Financially Independent / Retire Early

If you actively follow investment news and blogs, chances are you’ve heard the buzz about FI/RE aka the Financially Independent/Retire Early (FI/RE) movement. The FI/RE community has taken the internet by storm by showcasing examples of thirty and forty-something influencers who have quit their day jobs after amassing wealth through saving and investing. To get to that point, they slashed their spending, saved fifty percent or more of their earnings, and aggressively invested to retire early or redefine what retirement means to them. 

 

The movement has gained a massive following – particularly with millenials, but isn’t without its share of critics. Is it really possible to retire in your thirties or forties? Will you have enough for changes in health, lifestyle or other major emergencies? Let’s break it down. 

 

Saving 50% to 75%: FI/RE influencers severely reduced their overhead and general spending and started saving early, usually in their early to mid-twenties. Those who have reached the FI/RE summit claimed to have lived off of only 25% to 50% of their income and saved and invested the remaining 50% to 75%. 

 

Above average incomes: While some of the FI/RE members earned average salaries, many of the highest profile FI/RE influencers enjoyed a healthy six figure salary in their twenties and transitioned from working full time at their day job into building an online or other business. While they may no longer work a corporate job, many continue to earn a substantial income from their businesses. 

 

Compounded Interest: We applaud their dedication to savings, cutting expenses, and investing. This kind of dedication reaped incredible rewards and by starting early, they can enjoy the benefits of stock market increases and compounded interest – provided they leave enough of the interest and all of the principal untouched. 

 

Aggressive Investing: When we hear terms like “aggressive investing” our radar goes off as risk tolerances are as unique as investors’ preferences. If you’re curious about your own risk tolerance, take our quick quiz to determine your risk tolerance number. 

 

When I’m 65….or 78, or 89: What does retirement look like for you? Will you continue to work? Will you increase your travel plans? How is your health and the health of your loved ones? Emergencies happen and the cost of living increases, so it is important to plan accordingly and be prepared based on your unique situation. 

 

Are You Retirement Ready?: Dreaming of retiring early and on your terms is inspiring. Now, let’s get to work on making it a reality. Do you think you’re ready to retire – or just want to know what it will take to get there? Take our Quick Retirement Readiness Assessment

 

The Right Strategy: Financial freedom is possible with the right savings plan, advice and investment strategy. Don’t go it alone. The right advisor will make all the difference in getting you to where you want to go. Contact Bob Rubin at Rubin Wealth Advisors today at bob@rubinwa.com to discuss your unique situation.