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Retirement Guru: F.I.R.E.
The FIRE (Financial Independence/ Retire Early) movement is about saving and investing aggressively to achieve financial independence at a relatively young age, typically in your 30s or 40s. While the FI/RE movement typically targets younger individuals, those in their 50s can still adopt its principles to improve their financial situation and potentially retire earlier. The main principles behind FI/RE are:
Financial Independence
This concept revolves around having enough savings and investments to cover your living expenses without needing to rely on a traditional job. It’s about achieving freedom and flexibility in how you spend your time.
Retiring Early
While retiring early is a central goal of the FI/RE movement, it doesn’t necessarily mean stopping work altogether. Instead, it’s about having the option to pursue work that you’re passionate about, without being tied to a paycheck.
Aggressive Saving and Investing
FI/RE proponents typically advocate for saving a significant portion of your income, often aiming for savings rates of 50% or more. These savings are then invested in assets like stocks, bonds, real estate, and businesses to generate passive income.
