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The Safest Way to Reach Financial Freedom
(My book “Optimizing the 4% Rule” is available on Amazon now. It covers many aspects of designing and building a financial independence portfolio. Grab a copy!)
In my previous essay, Optimizing the 4% Rule, I discussed how to construct and optimize a FIRE (Financial Independence, Retire Early) fund. However, many readers have said, for them, the road to FIRE seems too far away.
Some say, only people taking risks (such as running a startup) can achieve FIRE. However, founding a startup could result in an acquisition for tens of millions of dollars or failure, leaving you with nothing.
In fact, starting a business is the riskiest way to get rich, because you put all the “eggs” including your money, time, and energy into one basket, without any diversification. It’s the VCs getting rich by diversifying their bets on startups, not you - startup founders. (If your goal is to make a dent in the world instead of achieving financial independence, you should go for it!)
However, are there safer ways to achieve financial freedom without taking such significant risks? Absolutely.
In this article, I will discuss the safest way to reach financial freedom.
