Fire

Sea_Shell

I couldn't give two hoots what my peers have/earn, but if they want to still go to work every day to afford the latest thing, well that's up to them!!

itwasntme001

Sea_Shell wrote: »

I couldn't give two hoots what my peers have/earn, but if they want to still go to work every day to afford the latest thing, well that's up to them!!

But that latest thing turns out to be many latest things and you will end up missing out as you can not afford it according to your spending rules. These "things" could end up making all the difference and the dividing line between the poor (you) and middle class (them).

itwasntme001

Paul_Herring wrote: »

Are you presuming the retiree's SWR accurately matches the purported retiree's expenses in year 0, and can thus have no leeway whatsoever going forward?

The SWR is a guideline/concept, not a strict rule (especially given there are so many articles around arguing about what number that SWR should be depending on whatever set of circumstances the authors are deciding to cherry-pick for their outpourings.)

Sure, i meant SWR as a guideline not completely strict but strict enough to not being able to spend on the new goods and services since they cost considerable amounts, something the peers who are working can afford comfortably.

Paul_Herring

But that latest thing turns out to be many latest things and you will end up missing out as you can not afford it according to your spending rules.

Is that glass over there half empty, or is it simply twice as big as it needs to be?

While it's all very well speculating about apocalyptic outcomes, I think you're overplaying this one, and using a bit too much hay in constructing that straw man.

itwasntme001

Paul_Herring wrote: »

Is that glass over there half empty, or is it simply twice as big as it needs to be?

While it's all very well speculating about apocalyptic outcomes, I think you're overplaying this one, and using a bit too much hay in constructing that straw man.

It is not a apocalyptic outcome. It is a perfectly reasonable scenario. Look how people lived a 200 years ago. Look how much more goods and services we can enjoy now compared to back then. Flights, TV, internet, computers, mobile phones, restaurants, clubs, outdoor adventure sports, fragrances, clothes and the list is endless. What if we have a similar kind of advancement (we already are). Do you really think you will be able to afford these new goods and services if you retire early? Perhaps but it is certainly not certain and you have no idea what these new things will cost and how popular you they will be. Do not assume these things will not be needed. When your peers are out buying these new things, it will quite possibly be the dividing line between the middle class (them) and the poor (you).

Sea_Shell

I'll take my chances!!!;);)

To be fair, having given this more thought, my biggest worry could be healthcare, rather than stuff. If the NHS gets that bad that the only option is to go private...could we afford it. What's a hip these days, £20k???

But then if things (for everyone) had got that bad, we'd have plenty of other things to worry about.

Paul_Herring

What's a hip these days, £20k???

Not quite that bad, apparently: https://www.thesun.co.uk/fabulous/4753123/hip-replacement-op-cost-recovery-prince-philip-scar/ (Apr '18)

Private hip replacements in the UK range in prince, varying from £8,500 to £16,800 depending on the hospital.

Nick_C

Andyed201 wrote: »

What are peoples thoughts on the FIRE movement? It seems to be really going in popularity at the moment and is appearing in blogs, podcasts and the news a lot.

Never heard of it. No idea what it is.

ruperts

I like the financial discipline it instills and admire people who have achieved it under their own steam (much less so those whose wealth is substantially a product of inheritance or gifts from family which strikes me as being lazy on the back of someone else's hard work).

Personally I'm using it as a target for now in order to benefit from the discipline, but I'm still probably 20 years away which feels like a long time to spend waiting for something that might never happen. I can already comprehend my own future regret at missing out on a lifetime of experiences in pursuit of something which might turn out to be a bit boring, if it ever happens at all.

FIRE feels like a nuclear option for people who can't stand the idea of work. I don't love work, but I do get some enjoyment from the social side of it, the mental challenge and the healthy structure & routine it provides.

I think in time and with the growth of a nest egg my own pursuit of FIRE will give way to something more moderate, perhaps the equally catchy FSTRCB or Financial Security, Take Regular Career Breaks.

Regular career breaks would seem to offer the best of both worlds. Enough time outside of the world of work to benefit from a full decompression and renewal every now and again, but not so much free time that there would be a risk of losing focus and frittering time away on nothing in particular. The finances would still need disciplined management but with more overall time spent in work, fewer potentially regretful sacrifices would have to be made.

I guess like anything it's about finding the right balance for you. I think if I was say 6 or 7 years away from a proper FIRE, I would knuckle down and get it done. But with decades at play it feels a bit too extreme.

coyrls

itwasntme001 wrote: »

It is not a apocalyptic outcome. It is a perfectly reasonable scenario. Look how people lived a 200 years ago. Look how much more goods and services we can enjoy now compared to back then. Flights, TV, internet, computers, mobile phones, restaurants, clubs, outdoor adventure sports, fragrances, clothes and the list is endless. What if we have a similar kind of advancement (we already are). Do you really think you will be able to afford these new goods and services if you retire early? Perhaps but it is certainly not certain and you have no idea what these new things will cost and how popular you they will be. Do not assume these things will not be needed. When your peers are out buying these new things, it will quite possibly be the dividing line between the middle class (them) and the poor (you).

What you’re saying in a rather convoluted way is that if wage growth significantly exceeds inflation, then your standard of living could drop in comparison to those in work. That would be a risk that anyone on fixed income linked to inflation would take and is not specific to early retirement or drawdown. In fact since 2008 those on a fixed income linked to inflation have seen their standard of living improve relative to those in work.