In the world of **Financial Independence, Retire Early (FIRE)**, achieving a major **retirement goal** requires clear numbers, a consistent strategy, and the powerful magic of **long-term investing**. We start with a core assumption of a **9% annual return**—a historically realistic figure for **stock market** index fund investors—and a starting balance of zero. We then solve for the essential question: **"How much to invest every month?"** to reach our $\$1.5$ million target. You'll see precisely how much capital you need to save in the first **20 years** (the "accumulation phase") to allow for a passive **10-year growth phase** where contributions stop, but your money keeps growing exponentially. This is the secret to a successful **30-year financial plan**.Here's what you'll learn in this essential personal finance video:**The #1 Investing Principle for FIRE:** Why the initial 20 years of **consistent monthly investment** are the most critical, and how they set the foundation for your final **\$1.5 million** goal.

Future Value of Money Explained:** A simple explanation of the financial formula used to determine the exact future value needed at the 20-year mark.Calculating the "Magic Number":** We reveal the required **monthly investment** amount you need to be transferring into your brokerage account or tax-advantaged accounts (like a Roth IRA or 401k) to stay on track for your goal.Annual vs. Monthly Compounding:** A crucial comparison of how compounding frequency (annual vs. monthly) impacts your required contribution, and why you should always aim for monthly compounding if possible.The 4% Rule & Passive Income:** How a $\$1.5$ million portfolio translates into reliable **passive income** for your retirement using the famous 4\% safe withdrawal rate.This isn't just theory; it's a practical, actionable roadmap for your **financial freedom** journey. Stop guessing and start knowing exactly what it takes to build substantial wealth. By mastering this **financial literacy** calculation, you gain control over your future and accelerate your path to **early retirement planning**.Don't forget to **Like** this video if you found the calculation helpful and **Subscribe** to the channel for more concrete **budgeting tips**, **wealth building**, and **personal finance** strategies!**Let me know in the comments below:** What is YOUR personal FIRE number, and what annual return are you assuming in your plan?