Advice
by Matt Kaiser, Private Banker — 1st Source Bank
[email protected] • (269) 927-5519
There’s a reason the F.I.R.E. movement (Financial Independence, Retire Early) caught on: it flips the retirement conversation from “How long do I have to work?” to “How soon could work become optional?” But the social-media version of FIRE can feel all-or-nothing—sell the house, bike everywhere, eat rice and beans, retire at 35. Most people don’t want a life that stark. What they want is control: the ability to choose when and how they work, take a sabbatical without anxiety, or shift to a passion project without fearing the next market headline.
This article is about that middle path—how to use the useful parts of FIRE without turning your lifestyle upside down.
Define “enough,” not an age
Start with the annual cost of the life you actually want—must-haves plus the few things that make life feel rich. From there, rules of thumb can frame the target (for many, a portfolio around 25× annual spending with a 4% starting withdrawal). They’re not guarantees, but they’re a useful compass.
Choose a version you can live with
FIRE isn’t one flavor. Some prefer a lean, minimalist approach; others want early retirement without cutting back. The most practical path for many clients is the middle ground—save aggressively now, then keep work optional through part-time or flexible roles that preserve benefits and purpose.
Make the math automatic
Your timeline drives your savings rate: shorter runway, higher savings; longer runway, more flexibility. Aim to automate contributions across workplace plans, IRAs/Roth, and a taxable brokerage account so you’re building both long-term growth and early access. Simple, low-cost, diversified funds do most of the heavy lifting.
Plan the bridge years
Two questions decide whether FIRE works in real life: how you’ll cover healthcare before Medicare and how you’ll access funds before 59½. Price insurance options early and map a withdrawal sequence from taxable accounts and (when appropriate) Roth contributions or conversions. A little planning here prevents costly surprises later.
Build guardrails so the plan lasts
Keep an emergency fund and, as you approach independence, a cushion of cash and bonds to cover a couple of years of spending. Treat your withdrawal rate as a dial, not a switch—give yourself a raise in strong markets and tap the brakes during rough patches. Protection like disability and umbrella liability insurance can safeguard the plan you’ve built.
Rehearse before you leap
Live on your target budget for a few months and invest the difference. You’ll learn quickly whether the numbers and the lifestyle feel right—and you can adjust before making anything permanent.
Let’s tailor this to you
FIRE is ultimately about designing a life, not chasing a number. If you’d like a concise, personalized roadmap—how much to save, which accounts to use, how to bridge healthcare, and what guardrails fit your situation—reach out and we’ll build it together.
Matt Kaiser, Private Banker
[email protected] • (269) 927-5519
Investment products are not Insured by FDIC or Any Other Government Agency. They are not a deposit or other obligation of, or guaranteed by, the Bank or any bank affiliate and may lose value
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.