How to Reach Financial Independence Retire Early (FIRE) with the Options Wheel. I have always felt like I would never retire to doing nothing and playing golf. I have always felt that retirement for me is financial freedom where I can do what I want when I want to. This includes doing something that gives back and keeps me motivated. This channel fills this need for me.
I have reached Financial Independence by having a budget and knowing what I need income-wise each month. A couple of years ago I went through all my expenses and set up a monthly budget using Excel. The budget is comprehensive and does a good job of helping me track my expenses. I update it monthly for changes in my spending. It also contains my income from dividends, consulting, and options premiums. This way I can track how I am doing and if I have some extra income that I can invest with.
Keeping track of my income as well as my expenses has helped me ensure that I do not earn too much and lose my ACA subsidies. Also, having a budget allows me to feel better spending money on essential things. This may sound odd, but I have always had a tough time spending money. In a way, this has freed me to spend what I need to.
Another critical part of FIRE is being sure that your money will last. I have used the 4% rule to help me determine that I have enough for now and well into my eighties. I use online calculators for checking how long my money will last. Here is a great link to a 4% calculator.
http://www.fourpercentrule.com/
You can enter different values and see the associated results. I have found that this calculator does a nice job of estimating how much money you will have and how long it will last. It has a great number of criteria you can enter to try different scenarios.
You can Reach Financial Independence Retire Early (FIRE) with the Options Wheel a lot quicker. By using the Options Wheel Strategy with safe guidelines you can earn a lot of passive income from your investment accounts. I discuss how I do this in the prior post that you can find here. It goes over how I do it in my Roth account.
The Options Wheel Strategy and the associated selling of options have helped me reach the goal of FIRE. If I had learned this back in my twenties, thirties, or forties, I would be even better financially prepared. I encourage people to learn this trading technique and really increase their returns. Below is my YouTube video where I discuss FIRE and share a demo on how to do a Covered Call on Schwab.
Blessings and Happy Investing!
If you would like early access, special content and some hand-holding then check out my Patreon page. https://www.patreon.com/easyinvestingincome
