Tag Archives: FIE

Why Robb Engen is striving not for FIRE but to be a FIE (Financially Independent Entrepreneur)

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I’ve written before about my modified pursuit of FIRE (Financial Independence, Retire Early). The twist is that I’m striving for FIE: to be a Financially Independent Entrepreneur. It’s an idea that I haven’t been able to get out of my head lately. Here’s why:

For as long as I’ve been writing this blog I’ve had a goal to achieve financial freedom by age 45. I’ve also declared a goal of reaching $1M in net worth by the end of 2021, the year I turn 41.

I’m on pace to achieve that, perhaps slightly ahead of schedule. More importantly, though, is a realization that my so-called side hustle – the online income earned from blogging, freelance writing, and financial planning – has far surpassed my full-time salary. Simply put, I could leave my day job tomorrow and still pull in enough income to meet our spending and savings goals.

So what’s holding me back? A few things. The security of a full-time job with benefits. A wife and two children who depend on my income. A $200,000 mortgage. The angst of where my next freelance contract will come from (and when it will be paid). Navigating the constantly changing online world while trying to earn a living. Having enough of a cushion in the bank in case things go sideways.

Never been busier

I think about all of those things. But the reality is my business has grown by nearly 50 per cent this year. I’ve never been busier, and I know there’s plenty of opportunities I’m leaving on the table because I can only do so much on evenings and weekends. Continue Reading…

FIRE in moderation: How about the term FIE? [Financially Independent Entrepreneur]

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I write a lot about seeking financial independence rather than early retirement. That’s intentional. I don’t necessarily want to retire – not anytime soon – but what fires me up is the idea of working on my own terms.

My goal is to be financially free by age 45. That means I’d be free to ditch my day job and pursue my passion of helping people with their finances (through educational writing, financial planning, and hosting seminars or workshops). I wouldn’t be retired, since I’d still derive an income from these activities.

Many FIRE [Financial Independence/Retire Early] bloggers have the same idea: work hard, save a large percentage of their salary, and eventually ditch the cubicle life. The dream is to retire early, but more often than not their “work” turns into blogging, book writing, and speaking about early retirement.

Ironically, selling the dream of early retirement tends to be another full-time pursuit. Just look at one of the original FIRE personalities, Canada’s self-professed youngest retiree Derek Foster. He’s written six books and runs a website where he sells his “portfolio picks.” He says “retired,” I say he “quit his job to become a writer.”

To be clear, there’s nothing wrong with pursuing financial independence or wanting to retire early. Any movement that helps people spend less, save more, and strive for a happier life is to be celebrated.

[From Twitter:]

 

 

CutTheCrapInvesting
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Great article. I too am a fan of saving and investing but many FIRE will get wiped out in a real correction. Worse than this article projects. FIRE is out of control, reality may hit. @myownadvisor @esb_fi @RobbEngen @JonChevreau @The_Money_Geek https://seekingalpha.com/article/4277415-f-r-e-ignited-bull-extinguished-bear …

F.I.R.E. – Ignited By The Bull, Extinguished By The Bear

Retiring early is far more expensive than most realize.Not accounting for variable rates of returns, lower forward returns due to high valuations, and not adjusting for inflation and taxes will leave

seekingalpha.com

Boomer and Echo@BoomerandEcho

The safe withdrawal math is easily ignored when the income needed to live is actually earned through blog revenue. The dirty secret of the FIRE blogger movement is they dont have to touch their investments while they’re out there selling the dream. Continue Reading…