🧵1/ What’s your Financial Independence (FI) Number?
Your FI Number = The amount of money you need to live off investments without running out of money.
Two common approaches to find out the FI number:
1️⃣ The Risk-Free Rate Method (conservative)
2️⃣ The 4% Rule (market-based)2/ Let’s compare! 👇
The Risk-Free Rate Method:
1️⃣ Calculate your annual expenses (e.g., $50k/year).
2️⃣ Use the 10-yr Treasury yield as a "risk-free" return (e.g., 4.5%).
3️⃣ Subtract inflation (2.5%) to get the real return (e.g., 2%).
4️⃣ FI Number = $2.5mn ($50k ÷ 2%)
Dec 7, 2024 • 10 tweets • 2 min read
Thread: refreshing some interesting facts about #physics #earth #universe #humanity
1: All of humanity could fit in a very small space (theoretically, a sugar cube) because atoms are 99.99%+ empty space
(Ernest Rutherford, 1911)
2: Yelling at our soup could warm it up. However, since sound waves carry minimal energy, the effect would be unnoticeable
(Derived from the principles of thermodynamics developed by Lord Kelvin & acoustics developed by Hermann von Helmholtz)
