What does "FIRE" stand for?

Financial Independence/Retire Early -- Learn How!
Post Reply
NeuroFool
* Rookie
Posts: 14
Joined: Tue Nov 26, 2002 3:59 am
Location: Birmingham, AL

What does "FIRE" stand for?

Post by NeuroFool »

I feel a little silly for asking, :oops: but I've read every post on the "old" FIRE board, and did some hunting at TMF, but couldn't find anything.

I can assume that "RE" is "Retire Early".

What is "FI". Fixed Income?

So it's "Fixed Income/Retire Early"? :roll:
JWR1945
***** Legend
Posts: 1697
Joined: Tue Nov 26, 2002 3:59 am
Location: Crestview, Florida

Definition of FIRE

Post by JWR1945 »

Financial Independence/Retire Early

The source was an influential book Your Money or Your Life. The FI part occurs in two stages. The first is Financial Integrity(?)...which involves knowing your financial condition, tracking your net worth and several steps to enhance your financial condition. One important point is that the true cost of purchasing something can be much more (or less) than is reflected by the price.

The second stage is Financial Independence. The third (which is really just an option) is to Retire Early.

I found the book hard to read because it had a heavily politically correct activist flavor. The financial concepts, however, are understandable and they are explained very well.

Have fun.

John R. (who has Financial Integrity, Financial Independence and who has Retired Early enough...at age 56.)
User avatar
ElSupremo
Admin Board Member
Posts: 343
Joined: Thu Nov 21, 2002 12:53 pm
Location: Cincinnati, Ohio

Post by ElSupremo »

Greetings John :)

You beat me to the punch on this one. :?I love to answer the easy questions. It makes me look good! And it looks like I'm going to need a lot more of that. :wink:

ES
"The best things in life are FREE!"

www.nofeeboards.com
peteyperson
**** Heavy Hitter
Posts: 525
Joined: Tue Nov 26, 2002 6:46 am

Your Money or Your Life

Post by peteyperson »

It is worth noting that the investment advice in 'Your Money or Your Life' is outdated. At the time 100% bond investment was good because returns were in the 14% area per annum. That was a highly unusual occurance, usually bond returns are the inverse of the market. People run to them when the market drops and the majority leave when the market climbs back up and bond rates drop. Bonds can form part of a balanced, diversified portfolio.

Petey
User avatar
BenSolar
*** Veteran
Posts: 242
Joined: Mon Nov 25, 2002 5:46 am
Location: Western NC

Post by BenSolar »

Here is a wonderful post by wanderer over on the Fool where he was apparently the first to drop the '/' in FI/RE and coined 'FIRE'.

http://boards.fool.com/Message.asp?mid=14154995

excerpt:
<<
Has anyone else noticed how "FI/RE" looks like the word "fire"? I remember attending church (a long, long time ago) and, during the benediction, the preacher saying, "Take our minds and think through them. Take our eyes and see through them. Take our hearts and set them on fire." I always liked that turn of phrase.

I'm not much for religion, but I do believe in the sanctity of the human spirit. FI/RE is a fire that burns in me. Maybe it consumes me, but I like to think I am that phoenix, rising from the ashes, to fulfill his special mission of realizing his true potential.

So, from now on, I'm gonna drop the slash. A "FIRE" it is. May it be ever thus.

Wanderer, hopefully not sounding too "unhinged"
>>

I love it.
Ben
"Do not spoil what you have by desiring what you have not; remember that what you now have was once among the things only hoped for." - Epicurus
User avatar
ElSupremo
Admin Board Member
Posts: 343
Joined: Thu Nov 21, 2002 12:53 pm
Location: Cincinnati, Ohio

Post by ElSupremo »

Petey wrote:
At the time 100% bond investment was good because returns were in the 14% area per annum.

Good point. It is also good to keep in mind that most bond funds are at or above their all time highs. Going forward I still favor the short term corporate bond fund. Or possibly a TIPS fund.

ES
"The best things in life are FREE!"

www.nofeeboards.com
User avatar
ataloss
**** Heavy Hitter
Posts: 559
Joined: Mon Nov 25, 2002 3:00 am

Joe Dominguez

Post by ataloss »

It is worth noting that the investment advice in 'Your Money or Your Life' is outdated. At the time 100% bond investment was good because returns were in the 14% area per annum.

Dominguez stuck with his investment advice (he died btw) even when times changed and some fresh thinking was needed. I think that if you become famous for something it must be tempting to try to hang on to the old approach even past the point of reason. Any resemblance to anyone else is purely unintentional.

ataloss
not striving for fame :roll:
Have fun.

Ataloss
wanderer
*** Veteran
Posts: 363
Joined: Tue Nov 26, 2002 9:33 am
Location: anytown, usa

Post by wanderer »

petey -

actually, i think he adopted this approach in the early 1970s (when rates were much lower) and rode it to the end.

The Terhorsts went a similar route when rates were 8%-10% on CDs.

Since these guys were deeply wise (one was a broker(?), the other an audit partner), it either proves the fallibility of the Wise or different strokes or change with the times.

wanderer
regards,

wanderer

The field has eyes / the wood has ears / I will see / be silent and hear
Post Reply