How to Learn Early Retirement Planning

Determine your target annual spending in retirement, then multiply by 25 (for a 4% withdrawal rate) or 33 (for a 3% rate) to find your FI number. Explore different FIRE variants (Lean, Fat, Coast, Barista) to find the right fit.

Aggressively increase your savings rate by reducing expenses and growing income. Max out tax-advantaged accounts in order of priority: employer 401(k) match, HSA, Roth IRA, remaining 401(k) space, then taxable brokerage accounts.

Learn the principles of index fund investing, asset allocation, and diversification. Build a simple portfolio of low-cost total market index funds. Understand the role of stocks, bonds, and international diversification over a multi-decade horizon.

Study Roth Conversion Ladders, Rule 72(t) SEPP, tax-loss harvesting, and capital gains management. Plan the optimal order of account withdrawals. Understand how to manage taxable income in retirement for ACA subsidy eligibility.

Research healthcare options for early retirees: ACA marketplace plans, health sharing ministries, COBRA, spousal coverage, and Barista FIRE strategies. Budget for premiums, deductibles, and out-of-pocket maximums from retirement until Medicare at 65.

Use Monte Carlo simulations, historical backtesting tools like FIRECalc and cFIREsim, and variable spending strategies to stress-test your portfolio against worst-case scenarios including sequence of returns risk, high inflation, and extended bear markets.

Develop a plan for purpose, identity, social connection, daily structure, and mental health outside of work. Address the psychological challenges of leaving a career, including one-more-year syndrome. Build hobbies, community, and optionally part-time or volunteer work.