Before I retired, I was interested obsessed with what life would be like when I no longer needed to work for money. Assuming I wasn’t alone in that obsession, I’ve been chronicling my post-retirement experience in an ongoing series of posts to shine some light on the reality of life after retirement. 18 months ago today I left the workplace for good, and am adding a new post to The Retirement Reality Series: Life After FIRE (Financial Independence, Retire Early).
If you’re curious about how life changes after retirement, this post (and this series) are for you!
This is the 5th post in my series of what life is really like in early retirement, covering the first 18 months of my retirement. I’ll continue to add occasional updates to the series as my retirement evolves. Below are links to the other posts from this series:
The Retirement Reality Series:
- What The First Week Of Retirement Is Really Like
- The First 60 Days Of Retirement
- 6 Lessons From The First 6 Months Of Retirement
- The Biggest Lesson From My First Year Of Retirement
- Life After FIRE (today’s post)
- What I’ve Learned From 2 Years of Retirement
- 4 Lessons From 4 Years of Retirement
- Six Lessons From Six Years of Retirement
Life After FIRE
As of today, I’ve been retired for 18 months. It’s been a fascinating journey and I’ve been enjoying the ride. Immensely. Before I retired, I asked a lot of my retired friends what it was really like to live in retirement. Most said things like “Evey day is a Saturday”, or “I’m free to do whatever I want to do, whenever I want to do it”. While those are both true, they don’t explain the full reality of what it’s like to really live in retirement.
Life After FIRE is entirely unlike the life you live while you’re still working for pay, and it’s really hard to summarize in a few sentences. It’s also an experience that evolves with time. My view and experience of retirement is different at 18 months that it was in the first year, and I’m happy that I’ve chosen to document the evolution with this series of posts.
I hope you’re enjoying the ride.
For my upcoming book, I’ve written a chapter dedicated to “The New Reality” of life in retirement. I won’t steal my own thunder here, but I will say I’ve really enjoyed writing that chapter and I look forward to sharing it with you next Spring. The biggest change is the reality that, since you’ve achieved Financial Independence, your actions are no longer dictated by financial considerations. Having motives other than money behind all of your actions is a BIG change, and worthy of a dedicated chapter in the book. I also came up with an entirely new analogy to explain what life in retirement is really like, and I look forward to your reaction when you read that chapter.
Having said that, I did come up with a new analogy for today’s post that’s different from the approach I’m taking in my book. I thought of it while I was walking my dogs in our woods a few days ago, and decided to share it with you in today’s post. I think it’s an appropriate topic for this 18-month update on my experience in Life After FIRE.
College Life: An Analogy
Think back to the time you were in college (or, if you didn’t attend college, think High School). Now, think back to the adjustment you were forced to make when you moved from college to your first professional job.
It was a huge change, right?
Since most of us can relate to what it was like to move from “College To Career”, I think it’s an appropriate analogy to attempt to explain what it’s like to move from the working world to Life After FIRE. I trust you’ll agree. With that, let’s get started.
The Priorities At College
In college, your focus was on achieving good grades so you could get a good job. Sure, there was a lot of other “noise” going on, and intense socialization as we all experienced living on our own for the first time. But if you boil down the real purpose of your college years, it was to build a foundation on which you could secure a good paycheck. We’d all like to say we were interested in education for education’s sake, but in reality, we all knew we’d be looking for a job as soon as we graduated, and it drove a natural emphasis on getting good grades.
If you did a good job, you got a good grade. Feedback was regularly given and you knew where you stood. If you were given an assignment, you completed it on time so you’d get a good grade. You studied (and ditched that party) on the night before that Final Exam. While we could argue the details, I think the macro priority is accurate. You focus on grades, so you can get a good job.
Sometimes, folks focused too much on the grades. A few years into your career, you realize those grades probably weren’t as important as you thought during your college years. Hopefully, you had a good balance during your college life and took the time to enjoy your college years rather than focus exclusively on the grades.
The Priorities At Work
Whereas college was focused on grades, the workplace is primarily focused on money. You focus on doing a good job so you can make more money. You deal with the politics so you don’t torpedo your next promotion. You put up with the crap from your boss because you want a good annual review. You deal with that horrible commute because you need the money.
