# Learning from Early Retirees: Insights from a FIRE Journey
Early retirement is a goal for many individuals, yet only a few take the leap. In this exclusive discussion, we gather invaluable perspectives from a couple in their late 30s who have adeptly followed the Financial Independence, Retire Early (FIRE) route. Through their journey, we explore financial tactics, lifestyle changes, and fresh prospects that accompany early retirement.
## **General Overview**
Our interviewees are a couple aged 38 and 39, who have been partners for almost ten years and married for seven. They have two young boys, aged four and one, and are currently living in a major city in Southeast Asia while investigating long-term living possibilities.
## **Defining Retirement**
For them, **retirement signifies financial liberty**—the capacity to enjoy life without the constraints of a job for economic security. They adopt the mindset of **”Financial Independence, Reimagine Everything”** as opposed to merely “Retire Early.” Their aspiration is to contribute meaningfully to society, although the form this takes (whether corporate employment, entrepreneurship, or nonprofit engagement) is still developing.
## **The Path to FIRE**
– **Career & Earnings:**
The interviewee served as a **partner at a strategy consulting firm**, earning between **$1 million to $1.4 million annually** in total compensation. Throughout a 16-year career, their salary escalated from an initial **$48K to over $430K** before their promotion to partner.
– **Investment Strategy:**
To attain FI, they created a **dividend-generating portfolio that yields about $300K in passive income annually**—well above their **$100K–$150K yearly household expenses**.
– **Retirement Decision:**
The pivotal moment occurred when **their second child was born**. Work became increasingly taxing, layoffs were on the rise in their sector, and the prospect of returning to the office was becoming imminent. Acknowledging their financial stability, they opted to retire earlier than originally planned.
## **Preparation for Retirement**
### **Steps Taken Before Retiring:**
1. **Strategic Wealth Accumulation**
– Commenced saving **20-30% of post-tax income** early on and eliminated all debts.
– Concentrated on **dividend income instead of depleting assets**, thus safeguarding financial stability and promoting portfolio growth.
2. **Stabilizing Passive Income**
– Developed a dividend-specific investment portfolio offering **5% returns annually**.
– Maintained cash reserves to **cover 3-5 years of living expenses** (a **$375K cash buffer** in anticipation of market declines).
3. **Planning for Healthcare & Insurance**
– Secured **private health insurance**, given that public healthcare in their country is reasonably priced.
– In the event of relocating to Europe, they intend to **utilize public healthcare systems** after obtaining residency.
4. **Funding Children’s Education**
– Revenue from rentals ($15-16K annually) is earmarked for college savings.
– Retirement accounts (worth **$1.1M**) enable partial early withdrawals for education.
– Passive income is reinvested, ensuring educational requirements are met in the future.
5. **Mobility & Tax Planning for the Long Term**
– Applied for an **Investor Golden Visa** in Europe, which allows flexibility for future moves.
– Selected tax-advantaged investments in **countries that do not impose dividend taxes**.
### **Challenges & Emotional Aspects**
– **Concerns About Financial Ruin?**
Although this worry surfaced, meticulous planning and **multiple financial buffers** provided reassurance.
– **Communicating with Friends & Family**
Their parents were supportive, but they prefer to keep their financial situation private, referring to retirement as a **“temporary career break”** in social situations.
– **Transition from Corporate Environment to Home Life**
Burnout facilitated the change—rather than longing for work, they *experienced profound relief*.
## **Post-Retirement Life**
### **Retirement Lifestyle & Daily Schedule**
– **Daily Routine**
– Mornings involve **dropping children off at school**.
– Free time during school hours consists of **coaching clients (for fulfillment), engaging in sports, and socializing with friends**.
– Afternoons and evenings are dedicated to **family activities**.
– Travel is interspersed throughout the year.
– **Travel as a Significant Lifestyle Shift**
– Initially planning **a 1-month trip to Europe**, this expanded into **a 3-month journey**.
– They participated in programs like **Boundless Life**, which offers education and housing for traveling families.
– Future plans include exploring various European cities for **3-5 years** before permanently settling down.
– **Discovering Purpose Beyond Employment**
– Have grown