DeepSummary
In this episode, Sim and Maya discuss Sim's plan to retire by the age of 40 using the Financial Independence, Retire Early (FIRE) method. Sim explains how the FIRE method involves calculating the amount of money needed to live off of each year and then investing that amount to generate passive income.
Sim shares her own 'FIRE number' of $100,000 per year, which translates to needing $2.5 million invested to withdraw 4% annually. She talks about her investment strategies, including investing in shares, index funds, real estate, angel investments, and venture capital. Sim emphasizes the importance of consistency and diversification rather than seeking high returns.
The hosts also discuss the challenges of balancing spending and saving while pursuing early retirement. Sim acknowledges the difficulty in enjoying the present while also saving for the future and trying to find the right balance.
Key Episodes Takeaways
- The FIRE (Financial Independence, Retire Early) method involves calculating the annual income needed for retirement and investing enough to generate passive income to cover that amount.
- Diversifying investments across various assets like index funds, individual stocks, real estate, and venture capital is important for consistent growth.
- Focus on slow and steady investing rather than seeking high returns or trying to time the market.
- Calculate your 'FIRE number' by dividing the desired annual income by 4% to determine the investment amount needed.
- Balance enjoying the present with saving for the future by not being overly frugal or depriving yourself.
- Pursuing financial independence and early retirement requires discipline and consistency in saving and investing.
- Be skeptical of 'get rich quick' schemes or unrealistic promises of high returns.
- Investing in yourself and increasing income can help reach financial goals faster.
Top Episodes Quotes
- “If I want to live off one hundred k a year, there's a math equation I can use to figure out, well, how much do I need to have invested? And once I have that number invested, I can technically stop making money and just live off that forever.“ by Sim
- “I'm not looking to make, like, crazy returns. I'm not looking to make, like, 15 or 20% per year. I'm not trying to time the market. It's just slow and steady wins the race.“ by Sim
- “You've got to find a balance of like, hey, sim, enjoy the day. Like, I won't get the miso soup in my Uber eats order. Cause I'm like, that's $3.50 Simran, do you know what I mean?“ by Sim
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Episode Information
Girls That Invest
Girls That Invest
6/17/24
This week, Sim and Maia discuss Sim’s plan to retire by 40 using the FIRE (Financial Independence Retire Early) method. She explains that the FIRE method involves calculating how much money you need to live off each year and then investing that amount to generate passive income. Sim shares her own FIRE number and discusses the strategies she uses to achieve financial independence, such as investing in shares, index funds, and real estate. She also talks about the challenges of balancing spending and saving while pursuing early retirement.
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'Til next week, team! 💖
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