The FI Million Dollar Question: How Much Would I Need to Fund My Lifestyle Forever?

Mr. Enchumbao

I work for a large investment management company helping people save for traditional retirement. During my spare time I help others save for financial independence and early retirement by writing for Enchumbao. My journey to FI began in 2012. I was in a lot of debt back then but I turned things around and became debt free a few years later. My wife and I reached financial independence in 2017 and are preparing to retire by 2020.

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8 Responses

  1. LM says:

    Definitely a penny every day 🙂 — “Then you can wipe without worries”!!!! too good. Love this blog!

  2. Great analogies. Just save $1 a day, for a million days, and you are all set. It takes time, but the money does grow by it self eventually. And when you have a sum in the bank, it’s nice to watch it grow. Saving gets addicting.

    • MrEnchumbao says:

      Thanks. Yes, it’s amazing how it grows by itself. What a difference it would make if people would put savings first and spending later and let compounding do the rest!

  3. Best article I have read here. My focus in business and life has always been producing as much as possible, some times without a clear purpose on what I’m going to do with what I have produced. Thank you for this article, anyone with 2 cents of brain can see the power in the formula. Keep it coming, I’m hooked!

    • MrEnchumbao says:

      Thanks, that’s great to hear. With a clear purpose on what you’ll do with your money you’ll certainly put your energy to even better use. Awesome, keep reading and we’ll keep writing!

  4. I know I am commenting on an old post of yours, but do you believe in the 4% rule for long (>40 years) retirement horizons? I did a post on that titled Hacking the retirement calculators to arrive at a very conservative withdrawal rate of 3.27%. Not saying everyone needs to be as conservative, but I am wondering if you feel something like 3.5% is what you would now suggest compared to 4%, given the massive bull run we’ve had recently.

    • Hi TFR, you make a good point. I think that the 4% rule is a great starting point and individuals can tweak it as they go. In today’s environment, in which Jack Bogle rationalizes a 4% return on equities for the next decade, I would be more on the conservative side and go with a flexible 3-4% withdrawal rate. 3.5% is a nice middle-of-the-road compromise and it doesn’t take that many more years of work to achieve it.
      I think the key to ensure that your money last is to be flexible and either spend less or make some income on the side when the markets are down.
      Thanks for your comment!

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