Whereas in college you did that assignment to get the grade, at work you do that assignment because you want to be recognized as someone who does good work. You want to stand out in the crowd and get a promotion as a result. You don’t want to “settle” for the average annual increase, you want to do better than that.
Your macro goal during your career is to build Financial Independence. If you’re responsible, you’re focused on “growing the gap” between your expenses and your income, and you’re investing the difference wisely. You’re on the road to FI, and money matters.
I worry, sometimes, that folks worry too much about the money during their working years. Particularly in the FIRE community, many folks are obsessed with achieving FI, just like those students back in college who were obsessed with getting good grades. I like the growing trend of “Slow FIRE”, where folks recognize the importance of enjoying their journey and keeping balance in their life.
Enjoy your today, you’re never promised a tomorrow. Slow FIRE is the path I followed to my “early” retirement at Age 55, and I’m happy with the path I chose. Each of us must make our own choices, and I encourage you to choose wisely. You’ll never get your college years back, just like you’ll never get the years back that you’re living today. I encourage you to stop to smell that rose.
Just sayin’.
The Transition From College To Career
Let’s move now to that point in your life when you accepted your first professional job offer. You knew you were starting your new position next month, and you were a bit anxious about the transition. What was life going to be like in the working world?
I can still remember my first day on the job. It was 8:00 am on July 5, 1985, in Warren, Ohio. I remember parking my car and walking through the doors for my first day of work. The only person I knew was my boss, who had interviewed me a few months prior. Do you remember?
Over the next few months, you started learning your way around. You learned how to spend your time to get the things done that mattered. You started to figure out how the working world worked, and you continued to figure it out for the first few years in the workplace. At some point, the working life became your “new normal”, and you settled into a routine that’s lasted for decades.
Achieving FIRE is Like Getting Your College Degree
The closest analogy to moving to retirement is the transition you made from college to work. Achieving FIRE is similar to getting your college degree, it marks a major milestone and the associated reality that it’s time to start a new phase in life. Life After FIRE is kinda/sorta/nothing like starting that new job.
Achieving FIRE is like getting a college degree - it marks the end of one phase and the beginning of another. Share on XWhile you were in college still working, you had no idea what life was going to be like on the job in retirement.
Just as I remember my first day on the job, I’ll never forget my first day of retirement. I’ll never forget the luxury of knowing I’d never be commuting again. I’d never need an alarm clock. I’d never deal with the BS of work.
But, just like it takes some time to figure out how the working world worked, it takes some time to really figure out life after FIRE. Life in retirement is really, really different. No one tells you what to do anymore. You’re your own boss. It’s a luxury, but it’s also an obligation. 18 months in, and I’m really starting to figure out this retirement thing. And Life is good. Really good.
How Life After FIRE Is Like Starting That New Job
After 18 months on your new job, you were starting to figure it out. You also looked back with a new perspective on your time in college. 18 months into Life After FIRE, I’m starting to figure it out and I’ve also gained a new perspective on my time in the workplace. Sure, you may still be “working” in retirement (many folks do), but it’s really different when you’re no longer working for money. I’m on a Board Of Directors and I’m writing a book.
Am I working?
Sure, but it’s nothing like when I was commuting to my 9-5. I’m doing both of those “jobs” because they interest me, and I really don’t care how much money I make while doing them. They also allow a degree of freedom which I control. The Board work takes a few days each quarter and the book will be completed by early next year. Aside from those minor obligations, I’m entirely free. I do what I want to do, when I want to do it.
Freedom is worth more than money in Life After FIRE.
Someday, Your FIRE Will Go Out
The point is this. Recognize that, just like your time in college, your journey on the road to Financial Independence will end. At some date in the future, you’ll reach your destination. Your journey to FIRE will be over, and a new journey of Life After FIRE will begin. When that journey to FIRE is over, will you look back with regret? Were you so focused on grades making money that you forgot to enjoy the ride?
The journey to FIRE is a phase, just like college. Eventually, it will end. Once you’ve achieved FIRE and left the 9-5 working world, it’s time to move on to your new reality. The FIRE fades and the next phase begins.
Life After FIRE is a wonderful place to be.
But don’t live your whole life waiting for it.
Live your life now.
