"After studying the 4% rule and running their own numbers, they concluded that a $1 million portfolio could support their modest lifestyle. Their FIRE number was calculated by multiplying their annual spending about 40,000 Canadian dollars by 25, a common rule of thumb in the FIRE community based on the 4% rule."
"Achieving financial independence required a two-part strategy: first, building wealth aggressively by saving and investing most of their income, and then restructuring their portfolio to generate reliable income in early retirement."
Kristy Shen and Bryce Leung shifted their investment strategy in 2012 to pursue financial independence. Initially saving for a home, they redirected their funds into index investing after discovering the FIRE community. They calculated their FIRE number based on their annual spending and invested significantly. By 2015, they reached their financial goal, quit their jobs, and began traveling. Their strategy involved aggressive saving and investing, followed by restructuring their portfolio for reliable income in retirement, which they refer to as a two-phase FI investment strategy.
Read at www.businessinsider.com
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