Owen Raszkiewicz

Wonderful.

Okay, the rule of 4% assumes a 7% return because 3% in the olden times is what you assumed for inflation.

We still assume that today, but it's not actually happening right now, although it could come back.

So we'd hope to get 7% returns.

Now...

The reason why we want to increase our returns, so we want to invest and not just keep it in cash and put it into shares or property or something like that, is because it's quicker to get to the point that we want to get to.

If we want financial independence, if we want $2 million, you have to save $2,000 a month at 15% returns, this is obviously just a hypothetical number, after tax, and it'll take just 19 years.

So if you wanna retire in 19 years, however old you are, add maybe 20 years on, that's what you need to do.

The problem with this is some people can do that, not many people can do this.

And you're definitely not gonna get it in a bank account.

That's probably the one guarantee I can give you in finance.

Also, if you put money at risk and you invest,

You also need less to retire on.

So some people try to get to financial independence with $500,000, and they might assume that they're going to make 5% returns on their money.

It's $25,000 a year.

I don't know what you're doing on $25,000, but maybe you can survive on that, maybe you can't, especially if it's taxed.

15% of $1 million is $150,000.

You'll notice that's quite different to if you earned 7% or 6% or 4% on $1 million.

We'll go this way.

So I'm just going to bring this home now with some actual studies.