Conclusion
The journey to F.I.R.E. (Financial Independence Retire Early) is just that, a journey. Eventually, you’ll reach your destination. Retirement is a wonderful place to be, and Life After FIRE is a worthy destination. However, it’s not worth sacrificing your entire life to get here. Rather, just like in your college years, take some time to enjoy life while you’re in the midst of living it. Learning to enjoy your Present will be of great value, regardless of where you are in your journey.
Life really is about the journey.
Learn to enjoy the ride.
Good article, I always enjoy reading your thoughts. My first 18 months of retirement (yes, its 18 months as of November 30) have been a bit different since I work part-time, but, I have enjoyed being away from the daily grind, playing with my grandson, walking the dog and other fun stuff.
Bill, ironic that we retired within a week of each other, you’re likely one of the few who is reading my posts and walking side by side on the same timeline. That’s prettty cool. Since you’re working part-time, perhaps your analogy would be more like going to grad school…
Enjoy that grandson, we can’t wait to see our one year old grandaughter again at Christmas (we’re flying them home for the holidays from Seattle, it’ll be a special holiday for all of us).
Fritz – what a great analogy – I know at times I can get enthralled in the personal finance world so thanks for the reminder not to smell the roses while I’m running with them in my hand but to stop and smell and enjoy! How true are your words about dealing with office politics and your boss in the right way so you don’t ruin your chance at the next step ! You also took me back to my college days for a few minutes this morning- it’s funny how different my life perspectives are now compared to then.
Dusty, I’m pleased to hear that the analogy make you stop and think about smelling the roses during your journey. That was exactly the point I was trying to make! It’s interesting to find that our life perspective continues to change, probably will until the day we die. Life is always interesting, and should be lived to it’s fullest.
Another good article that has helped me with life after F.I.R.E. I just made one year of retirement (retired at 57) and have really enjoyed the stress level coming way down. We sold our business after 17 years and did not realize the tremendous stress we were under. The key for us has been to keep our consistent exercise routine which we have done for the last 35 years. Nothing extreme, just simply a brisk walk and light resistance with weights. We enjoy day trips and occasionally an over nighter, golf a couple of days a week and leaving the tv off until after 6:00 p.m. Thanks for your efforts with this blog and look forward to learning from them.
Joe, glad to know there’s a reader just 6 months behind me on the journey. It’s a fascinating period of life. Kudos for the consistent exercise routine, I’ve done the same in retirement, with Cross-Fit, Spin and Barre Above all scheduled, and 2X a day walks with our dogs around the 1.3 mile trail in our woods. It’s nice to have the time freedom to do the things that really matter.
Thank you for the analogy. It was helpful and thought provoking. I too have achieved FIRE. I am also in my 18 month of doing so and at times struggle with “what now.“ It has been freeing to know I know longer have the responsibility that filled my day. I sometimes reflect back and realize how the paycheck took away from some moments when I failed to manage my schedule optimally. I look forward to your book. I have time to read, exercise, pray, and think about “why nots”. Thanks again for bringing me back to my youthful college days.
How ironic, three readers in the first 5 comments who are walking side-by-side on the retirement timeline. Wish we were close enough to all meet up for a weekly breakfast, I suspect we’d find the conversation enjoyable. I love your comment about prayer and time to think, important elements to a great retirement.
Thank you for this post.
You’re welcome. Wink.
After 18 months your option for Cobra health insurance is over. What did you figure out for health insurance?
Great question, Jim, and a top of mind concern for early retirees. I’ve decided to go with an Aetna plan my employer makes available to retirees. They are offering a 25% employer subsidy for 2020, so I’m taking advantage of it. Monthly cost will be ~$1k per month for a high deductible plan. The subsidy expires on 12/31/20, so I’ll review my options again for 2021, but it’s nice to know we have another year covered at a below budgeted expense.
I love the college analogy. I met my husband in grad school, and we always joked that our ideal life would be to re-create the college lifestyle every day. Riding our bikes, no real rush to get anywhere, freedom with our schedules, with a small amount of accountability and productive work. I only worked in the full-time corporate grind for four years, and since then it has felt a lot like college (self-employment). Great series, and looking forward to your book!
Funny, I didn’t make the connection between the similarities of college life and retirement. Definitely some overlap there, thanks for making the point! I’m looking forward to the book, too. 😉
Fritz, I wonder if you had your own business instead of working “for the man” perhaps you would still be working. I had my own business for 36 years, and not every day was roses and champagne, but it was mine, it did well and my family did well, if lost a million dollar client and my family learned about rice and beans.
