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The Owens are on FIRE. That is, they are part of the Financial Independence, Retire Early movement that has taken off in recent years, mostly among millennials. The goal is to reach financial independence by socking away 50 percent or more of annual income over, say, 10 to 15 years. Some race to achieve FI much earlier. FI is usually defined as achieving savings equal to 25 times annual living expenses—which allows you to follow the 4 percent withdrawal rule for the duration of a decades-long retirement.
The “retire early” part of FIRE often raises eyebrows—and skepticism. Like the Owens, many “FIRE walkers” are refugees from high-paid professional or tech careers, and most have no plans to completely stop working. But FIRE acolytes say they’re redefining retirement. “Retire early” for many of them means having the financial freedom to leave the “hamster wheel” for work or pursuits that give them more control over their time.
Interesting article in Kiplinger on this. Gotta wish them the best of luck don't we?
I've never put much stock into the whole FIRE movement. It requires such high incomes as to be impractical for the vast majority of folks.
Here are some operative phrases.
"Each year, they increased their savings rate until they were salting away as much as 70 percent of their $250,000 annual income."
"He cut his hours and his $400,000 salary by about 40 percent a year ago."
Sure, if I made $400,000 annually, I could live on $80,000, bank the other $320,000, be a millionaire in four years, and retire in a couple more. The advice is all hypothetical because most of us don't make anywhere near what these people do.
I've never put much stock into the whole FIRE movement. It requires such high incomes as to be impractical for the vast majority of folks.
Here are some operative phrases.
"Each year, they increased their savings rate until they were salting away as much as 70 percent of their $250,000 annual income."
"He cut his hours and his $400,000 salary by about 40 percent a year ago."
Sure, if I made $400,000 annually, I could live on $80,000, bank the other $320,000, be a millionaire in four years, and retire in a couple more. The advice is all hypothetical because most of us don't make anywhere near what these people do.
Hypothetical for you, hopeful reality for them. Do you wish them luck? I do!
What’s the point of this thread, I don’t get the OP.
It is about a early retirement movement that some are able to strive for. It is in the retirement forum. While not practical for many it is a possibility for some and offered to share for those who for what ever reason can relate to or want to comment on.
As noted in the OP last line I wish them the best of luck and offer them as a sample of affluent retirement planning and sacrifice at a young age v affluent consumption with out a care about for tomorrow. That often gets discussed in here when people who could have been retirement secure at age 60 or younger aren't. This is a movement of young folks who are striving to be by then if not way earlier. I would think that while many of their peers can't do so on their scale they might be a motivation for others to follow.
These FIRE folk, according to the quote, aren’t really retired as the plan to continue to work, but at more pleasant jobs.
As is with many of the people in this forum and the millions o 62- 70 plus year olds who call themselves retired and our working part time. Many of those who retired in their fifties over the last decade plus did so as a result of being let go from work in their fifties and sixties and found part time work but considered themselves retired.
Lots of pensioners consider themselves retired if they start to collect with full benefits after 30-35 years even though they still work part time. Lots of retired teachers doing substitute work.
It is about a early retirement movement that some are able to strive for. It is in the retirement forum. While not practical for many it is a possibility for some and offered to share for those who for what ever reason can relate to or want to comment on.
As noted in the OP last line I wish them the best of luck and offer them as a sample of affluent retirement planning and sacrifice at a young age v affluent consumption with out a care about for tomorrow. That often gets discussed in here when people who could have been retirement secure at age 60 or younger aren't. This is a movement of young folks who are striving to be by then if not way earlier. I would think that while many of their peers can't do so on their scale they might be a motivation for others to follow.
This isn't complicated at all.
If you are bringing in a boatload of money, it's easy to save a boatload of money. A couple bringing in $400k will have a lot of options. Even if they live off $200k in a high COL area, they're still saving $200k. In five years, they're millionaires and can bail out to cheapsville and live on $40k there.
Lots of pensioners consider themselves retired if they start to collect with full benefits after 30-35 years even though they still work part time. Lots of retired teachers doing substitute work.
Retired Teachers working as Substitutes is illegal in Michigan, considered "double dipping".
It is about a early retirement movement that some are able to strive for. It is in the retirement forum. While not practical for many it is a possibility for some and offered to share for those who for what ever reason can relate to or want to comment on.
The Admin should make a FIRE subforum then. The vast majority of the posts to this forum are from Boomers and other gray-hairs talking about arthritis, Social Security and the like.
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