The Financial Independence, Retire Early (FIRE) movement offers many a dream come true, but it must be pursued correctly to avoid loneliness, anxiety, and a lack of purpose. Three key pieces of advice emerge from conversations with over 60 FIRE adherents: First, avoid financial advisors.
The Donegan couple, who achieved FIRE in 2019, emphasize that advisors often charge high fees for poor performance, suggesting low-cost index funds are a more effective strategy. Second, do not delay retirement unnecessarily. Brad Barrett, host of the ChooseFI podcast, notes that many people fall into the "one more year" trap, underestimating the finite nature of life and time.
He advises against working longer than necessary, as time is a resource that cannot be recovered. Finally, invest in relationships and hobbies. A common regret among early retirees is prioritizing career and finances over personal connections and family, leading to isolation.
Building strong relationships and pursuing enjoyable hobbies before retiring is crucial. Many FIRE followers are now learning to spend on experiences that bring happiness, even if it means slightly delaying their retirement goals. This includes allocating funds specifically for experiences with loved ones and embracing a mindset that prioritizes joy and connection alongside financial security.