Author Topic: Journal of Accountancy Article on FIRE  (Read 1217 times)

catccc

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Journal of Accountancy Article on FIRE
« on: August 30, 2018, 08:25:26 AM »
IDK if this has already been posted, but there's an article about FIRE in the Journal of Accountancy!  (I'm a CPA, who else would read this stuff?!)

https://www.journalofaccountancy.com/issues/2018/aug/planning-for-early-retirement.html

I feel like it is one thing to have an article profiling a FIRE person as a novelty kind of thing in the Washington Post or Forbes.  But it's another level to have it featured in a trade journal, presenting those aimed at FIRE as a unorthodox client segment.  Interesting!  The article mentions MMM, ERE, Mad Fientist, White Coat Investor, and in the print version sidebar, RootofGood.  Interesting, huh?  (or maybe not)

ixtap

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Re: Journal of Accountancy Article on FIRE
« Reply #1 on: August 30, 2018, 08:41:09 AM »
I wonder how many of the locals here at MMM are looking for a CPA to guide them.

For example, even many bogleheads know better than: Oransky provided one example: FIRE movement members typically accrue significant tax-deferred retirement assets. However, as Oransky noted, "if they intend to retire early and start drawing upon these accounts before age 59Ĺ, they'll quickly be confronted with an extra 10% penalty from the IRS."

catccc

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Re: Journal of Accountancy Article on FIRE
« Reply #2 on: August 30, 2018, 09:01:24 PM »
Right... itís pretty basic stuff that most people in the FIRE community know how to get around, and often the first question anyone asks at the onset of interest in FIRE.  There is such a DIY mentality among those that want FIRE, as they mention in the article.  But at the same time, there must others that are willing to pay for the guidance.  This is hard for me to believe since I like to research and learn on my own... but there are a lot of people that arenít like that and would rather pass of the work to someone else for a price, I guess. Overall, if FIRE is gaining traction and becoming more mainstream, I think thatís a good thing.

marty998

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Re: Journal of Accountancy Article on FIRE
« Reply #3 on: September 01, 2018, 08:54:04 PM »
Bears pointing out that eating your 10% tax penalty is probably still better than paying tax at marginal rates....

Dicey

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Re: Journal of Accountancy Article on FIRE
« Reply #4 on: September 03, 2018, 12:35:09 AM »
I wonder how many of the locals here at MMM are looking for a CPA to guide them.

For example, even many bogleheads know better than: Oransky provided one example: FIRE movement members typically accrue significant tax-deferred retirement assets. However, as Oransky noted, "if they intend to retire early and start drawing upon these accounts before age 59Ĺ, they'll quickly be confronted with an extra 10% penalty from the IRS."
Did you read the paragraph after that? It's clear that the author understands there are workarounds.

Interesting article, @catccc, thanks for posting it.

Mississippi Mudstache

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Re: Journal of Accountancy Article on FIRE
« Reply #5 on: September 06, 2018, 12:02:29 PM »
I wonder how many of the locals here at MMM are looking for a CPA to guide them.

For example, even many bogleheads know better than: Oransky provided one example: FIRE movement members typically accrue significant tax-deferred retirement assets. However, as Oransky noted, "if they intend to retire early and start drawing upon these accounts before age 59Ĺ, they'll quickly be confronted with an extra 10% penalty from the IRS."
Did you read the paragraph after that? It's clear that the author understands there are workarounds.

Interesting article, @catccc, thanks for posting it.

Exactly. I think it's important for this type of stuff to make it out into the world of CPAs and financial advisors, so that when they are approached by people who wish to retire early, they don't automatically dismiss the idea and discourage potential clients. Hell, I remember bringing up a very rudimentary idea for FIRE in college, and I was roundly criticized by my friends who thought I was talking out of my ass. I never quite gave up on the idea, and finally found my way to MMM 5 years later, which thankfully convinced me that I wasn't insane.

catccc

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Re: Journal of Accountancy Article on FIRE
« Reply #6 on: September 11, 2018, 10:50:59 PM »
I struggle to think of why anyone working toward FIRE would every pay for these types of advisement services, but DH tells me that this thinking would be the same as a mechanic saying "why doesn't everyone just fix their cars themselves?"  Okay, I get that.  It's not everyone's cup of tea.  There may be some people out there that are interested in FIRE, but disinterested enough to hire someone else to figure it out for them and just tell them the parts they need to do.  I would love to see the movement gain additional traction, I think there are so many benefits of FIRE, beyond the individual that gets to stop working, I think there are positive impacts in social, economic, and ecological terms, as well.