complete!

@holdencawffle626 8 ай бұрын

The lady talks WAYYYY too much. The guy host scott actually has good points and is logical. The lady is incessant with her ridiculous talk. Please talk less and let scott and the mad fientist talk more

@AverageJoeDividends 4 ай бұрын

I think Scott and Mindy make the perfect team. Scott is numbers and logic and Mindy brings the much needed yin to Scott's yang.

@Esme26433 3 ай бұрын

Please find ways to give feedback in a polite way, thanks. And I love Mindy. She’s bubbly. The reason why some of us keep coming back