The Truth About FIRE - Is Early Retirement Actually Possible?

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You've probably heard about the "FIRE Movement," but is early retirement possible? We discuss the concept (and its drawbacks) in today's video.

Intro Music: Marty Gots a Plan by Kevin MacLeod

Host/Editor: Richard Coffin
Producer: Craig Lord

This video is sponsored by Skillshare

DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution, although Richard does work as an employee for an investment manager. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.

[DanRichter]

I just turned 27. I've been doing a lot of calculating and found that I'm on track to retire by the time I'm 32. Unfortunately, I have to die before I turn 33 for this plan to work.

[missmarymac]

Semi early retirement, where you work part time after aggressive saving makes more sense.

[TiaanKruger]

At my previous job we had a guy that won the lotto, and it was a big one. But he is also quite frugal, looking for discounts, etc. So he would make it last.
But he still worked. All this change allowed him to do is work on his terms.
He worked until 2pm, and rarely on a Friday.
He was a fairly senior programmer, which definitely helped motivate keeping him on.
But his is an example of what I really see in financial freedom. Not to stop working, but to work under your own conditions

[rfimor]

My dad is a billionaire and I FIRE since I was born. Hope this tip helps.

[vsssa]

FI is everyone needs to strive towards, but RE is optional.

[TheJackCain-]

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My Husband and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

[anidiotsguide]

I'm following most Fire-methods, but I have no plans to retire early. For me, the appealing part is having the financial power and freedom to be able to do things I otherwise could not do. Take a year off, work part time, try new things, quit my job i my new boss is an ass, and so on. It has also helped teaching me a lot about myself, and what I value, which is great.

[nothinleader]

I was FIRE oriented for a decade but have changed my mind to it's not worth it. With the amount of sacrifices, you're delaying living life to the fullest-my 20s are gone now and all I have is a fat stack of cash but the feeling I never really lived. I wish I had traveled more, lived in different cities, went out, and tried more things, and progressed more in my hobbies. Now I'm in my 30s with no friends and no significant other (and it only gets harder to meet people as you get older). Then there are the points mentioned in the video-you still have to be frugal after retiring and many people still work. I'm tired of living for the future and am now trying to balance it out and catch up on 'living life'

[ondrejbilka]

Retiring even in twenties is pretty simple. You just need a rich grandma.

[travis]

The most important part of FIRE is "FI" as in "Financial Independence". Saving up a nest egg so that you COULD live on it indefinitely is a powerful concept because it gives you options. It means that though you might have a job, you don't have to constantly stress about what would happen if you were to get laid off, etc. Retirement from your career isn't always your choice. Often it is not. Having options is a very good thing.

[chicknscratch]

My first boss was in his mid 60s and two years into retirement when he decided to buy a burger joint, and while it stressed him out a ton at times it got him out of the house and i think he secretly enjoyed being somewhat of a mentor to a bunch of highschool aged kids

[radeckiless]

I think the big thing is peace of mind. at one point I was making ~$20k then I started my own handyman busyness and spent the same amount and had $60k in savings at the end of the year it was the first time I ever felt financially stable. Not having money is a million times more stressful than not spending money.

[PBoyle]

Great video! I think there are many interesting ideas from the FIRE movement, and early retirement is probably the least interesting part. This approach seems to help people focus on what actually makes them happy rather than conspicuous consumption and impressing their friends. One of the benefits of having significant savings is that you can focus on long them goals, and take risks that would not make sense for someone in a more financially precarious position. Being able to focus on the long term is usually good for your career, as it allows a more fearless approach. It doesn't surprise me that a lot of the people who set FIRE as a goal, instead continue working, as they are usually industrious people, and not really predisposed to sitting around or relaxing too much.

Keep up the good work with these videos. I always look forward to seeing a new one in my notifications.

[ted]

I just reached financial independence after saving 80% of my income for 7 years. So I can confirm that it is possible. But I am also single with no kids and have the ability to really lean into the minimalist lifestyle. Even though technically my passive income exceeds my expenses, I think it would be foolish to completely just stop working now. I plan on just transitioning to work I’m more passionate about. If I’m able to produce a good income from it - that'l be a bonus.

[Seaghbough]

FIRE is definitely something I’m trying to achieve. Partly to actually retire but partly to protect myself in the event I lose my job, which is a constant threat.

[Zveebo]

I pursue a ‘mild’ version of FIRE (preparing to retire by my late 40s), and have found it pretty useful in preparing for my future and focusing on what really matters today. Some of the more extreme version of it are crazy though (a miserable 20s is something I think so many will regret), and paying for courses is crazy when there is all the guidance you could want out there for free.

[CheeseSlicess]

As someone who is chasing FIRE (I set aside 60-70% of my salary) I agree with you for the most part. But one thing left unmentioned is that ANY early retirement is considered FIRE. I don’t want to retire until the age of 55 and that’s still FIRE.
I’m worried that people only see the extreme side of the FIRE movement and forget about the communities aim to promote saving money and living intentionally. The Financial Independence is often the main focus for most, the retirement comes second.

[ElvishShellfish]

This is an awkward video to watch at age 30.

[elvikingo]

I FI'd out a few years ago and quit my job. I started a business so I'd have something productive to do. After 6 months of bliss, the stock market crashed. This is the nightmare scenario you mentioned. I didn't want to tap my capital while it was down, so I was suddenly depending on my business income. Turns out, I love being self-employed. I hated being an employee at a big company. Now I use the investments as a safety net to keep my new self-employed lifestyle going 😊

[LillianNotayi]

I like the FIRE movement - mostly because it inspired me to be a lot more intentional about my finances.