The FIRE Movement Has 1 Big Flaw, So You May Want to Take This Approach to Early Retirement Instead

Some people plug away at a job until their 60s, or even beyond, only to retire at a point in their lives when their health isn’t optimal and it’s harder to do the things they’ve always wanted to. That’s why the FIRE movement has gained its fair share of traction in recent years.

Also known as Financial Independence, Retire Early, the FIRE movement has people socking away large chunks of their income with the goal of being able to make a really early workforce exit. That could mean retiring at 35, 42, or whatever age works for you. But for the most part, you’re looking at ending your career well ahead of the typical retiree — and well before you’re eligible for benefits from Social Security or Medicare.

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Of course, retiring very early has its challenges. You’ll need a lot of savings to sustain yourself without a paycheck from work for so many years. And you’ll also need to figure out healthcare, which can be an extremely large expense when you don’t have Medicare or an employer subsidizing the cost of insurance.

But that’s not the only problem with the FIRE movement. There’s another pitfall you might encounter if you exit the workforce at a really young age.

Will early retirement bore you to tears?

It’s one thing to retire in your 60s, when you may have limited energy for getting out and keeping busy. It’s another thing to retire in your 30s or 40s, when your body and mind may not be ready to slow down at all. If you embrace the FIRE movement and end your career early, you may find that not having a job to go to ends up being a bad thing for your mental health.

As it is, many people who retire at a more traditional age end up grappling with feelings of boredom and restlessness. Now, imagine putting yourself in a position where you have no job or structure from age 35 onward. Even if you’re somewhat busy with kids and maybe a pet, you’re still looking at a lot of hours to fill during the year over a period of many decades.

That’s why instead of wrapping up your career at a very young age, what you may want to do instead is save aggressively so you can then shift into a career that’s less stressful and more rewarding.

Maybe you can only take so many years in the finance industry. That’s understandable. So if you can’t see yourself doing that until you’re 65, save a ton and quit finance at 41. But then go do something else you enjoy, whether it’s starting your own catering business or designing websites.

Even if you don’t earn very much money from that endeavor, and even if it doesn’t give you access to subsidized health insurance, you’ll at least be keeping busy. That could help you feel more fulfilled and avoid getting bored out of your mind.

Plus, working is an inexpensive way to stay busy. If you’re retiring at a super young age, you may need to be careful about how you spend.

Don’t assume an ultra-early retirement is best for you

Many people are getting into the FIRE movement, and it’s easy to see its appeal. There’s nothing wrong with saving aggressively so you’re able to be financially independent at a fairly young age. But don’t assume that you need to stop working once you achieve that goal. You may find that continuing to work is the best thing you could do for yourself.

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