Financial Freedom:Guide to Retiring Early in HK
What is financial freedom/financial independence?
Financial Independence, Retire Early (FIRE) is a movement of devotees committed to a lifestyle involving extreme savings (saving up to 80% of monthly salary) and investment that aims to allow them to quit their day jobs or retire from work altogether.
So, when can you retire? Some people suggest that when your savings reach approximately 25 times your yearly expenses, then you may quit your jobs or and retire. This is calculated based on FIRE devotees making small withdrawals from their savings, typically around 4% of the balance yearly, to keep pace with the inflation.
Financial independence retire early calculator
4% rule: What is it?
The 4% rule is a common rule of thumb when it comes to how much you can withdraw from your money in investments in your first year of retirement. As its name suggests, you should be able to comfortably live off 4% of your money in investment during the first year of retirement and then adjust for inflation each subsequent year. If you follow this, you shouldn’t be outliving your money during a 30-year retirement.
See below an example of the 4% rule:
| Situation 1 | Situation 2 | |
|---|---|---|
| Monthly Expenses | Situation 1$20,000 | Situation 2 $10,000 |
| Yearly Expenses | Situation 1$240,000 | Situation 2 $120,000 |
| Retirement Savings Required | Situation 1$6,000,000 | Situation 2 $3,000,000 |
Best Online Brokerage in Hong Kong 2024
- Min. Commission Fee US Stocks
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- Min. Commission Fee HK Stocks
- 0.015%
- Account Opening Min. Funding
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Tiger Brokers
- Min. Commission Fee US Stocks
- US$0.99/order
- Commission Fee HK Stocks
- HK$0
- Account Opening Min. Funding
- HK$10,000
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During 1 - 31 July, open an account using code【MONEYSMART】& MoneySmart's link, deposit ≥HK$10,000 with no holding required, and choose one of the following rewards:
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See【More Details】below for full promotion details.
- Min. Commission Fee US Stocks
- US$0.99
- Commission Fee HK Stocks
- HK$0
- Account Opening Min. Funding
- HK$10,000
Futu Securities Account
- Min. Commission Fee US Stocks
- US$0.99
- Commission Fee HK Stocks
- HK$0
- Futu Cash Plus average return over the past 12 months
- 3.6%
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Webull Securities Account
- Commission Fee US Stocks
- US$0
- Commission Fee HK Stocks
- HK$0
- US stocks minimum trade
- US$1
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1️⃣ From July 8–16, open an account via the designated MoneySmart link, deposit HK$80,000–HK$499,999 within 30 days (inclusive), then maintain the assets for 30 more days from day 31. Choose one of the following
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HK$700 cash* / Apple Store e-gift card / HK$900 PARKnSHOP e-voucher
⭐️ Webull Official Reward : Deposit HK$500,000+ and receive a Webull cash coupon worth 1% of your deposit (reward max: HK$100,000)
‼️ 1️⃣ and 2️⃣ rewards cannot be combined.
‼️ Deposits of HK$200,000 or above will automatically receive Webull's cash coupon, and will not be eligible for MoneySmart's HK$10,000 or HK$80,000 deposit rewards.
‼️ See【Reward Details】below for full promotion details and gift list.
Best Online Brokers and Trading platform in HK
| Stock Trading Platform | Commission Fees (US Stock) | Commission Fees (HK Stock) | Features |
|---|---|---|---|
| Stock Trading Platform Valuable Capital Brokerage Account | Commission Fees (US Stock)US$0.99 | Commission Fees (HK Stock)HK$0 | Features
|
| Stock Trading Platform SoFi Hong Kong Brokerage Account | Commission Fees (US Stock)US$0 | Commission Fees (HK Stock)HK$0 | Features
|
| Stock Trading Platform Webull Securities Account | Commission Fees (US Stock)US$0 | Commission Fees (HK Stock)HK$0 | Features
|
| Stock Trading Platform Saxo Markets | Commission Fees (US Stock)US$3 | Commission Fees (HK Stock)HK$18 | Features
|
FAQ
How can I achieve financial independence？
- You can achieve financial freedom/financial independence through saving and building passive income. You can work out when you can retire using an online FIRE calculator. If you are determined, it’s not impossible to set yourself on the path to FIRE.