People ask me this all the time and I tell them straight up, can you chip in 10,000 USD a year for 30 years into your employer sponsored 401(k) plan? If you start doing so at your early twenties and your employer do some kind of significant match of your contributions, based on current and historical returns data, you should have somewhere near a million USD in your mid to late 30s. The best part about all of this is, if you do contribute, your adjusted gross income (AGI) will be lower hence you will likely be able to lower your tax base by the $10,000 USD you contributed during that particular tax year. The government literally designed all this for you. I’m not saying the US stock market is risk-free, but I believe based on historical data the US stock market is comparative risk-free when compared with certain other stock markets. Remember, at the time of 401(k) contribution you are in your earnings golden years reaching prime in your late 30s and early 40s, you will likely be at a higher tax bracket. The 401(k) withdrawal tax rate is based on the tax rate of your actual withdrawal period not when you made the contributions. This means when you retire there is a chance you could withdrawal your 401(k) funds with little to no tax. In essence, a completely legal tax arbitrage opportunity in line with social contract rules and likely a retirement tax planning method encourage by the government.
One caveat many FIRE participants have a hard time with us balancing between being too frugal and enjoying life. Remember, the contributions are happening during your young and prime years. This is a time when you are able to enjoy life to the fullest. My suggestion is to do all that you want to do but learn how to get discounts on things you want to do. When you realize entertainment and enjoyment of life is fuel for more success and a great mental and physical state which are capital for even more success, you will see how important being able to enjoy life is. What do you mean by that? If you want to travel to Europe, instead going there during the peak season which likely will be too hot anyway with Europe’s lack of air conditioner issues, why not go there off peak season and make prudent plans such as save enough PTO to visit all the countries in the Schengen 29-country area on one trip saving tons on fixed costs like multiple airfares, hotel charges, train/transportation fees etc. Plus Euro FX rate fluctuate and Europe go through a lot of these regional tensions, basically the Middle East of the Western world, you can wait when these countries economies go through some type of austere measure so you can exploit the best they have to offer when they become less snobby and arrogant and literally on their knees begging for high-class American travelers who have the dispensable income to spend.
I live in America which means I have the rights to exercise reasonable free speech as permitted by the law. All posted content(s) on this website are my opinions only which means they should not be taken as advice of any kind. I am a non-celebrity, non-public figure posting anonymously for my own entertainment on a website that is not affiliated with any individual(s), organization(s) and/or any entity/entities.
How to achieve FIRE (Financial Independence, Retire Early).
I would absolute avoid certain Western European anti-American snobby iron tower places with all of its no-go zones, pickpocketers and the smell of pee during the summer time with a significant number of its population transplanted there due to its colonial past which may pose an ideological and physical threat to Americans’ minds and bodies especially on specific venerable populations who are historically inclined toward such ideological beliefs and are potentially easy converts. It’s one thing to DEI and subsidize with valuable resources, it’s another to do the above and also have enemies within that potentially do un-American things. Anyway, I digress. To be honest, having travelled around the world, I have yet to find one place better than America overall. The point of traveling the world as an American aligned person is not so much about being in awe of what other people have to offer, it should be more about being grateful of what you already have in America which is in essence extrapolating everything that is good in the world and moving it to America to form a melting pot.
Certain groups of people claim racism and lack of opportunities here in America but once they visit other parts of the world especially what they call their brothers and sisters, they start to realize how good they have it here. I hope these people will realize by sympathizing with foreign powers and foreign beliefs either directly, indirectly or just due to straight up ignorance are in direct conflict with that of America’s and will not do themselves any good. I believe the MEI movement and demographic shifts in the best universities of the world is helping true patriots whose family backgrounds are aligned with the Western ideals. Many of these people’s ancestors also seen, escaped from and fought against tyranny and knows why they live America. America must keep its advantage of having no natural enemies near its borders and two oceans to protect itself. America should not be educating whose nearshore rise could create enemies near its borders. A buffer zone that is relatively undeveloped and used for triaging with uncertainty factors laid in massive numbers on the physical grounds of buffer zones that will increase cost to any current, future and potential enemies are very important priorities.
I think for any America aligned travelers out there, it is also very important to check whether the country of destination, transit location or airspace crossing area have extradition agreements with certain archenemy of the United States. If such country, one of the 60 or so, does have such agreement, that most likely mean that country may not be that friendly to American interests or cares much about democratic ideas. Use your disposal income to do other things you may like such as dinning out and buying collectibles. Activities such as buying collectible cards is likely both fun and an investment opportunity. I think the bigger piece to this should be to get a prestigious education and top level license(s) in your field. Once you have those things plus experiences working for large companies. You will have enough FU clout and money to choose what you want to do and to not do what you don’t want to do.