F.I.R.E. in the Post-Pandemic World

As the Great Resignation pushes forward into 2022, over 47 million individuals quit their jobs so far. While some have gone to find new work, many more are choosing to retire. Workers as young as their late twenties have decided to live frugally in order to save and invest their money for early retirement.  Inspired by the 1992 book Your Money or Your Life, this new lifestyle has grown to be called the F.I.R.E. Movement (Financial Independence, Retire Early). 

The FIRE concept is taking on renewed interest in the wake of the pandemic. But unlike in 1992, the price of goods has skyrocketed, while the return on dividends is lower than before. These new economic struggles require a restructured look at early retirement planning. Being financially independent in the post-pandemic landscape will need a smarter kind of investor who knows how share trading can push the ignition on their early retirement.

How To F.I.R.E.

While each person may save according to their needs, there are some basic goals that anyone wishing to achieve FIRE should set for themselves. Creating a detailed long-term plan is integral to knowing how much of your income you have to have.  According to Your Money or Your Life, saving up to seventy percent of your income is recommended. Of course, some choose to save fifty percent of their income, while others prefer even eighty percent. Determining how much to save is based on the lifestyle you would want post-retirement, and whether you select to work at all after retiring.

Once you know how much you want to save, learning all the tips and tricks to getting the best return on your savings is key. There are limitless options of assets that can be used to grow your retirement savings. One of the most popular is share trading. With the growth of different online platforms to take part in the finance world, barriers to accessing shares and stocks have plummeted.

 After plummeting in the aftermath of the Great Recession, American stock ownership has jumped from a low of 52% in 2013 to 58% in 2022. The rebound in stock ownership is correlated with the smartphone revolution. Applications like Quest Trade and Wealth Simple found willing buyers of stocks online through the broad distribution of smartphones. Making the buying and selling of shares a plausible way to build wealth for millions.

Stashing away your assets is another hurdle to get over. Many accounts take their share of your earnings, and that can eat away at your early retirement fund. Roth IRAs allow investors to build a source of tax-free income for their retirement that will not be taxed, even if you take it out early. This way, you are not penalized for taking out sums of money for early retirement. 

The Future is FIRE

For those thrifty enough to frugally budget, early retirement can be much easier. But it is possible for anyone. Even as prices of goods go up and returns reach a plateau, the tech-savy investor can still reach FIRE through the right applications and investment decisions. 

The spread of online trading platforms will turn everyday people from employees to traders, and workers to retirees. With long-term planning and the right knowledge, resignations can lead to a new, easier lifestyle. Check back with us to be updated on how to spark the FIRE in you.

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