Latest news with #RetireEarly
Business Insider
18-05-2025
- Business
- Business Insider
4 things traditional retirees can learn from early retirees, according to financial advisors
Early retirement isn't just for the rich. It's also for the financially savvy. Crunching numbers and pinching pennies may not be for everyone, but adopting some of the saving and investment strategies used by people aiming to retire early can help navigate market uncertainty and boost your overall growth potential. Here are four saving and investing strategies that financial advisors say traditional savers can use to reach financial independence. 1. Get serious about saving The FIRE (Financial Independence, Retire Early) lifestyle encourages young investors to boost their long-term growth potential by investing a majority of their income in the market. People pursuing FIRE tend to live a more frugal lifestyle, regardless of how much money they actually make. "If you retire at 55 and you live until you are 85 or 90, that's a lot of time in retirement," Carol Schleif, chief market strategist at BMO US Wealth Management, told Business Insider. She explained that the goal of FIRE has always been to "maximize income and spend more time enjoying retirement." FIRE encourages individuals to be more conscious consumers, live beneath their means, and not spend "every last penny." Even retirees who aim to leave work at a more traditional age can adopt a FIRE-inspired approach and increase the amount of income being dedicated to retirement savings as soon as possible. Increasing annual contributions to one of the best retirement plans, like a 401(k) plan or IRA, unlocks tax benefits while money grows with the market, benefiting from compound interest. Saving more money, however, goes hand in hand with prioritizing your budget. "Pick the three or four things that are a priority to you, spend what you want on those," Mike Venuto, cofounder and chief investment officer of Tidal Financial Group told BI. "If you approach budgeting as focusing on things you love as opposed to giving up comforts," he continued," you find that you don't end up caring about the little comforts that much." 2. Don't stress about short-term market volatility No one likes to check their stock portfolio's performance and see all red, but the FIRE community understands that these short-term fluctuations are a normal part of the business cycle. A core belief of FIRE is that the more time your money is in the market, the more it can grow. Even if there is a bear market or economic downturn, the classic buy-and-hold strategy allows investments to be part of the upswing when the market eventually recovers. "People are worried in the short run about the US dollar going down, and that bonds and equities went down," Schleif said. "If you take what happened in the last couple of years and stretch it out over the last 20 years, this is a blip in an overall long-term trend." Still, it is important to limit risk near retirement age, as you no longer have the time horizon to recover from a major loss. "There's nothing wrong with 'Vanguard and chill' for a 20-year time horizon," Venuto said. But if you are only a few years away from retiring, he suggests reducing your stock allocation, investing more in fixed-income assets, and building up your cash reserve. 3. Diversify your portfolio Whether you are part of the FIRE movement or are a traditional retirement saver, experts always recommend portfolio diversification within and throughout various market sectors. This not only limits risk if one area of the market declines, but it also allows investments to benefit from the areas of the market that are seeing growth. "Diversification is like owning insurance in your portfolio," Schleif said. "You don't buy the insurance when the house is burning down. You have the insurance ahead of time." Venuto said ETFs are one of the easiest and most affordable ways to diversify your portfolio. "The ETF structure for a taxable investor will always be a better return than a mutual fund or annuity," Venuto said. "It has the lowest fees and the most tax efficiency." Low-cost, broad-based mutual funds can be good in retirement accounts, "but if you're not investing in a 401(k) plan or one of the best IRA accounts, the ETF is a far superior vehicle," Venuto said. Compare Today's Rates 4. Learn as much as you can about money Financial education and community support are key in the FIRE movement, especially since many young adults start their careers not knowing much about topics like creating a financial plan or the importance of early retirement saving. From online chat boards and YouTube channels to in-person camps, FIRE offers multiple ways for people to get involved and learn financial literacy for themselves and their families. "There's a push to teach children about FIRE before they have money because we very much live in a consumer culture," Venuto said. You don't have to be committed to the FIRE lifestyle to follow FIRE influencers or join online communities for valuable finance knowledge and tips. Sure, a financial advisor is best for professional advice, but if you can't afford it — or prefer learning from like-minded savers —the FIRE community is a great place to start. "Folks are trying to learn from each other how to be a more conscious consumer," said Schleif. "Many FIRE habits stem from younger generations who were influenced by the devastation that older generations faced in '08 and '09."
