The Financial Independence Retire Early (FIRE) movement has captured attention across generations. It promises a life where financial independence allows you to retire early and focus on what you love. But not everyone is a fan. Financial expert Suze Orman has been famously critical of FIRE, labeling it dangerous for those without substantial wealth.
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The FIRE movement is rooted in two main ideas: extreme saving and early retirement. By saving 50% or more of their income, followers of FIRE aim to accumulate a large retirement fund to live off investment returns, often before age 40. While some adhere to “lean FIRE,” maintaining a modest lifestyle with a smaller retirement fund, others pursue “fat FIRE,” accumulating more to enjoy a comfortable lifestyle. The concept has gained significant traction, especially among millennials seeking alternatives to traditional career paths.
However, orman believes that FIRE oversimplifies the financial risks involved. In a 2018 interview on the Afford Anything podcast, she warned that even a seemingly substantial nest egg, like $2 million, might not be enough.
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“$2 million is nothing. It’s nothing. It’s pennies in today’s world, to tell you the truth,” she stated, expressing her concern that even millions could fall short in the face of life’s uncertainties. Orman explained, “If a catastrophe happens … what are you going to do? You are going to burn up alive.” For her, retirement requires far more planning than what many anticipate.
Orman’s perspective is deeply rooted in the belief that financial independence requires a far larger cushion than most people realize. She even made a clear distinction between average savers and the ultra-wealthy. “If you have $20 [million], $40 [million], $50 [million] or $100 million, be like me, okay,” Orman said. “If you have that kind of money … and want to retire, fine.” But for the vast majority, she warns, retiring without that level of wealth is risky and could lead to financial disaster. Her message was simple: early retirement might not be safe unless you’re extraordinarily wealthy.
