Education

“FIRE” – Meet “DREC” Retirement (Revisited)

In 2019, on the Van Wie Financial Hour radio program, we reported on a spreading phenomenon known as “FIRE,” short for “Financial Independence Retire Early.” In cult-like instructional guides, FIRE proponents attempt to entice people into a utopian world of carefree decades of cushy retired life, beginning in early or middle-age. To me, this is a component of a “Big Lie” Americans are being fed on a daily basis by money-grubbing “influencers.” Far too many of these “financial experts” are in their businesses for the simple reason that they sell expensive newsletters to unsuspecting people.
The FIRE movement tells people they can retire at age 35, 40, 50, or even 60. My study of information on FIRE from the zealots (who claim to have all the answers) reveals that a successfully retired FIRE candidate must go to WORK! We’re not talking about volunteering, but a real paid endeavor; even a “side hustle” or “gig work.” Apparently, when doing something you enjoy, it is not considered by FIRE to constitute work, much less a new career. Instead, it is supposed to provide some kind of self-fulfillment, justifying the cut in pay. Think of it as a paid hobby. Some, like me, call it working.
I have a better idea. My concept is called “DREC,” short for “Delay Retirement Extend Careers.” DREC offers a path toward the real financial goal of most people – true Financial Independence. It does this the old-fashioned way, by working longer, making more money, and enjoying life and family along the way. FIRE too often requires sacrificing a fulfilling family life.
Under DREC, a young worker who enjoys his or her occupation and career path should set a retirement goal of complete Financial Independence. Physical age is only relevant for insurance planning and Social Security claiming purposes. Many people work later into life these days – on purpose!
Not enjoying your current job? Change it now, and work until you are financially prepared to (completely) retire.
Wasting years, while skimping and saving pennies toward an unrealistic and artificial FIRE goal, makes for unhappy and unsuccessful lives. People will always require food, clothing, shelter, and a wide variety of expensive non-luxuries (including taxes). Financial Independence requires our nest eggs to be sufficient to cover a lifetime of expenses, hopefully including some non-essentials. You only live once, so have a good time.
DREC (Delay Retirement Extend Careers) will yield a significant improvement in your probability of achieving true Financial Independence. If your only goal is early retirement, chances are you’ll be working forever, only not by choice. FIRE may be trendy, but DREC is practical.