Mint
15-05-2025
- Business
- Mint
How a ₹2.4 LPA engineer reached ₹1 crore net worth before 30
A Reddit post is making waves documenting the candid and compelling journey of a self-made professional who started with a modest ₹ 2.4 LPA salary in 2018 and has amassed over ₹ 1 crore in net worth by 2025—before turning 30. The post, shared under a popular FIRE (Financial Independence, Retire Early) subreddit, offers a rare blend of humor, vulnerability, and insight, resonating with thousands advancing through their own career and financial paths. 'This isn't a boast. It's my story,' the author clarifies early on, setting the tone for a heartfelt reflection that spans childhood hardships, early career setbacks, and financial missteps. Born into a low-income family, where his father earned around ₹ 7–8K and his mother 'maybe ₹ 5–7K (never asked, never dared),' the writer paints a vivid picture of life where money was scarce but ambition quietly brewed. After scoring 89% in 10th and 12th 'with minimal studying and maximum cricket,' the Redditor joined a local engineering college—not for prestige, but for a practical reason: 'The college bus started from my area, so guaranteed window seat for four years.' Graduating into a ₹ 2.4 LPA job in Bengaluru, he described his early years of survival and hustle with humor and honesty. 'We even had fun. Tons of it,' he recalls of his three-sharing PG life and ₹ 2,000 monthly savings. Then came Covid, a ghosted job offer from a Big 4 firm, and finally, a life-changing HR call—received while on the toilet—which led to a ₹ 12 LPA offer. 'I swear, I almost dropped my phone—among other things,' he quips. His journey took another leap during the 2022 job market boom, where he cracked 13 offers and accepted one from a product-based company offering ₹ 32 LPA. With stock grants included, his current compensation stands around ₹ 45–50 LPA. What sets this story apart isn't just the numbers, but the grounded lifestyle that followed. 'I still use the Android phone I bought in 2019,' he writes, adding that he wears ₹ 250 shoes with ₹ 1,000 soles because 'you gotta protect those knees, not the brand image.' Despite early financial missteps—his first investment was a monthly payout FD—the Redditor now invests ₹ 71K/month via SIPs and maintains a portfolio that grew from ₹ 31.61 lakhs in 2023 to ₹ 100.77 lakhs in 2025. 'Watching it grow now feels oddly therapeutic,' he shares.
Mint
15-05-2025
- Business
- Mint
How a ₹2.4 LPA engineer reached ₹1 crore net worth before 30
A Reddit post is making waves documenting the candid and compelling journey of a self-made professional who started with a modest ₹ 2.4 LPA salary in 2018 and has amassed over ₹ 1 crore in net worth by 2025—before turning 30. The post, shared under a popular FIRE (Financial Independence, Retire Early) subreddit, offers a rare blend of humor, vulnerability, and insight, resonating with thousands advancing through their own career and financial paths. 'This isn't a boast. It's my story,' the author clarifies early on, setting the tone for a heartfelt reflection that spans childhood hardships, early career setbacks, and financial missteps. Born into a low-income family, where his father earned around ₹ 7–8K and his mother 'maybe ₹ 5–7K (never asked, never dared),' the writer paints a vivid picture of life where money was scarce but ambition quietly brewed. After scoring 89% in 10th and 12th 'with minimal studying and maximum cricket,' the Redditor joined a local engineering college—not for prestige, but for a practical reason: 'The college bus started from my area, so guaranteed window seat for four years.' Graduating into a ₹ 2.4 LPA job in Bengaluru, he described his early years of survival and hustle with humor and honesty. 'We even had fun. Tons of it,' he recalls of his three-sharing PG life and ₹ 2,000 monthly savings. Then came Covid, a ghosted job offer from a Big 4 firm, and finally, a life-changing HR call—received while on the toilet—which led to a ₹ 12 LPA offer. 'I swear, I almost dropped my phone—among other things,' he quips. His journey took another leap during the 2022 job market boom, where he cracked 13 offers and accepted one from a product-based company offering ₹ 32 LPA. With stock grants included, his current compensation stands around ₹ 45–50 LPA. What sets this story apart isn't just the numbers, but the grounded lifestyle that followed. 'I still use the Android phone I bought in 2019,' he writes, adding that he wears ₹ 250 shoes with ₹ 1,000 soles because 'you gotta protect those knees, not the brand image.' Despite early financial missteps—his first investment was a monthly payout FD—the Redditor now invests ₹ 71K/month via SIPs and maintains a portfolio that grew from ₹ 31.61 lakhs in 2023 to ₹ 100.77 lakhs in 2025. 'Watching it grow now feels oddly therapeutic,' he shares. Looking ahead, he hopes to make one final job switch in the next 1–2 years and possibly retire before 45. His closing message to young professionals? 'Just keep moving. Be frugal where it matters, splurge where it counts, and never underestimate the power of compounding—financial and career-wise.'
Epoch Times
12-05-2025
- Business
- Epoch Times
Early Retirement vs. Delayed Retirement: Which Is Right for You?