Just an observation , I am in semi retirement now, serving on a board, mentoring with SCORE (service core of retired executives) and working on M & A for the company I sold my business too.
JJ
That’s a thought provoking question, JJ. I think it all boils down to the reality that, once you’ve achieved FI, you have the freedom to do whatever you want to do without regard to earning income. If I loved the business and wanted to keep doing it, no reason not to. It sounds like we have some similarities in our retirements, with a focus on helping others. Congrats on your SCORE work, great program.
Fritz, your timing is impeccable, as I approach two years this Jan 2020. You made me ponder the initial anxiety which was quickly subdued as I began to enjoy myself tremendously. As I am reminiscing about all the places I traveled and hiked domestically and overseas; enjoying better quality time with my wife, family, and friends; downsizing our home, doing the obligatory honey do list (LOL), cycling, volunteering, etc, I tell myself, what a ride indeed! So much more to look forward to enjoying. One aspect that I believe would be a good article, if you have not written yet or are contemplating as you write your book, are those events in retirement life, either anticipatory or not, that could derail this time of enjoyment and how to cope. For instance, although the cycle of life is somewhat anticipatory as it to pertains to my aging parents in their 80s, it is difficult to contend with their cognitive and physical decline. Although I sought legal advice for wills, financial powers of attorney, etc, it was still difficult when I had to take over all of my parents finances because they couldn’t do it, and moreover, for fear of fraud exploitation. Furthermore, I find myself communicating with their healthcare professionals and ensuring my parent’s adherence to their meds and appointments. There are more obstacles others in retirement may have that will try to derail years of enjoyment but that can be breached with venues like your magnificent blog to share and consult with others.
Eduardo, the honey do list is obligatory? I thought we had Freedom in retirement. Haha.
Good point about the potential obstacles in retirement. I actually have a chapter in the book that focuses on some of these, you must have been reading my mind. No doubt, being a member of the “sandwich generation” can cause some difficulties in retirement. My mother-in-law (Alzheimer’s) lived with us for four years, and we defintely had to adjust some of our plans as a result. I wrote about it in Your Plan Is Wrong. Plan Anyway. I suspect many of us Baby Boomers are facing similar challenges. Good luck as you focus on taking care of your parents, you’re a good son and doing the right thing by making them a priority in your life. The time will come when this obligation will pass, and you’ll be thankful you did the right thing when you had the opportunity.
Thank you Fritz for the link. You and your wife’s flexibility to your long range plan in accommodating your mother in law’s needs was a good read for me and not too dissimilar from what my wife is trying to do with her mother suffering from dementia by moving her to a senior facility closer to us. As a former Army officer, one of my favorite Murphy’s Law of Combat is “No combat plan survives the first contact with the enemy”. Adaptability is the key and being FI helps tremendously. I very much look forward to reading your book next year.
Next year I’ll be dipping my toes in the water of retirement by going part-time at work.
It’s good to read your posts on what life is like after leaving the j-o-b. My best friend and her husband retired 2 years ago. They’ve both taken different approaches – she likes a very scheduled routine with different activities for every day, whereas he’s taken a much more relaxed approach to life.
Frogger, I’m excited for you! I suspect you’ll find, like your best friend and your husband demonstrate, that you will also (as each of us has done) chart our own path in retirement. Ah, the Freedom that comes with FI. It’s an amazing time in life. Enjoy it to the fullest. Thanks for making me a small part of your journey!
I enjoy reading your posts. Thanks for sharing. I will not FIRE, I’m 63. TR will start in 31 months. We’re going to live off the 403b a few years, then take SS at 70 and fall back to RMDs. I’m a minister so I will never really retire, just switch gears. Blessings.
Cary, we’ve had several friends who were also ministers, and I agree that your work will never truly end. Thank you for dedicating your life to something that really matters. Enjoy your “shift”, time to slow down a bit and enjoy life. Thanks for your kind words about my posts, I also enjoy writing them. Wink.
Thanks Fritz, I am currently 48 years old.
Your posts are always thought provoking, always leaves me with extra items to think about.
Thank you for your posts and have a nice day.
Thanks Mike. I am currently 56 years old. Smiles.
Seriously, I appreciate your encouragement and am glad to know my words make folks think. Best compliment I could receive.
