The Dark Truth of Financial Independence Retire Early (FIRE) | What They Don't Tell You

Hey guys, we're Iman and Christina from Average Journey. We need to talk about the untold

truth

s of

early

retire

ment. You see, if you've followed our journey, you'll know that we

retire

d almost four years ago, moved to Portugal and have been living through the

early

years. retirement life since then, there are some

dark

sides of early retirement that aren't talked about often enough, so in this video we want to talk about all of those things, for anyone considering pursuing

financial

independence

and retiring early, These are things you need to take into consideration. The first thing you need to know is the emotional adjustment associated with achieving

financial

independence

and retiring early.

Many times, once people retire early,

they

pull the trigger,

they

are very excited about all the possibilities and all. in front of them, but soon after you may have an anxious feeling thinking about

what

I did. Will I be safe throughout my retirement? That's really the kind of emotional fluctuations that can occur once you get to the

fire

. Anxiety is now normal. What to experience after making such a drastic change in your life In my case, for example, I work for the federal government for 17 years and the day I retired early I can remember being anxious about

what

I'm going to do if early retirement doesn't No works, so that's actually one of the negative emotions that you generate in the

fire

, but there are also tons of positive emotions, for example, on Sunday night for us, on Sunday nights when we were working, it always created this anxiety because we think, "We have to go." To go back to work on Monday there is all this work we have to do all week and it just didn't allow us to enjoy Sunday night even though it was a non-working day once you get to the fire and you're no longer working.

Sunday allows you to relax and really enjoy the full day without the anxiety associated with the work week approaching the next day, the next Dark Side that people don't talk about is inflation rates and market fluctuations now that you are in The market fluctuations from your fire trip are great, especially when the market falls you can invest more money and when the market recovers you have a lot more money in your investment accounts, but after you reach the fire, those market fluctuations they may be more meaningful to you and maybe. Negatively if you feel very anxious or worried about your portfolio risk and you are on fire depending solely on your stock market portfolio and there are market declines, this can actually affect your lifestyle in early retirement. and I think a lot of people have been experiencing this over the past year.

I mean, 2022 was a bear market in the stock market, so if you retire in 2022 you probably felt a lot of anxiety and maybe that made you adjust. your plan a little now there are some lessons to learn from this situation, for example, it is essential to have a well-diversified investment portfolio, it is also very important to stay aware of market trends and be prepared to adjust the withdrawal rate of your budget or even your lifestyle if necessary now it is also very important to note that a diversification of income can really help in times of market fluctuations and also a really solid emergency fund can help with that for example if you look our situation, we invest in the stock market, but we also invest in real estate that generates income every month that we can use to pay our expenses in early retirement now if you are really interested in developing a plan on how you can invest in the stock market, how you can invest in the real estate sector, how you can develop secondary activities that will help you in early retirement.

You can enroll in our Fire Masterclass to help you develop a comprehensive plan to achieve financial independence and retire early. If you would like more information we will leave a link in the description below or you can also go to outreachourny.com. The next

dark

side of the fire that people don't talk about enough is healthcare costs. Now many times people can generally think about their health care costs and in general. how much they are expected to pay in early retirement, but some of these costs are actually overlooked when people are developing their plan, things like a vision plan and dental care, and one of the biggest costs that many people spend overlooked is long term.

Long-term care facility costs and going to a long-term care facility in your golden years may not be something you're thinking about as you go through your early retirement phase, so it's important to think about whether you'll go to one of these centers. Will you stay with family members when you reach those Golden Age years? You need to have a plan in place because this could be an expense that could drastically reduce your fire assets and another dark side of fire that people don't often talk about is relationships. Once you manage to ignite the relationship dynamic in your family, among your group of friends, among your extended family, all of these things can potentially change, so for example, Aman and I retired at the same time, we retired early. and we retire together, we can spend a lot. more time together and we get to spend a lot more time with our kids and we love it, we actually enjoy spending more time together, but if you're someone who doesn't necessarily like spending time with your spouse, if you have bad relationships with your kids and your kids not wanting you around when you have more time to do these things can actually negatively affect your relationships now.

I laugh when Christina says this because some people are shocked when they do it. To spend so much time with their family, they're more used to being away from work eight to ten hours a day, maybe they spend more time traveling for work, but now they're always around their spouse and kids, and it can be overwhelming. to them, these are things that you should definitely think about when you talk about retiring early and the final Dark Side fact that people don't talk about enough is the expectations of travel versus the reality of travel and this is something that really hit home. .

We had a hard time because we imagined that once we were tired we would travel everywhere all the time. We're very lucky now that we can travel quite a bit, but it's not as much as we really anticipated when we were planning our fire objectives. and this is because our girls are in school and then we have to sit and wait for them to have breaks in their school schedule and so that we can travel now you say sit, we are not waiting for them like that because We have a very active daily life during the early retirement, but still having to wait for these kids to have a long spring break or some kind of break is one of our biggest challenges, so we can't wait for them to go off to college.

Because we will be traveling every day of the week, but in reality we will probably travel to see them now, even if you don't have children, the expectation versus the reality of the trip may still be a challenge for you because you may have made all these plans great, but you don't have the budget to be able to do it all because travel costs increase and you may find yourself in a situation where you want to travel with other people, but those people still have to do it. work and maybe you will become a solo traveler.

These are all things you should consider when talking about your dreams of traveling during early retirement. Those are the dark sides of fire that people don't necessarily talk about, we hope they really do. it stimulates a conversation with you and your partners or family members to really think about some of the potential downsides of Fire and how you might take steps to be able to prevent some of those downsides once you reach financial independence and retire early now again. We have a master class on fires. If you are interested in developing your own unique plan to achieve financial independence and retire early, we will leave that link in the description below or you can also visit outreachjourney.com now if you liked this video.

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