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The FIRE movement can sound incredibly appealing if you’re unhappy in your job or wanting to spend more time in retirement. But is FIRE a viable solution when interest rates are high and people are living longer than ever before? In this episode, Kimberlee breaks down the history of the FIRE movement and the formula its proponents use to save more and retire sooner. She looks closely at the pros and cons of the FIRE movement and encourages listeners to strive instead for “Financial Independence, More Options.”
Episode Recap:
Episode Recap:
- Today we’re going to talk about FIRE, and whether or not it makes sense today (1:11)
- FIRE: Financial Independence, Retire Early (2:11)
- The FIRE movement became popular after the Great Recession (5:31)
- If you’re not enjoying your career, maybe it’s time to make a change (8:16)
- 3 approaches to FIRE (11:58)
- Here are some problems with the FIRE formula (16:36)
- If you want to retire early, make sure you have a bridge account (24:07)
- Aim for “Financial Independence, More Options” (28:52)
- Lessons we can learn from FIRE (31:30)
Resources:
- Find every episode of the Fiscal Feminist podcast
- “The Fiscal Feminist” book
- “From Paycheck to Purpose” by Ken Coleman
Quotes:
“We need to take the journey with our professional lives to explore, develop, and experience our professional goals and growth. FIRE cuts that off at a very early age. 30, 40 is very young. Like I said before, you could live to be 80, 90, or 100 years old in this time, and it’s a long time to be retired. Often, early retirees are running away from what they don’t like. They may not have thought about their true purpose or interests. Maybe they’re at a job they hate and they just want to stop and not deal with working at all. But again, throwing the baby out with the bath water in my opinion.”
“Life is now very long for many of us (hopefully it is for me). Medical costs are high. And the time of easy money with low interest rates and low inflation may be a thing of the past. So, we need to redefine FIRE. We need to now call it, “Financial Independence, More Options.” That’s what I like. I think that’s a better version of FIRE, and it will make sure that you can live in your extended retirement in dignity.”
“We need to take the journey with our professional lives to explore, develop, and experience our professional goals and growth. FIRE cuts that off at a very early age. 30, 40 is very young. Like I said before, you could live to be 80, 90, or 100 years old in this time, and it’s a long time to be retired. Often, early retirees are running away from what they don’t like. They may not have thought about their true purpose or interests. Maybe they’re at a job they hate and they just want to stop and not deal with working at all. But again, throwing the baby out with the bath water in my opinion.”
“Life is now very long for many of us (hopefully it is for me). Medical costs are high. And the time of easy money with low interest rates and low inflation may be a thing of the past. So, we need to redefine FIRE. We need to now call it, “Financial Independence, More Options.” That’s what I like. I think that’s a better version of FIRE, and it will make sure that you can live in your extended retirement in dignity.”
Creators & Guests
Host
What is The Fiscal Feminist?
Kimberlee Davis is your host of The Fiscal Feminist, a show about women and our relationship with money and finances. Kimberlee Davis is Managing Director and Partner at The Bahnsen Group, a private wealth management firm. She specializes in personal wealth advising and oversees financial and retirement planning solutions for high net worth individuals and multi-generational families. Her proficiency also includes helping individuals transition to financial independence after life altering events such as death or divorce.