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I Asked ChatGPT How Young Adults Can Plan To Retire by 30 — Here’s What It Said

Retiring early has become a dream for many, even those who have barely started their careers. There’s even a whole movement built around this, called FIRE, which stands for “Financial Independence, Retire Early.”

But is it possible to retire as young as 30? I asked ChatGPT how young adults can plan to retire by 30. Here’s what it said.

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The first step to retiring at 30, according to ChatGPT, is to maximize your income as early as possible.

“Retiring young requires fast capital accumulation. The only way to do that in such a short time frame is to dramatically out-earn your peers in your early 20s,” the bot said.

Some of the ways that ChatGPT suggests maximizing your income include choosing a high-paying field, leveraging unique skills and having multiple income streams. It also suggests working in a high-paying market but living in a low-cost area, something the bot refers to as “location arbitrage.”

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ChatGPT recommends that you save 70% to 90% of your income if you expect to retire after just 10 or so years of working. The bot gave an example of earnings $200,000 per year and living on $20,000 to $40,000, thereby saving $160,000 to $180,000 a year.

ChatGPT provided this formula to estimate the number of years until retirement:

Years to financial independence ≈ Target nest egg / annual savings

The calculation is approximate because it doesn’t allow for investment returns during the time you’re accumulating your savings. The example given is that if you need $1 million to retire and you’re saving $200,000 per year, it will take you about five years to get there.

You have to put your savings to work, and fast, according to ChatGPT. Suggested investments include stock market index funds, which return 7% to 10% per year historically; real estate, which can provide cash flow; business equity, including starting your own business or investing in one; and “high-risk/high-reward plays,” such as startups, crypto and angel investing, although the bot cautions that these investments are risky.

ChatGPT cautions you to be realistic in your definition of retirement. The FIRE movement defines retirement as living on as little as $20,000 to $40,000 per year (lean FIRE), which requires that you have $500,000 to $1,000,000 invested. If you want to be able to spend $80,000 to $100,000 per year, you’d need to have $2 to $3 million invested. These estimates use the 4% rule, which says you can withdraw 4% of your savings annually, theoretically forever.

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