E44: Introduction to the F.I.R.E. Movement (with Adam Morgan)

Mar 4, 2020

Have you heard of the F.I.R.E. movement? What does it mean and how do you do it? We are joined by Adam Morgan, Senior Editor at The Simple Dollar to learn more about the story and approach behind F.I.R.E.

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EPISODE 44

Introduction to the FIRE Movement (with Adam Morgan)

Guest: Adam Morgan

Bio: Adam Morgan is a senior editor at The Simple Dollar. An award-winning journalist with more than 15 years of experience covering finance and culture, his writing has been featured in The Guardian, Los Angeles Times, Chicago Tribune, The AV Club, Chicago magazine and elsewhere.

  • Intro and background
  • What are you reading right now? What has your attention at the moment?
  • Define F.I.R.E.
  • What does “Financially Independent” mean to FIRE enthusiasts?
  • What is “early” when talking about “retire early”?
  • F.I.R.E. concepts
    • Extremely high rate of savings (50% - 75% of income)
    • Expenses very low (simple living)
    • Focus on increasing income
  • Tools used in FIRE
    • Mutual funds, ETF, stocks
    • Real estate
    • Any non-standard tools? Alternative investments? Different attitudes toward risk?
  • Criticism
    • The FIRE movement "is only for the rich"
    • The FIRE movement's early retirees have not adequately saved for retirement.
    • Because the retirement phase of FIRE could potentially last 70 years, critics say that it is inappropriate to apply the 4% rule, which was developed for a traditional retirement timeframe of 30 years.
    • This criticism is based on the lack of empirical evidence supporting the 4% rule over a much larger time horizon
  • Where to go for more resources? Community?
  • Closing question: what does “wealth” mean to you?


Intro/outtro music credit: eccentric - I Can Show You [Argofox Release] by Argofox