Is FIRE Worth It?

The FIRE movement has existed for a few years. This way of living mainly attracts people in their 30s or less. However, it is only made for some, so let’s explore FIRE, Fat FIRE, FIWOOT, and Lifestyle Design. Which one appeals to you the most?

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First, FIRE stands for Financially Independent, Retire Early. But concretely, what does it mean to be FIRE?
The idea is seductive. However, can it impact the economy? We’ve been saying for years that the population is aging and that we’re short on labor. Can we afford to have about 10-20% of the population be FIRE? Actually, FIRE requires compromises that make it less achievable.
Typically, FIRE requires people to save at least 25% of their annual expenses, so it is rooted in a frugal lifestyle.
With inflation and higher interest rates, achieving such low expenses may seem more challenging. Vero takes her family as an example, where every member does a sport or two… Who is it made for?
The emergency to live while healthy that some people feel creates some distortion between what they want and the FIRE movement. This is why some people aim for the Fat FIRE instead. What is it, and what are its pros and cons?
Another thing to consider is the sense of purpose. Many retirees return to work not for money but to find purpose. An entire life on FIRE seems a bit boring. Of course, being financially independent is amazing, but one needs to plan this and fulfill this need. Mike gives Mr. Graveline as an example.
Then, are we only left with the traditional retirement, where you work all your life to pay your bills, save some money, and enjoy life at 60-65-70 years old? What other solution do investors have? FIWOOT is one! Mike explains the concept he learned from Mark at My Own Advisor.
On his side, Mike prefers talking about Lifestyle Design. What are the pros and cons of lifestyle or retirement design?
Ultimately, there are as many lifestyle or retirement designs as people who choose them. What guidelines can help people define their own?
Is there any investment type that will better help investors reach their lifestyle or retirement goals?
Let’s end with Mike’s plan… or plans!