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Title: Retirement: what is F.I.R.E.?

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This retirement movement started in the mid-2000s just prior to the Great Recession

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Financial independence retire early

Financial


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Start with how much you'll spend in retirement

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Take your anticipated annual expenses in retirement and divide it by your target withdrawal rate.

Independence

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Invest for growth
Choose between: low-cost index funds (the simplest path), dividend investing or rental real estate (the quickest path, if done right).

Retire

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Choose the year you retire wisely

One of the biggest risks any retiree faces is retiring into the beginning of a bear market.

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Plan how you'll spend your time in retirement

Create a list of the things you want to do, learn or see in retirement.

Early

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Increase your income
Early retirees know the importance of increasing your income if you want to retire by 50.

If you are a Millennial and you care about retirement, then you must have heard of FIRE.

It actually stands for Financial-Independence-Retire-Early.

This is a movement that started in the mid-2000s, just prior to the Great Recession of 2009.

The idea? Cut expenses. Increase income. Retire early. 

This movement was recently explained further by Roger Ma, Founder of Lifelaidout, at TheStreet's Retirement, Taxes & Income Strategies Symposium.

Here's what Ma said:

"People in their twenties and thirties instead of saying, 'oh, we're going to work 'till 65 and then enjoy our life,' what they're saying is, 'well wait a second, we can decrease our expenses, save a fair amount of money and then retire in our thirties and forties and then not have to work.'"

To find out more about Fire, watch the video above.

Need More? Subscribe to Retirement Daily or Watch More Below

Self-Employed? Here's How to Save Up to $62,000 a Year for Retirement

How Every Millennial Can Become a Millionaire

How to Pay Less Taxes in Retirement

How to Retire In Your Thirties, FIRE Pros and Cons

 

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