Very good analogy Fritz and glad to hear your stoke is still running high. There’s only a few ‘major transitions’ in most people’s lives and retirement is one! Now get back to that book 🙂
My stoke is always running high, though likely not as high as yours when you dusted that 20-something kid on your bike. Smiles.
Book is coming along well. Working with the Development Editor this week on editing the entire book. A lot of work, but exciting time. We’re closing in on “freezing” the text, a major milestone!
Fritz, I greatly appreciate your perspective and helping me have an understanding of what I will be entering next summer when I retire at age 58. We live just down the road from you in Ellijay and would love to meet up sometime whenever it is convenient for you. Thanks for the thought provoking emails.
Ellijay!!?? No way, we’re practially neighbors! I’d love to meet up with you, shoot me a note sometime in January and we’ll get something lined up. Look forward to meeting you in 2020!
234 days until “R” day but who’s counting 😎
Great post as always. Helps keep me focused on getting the rest of my ducks in a row and reminder to enjoy the journey.
I too have been obsessed with the planning, maybe a little to much.
Thanks
Bob
Trust me, I know ALL about that countdown! I actually started a countdown app on my phone when I was ~1,000 days out. Yeah, I might have been a bit obsessed. Enjoy the countdown, that was one of my favorite parts of my last few years of work. BTW, I don’t think you can be “too obsessed” about planning for retirement, the amount of planning has been directly correlated to the odds of a successful transition. Obsess on, Bob.
233 and counting…
Hi Fritz,
I’ve enjoyed reading your blog for the last three years! We retired in May 2017, I was 52 and my husband 55. It was definitely an adjustment at the beginning but oh so amazingly rewarding. We love it! As the weeks and months roll by, it continues to get better and better and I wonder, why didn’t I do this sooner? Look forward to reading your book.
Thanks for your long-time loyalty, Darlene. “It was definitely an adjustment”, indeed. I was just talked to a former co-worker yesterday who expressed exactly that sentiment, I think all of us are a bit surprised by how bit an adjustment it really is. Wonderful, indeed. You’ll find quite a bit in the book about that adjustment, I think it’s an important message for folks who are nearing The Starting Line.
Love the article, my daughter is about to graduate from college and is heading to Graduate school (on her own dime, I say proudly) and I couldn’t help but relate to your analogy for myself as well as her. She is about to embark on her independent life (well….we still have her on our phone plan) and we are closing in on the “starting line” of freedom from schedules, commutes and challenging (cough cough, toxic) office politics. I have a few (2?) years to go but the what ifs are exciting to contemplate. My husband and I are discussing options and talking (while walking of course) about our open future. It is critical for us to remember to enjoy the now, the future is not promised as they say, the present is the gift!
Karen, I had to laugh at the “still have her on our phone plan” line. I remember a mid-20’s woman at our office who was still on her parent’s plan. I wondered how that would happen, until our daughter remained on our plan until she was in her mid-20’s. We finally got her off about 9 months ago. Funny how that happens.
2 years left. You go, girl. You’re approaching the fun part!
Fritz
Great article as ever! Enjoy the journey, indeed! Because I only discovered FIRE after I had retired, I was never tempted to chase the retirement goal to the exclusion of everything else. I agree it is a good goal, but I agree – don’t let it stop you enjoying other things along the way.
Erith, my Scottish friend, I suspect you’ve always enjoyed “other things along the way”. You’re a model for me, and I appreciate your support and friendship. What’s in store for your extended international getaway in 2020? I always look forward to your fascinating travels.
Hi Fritz, not decided on our big getaway for 2020 yet, but possibly somewhere in Spain. However, we’re off next week to NZ for 5 weeks, to meet our new grandson. That’ll keep us busy for a while!
Fritz:
Another fine, insightful article! December 31 marks four years since I retired from my former career and became FI. However, I chose the route of starting an Encorepreneurial pursuit (blending projects – for free and for fee- and experiences that matter most to me in the second half). Interestingly, some of the “What IF?” Scenarios I thought about in advance of “Retiring” have come true…..Like Elder Care Giving. This has been ongoing for four years in addition to my Work and Life. For my wife and I, it has become a bonding experience for the two of us that has also included traveling back and forth out of state. We found a way to make it an adventure. Most of my work is location independent, so that has actually made it kind of fun.
