The goal of Financial Independence is to be in a position to do exactly as you please with your life without having to... ‘earn a living’
In short, you set a target Financial Independence (a.k.a retirement) lump sum of cash and investments that will sustain you after you pull the trigger and retire (or "FIRE" if you're a bit younger). So, this lump sum is your financial freedom target. To figure out what this is for you, you need to know your current assets (savings & investments), how they will grow over time, and what you spend... your expenses....
Sign up on the left to get free access to the BBI Financial Independence App which can do all of that for you for FREE!
(Data held in your own Airtable account which means we don't have access to your data... only you will ever have access.)
It is possible with a bit of homework to setup your own portfolio to achieve your Financial Independence Target lump sum... but doing this DIY is not for everyone. Getting financial advice is still a wise choice. However standard globally diversified funds are readily available on multiple platforms these days...
CORE
A 'Core' portfolio focuses on globally diversified funds similar to that which any pension provider uses by default to build long term low-risk growth.
INCOME
An 'Income' portfolio focuses on paying an income whether the market is going up, down or sideways!
GROWTH
A Growth & High Growth portfolio targets strategic investments to generate higher growth than the typical standard globally diversified core portfolio.
The most recent financial crash caused by the Coronavirus pandemic was just 12 years after the Great Financial Crash in 2008.
Retirement planning and the investment landscape we are all forced to navigate is characterised by 'boom' and 'bust' financial markets.
We track the financial markets for signs of the next financial crisis and will keep you informed... sign up to the newsletter above!
Financial Independence and retirement is comprised of two distinct phases, 'accumulation' and 'drawdown'. In the 'accumulation' phase you have not retired in any form and are still building your wealth and working towards your Financial Independence number...
You have probably heard of the four percent rule for retirement spending which says that you can safely spend four percent of an Investment Portfolio in the first year of retirement and then adjust that dollar amount for inflation each year for the rest of your life with minimal risk of running out of money...
Whether you are in the accumulation phase of your wealth building or the post accumulation retirement phase you want to always be aware of ways to boost your income and save on expenses...