We’ve all heard of FIRE, but what is FIRO? FIRE, of course means, Financial Independence, Retire Early. Recently it has captured the imagination of a number of people, with adherents and detractors sprouting out of every corner of the landscape.
So first, what is FIRE?
The idea of FIRE is to accumulate (ie, save and invest) enough money to retire before the normal retirement age. The conventional wisdom is that this could be possible if one has enough income to save, and enough money to invest, all such that one has enough funds and income to retire at a younger age. “Younger” means anything you want it to mean as long as it is before the normal expected retirement age.
In another lifetime we would say “there has been a lot of ink spilled..” but nowadays we can only say “there have been a lot of pixels sent…” about this topic. There are all sorts of schemes and plans and propaganda about how to accomplish FIRE. To some it seems like magic. To some it seems like a delusion. To some it seems easy as rolling out of bed. To some it seems simple. So how is it?
Impossible and Easy
In theory, FIRE should be easy. Since we expect to live off our savings, investments and other income in retirement, the FIRE is simply moving that arrangement forward in time so it occurs earlier. But of course, theory and practice are two different things. Accumulating enough is difficult as it is, but to do it faster seems just accelerating one’s pain.
Ways and Means
So some advocate “extremeness,” namely cutting back severely on expenses so as to allow for the ability to save more. There are so many opinions on how to do this, I cannot begin to list even a few. A quick Google search on “how to FIRE financial independence retire early” brings up over 31 million results.
Where To?
While all these ideas seems probably logical, I would surmise only a handful of people can actually do it. (I would guess that given the 31 million results, more people write about it than actually do it.) Which brings me to the question: what about the rest of us?
Us, Where
I advocate financial independence. It’s a good thing to not be indebted. So eliminating debt, paying off the mortgage, avoiding poor credit card habits, not buying junk, etc. The goal is to avoid those thing going into retirement so retirement does not have the burdens that could degrade it.
If we have a stable financial footing upon entering retirement, at whatever age, we are in a much better place. It enhances our life to be free of debt and its encumbrances.
FIRO Now!
As mentioned in previous posts, I have retired. I was not young when I stopped working. I retired several years after my Full Retirement Age (FRA). Since then, I have been able to financially keep my head above water. So the plan now is to introduce:
FIRO!
which means
Financial Independence, Retire Older!
By all stretches of how other people see my age, I would be considered “older.” So if I am able to maintain my financial prudence and live independently, thus my retirement is within the normal range of retirement age range means that I retired older. Success!
Recommendations
I recommend retiring. It’s a hoot to be retired. Not everyone looks forward to it, but I enjoy it. Great to have no commute, no boss, no deadlines, no work, no office politics, and so on. I can tell you: Retirement is enjoyable at any age.
I could even go so far to say:
Retirement Is Great: Nice Work If You Can Get It!
So, are you retired? How is it for you? Send me your comments.
The ten-panel screen of Seven Jeweled Mountains in Korea (located in North Korea) was painted by an unknown artist in the late 1800s. Courtesy Cleveland Museum of Art.
The map of Ethiopia was created in by Jeronimo Lobo and Manuel de Almeida, and published in Leyden, Holland in 1797. Courtesy Michigan State University.
The illustration of the city wall of Beijing was created by an unknown artist and was published in 1927. Courtesy New York Public Library.
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