Market Independence: Why a High Savings Rate is Critical to FI Success
In the Financial Independence community, there’s a lot of talk about one’s savings rate (SR). People argue about how to calculate it, how to compare it, and the best ways to improve it. But, I don’t think there’s enough attention given to one of the best consequences of having a high SR: market independence. In other words, a high savings rate reduces market risk. I’ll say that again: as your savings rate goes up, your ability to reach your financial goals in your desired timeframe depends less and less on the market’s performance....