Are you considering retiring before your full retirement age? Then you’re a part of the FIRE Movement, also known in long-form as “Financial Independence, Retire Early.” The Movement requires you to accumulate enough wealth to support your lifestyle without a paycheck or income from financial retirement programs.
To be successful, you’ll need to save and invest aggressively during your working years. Essentially create a passive income portfolio, and for those striving to achieve this, the goal is to stop working in their 30s or 40s. Aside from a lifestyle without work, the outlying benefit is learning about money management, budgeting, and monitoring.
If you’re interested in how the FIRE Movement might work for you, start by looking at your annual spending and expenses. That determined financial number is then invested primarily in equities, real estate, or a side hustle, assuming that the proceeds will be enough to live off for at least 30 years. Jordan Grumet, author of “Taking Stock” and host of the Earn & Invest podcast says, “This allows a safe withdrawal rate of 4% of total investments, inflation-adjusted, each year.”1
Early retirement may sound fantastic, but before jumping on the Movement, there are drawbacks to consider. Consider that you may have to pay your medical insurance, and there isn’t a company 401(k) with employer matching to grow your nest egg. There’s also a genuine concern that your investments are subject to the market rollercoaster and may not perform as you expect or need.
The FIRE Movement is born from the book “Your Money or Your Life” which speaks to FIRE’s mantra of consuming less while living better.2 It requires a detailed plan, commitment, and most importantly, the guidance of a financial professional.
While you may not be prepared to join the FIRE Movement, having a financial strategy is something worth putting in place and reviewing periodically. We can help with that, so call our office today at (540) 720-5656.
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor and obtained his