Millennials turn to extreme saving method to retire early
A personal-finance trend called F.I.R.E. is gaining ground amongst millennials.
F.I.R.E. stands for "Financial Independence Retire Early.” Some millennials reportedly use it as a tool to help them retire as early as 30.
F.I.R.E. followers try to invest as much as 75 percent of their annual income while cutting down on day-to-day expenses. But is it a solid retirement strategy?
“Saving is a great value, especially for younger people," Capitalist Pig Founder Jonathan Hoenig said. “That should be encouraged, but retiring is ludicrous, certainly at that young [of an] age. Look, working is a value. Productivity is a value. It's a spiritual value.”
Retiring early can reportedly take a negative turn on your health as well.
“Retiring can be very bad for your health. You're 90 percent more likely to die early to retire at 55 as against retiring at 65.”
From an investment perspective, F.I.R.E. drew criticism from FOX Business’ Kristina Partsinevelos.
“I think this strategy won't work because, in the past, from 2009 to 2012 — great period to invest in, risky stocks going forward — you can't really make as much of a gain," Parsinevelos said. “This is predicted by BlackRock; a lot of investment funds, so I'm not sure it's the right strategy.”
The panel agreed saving is paramount, especially in today’s volatile market.
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“My best advice is: treat every dollar like it counts – best advice I can ever give you,” Gary Kaltbaum of Kaltbaum Capital Management noted.