My goal is to reach financial independence in the next decade of my life. I know…it’s a BIG goal. If you aren’t familiar with financial independence or FI, it is having enough money to sustain your lifestyle without having to actively work.
Check out my FI Plan
Increasingly we are seeing articles and stories around the internet about people retiring in their 30s and leaving their jobs behind to travel full-time or pursue other life goals.
Living the dream, right?
Well, a lot of dreams were shattered this past week when personal finance guru Suze Orman said, “If you don’t have at least $5 million or $10 million, don’t retire early”.
If you’re interested in listening to the entire interview here
Why I Hate the Fire Movement
I love Suze Orman but I think she might be a bit out of touch with reality. In the same interview, she also refers to her private jet and private island.
Maintaining that type of luxury lifestyle will most certainly require you to retire with much more money in the bank.
But for us regular folk, is it fair to say that we need $5 or 10 million in the bank before considering early retirement? I don’t think so but I really enjoyed listening to the interview. Although I don’t agree with everything she said, Suze does bring up some valid points.
Things I agree with:
- We need to be prepared for worse case scenarios in retirement
- The increasing cost of health care and long-term care in the US is unpredictable
- We should take advantage of compound interest by beginning to save for retirement as early as possible
- It is critical that we live within our means today so we can have a secure future tomorrow
I still plan to hit financial independence in less than 10 years and I won’t need $10 million dollars to do it. But I like conversations like this because it keeps us on our toes.
These types of debates keep investing and retirement at the forefront of our minds. It’s very easy to get caught up in the busyness of everyday life and forget to plan for the future. It can also be difficult to think about tomorrow if you are struggling with your finances today. No matter where you are on your financial journey retirement should be top of mind.
Questions to ask yourself:
- How much will I need to retire?
- At what age would I like to retire?
- Am I taking advantage of the retirement savings strategies currently at your disposal? (ie. workplace retirement accounts and Roth IRAs etc.)
- What lifestyle choices can I make today to ensure that I am prioritizing saving for tomorrow?
Share Your Thoughts on Financial Independence.
Do you think it’s possible for you to retire early? What (if anything) is holding you back from saving for retirement?
Well, I’m off to continue my money adventures.