Fire Movement is trending as a movement for young professionals who are intent on quitting their jobs early and living a frugal lifestyle. A popular US blogger Peter Adeney is a proponent of this lifestyle, where you spend less and value time over material things that provide temporary happiness. The movement can be described as penny pinching, increasing your savings rate to almost 70% and not spending your money foolishly on things like meter parking!
Can we embrace this movement living in Hawaii? Yes and No. US Households spend most of their money on food, housing, transportation, healthcare, and personal insurance and pension costs. Can we reduce those categories and plan for alternate inflation and tax scenarios that change our projected lifestyle?
According to the Bureau of Labor Statistics (BLS), 8 out of 10 largest components of household spending increased during 2017. Education had the largest increase at 12.2% and entertainment was second at 10% increase. Income quintile a measure of socioeconomic status that divides 5 income groups from lowest to highest shows the breakdown more in depth on the BLS.
Fire Movement may not be for everyone, but planning your retirement is something we must all be proactive with monthly and annually to achieve our goals. Helping investors succeed with strategy diversification. Avoiding large losses and growing client accounts in a competitive fashion is what you need to find with the right help.
Maybe it's time to look at ways to smooth the turbulence in your portfolio. Maybe it’s time to select a portfolio manager. Get a Second Opinion and make sure you understand the difference between safe assets and risky assets.
Information provided is not intended as tax or legal advice and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional.