[00:02] tier one is 100k. Now, this one is the hardest, but luckily it does get easier as you climb. 100k invested is impressive because you can't get there by accident. So, it's proof that you've got good financial habits, you have
[00:14] discipline, and that you're able to save consistently. Tier two is 500k. If you're relatively young, say under the age of 45, having 500k means that you stop investing altogether because your portfolio is already big enough that
[00:27] compounding alone will grow it into a full retirement. At that point, you can just coast at your job or you get a part-time job to cover bills. Tier three million because if you have this much,
[00:39] 4% withdrawn every single year is 80k per year in retirement, which means that you can get a full income without working. This should be enough for 99% of people and work is entirely optional at this point. Now, if you have a higher
[00:51] cost of living or many liabilities like multiple houses or kids, then maybe not, pretty much financially free. And tier four is $5 million. This is where you altogether. Now, the best part is is that if you can reach tier one, which
[01:06] two is a lot easier because of compounding and then hopefully you're on your way to tier three. Getting to tier four or $5 million though is actually quite hard and we can talk about some methods to do that in a future video,
[01:19] but let me know what tier you are on in the comments.