F.I.R.E.
Financial Independence and Retiring Early
This plan promotes living frugally, spending less than you make and saving monthly in retirement funds.
This is also promoted as “gaining momentum” by Kristin Wong 11/2017 and it was just on TV morning show last week 6/2019 as something new.
Sorry but this is as old as the hills. This is what every depression baby will tell you to do. This is what your grandparents tell you to do.
Own your home by the time you retire. You will be on a fixed income whether it is your social security check alone or your social security check and pension income from your 401k.
All established 401k providers have a booklet that is very helpful for you to figure out how you live and what you need to retire. This is normally a free service from your employer from 401k provider.
So…………….. What about my sole proprietor friends?
#1 Don’t be “Clever” and fool the IRS into lowering your annual taxable income to pay lower taxes. The lower the income the lower self-employment tax you pay into the Social Security Fund.
#2 Put more than the allowable deductible amount announced by IRS. Don’t let IRS determine how much you put away for your retirement. Yes you may have to pay tax on it now but you won’t have to pay tax on it later when you are withdrawing.
#3 Live within your means. Only get what you Need. Keep your credit card debt down. This will allow you to have funds available monthly to put in your retirement account.
If you want to call this a new movement, go ahead, if it gets you to put money away for retirement.
P.S. To all my friends getting a divorce, do not sign off on your ex-spouse’s retirement funds if you have been married 15 years or more. I had bad legal advice and made that mistake. Go get good legal advice.
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