Author Topic: Any of you had to go back to work after FIRE by necessity?  (Read 2234 times)

helloyou

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Any of you had to go back to work after FIRE by necessity?
« on: November 24, 2020, 09:06:10 PM »
Hello

I see so many great stories here, and that's great. But I wonder if it's always been successful?

Anything could happen, for example, I've made large P2P investment years ago that after years of legal recovery seems to be worth £0 due to fraud. I think I lost 1/3 of my net worth in that problem and really set me back severely in my pursuit of FIRE.

However, this is just one of the story, many things can happen. And I wasn't FIRE either at that time but made me think I had to work way longer than I think!


So any of you went from FIRE to working by necessity? I see regularly FIRE people doing small gigs to increase a bit their stash, but what about those who realised it didn't work anymore? Has that happened to anyone yet?

 

SwordGuy

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Re: Any of you had to go back to work after FIRE by necessity?
« Reply #1 on: November 24, 2020, 09:45:59 PM »
Anything could happen, for example, I've made large P2P investment years ago that after years of legal recovery seems to be worth £0 due to fraud. I think I lost 1/3 of my net worth in that problem and really set me back severely in my pursuit of FIRE.

I hope you learned the lesson that its important to diversify, diversify, diversify!   1/3 would really hurt!

We retired 2 1/2 years ago and things are going swimmingly as far as finances go.    But we built in lots of contingencies into our plans just in case.  I'm very happy we did!


cincystache

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Re: Any of you had to go back to work after FIRE by necessity?
« Reply #3 on: November 25, 2020, 06:13:05 PM »
It's an interesting question. My guess is that anyone who retired in the last decade using the 4% rule is doing just fine (or much better than expected) given the stock market returns.

I'm a bigger fan of reaching FI and remaining flexible, perhaps doing work you find fun/meaningful vs. completely retiring and never earning another dollar even if it is a job you might enjoy or at least not dislike. Nothing against folks that want to truly retire early and never earn money again but work isn't the issue for most people it's the mandatory full time work with no end in sight that is soul sucking.

There will always be unknowns and curveballs but focusing on what you can control and making reasonable preparations for things you can't is all you can really do. Unless you want to be like Suze O. and claim that no one can retire with less than 10 million dollars...

SpareChange

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Re: Any of you had to go back to work after FIRE by necessity?
« Reply #4 on: November 26, 2020, 09:17:04 AM »
I'm a bigger fan of reaching FI and remaining flexible, perhaps doing work you find fun/meaningful vs. completely retiring and never earning another dollar even if it is a job you might enjoy or at least not dislike. Nothing against folks that want to truly retire early and never earn money again but work isn't the issue for most people it's the mandatory full time work with no end in sight that is soul sucking.

There will always be unknowns and curveballs but focusing on what you can control and making reasonable preparations for things you can't is all you can really do. Unless you want to be like Suze O. and claim that no one can retire with less than 10 million dollars...

+1. Pretty much how I look at it too.

American GenX

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Re: Any of you had to go back to work after FIRE by necessity?
« Reply #5 on: November 26, 2020, 01:32:03 PM »

Yep, people run into unexpected expenses such as for health care and such and have to return to work.

habanero

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Re: Any of you had to go back to work after FIRE by necessity?
« Reply #6 on: November 26, 2020, 02:09:35 PM »
Even if you, due to some event, don't reach your FIRE target or something happens incurring an expense you didn't plan for you are still likely left with a massive financial cushion most folks could barely phantom having available. Even if it derails the plan to such an extent that you have do to something you didn't phantom you are still likely to be massively better of than most of your peers. For high earners it might probably be difficult to return to a similar pay after being out of the game for a long time, but with a big, fat, comfy cushion the need income required should be much lower and flexibility much higher. So even a failure in this particular department still overall means a massive win. Look at it from the bright side if SHTF.

As a side note, when Covid hit and people lost their jobs the newspapers were full of people where the gist of it essentially was that their personal finances were in really dire straits when income suddenly stopped. And this is in socialist Scandinavia with one of the most generous welfare systems around *, but due to the sudden surge in applications they had trouble actually processing the applications and paying people. So the essence of the situation is that you know you are entitled to a certain amount of money, your counterpart is the government so you know they eventually will pay you and all you need is enough money to bridge the gap for a month or two. You would imagine someone who has worked for years should have such a trivial amount of money available - but apparently not.

*) if you loose your job you are entitled to ~62% of your pay capped based on an income of ~68k USD so if your pay was 68k USD or 200k USD you get the same amount.

friedmmj

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Re: Any of you had to go back to work after FIRE by necessity?
« Reply #7 on: November 28, 2020, 05:27:20 PM »
Even if you, due to some event, don't reach your FIRE target or something happens incurring an expense you didn't plan for you are still likely left with a massive financial cushion most folks could barely phantom having available. Even if it derails the plan to such an extent that you have do to something you didn't phantom you are still likely to be massively better of than most of your peers. For high earners it might probably be difficult to return to a similar pay after being out of the game for a long time, but with a big, fat, comfy cushion the need income required should be much lower and flexibility much higher. So even a failure in this particular department still overall means a massive win. Look at it from the bright side if SHTF.

As a side note, when Covid hit and people lost their jobs the newspapers were full of people where the gist of it essentially was that their personal finances were in really dire straits when income suddenly stopped. And this is in socialist Scandinavia with one of the most generous welfare systems around *, but due to the sudden surge in applications they had trouble actually processing the applications and paying people. So the essence of the situation is that you know you are entitled to a certain amount of money, your counterpart is the government so you know they eventually will pay you and all you need is enough money to bridge the gap for a month or two. You would imagine someone who has worked for years should have such a trivial amount of money available - but apparently not.

*) if you loose your job you are entitled to ~62% of your pay capped based on an income of ~68k USD so if your pay was 68k USD or 200k USD you get the same amount.

I think you want the word “fathom” not “phantom”