TMBA461: The 40% Rule

Summary: If you've been listening to this podcast for a while, you would know that one of the major motivations for Dan and Ian in life is creating the freedom to live life on your own terms. <br> <br> That freedom can mean a lot of different things to a lot of different people. <br> <br> On recent episodes, we have spoken about how entrepreneurship shares a lot in common with the FIRE (Financially Independent, Retire Early) community.<br> <br> One of the tenents of FIRE philosophy is The 4% Rule, which is the practice of saving and investing enough money that it will allow you to withdraw 4% of that income every year to live off of. <br> <br> In order for that rule to work, though, you would need to save 1 million dollars to live on a modest income of $40,000 annually. That can be a tall order for people who are on a small salary.<br> <br> Enter Jase Rodley. Jase recently wrote a piece called The 40% Rule, which addresses this idea head-on. The 40% Rule is an investment strategy that allows people to concentrate on returns from modest investments, while still allowing themselves to "stay in the game". <br> <br> On today's episode, Jase discusses The 40% Rule, the business that he is currently building, and how his experience with that business has informed his investment strategies.