An Introduction to Financial Independence: Part Four – Investing and Tax

Overview

  • A basic introduction to the various types of asset classes that can be used to speed your journey towards financial independence.
  • Covers Shares, Bonds and Real Estate investments and establishes the difference between speculation, investing and hedging.
  • A basic introduction to tax advantaged accounts and why you may or may not want to use them.
  • Approximately 4800 words.

The second most important concept in FI is making your money work for you. Most people reading this will be living in a western capitalist society. Capitalism, is based upon the ability of Capital to earn a return. Your money is a form of Capital, therefore there is no reason why it cannot be making a return for you.

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An Introduction to Financial Independence: Part Three – The Financial Technicals

Overview

  • Covers the mathematics underpinning financial independence in a graphical fashion.
  • Illustrates the impact of decisions on your long term financial health.
  • Covers key FI concepts such as the Savings Rate, Safe Withdrawal Rate and the impact of expenditures on your ability to FI.

This section will cover the technical components of Financial Independence and the broad mathematics behind it. I will attempt to make it graphical as opposed to smashing you with the equations as I believe that it is more intuitive for most people. Nothing in this section will be novel and there is substantial prior art floating around on the internet for you to take advantage of.

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An Introduction to Financial Independence: Part Two – Expenditures, Basic Accounts and Debt

Overview

  • Covers basic expenditures, account setup and debt
  • Split across three major sections
  • Intended to provide some information to enable you to improve your financial situation *today*
  • Approximately 4,000 words

This is part two of my series on Financial Independence. In the first part we covered the basic concept of FI as well as the psychology required to obtain it. The full series list is as follows

Now that we have covered the psychology and basic concept of working towards FI we can shift on to the more practical concepts. Expenses, security nets, investments, taxes, withdrawals and the like. I’ve listed them in the order which I think is most important, beginning with spending.

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An Introduction to Financial Independence: Part One – The Concept

Overview

  • An introduction to the concept of Financial Independence and Retiring Early (FIRE)
  • Covers the basic background with a heavy focus upon the psychology and decision-making processes of FI.
  • Intended as a stepping stone for people new to the concept as well as a reference document for others further along the path.
  • Part One of a Six part series, approximate length is ~5000 words.

Disclaimer, nothing in this post can be constituted as financial advise for investment purposes. Please do your own research and make your own decisions when investing. I am not liable for any gains or losses you incur as a result.

Financial Independence (FI) is the idea that you don’t need to be a wage earner all your life to survive. It’s the idea that you can take control over your financial destiny and through a series of smart choices, patience and hard work can substantially improve your financial position. It’s an idea that’s based upon discipline, understanding investments and expenditures as well as taking control.

Financial Independence has a secondary component, Retire Early, hence the acronym (FIRE). Whilst I think early retirement is a worthwhile goal in and of itself it isn’t the focus of this series. Instead, this series is about obtaining the understanding and knowledge necessary to place ourselves in the best possible financial situation.

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