FIRE Movement : A Financial expert reveals all

[@Mindyourbusiness82]

I like that you pointed out, it doesn't have to be an all or nothing kind of deal. If you can adhere to FIRE principals for a year or even a few years, it does set you up to have a better more prosperous retirement, and just overall financial outlook even during your ensuing working years. I'm not completely on board with fire as I work for myself, enjoy what I do and hope to continue doing it for years to come. However, I spent 4 years becoming debt free, have a healthy abundance fund (aka emergency fund) and am able to max out my retirement accounts for the past three years. According to most financial experts for my age (42) I'm behind where I should be when it comes to retirement savings, but I'm in the best position I've ever been in financially. And if I ever need to slow down with work or take time off for a period, I'm a lot better off than if I hadn't adhered to certain financial principals.

[@YourRichAuntie]

You’re in better shape for taking the journey than for never even trying. 🙂

[@AgingOnYourTerms]

Thank you, Robin! This is the best video I've seen about FIRE.

[@sherriegray1447]

You gave an very balanced and honest opinion on the FIRE movement. I truly agree that inflation can do a number on your portfolio if you retire too early. I also agree with your comment FIRE movement works best if you have a six figure salary with extra income to invest. I think everyone should strive for the FI principles. Not necessarily the retire early principles .Look for ways to decrease your expenses, increase your income and invest the surplus wisely. This will create options for a happier and healthier work life balance. Great video. Very much enjoyed. 😊

[@YourRichAuntie]

Thank you for the compliment!

[@HD-mv2qh]

Robin, thank you for the video. It was very informative. I have also watched the 12 days videos. We appreciate it.

[@YourRichAuntie]

I appreciate your watching the video!

[@gbb82]

Rich Auntie, thank you for a well balanced explanation and view of the FIRE movement, unlike that infamous Suze Ormon rant about it a few years ago, lol. I was an adherent of some of the elements for multiple periods during my career. For my civilian job, I would work a lot of overtime and direct the excess to my 401k, did the same with any bonus I received. For my other job, I was sometimes deployed overseas which spiked my income so I was able to max out my retirement accounts. It was a definite boost for me.

[@YourRichAuntie]

It's great to hear about your experiences with FIRE elements in your career. Maybe I’ll go a video on elements of FIRE that most people can do without becoming full time adherents of all the tenants of the FIRE movement

[@gbb82]

@ 👍

[@divake22]

Great video. There’s also FAT FIRE, LEAN FIRE, etc. I think you bring up a good point about 35 years of work for SS. I’d like to hear your thoughts about the “retirement spending smile.” My parents retired at 67 years with two paid off houses and a mid-six figure nest egg. They turn 80 in a couple of weeks, their nest egg is very little now and live only on SS. It’s still doable but not a lot of room for extras.

[@YourRichAuntie]

A lot can happen in 13 years time and the recent round of inflation was likely the final strike to their nest egg. I keep pounding the table that inflation will do gen x dreams of retirement in but people don’t believe me

[@anotherpace]

interestingly, Barista FIRE was first made up because there were certain coffee chains which offered health care benefits, so it wasn't just a lower paying job, but specifically something that addressed the health care coverage requirement. What you're describing was more the original idea of Coast FIRE - where you kept working to pay day to day bills (ie a lower paying job) while the amount that was already invested has a chance to compound to the number you are looking for. Of course all the terms have drifted over the years.

[@YourRichAuntie]

Did it come about before the Aca? A person not working or earning income may be eligible for largely subsidized healthcare from the aca. Before aca I can see barista FIRE being necessary. Being a barista can be hard work. I can’t imagine taking a job where you’re on your feet and dealing with the public for eight hours only for health insurance, but for some people it could make sense

[@roguered706]

I couldn't say if the term Barista Fire came before the ACA, but FIRE as a movement started in 1992 and really became better known around 2007 when several blogs started that focused on it. I believe ACA started in 2010, so it's close. Starbucks offered (maybe still does?) insurance for part time employees so people would just work enough to cover their premiums while living off their investment income. I believe Costco was another popular company that did the same, but Costco FIRE doesn't have the same ring. Lol

[@matthewowcarz8259]

Great video as always, personally I like the idea of FIRE insomuch as id like the option to reduce work if needed/want to, but still have the option to continue if again needed/want to. I think anyway who is considering this is probably already on a pretty good path. I'd also add that the rule of 55 (which i think you've mentioned in previous videos) allows you to take from your 401k ealier than 55 1/2, BUT there's a lot of caveats to this rule.

[@matthewowcarz8259]

Which is just to say if you're thinking about doing fire, I'd ABSOLUTELY meet with a financial advisor before you make any abrupt decisions. It's all about planning.

[@YourRichAuntie]

I agree - FIRE requires a fair degree of planning. Having a professional on board makes sense

[@JimMurray2]

Im focused on the FI so I can downshift to a less stressful job or 2nd Act in my career. Many possibilities such as even re-training at a Community College for a 2nd Act after hitting FI. But FI is the foundation first.

[@YourRichAuntie]

That’s awesome!

[@backcountryFLcyclist]

I enjoy my career and don’t want to fire. I may work until I am 65 so 13 more years

[@YourRichAuntie]

Everyone feels different about FIRE

[@over07ful]

Inflation is another tax. Healthcare is insanely expensive to self insure. Your point on a safe withdrawal rate for an early retiree should be around 3% is good advice. I think most people that retire early will find a part time gig they find enjoyable. I would encourage anyone that can retire early to be brave and do it. I'm more afraid of working my life away than anything else. When you turn 50 your thinking changes to how many active years are left and your health. Most middle aged people I know are in terrible shape and will work as long as possible. Don't let that be you.

[@YourRichAuntie]

Health is one of your most valuable assets. It’s so that you can enjoy your health and your retirement

[@QuickgrowAgency]

This was an eye-opening explanation of the FIRE movement! It's amazing how financial independence can transform lives. What's your best tip for someone just starting their FIRE journey?

[@YourRichAuntie]

I just dropped another video an hour ago telling people what they can do to follow the ideas of FIRE if they don’t have those factors working for them

[@7SideWays]

Extremes are never sustainable. Coupon cutting fire and total minimalism is an extreme. We went FI before it was a thing moderately. Moderate is sustainable 🤙

[@BrianTaylor1645]

So many financial experts tell you how to build wealth but don't talk about the threat of scams to the wealth. People have lost every thing to scams there needs to be a lot more discussion of the threat of scams to wealth especially since scammers are using AI all the more

[@YourRichAuntie]

I did a video on scams several months ago but there are whole KZbin communities that highlight financial scams. There are so many scams out here operating all at once and they’re constantly evolving and changing to adopt new strategies and technologies. I keep on top of new scams to be able to advise my clients and to be aware myself