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7 myths FIRE haters perpetuate about the early-retirement movement

7 Myths FIRE Haters Perpetuate About The Early Retirement Movement article is one like the Finance, Forex sorts, published over our scripter Erick Emerson immediately upon February 3, 2019, those paper can search by this hastag 7, earlyretirement, FIRE, haters, movement, myths, perpetuate. I'm blissful to pleased you along with providing those other paragraph in regard finance along with I am always posting this essay daily.

Now that the financial independence, retire early (FIRE) movement is growing more mainstream, you can’t throw a rock without hitting someone who thinks the whole thing is a bad idea.

And there are legitimate criticisms of the concept, from the fact that most people — especially minimum wage earners and those earning below the median — can probably never achieve full early retirement in our economy, to the truth that not everyone is temperamentally cut out for early retirement.

You’ll get no argument from me there. As much as I’d like everyone to have an equal chance at early retirement, the current reality is that low earners can’t even afford rent in most U.S. cities right now, so we have a long way to go as a society before everyone can attain financial independence.

Read: 9 reasons why you’re better off retiring late — or never

For people who can’t imagine what they’d do outside of work, the best answer is certainly to keep working (though it’s not a bad idea to save a good cushion for yourself at the same time, because your job may not always love you back, and of course make sure you’re saving enough for traditional retirement).

But those who get most fired up in disdain for the movement like to focus on a few key points that aren’t actually true.

Myth 1: Everyone pursuing FIRE takes frugality to the extreme

It’s a compelling image, isn’t it, of people pursuing early retirement holed up in our freezing cold homes (because we’re too cheap to pay for heat), wearing socks full of holes (because we’re too cheap to buy new ones), eating rice and beans (obviously) with only library books as entertainment (because $10 a month for Netflix

NFLX, +0.10%

 is too expensive)?

The only problem? That’s not true.

Virtually everyone pursuing FIRE lives what looks like a pretty normal middle-class lifestyle. We spend on things we value, like travel and time with loved ones, and we eat normal food. (Some of us even famously spend large sums on craft beer.) Where we differ is that we get strategic about cutting out spending that doesn’t add value to our lives, and we’re ruthless about avoiding mindless spending and lifestyle inflation. Most of us don’t upgrade our cars or homes often (or ever), we don’t pay for unnecessary and easily replaced things like cable TV and we don’t spend money just because others expect it of us.

But large numbers of us living some faux poverty existence to make it all possible? That’s not a thing.

Read: You can retire early without adopting Mr. Money Mustache’s extreme frugality

Myth 2: We don’t consider long-term risk

In nearly every critique of the FIRE movement, someone will quickly shout, “But it’s been a historically long bull market! It’s going to go down and likely not repeat these gains anytime soon!” And that’s true. But they say it as though we don’t know that, and haven’t planned for it.

You’ll meet few laypeople who can talk in as much depth about the history of the stock markets or about the science of safe withdrawal rates as those pursuing or living in early retirement. We know the ins and outs of the Trinity Study, we know the shortcomings of the “4% rule,” we’re well aware that market volatility is part of the deal and we build our plans to guard against sequence of returns risk.

Myth 3: Early retirement must mean tapping Social Security early

In plenty of FIRE critiques, you’ll see the false conflation of early retirement and claiming Social Security early, at age 62, instead of at the expert-recommended 67 or even 70. The problem is, again, it’s not how most early-retirement aficionados actually think about Social Security. In fact, many of us don’t even count it in our calculations at all.

While it’s true that retiring early will reduce your ultimate Social Security benefits, because those benefits are factored on your 35 highest earning years and a bunch of years with zeros will inevitably drag down your average, it’s not true that we’re all jumping to claim Social Security at 62 just because we’re not working.

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