Anyway….The point is…. I LOVE this new season because I have agency over my calendar. I do miss certain aspects of the former career but the new aspects of my Encore Career outweigh that for sure. Pls keep the good work coming from your end. Looking forward to your book!
“Encorepreneurial pursuit”…I love that phrase! Congrats on finding a way to make it an adventure, even if you’ve had some obstacles come up in the path. That’s life, and our attitude determines to a large extent our experience. Thanks for paving the way, and for your kind words.
Your post couldn’t of come at a better time for me. I just turned 58 and will retire next Friday, Dec 20th. I have followed your blog for the last 20 months and enjoyed your journey and wealth of information. I believe I’m ready for FIRE to go out and start living life to the fullest!
I wrote it just for you, Mike. Wink. Thanks for being a loyal follower, pleased to know my content is helping you on your journey. Enjoy your last 20 months, it’s one of the most exciting times in the process (I hope you’ve started that countdown app on your phone!?).
Yes to the Slow FIRE, please, and thank you. Is there some risk not being financial independent as soon as possible? For certain. But about as much risk as dying young before I would retire anyway. My wife and I might even go part-time/semi-retire and do that until closer to 60. Time will tell.
Thanks for the post. I love reading from FIRE folks so that book will be a fun read I’m sure.
Pete, glad to see another person supporting the Slow FIRE message, I’m glad to see it gaining some momentum. Like all things in Personal finance, it’s a decision each of us must make for ourselves. Choose wisely.
I just discovered your site. We are very new to FIRE and ours is very different. We’re on our thirties and retired to enjoy our young family (and we’re adding another one in Feb). Honestly, being a full time parents doesn’t feel like retirement at all and it’s the hardest job I’ve had. There are times I suggested to my husband that we both go back to work since it is “easier”. We’re almost 6 months in. It can be isolating because we are “so young” to retire and all our friends are still working. I still wouldn’t change it and I’m really glad that I can see my kids’ milestone. I think another analogy would be transitioning to focusing your career to being a parent (working or retired). Retirement looks very different with a toddler in tow.
Rosie, congrats on achieving FIRE at such a young age. I can imagine the isolation, but you really are truly blessed to be able to dedicate time to your young family, one of the most important times in life and a time most are conflicted with work/life balance. Kudos to you, and thanks for stopping by (I’m glad you discovered my site!).
Excellent post Fritz. Like others who’ve left comments, I’m only a few months behind you on my post-FIRE journey and wholeheartedly agree with you. Life itself is a journey full of different chapters and it’s important to experience each one to the fullest as your aim to fulfill your overarching goals. Sprinting ahead just cheapens the potential of today. It will all come in good time, so be sure to fully realize the magic of the moment!
Mr Fate, glad to have you on my site (and sharing my stuff on Twitter, much appreciated!). “Sprinting ahead just cheapens the potential of today”. Wow, with lines like that your blog is sure to be a legend in time.
“The journey to FIRE is a phase, just like college.”
Bloody awesome analogy, my friend. It really puts things into perspective. Mrs. Groovy and I have been retired for three years now, and we really didn’t figure out the “life after FIRE” phase until the latter half of year two. So your 18-month milestone is spot on. The good news is that this adjustment phase, while fraught with a fair amount of uncertainty, is every bit as enjoyable as the transitions from high school to college and college to work. In short, FIRE enthusiasts need not fear crossing the retirement Rubicon. Retirement is great, and it only gets better. Hope all is well at World Headquarters. Cheers.
Interesting to hear that your transition took close to two years, too. I suspect most who go through it take some time to settle in. I love your line to “not fear crossing the retirement Rubicon”, classic line as only the infamous Mr. Groovy is capable of coming up with! And yes, the World Headquarters is splendid. Hope all is good at the Groovy Ranch! Have a very Merry Christmas, we’ll have to catch up early in 2020.
Nancy, glad to see you got off the lake. 😉
I’m glad you liked the “Freedom” quote, it was my favorite line in the post, too. Amazing minds…
Fritz,
Saw a recommendation for your blog on another website and visited for the first time today. This is the first article I read and was impressed with how much sense it made. My situation is a little different as I am still working full time in a high stress job that I totally dislike. Just turned 60 years old. Saved my whole life and have about 90x expenses + pension (at 65) of 26k/yr + near max SS (plan to take at 70). Yet I still stay at this horrible job. I am going to look thru the rest of your blog entries, maybe I’ll find one to help me finally make a break from work and take control of my life again.
