Simply put, your FIRE number is the amount of money you need to have invested in order to live off those returns and quit working. Now, I know that retirement doesn’t magically occur at a certain age, but rather when we can afford to pay our annual expenses with passive income. The higher your savings rate and the percentage of income you don’t spend, the faster you can become work optional.īefore learning about FIRE, I thought retirement was something that only people with pensions could do at the age of 65. It’s a movement that encourages people to live below their means so they have more money to invest towards early retirement or part-time work. companies are subject to risks, including country/regional risk and currency risk.What Is a FIRE Number, and Why I’m on This JourneyįIRE stands for financial independence, retire early. Investments in stocks or bonds issued by non-U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. Investments in bonds are subject to interest rate, credit, and inflation risk. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc.

Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. They are collective trusts available only to tax-qualified plans and their eligible participants. Vanguard Target Retirement Trusts are not mutual funds. Regularly check the asset mix of the option you choose to ensure it is appropriate for your current situation. The asset allocations Vanguard has selected for the Target Retirement Funds are based on our investment experience and are geared to the average investor. Vanguard is responsible only for selecting the underlying funds and periodically rebalancing the holdings of target-date investments. An investment in a Target Retirement Trust or Fund is not guaranteed at any time, including on or after the target date. The Income Trust/Fund and the Income and Growth Trust have fixed investment allocations and are designed for investors who are already retired. The trust or fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The year in the trust or fund name refers to the approximate year (the target date) when an investor in the trust or fund would retire and leave the workforce. Investments in Target Retirement Trusts and Funds are subject to the risks of their underlying funds. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus read and consider it carefully before investing.Īll investing is subject to risk, including the possible loss of the money you invest.ĭiversification does not ensure a profit or protect against a loss. For more information about any fund, visit i or call 80 to obtain a prospectus or, if available, a summary prospectus.

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