Page 17 - Kiplinger's Personal Finance - November 2018

MONEY

■ THE BUSH FAMILY FIGURE
THEIR THRIFTY LIFESTYLE
WILL MAKE THEM FINANCIALLY
INDEPENDENT IN SEVEN YEARS.

have started a 529 college-savings plan a certified financial planner in Hous- Dominguez. Robin was an advocate
for each child and expect that, along ton. “It really is financial dieting if of a simple, sustainable lifestyle who
with financial aid, they’ll be able to you’re saving 50% or more of your in- gained financial independence in her
cover college bills. come,” Foster says. “For a lot of people, mid twenties. Dominguez was a Wall
Bethany says her family makes fun dieting is very difficult.” Street stock analyst who retired at 31.
of their “cheapness,” but some mem- The FIRE movement has also For the authors, financial indepen-
bers are now on board. Within their gained traction during a record-long dence meant having enough money
first year of marriage, the Bushes bull market. It’s unclear how the inev- not to be tied to a job for its paycheck
wiped out about $18,000 in car and itable bear market will affect it. Some and free to pursue work or interests
student loans. When one of Bethany’s FIRE devotees say they are prepared that reflect your values.
sisters heard that, she, too, eliminated to cut spending further, or work to Perhaps no one was more surprised
her student debt, and then another bring in extra money and avoid tap- by the popularity of her book than
sister paid off her debt. “It’s a trickle- ping investments in a down market. Robin herself, now 73 and living in
down effect,” Bethany says. The go-to investment for many in Whidbey Island, Wash. In early 2017,
Unfortunately, many workers don’t FIRE is low-cost index funds (Van- Robin started to work on an update of
earn enough to save 50% or 70% of guard is a favorite for its offerings). her classic to reach a new generation—
their income, says Michael Kitces, FIRE investors also take advantage of only to find that an online community
director of wealth management for tax-favored accounts—401(k)s, IRAs on Reddit was discussing the book and
Pinnacle Advisory Group in Columbia, and health savings accounts—and that it was a top seller on Amazon. “I
Md. The median U.S. household in- sometimes buy rental properties (often felt like I was sort of stumbling out of
come is only about $60,000. And much a duplex or three- or four-unit build- the jungle and being discovered by an-
depends on geography. FIRE is easier ing) where they can live and use rental other generation,” she says.
if you’re earning, say, $100,000 a year income to pay the mortgage. Robin’s new edition was published
in Kansas City or some other place earlier this year with a foreword by
with a low cost of living, Kitces says. WHAT GOES AROUND… Mr. Money Mustache. She rewrote the
Even if you have an above-average One of the bibles of the FIRE move- chapter on investing, adding informa-
income, you must be very disciplined ment is the 1992 bestseller Your Money tion on index funds. When Robin was
and goal-oriented, says Ashley Foster, or Your Life, by Vicki Robin and Joe investing in the 1980s, she was able to

38 KIPLINGER’S PERSONAL FINANCE 11/2018 PHOTOGRAPH BY LOGAN ZILLMER

K11M-EARLY RETIREES.a.indd 38 9/21/18 3:24 PM