Financial Freedom:Guide to Retiring Early in HK
If you are tired of the 9 to 5 work grind, this article is great for you as you will learn ways to set yourself on the path to financial freedom through investment.
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
So, when can you retire? You can work this out by an online FIRE calculator. If you are determined enough, you will realize that it is not impossible to retire early!
Enter some basic information including your age, annual income, your annual expenses and your current net worth.
Enter your asset allocation in percentage. Assets refers to stocks, bonds and cash.
Enter the expected returns for each category.
Press Calculate to work out the result.
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 | $20,000 | $10,000 |
| Yearly Expenses | $240,000 | $120,000 |
| Retirement Savings Required | $6,000,000 | $3,000,000 |
Best Online Brokerage in Hong Kong 2024
Interactive Brokers
- Min. Commission Fee US Stocks
- US$0.0035
- Min. Commission Fee HK Stocks
- 0.015%
- Account Opening Min. Funding
- HK$10,000
・Transparent and low rates; investors could choose between fixed rate commission pricing and tiered pricing
・US$0.0035 Min. Commission Fee US Stocks
・0.015% Min. Commission Fee HK Stocks
Tiger Brokers
- Min. Commission Fee US Stocks
- US$0
- Commission Fee HK Stocks
- HK$0
- Account Opening Min. Funding
- HK$10,000
New customers who sign up and complete the specified account opening requirements using the invitation code 'MONEYSMART' through MoneySmart, can get rewards below (either 1)
⠀⠀
【Reward 1️⃣】 Successfully open account and deposit ≥ HK$10,000:
VERAGE 20062 20" Expandable Suitcase (Available for boarding) (Value: HK$659) / HK$500 Apple Store Gift Card / PARKnSHOP supermarket Vouchers/ HKTVmall e-Vouchers
【Reward 2️⃣】Successfully open account and deposit ≥ HK$10,000 and no withdrawal for 60 days:
JBL Smart Speaker Link 20 (Value: HK$1,699) / VERAGE WP19006 28" Front Opening Suitcase (Value: HK$1,099) POLAROIDGo Generation 2 instant camera (Value: HK$999) OR HK$800 Apple Store Gift Card /PARKnSHOP supermarket Vouchers / HKTVmall e-Vouchers
⠀⠀
Get up to HK$2,000 welcome rewards!
*T&Cs apply.
Valuable Capital Brokerage Account
- Min. Commission Fee US Stocks
- US$0.99
- Commission Fee HK Stocks
- HK$0
- Account Opening Min. Funding
- HK$10,000
New account opening promotion in March! New customers can receive rewards of up to HK$2,568!
⠀⠀New customers who successfully open account via MoneySmart with promo code「32BR」, fulfilling specific requirements and submit the reward claim can get rewards below (either 1)
⠀⠀Successfully open account and deposit ≥ HK$10,000 and retain for 60 days to get :
B&W Pi6 In-ear True Wireless earbuds (value: HK$1,980) / Japan A.L.I MAXBOX 8011 28" Front-open Expandable Suitcase (value: HK$1,899)/ Hitachi Vacuum Cleaner PV-X90N (value:$1,480) / HK$1,300 Apple Store Gift Card / PARKnSHOP Supermarket Vouchers / HKTVmall e-Vouchers
Futu Securities Account
- Min. Commission Fee US Stocks
- US$0.99
- Commission Fee HK Stocks
- HK$0
- Account Opening Min. Funding
- HK$10,000
From now until 31 March 2025, new users who successfully open account via MoneySmart with promo code「MS24」within 7 days, fulfilling specific requirements and submit the reward claim can get the rewards below. (Either 1)
⠀⠀
Reward 1️⃣: Successfully open account and first deposit HK$80,000 or above and retain for 60 days to get the exclusive rewards:
- BERMAS 26" Front-open Suitcase (value: HK$3,999) /B&O Beoplay EX (value: HK$3,678) / Apple Watch SE GPS (44mm) (value: HK$2,199) / HK$2,000 Apple Store Gift Card / PARKnSHOP supermarket Vouchers / HKTVmall e-Vouchers / HK$2,000 Futu cash coupons (provided by Futu) OR
Reward 2️⃣: Successfully open account and first deposit ≥ HK$10,000 or above and retain for 60 days to get the exclusive rewards:
- Sennheiser ACCENTUM True Wireless earbuds (value: HK$1,750) / Nautica Classic Voyage 20" Luggage (value: HK$1,399) / HK$1,000 Apple Store Gift Card / PARKnSHOP supermarket vouchers / HKTVmall e-Vouchers/ HK$1,000 Futu cash coupons (provided by Futu)
⠀⠀
Account opening tutorial: Download and start using Futubull app > Click "ME" and enter "Promotion" Click "Redemptions"> Enter the MoneySmart redemptions code - "MS24", and deposit funds within 7 days
Webull Securities Account
- Commission Fee US Stocks
- US$0
- Commission Fee HK Stocks
- HK$0
- Account Opening Min. Funding
- HK$10,000
【You don't want to miss this LTO🔥－ Rewards up to HK$6,498! 】
From March 10, 2025, 4:00pm to March 24, 2025, 3:59pm, new customers who successfully open an account through MoneySmart and submit reward claim can enjoy up to HK$6,498 exclusive rewards!
⠀⠀
【$80K Asset Reward 】: Upon successfully opening an account through MoneySmart, make first deposit of ≥HK$80,000 maintain the funds for 60 days:
・PHILIPS Fully Automatic Espresso Machine Series 1200 (EP1220/00) (valued at HK$6,498) / PHILIPS RO Water Dispenser ADD6920WH/90 (valued at HK$4,288) / SAMSUNG GALAXY Tab S9 FE (WIFI) (X510) -(6GB RAM + 128GB) - 10.9" (valued at HK$3,588) / Insta360 InstaAce-Pro (Standard Bundle) (valued at HK$3,299) / B&W PX7-S2e headphone (valued at HK$3,380) / HK$2,800 Apple Store Gift Card / PARKnSHOP supermarket vouchers / HKTVmall vouchers
⠀⠀
Upon successfully opening an account through MoneySmart and making first deposit HK$10,000 or above and maintain the funds for 60 days, can get HK$600 offer:
・HK$600 PARKnSHOP supermarket vouchers / Apple Store Gift Card/ HKTVmall e-Vouchers
Best Online Brokers and Trading platform in HK
| Stock Trading Platform | Commission Fees (US Stock) | Commission Fees (HK Stock) | Features |
|---|---|---|---|
| Valuable Capital Brokerage Account | US$0.99 | HK$0 |
|
| SoFi Hong Kong Brokerage Account | US$0 | HK$0 |
|
| Webull Securities Account | US$0 | HK$0 |
|
| Saxo Markets | US$3 | HK$18 |
|
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.