By Susan Tompor
Detroit Free Press
WWR Article Summary (tl;dr) To retire in your 30s or 40s, some suggest, you could need to have saved up 30 times or more of your living expenses before you retire. If you’re spending $40,000 a year, that’s $1.2 million.
Detroit Free Press
We’re looking at a new dust-up in the retirement universe. What, exactly, is a reasonable age for retiring?
Is 70 the new 65? Or is 35 the magic number?
TV personality Suze Orman says don’t dream about retiring a minute before you hit 70, while Twitter showman and blogger “Mr. Money Mustache” is promoting a lifestyle through the FIRE movement, which stands for “Financial Independence, Retire Early”, which might enable you to leave your day job by your 30s or 40s.
Join the FIRE movement? Or prepare to burn out by working eight years beyond a solid retirement age?
Unfortunately, it’s one extreme or another to snag a sound bite.
Magic numbers do drive blogs and podcasts
Let’s face it, if you’re trying to build a huge following why not create a cash cult based on the idea of retiring young.
The theory that you can take control of your money, as well as your time and energy, so that you can ultimately walk away from the rat race is hugely appealing.
And I’d imagine that the FIRE movement isn’t hurt by the incredible steady returns for the stock market in the past few years.
Much easier to talk about retiring early when the Dow is sitting around 26,000, not 6,000. It doesn’t hurt that the U.S. jobless rate for September was 3.7 percent, the lowest rate since 1969, when the Beatles released “Abbey Road.”
“The skill is deciding NOT to buy it, even when you DO have the money for it,” according to a recent tweet by “Mr. Money Mustache,” a Canadian-born blogger whose real name is Pete Adeney and who promotes himself as a “thirtysomething retiree who now writes about how we can all lead a frugal yet Badass life of leisure.”