There is no doubt that retirement is one of life's most significant milestones. Most people dream about it from the moment they get their first paycheck. However, deciding when to retire is important. After all, some people count down the days until early retirement. However, some stay in the workforce well into their sixties or even seventies. The thing is, there's no universal 'right time' to retire. You will want to determine the appropriate timeline for you, depending on your lifestyle, financial health, career satisfaction, health status, and personal goals. Our goal is to help you decide what path is right for you by comparing the pros and cons of early and delayed retirement. What Is Early Retirement? The term 'early retirement' refers to leaving the workforce before the traditional retirement age of 65. Especially for those who are following the FIRE movement (Financial Independence, Retire Early), this could mean retiring in their 50s or even their 40s. Pros of Early Retirement You will have more time for yourself The most significant advantage of early retirement is the amount of time you will have. While still relatively young and healthy, early retirees can enjoy traveling, spending time with family, volunteering, and pursuing hobbies. There is less work-related stress As reported in Headspace's annual Workforce State of Mind report, 86 percent of workers experienced moderate, high, or extreme stress last year. Among respondents with extreme stress levels, 83 percent said their stress is primarily related to their work. However, early retirement frees you from the daily grind, corporate pressure, and long commutes. For those in high-stress or physically demanding jobs, retiring early can benefit their mental and physical health. An opportunity to explore new ventures You don't have to stop working when you retire early. This could be your chance to start a passion project, freelance, or consult—but on your own terms. Cons of Early Retirement Financial strain Approximately 56 percent of Americans lack a solid financial plan for their post-working years, according to Allianz Life's 2024 Annual Retirement Study. Suffice it to say, a significant downside of early retirement is the increased financial burden. Your savings may need to stretch over an extended period, and you may not be eligible for Social Security or Medicare immediately. As a result, you must rely heavily on personal savings, investments, or private insurance. Loss of work-related benefits Once you leave the workplace, your employer's health insurance, life insurance, and retirement contributions are no longer available. You might have to spend a lot of money replacing them out of pocket. Risk of boredom or identity loss Early retirement can profoundly impact the sense of identity of people who are devoted to their careers. When boredom sets in, routines or meaningful engagement become impossible. What Is Delayed Retirement? Delayed retirement usually refers to working after the traditional retirement age of 65. Some people do this out of necessity, while others enjoy the structure and challenges of their work. Pros of Delayed Retirement Improved financial security The longer you work, the more time you have to save, pay down debt, and delay withdrawals from retirement accounts. This could result in a more comfortable retirement lifestyle. In addition, delaying Social Security can significantly increase your monthly benefit. Access to employer benefits If you stay employed, you will continue to receive health insurance, a 401(k) match, and other difficult-to-replace benefits. Sense of purpose Work can provide structure and intellectual stimulation and also provide a sense of community. In many cases, delaying retirement allows people to maintain mental sharpness and remain socially connected. Cons of Delayed Retirement Health risks Even if you are in great shape now, there is no guarantee that you will remain healthy in the future. If you delay retirement, you might miss years of active living while still physically capable. Less time for enjoyment Working longer makes you less likely to travel, indulge in hobbies, and spend time with loved ones. Occasionally, health issues or unforeseen circumstances may lead to regret about this trade-off. Job market challenges Older workers may face ageism or have difficulty adapting to rapidly changing technology or industry trends. As a result, it may be harder to remain competitive or find new opportunities when necessary. Financial Considerations: A Crucial Part of the Decision Whether you retire early or late, financial readiness is a huge part of the equation. To solve this, you should ask yourself the following questions: Do I have enough savings to support myself for 20, 30, or even 40 years of retirement? How am I going to cover my healthcare costs? Have I taken into account inflation and market downturns? Can I cover my expenses with my income streams (Social Security, pensions, investments)? By creating a retirement budget and consulting a financial advisor, you can determine whether early retirement or delayed retirement is more feasible. Lifestyle and Personal Goals Finances aside, you should also consider how you want to spend your time. Do you have any travel plans on your bucket list? Is mentoring or volunteering appealing to you? Are you enjoying your current job or counting the minutes until you can quit? Can you step away from your professional identity emotionally? In general, early retirees prioritize lifestyle and freedom, while those who delay retirement may place more value on routine and stability. In the end, it's up to you to decide what feels right for you. Health and Longevity Although health conditions are unpredictable, your present physical and mental state can help you make an informed decision. So, if you're experiencing health issues now, early retirement could help relieve your symptoms and give you more free time. On the other hand, if you're thriving at work and enjoy it, continuing may enhance your mental engagement and wellbeing. It's important to remember that the