Qualifying as FI? Can you be FI if you rely on spouse's work?

[PatrickA5]

When the $$ is in one pot, it's easy to think since the family is FI, and therefore both folks are FI, but since about 50% of marriages end in divorce, the reality is they are not both FI if divorce happens..

If the family unit is FI, I think you can consider both spouses FI. Sure, things could happen to change that (divorce, major lawsuit, market crashes, etc), but I don't think you can say they aren't FI at the present time just because one of these future events "might" happen.

 

[exnavynuke]

If the family unit is FI, I think you can consider both spouses FI. Sure, things could happen to change that (divorce, major lawsuit, market crashes, etc), but I don't think you can say they aren't FI at the present time just because one of these future events "might" happen.

I agree. The couple is FI. Later, that may change and one or both of them might find themselves no longer FI, but that doesn't change what their current situation is. Anyone who is FI could find that situation is no longer the case due to some event in the future, that doesn't mean they aren't FI now however. I think if either spouse must work to support their current lifestyle, however, that neither would be considered FI. One can be supported by the other as well as the couple's assets, but that isn't FI imo or else every "stay at home parent/spouse" would be considered FI...

 

[Fedup]

I say if you still depend on a job, whether it's the wife or husband's job, then you are not FI. What if your wife gets laid off? Then what?

 

[Sunset]

If the family unit is FI, I think you can consider both spouses FI. Sure, things could happen to change that (divorce, major lawsuit, market crashes, etc), but I don't think you can say they aren't FI at the present time just because one of these future events "might" happen.

Using that same logic, then all the children in that same family are FI until they move out.

 

[RunningBum]

When the $$ is in one pot, it's easy to think since the family is FI, and therefore both folks are FI, but since about 50% of marriages end in divorce, the reality is they are not both FI if divorce happens.

While a couple might not have all their assets divided during the marriage, you can be sure the courts will divide them upon divorce, and often it's not a 50/50 split for many reasons, including inheritance.

I'd bet the divorce rate of FI couples is WAY under 50/50. For one thing, FI doesn't usually happen for many years, by which time marriages tend to be more stable. For another, being FI removes the big money stressor that ends a lot of marriages.

FI is never 100% guaranteed. You could lose a huge lawsuit, bigger than your PELP policy covers, for example. Granted, a divorce is still a more likely occurrence.

If I were married and had any inkling of a divorce, I'd want a big enough buffer for both of us (or at least me!) to still be FI before I stopped working.

For that matter, I'm single and consider myself FI. But what if I get married, and she spends more than she earns? I'd no longer by FI. So by your logic, I can't consider myself FI now because that might happen.

 

[PatrickA5]

Using that same logic, then all the children in that same family are FI until they move out.

I was only referring to the spouses, obviously. But, I think you knew that.

 

[RunningBum]

I'm not going to get hung up on terminology semantics anymore. Either you think you have enough money to stop working without undue risk, or you don't. That's all that really matters. Not what you call it.

 

[Dreamingaboutretirement]

OP here -- thank you all for your input and thoughts! I am so, so fortunate to have a happy and healthy family, and the financial flexibility is icing on the cake. I think I have been thinking/fantasizing/hung up on the FI thing in large part because the one huge hole is my job, which is a major, major headache and grind. Not the "eh, everyone stresses a bit about work, sometimes you think about it at home" kind of job -- rather, the kind that you stew about when showering/shaving in the AM, during the commute in, during work, commute home, etc.

In other words, not good, not healthy. But, I have a major benefit incentive if I keep hanging on for a bit longer, so meh. The financial flexibility (I like this term, thank you!) will allow me to make some changes in the future. But I was having a "wait, let me crunch the numbers" moment.

Thanks again, folks.

 

[Sunset]

I'm not going to get hung up on terminology semantics anymore. Either you think you have enough money to stop working without undue risk, or you don't. That's all that really matters. Not what you call it.

Exactly, since everyone is FI , just the level of living it supports differs.
cardboard box and soup kitchen vs beach house and restaurants .