CNBC predicts end of FIRE?

[Running_Man]

As is typical for most of these articles, the writer is quoting a blog operator that got famous and made millions on blog and a book.

His strategy is 70% VTI 20% individual stocks you like 5% Real Estate (reccomends multi apartment buildings) and 5% specialty like ART or Domain purchases. Instead of retiring early as his earlier works proclaimed was possible he now professes investing for a financial independence and continue earning money at what you love.

From his blog "Alright, that’s it. Pretty simple. Following this investing strategy and managing my investments myself were essential in helping me reach $1 million in five years. My investments also continue to grow and I’m still benefiting from the compounding of the money I started investing in 2010." He started with $5 and ended with a million and calls it easy.

Everyone can be a millionaire in 5 years easy peasy. He at least sold a lot of books and had visits to his blog by offering this. Now of course VTI is at exactly the same place in 2020 as it was in 2015 when he first offered this investing advice, so the five year rate of return on his portfolio must be close to about 2 percent.

 

[PoF]

There's nothing new in the article.

It says the FI part will be emphasized, and that people will continue to pursue passions that may or may not lead to the generation of income. That finding purpose is important and idleness is not so great.

That's been the message from most of us in the FIRE community for years. The headline is there to grab attention.

p.s. Expect to see more headlines like this.

 

[mortac8]

What are y'all talking about? The stock market drops 30% and everyone is acting like the aliens shut off our power grid.

I don't see how this affects the FIRE movement that much. It might affect the 100% VTI movement but I'm still going to keep striving towards FI.

I'm only 40 and find the advice here way better than most "bloggers" so I was 60/40 going into this coronavirus mess. Gives me some flexibility to do some things with money and I am thankful to y'all for that.

 

[Dtail]

What are y'all talking about? The stock market drops 30% and everyone is acting like the aliens shut off our power grid.

I don't see how this affects the FIRE movement that much. I might affect the 100% VTI movement but I'm still going to keep striving towards FI.

I'm only 40 and find the advice here way better than most "bloggers" so I was 60/40 going into this coronavirus mess. Gives me some flexibility to do some things with money and I am thankful to y'all for that.

Nice first post.

 

[ExFlyBoy5]

I find it somewhat interesting that MMM has been pretty quiet these last few weeks.

 

[copyright1997reloaded]

OK, it's confession time.

In early 2008 I decided I had enough to FIRE, along with the service years to take my pension. I was still working at that time, both because I liked the job (but didn't like the travel) and also because the $ was good. But in my mind I was continually trying to decide if it was time to go. Then the financial crisis happened (but I still left).

Later, I stated teaching part time (college level) and then eventually full time - so much for FIRE, I was now just FI but not RE. A couple/few months ago I was musing on whether I should stick it out until 65 to capture a small pension from my 2nd career - or - since my kid would be going off to college to exit earlier (and give up the pension).

So now you know why things have fallen apart - every time I consider going to a real retirement -> "things" happen.

 

[JJpop]

Most people who have good enough jobs to be considering fire will still have those jobs and unless they panic and sell they will see stocks come back with some time. A little bit of an overreaction.

 

[Closet_Gamer]

The irony, of course, is that this crash is exactly what people need to happen in order to build wealth quickly.

It should help people FIRE, particularly young people, because they can buy assets so much more cheaply.

People who are net asset buyers each month should be cheering right now provided they don't fall victim to some kind of structural unemployment issue.

I'm fortunate to be a very secure position, but at the end of the day, I'm still in accumulation mode. My concern is that this will turn and run back up before I can take full advantage of it.

 

[Maidensong]

Cruise Industry

I think it's a big enough part of Florida's economy to bailout.

It's big for every state where there's a cruise port. MA, NY, NJ, SC, FL, AL, LA, TX, CA, WA--There may be even more. It's not just the cruise line and their employees that benefit. It's the travel agencies, the airlines, the hotels, the restaurants, the cabs, porters, food suppliers, fuel suppliers, the list goes on. It's a huge business for these areas and provide jobs for so many people on land as well as afloat. The ships may be registered in more tax friendly countries, but these are American companies, serving a primarily US customer base.

Here's a recent analysis of Carnival Corp, the parent company of Carnival, P & O, Princess, Holland America, Cunard, & Seaborne

https://seekingalpha.com/article/43...ill-need-to-use-own-life-preserver-ironically

They're in for a drought, but I think they'll come back.

(Full disclosure: The DH and I are booked on a 2021 World Cruise on the Island Princess. Not sure what's going to happen, but we still hope the world will settle enough for us to go. What's the good of FIRE if you can't do what you love?)

 

[RenoJay]

Maybe FIRE is done, but RE will become common.

 

[EastWest Gal]

CNBC: "The Concept of Retiring Early Could Disappear Due to Coronavirus"

One moonbat (who believes "having a relationship" with your money is the key to financial independence) makes a prediction, so the media run with it as if it's a new reality. Good Lord.

https://www.cnbc.com/2020/03/20/why...early-could-disappear-due-to-coronavirus.html

Benjamin Franklin "retired" early from being a printer. He spent many of his remaining days inventing things, exploring science, enjoying good company, and even as a diplomat, he did the same. The idea that no matter how much you have socked away, you must strive to get more, is a rather recent idea. The idea of FIRE is much older than the work ethic imposed on all of us by "society" whatever that is.

So no worries. FIRE won't go away. There will be a recovery, than a resurgence of this disease, then maybe a vaccine. Then other economic downturns, and on and on.

For now, being retired means staying at home, working my garden, reading and reflecting. It was what I have looked forward to since I started working in the 1980s. The circumstances are not what any of us would have wished, but it is what it is.

 

[ugeauxgirl]

I agree. I have also criticized men who claimed to be retired when their wives still work and provide significant financial upkeep to the household, such as health insurance coverage through the wife's employer. If they have kids, too, I call them "stay-at-home dads" the same way we call women who stay at home while their husbands work "stay-at-home moms" and have no business calling themselves "retired."

I've heard this argument before. I refused to "retire" till we didn't have to work anymore- either of us. We don't need my husband's income, but he WILL NOT stop working. I worked for 25 years and got a retirement package and I have to call myself a stay at home mom because my DH won't quit too?

 

[braumeister]

I've heard this argument before. I refused to "retire" till we didn't have to work anymore- either of us. We don't need my husband's income, but he WILL NOT stop working. I worked for 25 years and got a retirement package and I have to call myself a stay at home mom because my DH won't quit too?

Of course not.
This is just the difference between saying "He/she is retired" vs "They are retired".

 

[ugeauxgirl]

I find the author annoying. He seems to change his mind about his chosen subjects frequently and publish an article about it. It could be sceptical of me, but he seems to either enjoy the publicity, or profits from the clicks. Every time the market goes down even a little, people start proclaiming the "death of FIRE". For some people playing it close to the edge, it's going to mess up their plans, but some people had a REAL plan

 

[jimbee]

I find the author annoying. He seems to change his mind about his chosen subjects frequently and publish an article about it. It could be sceptical of me, but he seems to either enjoy the publicity, or profits from the clicks.

There, you've got it in bold.

 

[z777777z]

Cnbc = nbc

CNBC seems to have been losing its edge over the last number of years. So much of their talent left for Fox Business and yes, they kinda dwell on the negative and they run with a "disaster" story. FIRE isn't dead, not if one has prepared properly. Most everyone has been affected by the market downturn but if history is an indicator, it will recover and go higher. I've noticed that they frequently put a negative slant on the current adminstration and I suspect its bc of their parent co. NBC and it's liberal slant. Nothing political here, just an observation.