Your Survival Guy

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Fire Yourself Up: Financial Independence Retire Early

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Are you familiar with the cool movement called FIRE or Financial Independence Retire Early? As the word Early implies, it’s taken hold of a younger section of savers looking to get out of the rat race. They’re looking for their island life, if you will, and it’s a lifestyle I support a thousand percent.

For one, once you start thinking about living off your savings, you become serious about SAVING—a huge part of the process. But you also think twice about SPENDING and the benefit of deferred gratification you’ll FEEL.

This pandemic put FIRE strategies to the test—especially during the market crack in March. The hit suffered by index funds took a toll on those inexperienced in how difficult it is to be a long-term investor.

I love the idea of working for yourself and not paying for an education you can get on your own. The idea of a college education is going through its own realignment as we speak. Members of the FIRE group much prefer paying themselves rather than some fancy four-year tuition bill. That doesn’t mean they don’t get a college education. To the contrary, they do it on their terms.

If you’re thinking about retirement, you’ll benefit from the FIRE mindset. I was speaking with a client this week who told me he’s cutting back on some work responsibilities but is still in the game. It’s a way for him to adjust his working life to how he wants to live today—less travel and more time with family.

Getting back to the market crack in March. As you get closer to achieving your FIRE dream, you need to consider ways to keep your money safe. If you thought about selling in March or actually did sell, then a more balanced approach might be more suitable.

Action Line: What’s clear is the FIRE movement is alive and well. Doing more with less is something we can all get behind. Stick with me, and I’ll remind you how creative you really are. Click here to sign up for my Survive & Thrive newsletter for a monthly boost to your creativity.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com