The FIRE Movement Retirement Strategy, Ep #200

The book “Your Money or Your Life” by Vicki Robin was the book that is credited with launching the FIRE Movement. FIRE stands for “Financial Independence, Retire Early.” The FIRE Movement has exploded and become popular among Millennials. So what is the FIRE Movement? In this episode of Best in Wealth, I will share the three non-negotiable rules and three variations of the FIRE Movement. Do not miss it! [bctt tweet="What is the FIRE Movement retirement strategy? Learn all about it in this episode of Best in Wealth! #wealth #retirement #investing #EarlyRetirement #RetireEarly #FinancialPlanning #RetirementPlanning #WealthManagement #FIREMovement" username=""] Outline of This Episode [1:01] Best in Wealth reaches 200 episodes! [3:38] What is the FIRE Movement? [10:35] The variations of the FIRE Movement [15:03] The three non-negotiables of the FIRE Movement [18:22] Do you want to become part of the FIRE Movement? What is the FIRE Movement? FIRE is the retirement movement that takes aim at conventional retirement (retiring at age 65). It is all about finding a way to retire early. Those who adhere to the FIRE Movement dedicate a majority of their income to savings, with the hope they can quit their full-time jobs and live off of small amounts of their retirement portfolio for decades. You might quit your job, switch to part-time, or retire entirely. FIRE followers are proponents of an extreme saving lifestyle—up to 70% of their yearly income. But can you imagine saving that much? You need your savings to reach 30x your yearly expenses. Let’s say that number is $1 million. That gives you a little over $33,000 to spend each year. But you want to keep investing and growing that money. If you are 40 years old with $1 million, you will need to live off of 4% of the income each year. That is only $40,000. If you think about the 4% rule, adjusting for inflation, there is a high probability that you will make it through a 30-year retirement without running out. That sounds great, right? So what is the issue? If you need to make the money last more than 30 years, 4% might not be the way to go. Maybe you need to operate closer to 3%. But this all depends on your desired lifestyle. You need to track how much you are spending and make sure you do not overspend in retirement. The same holds true for any retiree. You need to do everything you can to drive your expenses down to reach financial independence to retire early. This requires extreme diligence to monitor expenses and remain dedicated to saving. [bctt tweet="What is the FIRE Movement? Can it really help you retire early? Find out in this episode of Best in Wealth! #wealth #retirement #investing #EarlyRetirement #RetireEarly #FinancialPlanning #RetirementPlanning #WealthManagement #FIREMovement" username=""] The three non-negotiables of the FIRE Movement So what are the three rules anyone following the FIRE Movement must adhere to? A detailed plan: Anyone that wants to retire successfully must have a plan. According to the Board of Governors of the Federal Reserve System, 1 in 4 Americans has nothing saved for retirement. That is why you need a plan. Economic discipline: To achieve a FIRE retirement, you have to maximize your income while minimizing expenses. If you want to retire by 40, you have to take extreme measures to succeed. Everyone can benefit from making and sticking to a spending plan while saving as much as possible. Wise investment: No one can achieve a secure...