How to Retire in Your 30s With $1 Million in the Bank

The very good headline of this New York Times article on the FIRE—financial independence retire early—movement. 

As a minimalist and student of Stoicism, I’ve been intrigued by and read lots about this movement. I’ve even locked horns with the movement’s most popular spokesperson. Steven Kurutz does a nice job explaining the phenomenon. And he provides lots of good links for readers who want to dig deeper.

There’s lots to admire about FIRE folks, but too many of the movement’s advocates  wrongly assume anyone can save $1m and retire in their 30’s. They argue on their numerous blogs that people can do it if they only follow their steps which start with securing a high paying job usually in engineering or computer software. To which Kurutz writes:

“They are. . . benefiting from an lengthy bull run in the stock market and, in some cases, the privilege of class, race, gender and background. It’s difficult to retire at 40 if you work a minimum-wage job, say, or have crushing student-loan debt, or did not have the same opportunities as others because you grew up poor in a crime-ridden neighborhood.”

Those two sentences will not go unchallenged by the FIRE orthodoxy. Probably skimping on humanities and social science courses in college, FIRE zealots tend to overlook the fact that the US economy is not a level playing field. Their counter arguments will not be convincing. It’s their blindspot. 

It’s okay that they have a blindspot, because there’s a lot to admire about the movement, including the practitioners’ disciplined saving, their rejection of mindless consumerism, their emphasis on family, and their determined nonconformity especially in creating non-work identities.

 

 

 

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