I'm not proposing that you be at work every day either. I'm proposing you spend an extra 5 years after you exit the rat race (earlier than you would here) to secure a 7 figure sum and a series of passive income streams to ensure absolute financial freedom, and defer your "do whatever you want phase" by a few, but not many, years.
So, the timeline goes from this:
- Phase 1 (years 1-5) : Save $500k
- Phase 2 (years 5-30): Live frugally but without working for 25 years but without true financial freedom while interest accrues
- Phase 3 (year 30): Reach true financial security after you build wealth via the markets somehow (risky) and no longer worry about money whatsoever. You are now old and your liklihood of getting here by building wealth via the markets is probably lower than you think.
Alternate reality:
- Phase 1 (year 1-2): Save aggressively $200k by living like a bum.
- Phase 2: (years 3-8): With your independence, start a series of high growth ventures (some of which will fail) and work incredibly hard to build wealth. By year 5 you should be cash flow positive, by year 8 you should have $1-5m.
- Phase 3: (years 9-15): You are completely financially secure with a passive risk free income on interest of $150k-250k/yr on your cash sum. This is time for you to decide if your dreams require more passive income than that. If so, spend this time continuing to work independently and building wealth. If not, you're retired here and can do what you please on your 6-figure risk free salary.
- Phase 4 (optional): Get to $10m-20m in the bank. Congratulations you now have $500k-1m a year to play with and literally do whatever you want if your dreams so require it.
This is perfectly compatible with the MMM plan. Nothing says that you can't spend as much of your retirement as you like on high growth ventures. The definition if retirement here is no longer being financially dependent on the rat race. Though I will note that this will work even better if you learn to enjoy living frugally. Every dollar you don't spend is less time you HAVE to spend working.
So, the timeline goes from this:
- Phase 1 (years 1-5) : Save $500k
- Phase 2 (years 5-30): Live frugally but without working for 25 years but without true financial freedom while interest accrues
- Phase 3 (year 30): Reach true financial security after you build wealth via the markets somehow (risky) and no longer worry about money whatsoever. You are now old and your liklihood of getting here by building wealth via the markets is probably lower than you think.
Alternate reality:
- Phase 1 (year 1-2): Save aggressively $200k by living like a bum.
- Phase 2: (years 3-8): With your independence, start a series of high growth ventures (some of which will fail) and work incredibly hard to build wealth. By year 5 you should be cash flow positive, by year 8 you should have $1-5m.
- Phase 3: (years 9-15): You are completely financially secure with a passive risk free income on interest of $150k-250k/yr on your cash sum. This is time for you to decide if your dreams require more passive income than that. If so, spend this time continuing to work independently and building wealth. If not, you're retired here and can do what you please on your 6-figure risk free salary.
- Phase 4 (optional): Get to $10m-20m in the bank. Congratulations you now have $500k-1m a year to play with and literally do whatever you want if your dreams so require it.