www.barrons.com
Open in
urlscan Pro
2600:9000:211e:4400:14:c68f:c40:93a1
Public Scan
Submitted URL: https://email.getpocket.com/ls/click?upn=ky17TgJ1REx4YaZOG279kSbg17uYm0LzBX9LHt9OXbCwUsbve2ldif8XGPfzB83Z1Hg-_18xX4GCyPsl6pX...
Effective URL: https://www.barrons.com/articles/fire-retire-early-things-to-know-51640896512?st=yxaww0i7xvhjcvh&mod=pcktbar_0113
Submission: On January 13 via api from BE — Scanned from DE
Effective URL: https://www.barrons.com/articles/fire-retire-early-things-to-know-51640896512?st=yxaww0i7xvhjcvh&mod=pcktbar_0113
Submission: On January 13 via api from BE — Scanned from DE
Form analysis 1 forms found in the DOM
<form autocomplete="off">
<div id="scrim-from-wrap" class="input-wrap">
<label for="scrim-from">From</label>
<textarea id="scrim-from" readonly="readonly" disabled="disabled" type="text" autocomplete="off" autocorrect="off" autocapitalize="none"></textarea>
</div>
<div id="scrim-to-wrap" class="input-wrap">
<label for="scrim-to">To</label>
<input id="scrim-to" type="text" autocomplete="off" autocorrect="off" autocapitalize="none">
</div>
<div class="input-wrap">
<label for="scrim-message">Message</label>
<textarea id="scrim-message" class="msg" maxlength="500" type="text" autocomplete="off" autocorrect="off" autocapitalize="none"></textarea>
</div>
</form>Text Content
We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser. CHROME SAFARI FIREFOX We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox Search News & Quotes Barron's TopicsStock PicksMagazineDataAdvisorPenta100 Years Subscribe Now |Sign In Barrons Want to Retire at Age 50? Do Some Hard Thinking First. Next: It’s Time to Invest in Commodities. How to Do It. * * * * Share This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. https://www.barrons.com/articles/want-to-retire-at-age-50-do-some-hard-thinking-first-51640896512 * Retirement WANT TO RETIRE AT AGE 50? DO SOME HARD THINKING FIRST. * * * * -------------------------------------------------------------------------------- By Shernay Williams Updated January 3, 2022 / Original December 31, 2021 * Order Reprints * Print Article BARRON'S NEWSLETTERS THE BARRON'S DAILY A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron's and MarketWatch writers. I would also like to receive updates and special offers from Dow Jones and affiliates. I can unsubscribe at any time. I agree to the Privacy Policy and Cookie Policy. Enter your Email SIGN UP You have been successfully subscribed to The Barron's Daily. Your first delivery will arrive within two days. Continue Reading Text size Boggy/Dreamstime Shanna Due, a financial planner with District Capital Management in Washington D.C., says that about 10% of her clients ask about the “Financial Independence, Retire Early”, or FIRE, movement. Most want to retire by 50, she says, or they want financial independence so they’re not tied to any one career. “They want to have the financial flexibility to follow a new path if they want,” she says. FIRE strategies typically require a lot of discipline, and they’re not for everyone. Followers save aggressively and live well below their means in hopes of acquiring financial flexibility and retiring years before is typical. Individuals aiming to retire by 50 might need to accumulate 75% of their current annual income for every year they expect to be retired, Due says. So if a worker has current income of $100,000 a year, and is planning on a 35-year retirement, he or she would need more than $2.6 million by age 50. The only way you amass so much money is saving heavily from the get-go. A 30-year-old with $50,000 in savings would likely be saving 50% or more of his or her salary over the next 20 years to approach this goal. Before committing to an aggressive strategy like this, Due warns her clients to consider three factors carefully. Understand your motivations A FIRE strategy works best when you have a clearly defined reason for why you want to retire early and achieve financial independence. It’s different for different people. For some, their goal is to travel full time, while others want to leave a job they don’t like while maintaining their current lifestyle. Without clear direction, it may be hard to follow through with the discipline needed to save aggressively and live frugally. “If you get on a FIRE plan, you have to make sacrifices along the way,” Due says. “Say you’re 25 years old and all your friends want to spend summer backpacking through Europe, if you’ve already set up your reasoning as to why you want to have $1.4 million in the bank by 40, it’s simple to say ‘no’ because you have a clearly defined purpose.” Know what retirement means to you Many individuals don’t have a clear idea of what their retirement will look like, and that can make planning difficult. “If your goal is to retire early, then what?” Due asks. “Will you just sit at home all day, or does it mean instead of working at your current engineering firm, you work for Habitat for Humanity building houses?” Deep reflection on what you want to accomplish can help you determine how aggressively to pursue a FIRE strategy. “For example, I find that most people really just want financial flexibility,” Due says, allowing them to work at jobs they are more passionate about. That doesn’t necessarily require the strict savings and frugality needed to retire decades early. Nailing down your plans can help you understand which FIRE strategies are needed. Once you identify those, you can decide whether they are feasible. Consider future life changes When considering a long-term FIRE strategy, it’s important to consider future events—planned and unplanned, Due says. An emergency fund covering a year or more’s worth of expenses can help cover catastrophic unexpected events like illness or layoff. But what about other life events? For example, if you have children, or want them in the future, will the expense of childcare or saving for a college education allow you to meet FIRE goals? Similarly, if you plan to care for aging parents, will the cost of care mean postponing early retirement? “It’s important to remember that without the proper planning you could spend your entire 20s and 30s sacrificing and not actually reap the benefits of it.” Due says. “You have to be strong in your reasoning and make sure you’re clear on what happiness means to you.” Write to editors@barrons.com -------------------------------------------------------------------------------- * Commodities * Funds Quarterly IT’S TIME TO INVEST IN COMMODITIES. HOW TO DO IT. * * * * -------------------------------------------------------------------------------- By Reshma Kapadia Updated January 9, 2022 / Original January 7, 2022 * Order Reprints * Print Article Illustration by Doug Chayka Commodities are rarely exciting—and the price of copper, corn, or even oil doesn’t stir investors the way a tweet from Elon Musk does. Yet commodities sit at the crossroads of three of today’s biggest investment themes—rising inflation, a changing China, and the transition away from fossil fuels amid increased attention to climate change. a year ago as commodities emerged from a decadelong bear market. It was a good call: The Bloomberg Commodity Index rose 27% in 2021, its best year in decades. Those three big trends are... Subscribe or Sign In to continue reading -------------------------------------------------------------------------------- More from News Corp * Realtor.com Looking to buy your first home? You’ve come to the right place. * PENTA Sotheby’s to Offer the Collection of Legendary French Couple François and Betty Catroux * Realtor.com What Is House Shame? Here's How To Overcome It * Realtor.com Built in 1690, a Colonial on a Famous Road Is the Week's Oldest Home * PENTA British Musician Robbie Williams Finds a Buyer for His 70-Acre English Estate Asking £6.75 Million Close WANT TO RETIRE AT AGE 50? DO SOME HARD THINKING FIRST. Shanna Due, a financial planner with District Capital Management in Washington D. From To Message SEND An error has occurred, please try again later. Thank you This article has been sent to Privacy Notice Cookie Notice Do Not Sell My Personal Information Copyright Policy Data Policy Your Ad Choices Subscriber Agreement & Terms of Use Barron's Archive Corporate Subscriptions Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. Barron's Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.