longer you work, the more likely you are to have health issues. As such, having a backup plan is always a good idea. The Middle Ground: Semi-Retirement Don't want to commit to a full stop? You may want to consider a phased approach. In semi-retirement, you can reduce work hours, switch to freelance work, or transition into a less demanding position. With it, you can enjoy some of the freedom of retirement while maintaining your professional engagement and earning income. This is a popular option for those who would like to remain active but not burn out. Final Thoughts: Which Path Is Right for You? There is no one-size-fits-all solution to retirement. In addition to offering freedom and flexibility, early retirement offers the chance to enjoy life while you're young. However, careful financial planning and emotional preparation are essential. On the flipside, delayed retirement brings financial stability, continued purpose, and often better benefits—but it can mean less leisure time. Think about the following questions as a guide to your choice: Is it possible to retire now and still live comfortably for decades? Is my job still enjoyable, or is it wearing me down? How do I envision my retirement? What are my health conditions, and how might they affect my retirement? Retirement isn't just about stopping work. It's about taking on a new phase of life with intention. So, whatever path you choose, make sure it supports your values, goals, and well-being. The key to retiring is to do so on your terms, whether you do so early, late, or somewhere in between. Related Stories 4/11/2025 3/5/2025 By John Rampton The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
Mint
04-05-2025
- Business
- Mint
Money tips and tricks from people who want to retire early
The FIRE movement can be a life-changer even for those who don't plan to retire early. Rasheeda Creighton, of Richmond, Va., discovered FIRE—Financial Independence, Retire Early—at a time when she needed it: She was going through a divorce, had a toddler, and didn't know how far her retirement savings would take her. At 40, she was already at retirement age for some FIRE participants. But Creighton says there were still aspects of the movement that resonated with her: investing aggressively in index funds outside of your retirement funds, and carefully calculating exactly how much you would need to say goodbye to work forever, for instance. Creighton says there are a lot of aspects of FIRE's frugality she ignores. (She isn't going to change her car insurance regularly in hopes of snagging a lower-cost plan—an example she says she saw in one of her FIRE Facebook groups). But now at 47 and five years into running her own consulting business and a nonprofit, she says she is living a life she wouldn't have if the FIRE community hadn't given her the confidence to leave her corporate job in financial services. 'It gave me a level of comfort and peace that I wouldn't have otherwise had," says Creighton. The FIRE movement took off in the early 2000s and has garnered a community of extreme savers—so extreme, some save 50% to 70% of their income to be able to retire decades before age 65. Eating a diet of rice and beans became a common reference for the movement. For most people, that type of saving and investing has been deemed unrealistic . But FIRE has evolved, introducing approaches that don't require full retirement before 65. Melissa Caro, a 53-year-old financial planner based in New York City, says she has been saving aggressively since she was 24 years old. The 'retire early" part of FIRE doesn't necessarily mean she's going to give up her work. 'Retirement for me doesn't mean doing nothing," she says. 'It just means there's a time when I won't think about making money at all." The FIRE movement has grown to make room for not only people who don't want to work beyond a certain age, but also people who simply don't want to have to work. There's Barista FIRE, which entails saving enough to leave a corporate job for a more relaxed, part-time one; and Cashflow FIRE, which involves generating enough money through passive income and side gigs to cover the cost of your current lifestyle. There's also Coast FIRE for those who have enough invested that will eventually grow to cover their retirement, but still tend to work so they can 'coast" into retirement. Another lesson from FIRE is strategically using different types of accounts to create tax diversification, says Bryan Hasling, financial planner at Modern Financial Planning. 'People have traditionally used their employer's retirement plan as the main thing that they're going to use for retirement…it says the word 'retirement account' so people think that that's the only thing that you can use for retirement," Hasling says. But he has found that the people who are able to retire early are those who have maxed out workplace retirement accounts and have significant savings in taxable brokerage accounts and Roth individual retirement accounts (IRAs), which allow you to withdraw contributions before age 59 ½ without penalty. It is also important to remember what the FIRE movement might get wrong. Monica Dwyer, a senior vice president and wealth advisor at Harvest Financial Advisors, attended a FIRE conference in Cincinnati in 2020. She said other attendees kept asking her what her 'number" was, which is the total amount of money you need to save and invest to achieve financial independence and retire early. It is typically calculated by multiplying your projected annual expenses by 25. Dwyer says the concept doesn't make sense to her, since it doesn't take into consideration that different types of expenses, such as healthcare, inflate at a higher rate. There are other aspects of the FIRE movement that won't make sense for everyone, but it also isn't a strategy that should be written off as an approach just for minimalists who are willing to cut spending. 'I firmly believe in enjoying life," Creighton says. Now she has more tools to build a budget around the life she wants to live today and later. 'That is the gift that FIRE gave me."