Francis,
Happy to have you on board! If you have 90X your annual expenses saved, there’s no reason to stick with a “horrible job”. Glad to see you’re thinking about your options. Life’s too short to not live it to it’s fullest. Best of luck as you figure out your future path, I’m pleased to know I’m playing a small role in it!
The FIRE movement is nothing more than an over-hyped gimmick that repackage the Financial Independence concept that has been around for thousands of years starting with the first Entrepreneur.
I was so grateful that I was not aware of the FIRE idea until I have crossed the FI mile marker at the age of 42 – I planned and executed the Financial Independence process to add additional degrees of freedom into my life, but, I did not do it to Retire Early.
Very few people achieved FI by adopting FIRE in its entirety. It is no different than a new diet fad that has very low efficacy toward solving the current obesity problem.
Among the tiny group who found FI through FIRE herd mentality – the destination, “Retire Early”, suddenly reminds them – it is not the destination but the journey.
TheEngineer
You are correct, it is about the journey, not the destination.
But I have found there are plenty of insights from the FIRE movement that were not were not clear when it was just about financial independence. What the FIRE movement has achieved it to present to a younger generation an alternative that is (relatively) socially acceptable.
Being only a couple of years behind Fritz, I was always in the FI part, but I have enjoyed reading the insights that the FIRE movement have started to crystallize. Compound interest was always there but the FIRE movement has shown how it together with aggressive savings and increased life expectancy can play out.
That was something that was only available to high wealth individuals (and their family office) generations ago.
Overall, I agree few would have achieved FI through FIRE, but I suspect many more have had the opportunity to consider how they might achieve FI than if the FIRE movement was not around. For that reason, I don’t agree that it is a fad diet.
I applaud Fritz, Mr MM and others who have brought this type of thinking to a wider audience.
“Nothing” more, Engineer? I think the fact that thousands of folks have learned about the importance of living below your means due to the movement gives it some merit. Sure, very few of those people may truly achieve FIRE, but they’ll most certainly be better off than they would have been without the movement. There’s good in everything, I encourage you to seek it. And, I totally agree with you that “it is not the destination but the journey”. We should all take the time to smell the roses as we pass by them in our lives.
Thanks for stopping by.
Mark, Fritz;
In 1994 William Bengen, a financial advisor, articulated the 4% withdrawal rate as a rule of thumb. Two years prior, Vicki Robin and Joe Dominquez published the 1992 best-selling book “Your Money or Your Life”. These two events served as the foundation of the FIRE movement for the last 25 years.
In 1990, the US personal saving rate is 8.8%. Guess what, it is the same saving rate last year 2018. As a matter of fact, from 1990 to 2007, the US saving rates dropped into the oblivion of an abyss, 3.7%. Do you know what brought the US saving rates back up to the 1990 at 8.8 % level – you got it was the Mother of Recessions 2007, not the FIRE movement.
As I said above, Financial Independence concept has been around for thousands of years began by the first Entrepreneur. Pairing FI with RE fed right into the Millenials’ mindset – instant gratification.
I have personal met many of these youngsters, FIRE adopters, otherwise super bright kids, wandered the street of Southeast Asia on shoe string budgets in my travels.
I can only guess on this statistic, but most of them will return back home in the states and become financial burden to their parents when the FIRE extinguished.
I will evangelize FI to anyone and anywhere with the hope of making a difference in the quality of life. But, I will never preach RE.
This post is exactly what I wanted to read now…I’m 61 and my wife is 59. Her last day of work is tomorrow and mine is December 31st…We’re both a little apprehensive, just like we were when we graduated from college and faced that first day of work…We’ve been looking forward to this for years now. Thanks for all the great reads along the way
Jon,
Congrats on crossing The Starting Line TODAY! You’re going to love life on this side of the line! I’m pleased to play a small role in your journey, and wish you the best of luck as you make the transition to Life After FIRE (yes, 61 and 59 count as FIRE in my mind, since I look at it as an “early” retirement relative to societal norms). Best wishes for the New Year, a year you’ve been “looking forward to for years”. Enjoy the accomplishment!