Fire

itwasntme001

JoeEngland wrote: »

True, I will have less time to spend money but will only have a modest budget even though I've had longer to accumulate than someone finishing work at 30 or 40. I value time more than shiny new stuff anyway.

Also the concept of experiences vs shiny new things is silly. Experiences last for small amounts of time whereas using shiny new things can last a lot longer. Both have an enjoyment factor to them. Neither should be thought of as pointless and a waste of money. It is about what you are willing to spend your money on and you can have both, just in different quantities.

itwasntme001

Sea_Shell wrote: »

If the media are to be believed, a large swathe of the population are going to be poor in retirement, even if they work to SP age, as they've made very little provision.

It's all relative. Yes, I might not be able to have a self-driving Mercedes in 20 years time....but will everybody else???

I'm already poor compared to high earners NOW...if I'm not jealous now, why would I feel differently in the future.

That is true and i completely agree. But you do not know if others wont feel jealousy later on in life.

JoeEngland

itwasntme001 wrote: »

Also the concept of experiences vs shiny new things is silly. Experiences last for small amounts of time whereas using shiny new things can last a lot longer. Both have an enjoyment factor to them. Neither should be thought of as pointless and a waste of money. It is about what you are willing to spend your money on and you can have both, just in different quantities.

It depends on the person. I would rather spend, say, 20k on several holidays which only last weeks than have a brand new car. And time being retired isn't about one off experiences, it's an ongoing thing which gives freedom to do other things which are more fulfilling than being at work.

bostonerimus

itwasntme001 wrote: »

Sure it is, however would the same FIRE people really think like that a few decades from now when a new goods or services comes out that is a must have? Attitudes change and when the early retiree sees that they can not afford something that has gained a lot of popularity, they will probably feel like a mug quitting work so early.

I don't agree at all.

People might not want or need the latest thing....for example I don't have Netflix.
You also assume that retirement income won't keep pace with wage inflation which is a very arguable.In many scenarios DC withdrawals increases could easily outpace earned income increases.

bostonerimus

itwasntme001 wrote: »

I do like FIRE. I am just pointing out a risk. A risk that is clearly not given a single thought by anyone. We have been too used to stagnant wages and low inflation. When power comes back to labour from capital, that is when the FIRE may need to worry.

These factors are considered in any sensible retirement plan. I can see that you are unaware of the scope of many FIRE plans.

[Deleted User]

itwasntme001 wrote: »

Also the concept of experiences vs shiny new things is silly. Experiences last for small amounts of time whereas using shiny new things can last a lot longer. Both have an enjoyment factor to them. Neither should be thought of as pointless and a waste of money. It is about what you are willing to spend your money on and you can have both, just in different quantities.

Research suggests it is the opposite. Search for information on 'hedonic adaptation'.

Some of us don't want lots of shiny new things. I am not willing to swap hours of my life working to fill my house with unnecessary stuff.

For example, we don't have a TV. Haven't had one in over 19 years. Have not missed it yet.

Wenlock

itwasntme001 wrote: »

We have seen real yields fall and cost of many goods fall at the same time. How do you know this will continue to be the case? You could very well have inflation rise a lot (at least your own inflation) whilst incomes from investments rise not nearly as much. Over a long period of time (such is the case with early retirees aka FIRE) this could have devastating consequences to ones quality of life compared to those who continued to work and benefit from rising wages.

You are missing the point. Those who continue to work are working and are therefore not retired, so quality of life is awful! (Purely for me anyway)

Quality of life isn’t connected to shiny pieces of plastic, it is to do with peace of mind, time to do what you want to do. For me, money doesn’t enter into the equation, beyond the ability to fund the essentials in life: meat, water, salt, roof over head.

You seem too concerned with what others have; that is a recipe for discontent because there will always be someone with more shiny crap than you.

shinytop

New shiny technology isn't that expensive. Netflix, smartphones, even new cars. It gets expensive when you have to have the latest £1000 smartphone or £50000 monster truck SUV. I can still drive to wherever I want to and get internet in my hand when I get there but it hasn't cost me that much. That's at least partly why I can retire early.

k6chris

If you want to buy shiny new things, buy them.
If you would rather have amazing holidays, spend your money on that.
If you enjoy your work, hell, keep working.
If you want to have Finacial Independance, save more than you spend and invest it sensibly
If you have FI and want to Retire Early, ta-dah, stop working.
If you change your mind, change your mind (and if you don't, don't.)



Sheeeesh

Thrugelmir

bostonerimus wrote: »

In many scenarios DC withdrawals increases could easily outpace earned income increases.

Then you run a political risk. If profit is distributed in terms of increased wages or benefits. Then dividends and the value of companies will fall. There's only one cake to be divided.