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Ready to break free from the 9-5 rat race? In this video, we’ll show you exactly how to escape the traditional work grind and live life on your own terms.
– Here is how you can invest your way into financial freedom using the 4% rule.
Let’s say you want to retire and live on $40,000 a year. According to the 4% rule, you would need to save and invest 25 times that amount to achieve financial freedom.
Step 1: Calculate Your Target Investment Amount
Multiply $40,000 by 25:
$40,000 × 25 = $1,000,000
So, to live on $40,000 per year, you would need to save $1 million in investments.
Step 2: Invest and Withdraw 4%
Once you’ve saved and invested $1 million, you can withdraw 4% of that amount each year:
4% of $1,000,000 = $40,000 per year
This $40,000 is what you can live on, and the remaining amount should continue to grow if invested in something like a stock market index fund, typically earning around 7-8% annually.
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Whitney Bonds is the Founder of TriedandTrueMomJobs.com, a free digital resource to help people (especially moms) make legitimate money working from home. She’s been featured in Parents, Forbes, Business Insider, YAHOO! Finance and more.
After leaving her corporate job as a marketing manager, she now helps people find high-earning remote job opportunities through her website.
Disclaimer: Some of the links above may be affiliate links, which means that if you click on them I may receive a small commission. The commission is paid by the retailers, at no cost to you, and this helps to support our channel and keep our videos free. Thank you!
In addition, I am not a financial advisor. Whitney Bonds does not provide tax, legal or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your own due diligence before making any financial decisions.
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