---
title: 'How to Retire Early: Follow This Flowchart'
source: 'https://youtube.com/watch?v=v0MpFb3g4SI'
video_id: 'v0MpFb3g4SI'
date: 2026-08-05
duration_sec: 80
---

# How to Retire Early: Follow This Flowchart

> Source: [How to Retire Early: Follow This Flowchart](https://youtube.com/watch?v=v0MpFb3g4SI)

## Summary

The video presents a financial flowchart for early retirement, outlining a step-by-step investment strategy. It emphasizes covering expenses through investments, using the 25x rule, and prioritizing accounts like 401k, Roth IRA, and HSA.

### Key Points

- **Goal and 25x Rule** [00:01] — Investments should cover expenses without working; rule of thumb is 25 times annual expenses.
- **Portfolio Targets** [00:14] — Viewers are encouraged to screenshot portfolio targets for later reference.
- **Step 1: 401k Match** [00:27] — Take advantage of 401k match first, as it's like a 100% return on money due to employer matching.
- **Step 2: Pay Off High-Interest Debt** [00:40] — Pay off any debt over 7-10% interest, as average rates are 20% and higher.
- **Step 3: Emergency Fund** [00:40] — Have a full emergency fund to avoid selling investments and breaking compounding.
- **Step 4: Max Roth IRA and HSA** [00:54] — Max out Roth IRA and optionally HSA; both grow tax-free and are amazing accounts to prioritize.
- **Step 5: Max 401k** [00:54] — After foundation, max out 401k.
- **Step 6: Taxable Brokerage** [01:06] — Invest in a regular taxable brokerage account to bridge the gap for early retirement before age 59.5.

### Conclusion

The flowchart provides a clear, sequential investment strategy for early retirement, starting with employer match and ending with taxable accounts to bridge the gap until retirement age.

## Transcript

know where to put your money, follow this flowchart. The goal you're trying investments need to be able to cover your expenses without you working, and the rule of thumb here is usually 25 times your annual expenses. Here are
your portfolio targets. You can screenshot this and save this for later. The first step in almost any strategy is to take advantage of the 401k match. So, if you have access to one, it's like a 100% return on your money because your
employer is matching your contributions. Make sure to always do this first. Step debt, any debt over 7 to 10% and they usually have average rates of 20% and higher. Third, make sure to have a
full emergency fund. The last thing you want to do is sell off investments to your compounding. Step four is to max out your Roth IRA and optionally your HSA as well. Both of these will grow tax-free and they are amazing accounts
to prioritize after your foundation is covered. Step five is to max out the 401k or move on to step six, which is to invest in a regular taxable brokerage account. The thing with retiring early is that most retirement account balances
are meant to be withdrawn at the age of 59 and a half. So, if you retire at say the age of 45, you're going to need funds to bridge that gap between early if you have any questions in the comments and I'll see you guys in the
comments and I'll see you guys in the next one.