Personal FinanceCanva: Изображения пользователя Yauhen Akulich and gerenme from Getty Images SignatureRich DupreyThis post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive
compensation for actions taken through them.Many believe that becoming a millionaire means we’ll be able to retire early to a life of carefree luxury. Unfortunately, $1 million isn’t quite what it used to be. But depending upon when we want to quit the rat race and that we still have many years of living ahead of us, we’re going to need a lot more saved than just a million dollars.However, it’s hard when we’re very risk-averse. Although it’s true that the greater the risk, the bigger the reward, the reward is by no means guaranteed. Overcoming the fear of taking risks is often the hardest part of achieving our goals.This was brought to mind by a Redditor on the r/fatFIRE subreddit who, although he’s done quite well for himself in a relatively short amount of time, is a long way from his target because he is too conservative when investing. Due to his fear of losing it all, he foresees himself having to work well into his 60s.They say the first step in overcoming a problem is recognizing you have one. He is at least making progress in one area.24/7 Wall St. Key Points:If you want to retire early and live a very comfortable lifestyle, it’s going to entail taking on risk.
A financial advisor can set a course of action and hold you to it, which is an essential part of achieving your goals.
Yet recognize the achievements you have made and be willing to congratulate yourself on your accomplishments while ignoring all the woulda, coulda, shoulda.
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After coming so far, so fast, don’t give upThe Redditor and his wife are 45 years old with household income of $500,000 a year. His net worth is about $4 million spread over retirement accounts worth $1.2 million, liquid assets of $1.6 million, and home equity of $1.5 million from a primary residence and five rental properties.Considering he started investing and thinking about his future later in life, the Redditor has come a long way in a short amount of time. Now I’m not a financial planner, so these are only my opinions, but I believe that while the Redditor could retire early, he is probably right a regular retirement schedule is in the cards because of his fear of losing capital.Canva: Dawid S. Swierczek from Getty ImagesAcknowledge your shortcomings and take actionIt is important to understand losing capital is a serious issue, particularly as you get closer to retirement. While the Redditor could have been more aggressive when he was younger, now as he approaches retirement, being conservative is probably an advantage.Despite the Redditor being a high wage earner, he’s also a big spender with annual expenses around $250,000 a year. For his salary and net worth, that’s
Ven. Gen 10th, 2025
