Retiring at 65 was the plan until I discovered FIRE

Planning to retire at 65 was always the goal for my husband and me. We diligently saved money over the years, with the intention of reaching that milestone age and then enjoying our golden years in comfort.

Discovering Financial Independence and Early Retirement

However, everything changed when we stumbled upon the FIRE (Financial Independence, Retire Early) movement. This eye-opening concept made us realize that retirement doesn't have to be tied to a specific age; instead, it can be achieved by reaching a certain financial milestone.

We learned that with a substantial sum of money, we could generate enough interest to sustain our lifestyle without depleting our savings. This revelation sparked a new goal for us: to amass $1.2 million to secure our early retirement.

Transitioning from Traditional Investments to Real Estate

As we delved deeper into the FIRE community, we explored alternative investment options, ultimately turning our attention to real estate. Realizing the potential of rental properties, we saw an opportunity to accelerate our journey towards financial independence.

Unlike traditional stock investments, real estate offered us more control over our assets. By strategically renovating and managing rental units, we could increase their value and maximize our rental income.

Moreover, leveraging mortgages allowed us to expand our real estate portfolio beyond what we could achieve solely through our 401(k) contributions. This diversification not only accelerated our path to early retirement but also provided a tangible asset for our future.

Balancing Real Estate Investments with Traditional Savings

While we actively pursued real estate opportunities, we maintained our contributions to our 401(k) and Roth IRA accounts. Recognizing the importance of diversification, we aimed to strike a balance between our real estate ventures and traditional investments.

By embracing a diversified approach, we safeguarded our financial future against potential market downturns or unforeseen circumstances, ensuring that we have multiple streams of income to support our retirement goals.

Embracing the FIRE movement transformed our perspective on retirement, leading us to pursue financial independence and early retirement through strategic investments and a proactive approach to wealth-building.

Originally published in August 2023 on Business Insider.

—————————————————————————————————————————————
By: insider@insider.com (Jennifer Sisson)
Title: Retiring at 65 was the plan until I discovered FIRE
Sourced From: www.businessinsider.com/planned-retirement-until-discovered-fire-2024-04
Published Date: Wed, 17 Apr 2024 21:59:01 +0000