If you want to reach financial independence, you've got to understand big picture investing. I'm going to break it down for you, so you can recognize why you need to invest, in order to achieve financial freedom.
Your Retirement Destination (aka the time of your life when you are not wanting to go to work all day!)
Part of all this means you need to figure out what “retirement” means to you. Maybe it's chillin' in your beachfront home in Belize by the time you're 50?
Your Perpetual Income Machine
This lovely $1.615 million would theoretically provide you with $64,600/year indefinitely, which would also adjust up for inflation during retirement, given a 7% annual return. It will even allow you to leave a bunch of money to your heirs! Sweet!
1. You can either save the entire 1.615 million from your work income alone, or…
2. If that’s not possible (which likely it's not), you can try to grow whatever amount you can save, by employing an “investing vehicle” of some variety. Aha!