From Barron's - The Retire-Early Movement Is Thriving During the Crisis. Here’s How.

[Freedom56]

Barron's article on FIRE updated today. Some of the highlights:

"Yet far from dousing interest in FIRE, so far it seems as if the crisis may lead more people to investigate the philosophy. Just as people flocked to the movement in the wake of the 2008 financial crisis, those who feel burned by the current crisis may find themselves turning to FIRE strategies in a bid to be more self-sufficient."

Many FIRE adherents start out in good financial shape. They are often financially disciplined millennials or Gen-Xers with well-paid jobs, banking big chunks of their salary in hopes of making an early exit from the workforce. Given their relatively long time horizons, they often take on a lot of investment risk.

Yet even though many pursuing a FIRE strategy invest aggressively, they employ some strategies that may leave them particularly well suited to weather the economic storm. They often emphasize large emergency funds , low costs of living, and well-diversified investments and income streams.

https://www.barrons.com/articles/th...its-winning-new-fans-51588941001?mod=hp_DAY_4

 

[Big_Hitter]

"They often emphasize large emergency funds , low costs of living, and well-diversified investments and income streams."

check
check (sort of)
check
check

 

[davebarnes]

Best comment on the article: "This article is more suited for USATODAY, not Barron's."

Personally, I think the FIRE movement is more about FI than RE.
Once you reach some level of FI, you can enjoy work more (or change your work entirely) without feeling the pressure of having to have a certain income.

 

[MRG]

I always find it interesting the FIRE people they interview seem to have blogs and other side gigs. We use to call that something different than retired.

 

[Big_Hitter]

I always find it interesting the FIRE people they interview seem to have blogs and other side gigs. We use to call that something different than retired.

yep - they never seem to interview those of us who are grinding it out every day with fellow retirees over a $5 golf bet

 

[Dawg52]

yep - they never seem to interview those of us who are grinding it out every day with fellow retirees over a $5 golf bet

That much? Ours is only a $3 bet.

 

[Big_Hitter]

That much? Ours is only a $3 bet.

LOL - annual dues for the Sr group are $50 - that gives you a mully on 1, infinite lie improvement and playing OB like a red penalty area

oh and generous gimmies - I started to line up a 3 footer on Thursday and almost got kicked out of the group

anyway back on topic - I agree that these articles always seem to feature someone that w*rks for income

 

[LOL!]

When one is financially independent, then one is financially independent. The couple highlighted in the article has a withdrawal rate of 3% and do not seem to be working anymore.

That doesn't mean that the "movement" of those trying to get to financial independence is thriving. The wannabes may find that their schedule is changed.

 

[Big_Hitter]

The couple highlighted in the article has a withdrawal rate of 3% and do not seem to be working anymore.

good point - looks like they finally interviewed bona fide early retirees that did it right

 

[ejman]

I was FI for a few years before ER at 52 during the market rout of 2000-2002. I found that letting your boss know one is FI is a wonderful thing if one is doing quality work that really benefits the company. As it turned out I was treated very, very well and the company's management did everything they could to keep me happy during my FI period before I finally ER'd. So I'm not surprised that FI/ER would do well during these trying times as well. I know it sounds odd during difficult economic times but it is what it is.

 

[Markola]

Not much of an article, really, but maybe it will inspire someone out there. I read a lot of FIRE blogs and I’m not sure where the author got the idea that such people tend to have big stashes of cash. The ones I’m aware of seem pretty fully-invested, even aggressively so.

 

[HawkeyeNFO]

Meh.....