Like many others, I grew up thinking my adult life would follow the “American way” template. Go to school, get good grades, get a job, work for 40 years, retire at 65.

And admittedly, I was on this path until I started reading personal finance and investing books leading into anesthesia school. What if I told you retirement isn't an age? Retirement is the ability to continue living without further earned income. Investments produce all income.

I also read some terrifying statistics about results from the American way.

1 in 3 - Americans without savings

56% - Americans who feel behind on retirement savings per Bankrate.com.

16% - Americans who feel they are ahead of schedule per Bankrate.com

50% - Americans who say it is unlikely they will retire comfortably.

$364,500 - Median net worth of 55 to 64-year-olds per The Federal Reserve.

Because the term retirement is associated with age, I'll use financial independence which refers to financial ratios.

TL;DR:

Retirement is not about age.

FIRE bring awareness to personal finance and prioritization.

FIRE creates a financial roadmap.

It's all about ratios

The day my investment returns surpass my cost of living is the day I achieve financial independence (FI). There is a group of financial theorists embracing a short path to financial independence for a variety of reasons.

The FIRE (Financially Independent, Retire Early) movement has been welcomed by many who refuse to be tied to a job their entire life. And who can blame them? We all know a few silver foxes who continue to work because they carry debt and don't have anything invested for the future.

The Premise

Achieve FI quickly to buy back time and potential. Save and invest 25-30x one's annual cost of living. This provides enough growth to sustain a 3-4% annual withdrawal.

Many look for a savings rate of 70% to meet this goal in their 30s or 40s leaving plenty of golden years to enjoy. That sounds a bit rough but hang with me.

An example:

The average American couple lives on $72,000 annually. Their FI number is $1.8M.

$72,000 * 25 = $1.8M

Theoretically a $1.8M nest egg will produce enough income to safely sustain a 3-4% annual withdrawal over decades. There are caveats I will cover in a bit.

Pros of FIRE

The outcome of being financially independent is second to none. Having the option to work and what to do with your time and energy is unparalleled.

The goal setting aspect is top notch. FIRE pursuers are diligently tracking and monitoring expenses.

Most 20 or 30 somethings have no idea how much they will need to retire. I was no exception. Follow FIRE and you will be acutely aware of the ballpark you need to end up.

Cons of FIRE

All planning as some degree of assumptions and the numbers here are no different.

Cost of living is the largest factor in the equation. Small annual increases result in large changes to the FI number.

One must account for cost of living during retirement. If you transition from working 5 days per week and now you have all 7 days to do as you please, that transition will influence cost of living. It's not a bad thing, just account for it.

Major purchases present difficulties. Buying a new vehicle outright will drastically influence annual expenses. Payments fit the system a bit better, but payments aren't typically a good thing.

Spending may need to be adjusted based on investment returns.

Types of FIRE

As with everything in life, one size does not fit all. High savings rates and a low cost of living are not for everyone. Rest assured, there is a FIRE variation for you.

Lean FIRE - this is the bare bones living to reach FIRE yesterday approach. Folks following this approach typically live off less than 25,000 annually and look to save as much as possible.

Real minimalists. Housing arrangements are usually creative. Vehicles not a necessity and often bypassed to cut expenses.

Not everyone is into the extreme minimalism and frugality associated with fire. There is another way.

Fat FIRE - this is for folks who desire a typical American living situation, but don't wish to spend decades tied to a job. Often embraced by high income earners, Fat FIRE followers live a comfortable life, but save and invest aggressively.

Mrs. TFC and I find ourselves here. We have plenty of luxuries paired with a high savings rate.

This is a category appealing to many. It's a delicate balance between living a desirable life and retiring early. I suspect something like a 25%+ savings rate. It may not lead to retirement at 30, but it’s better than being 60 with nothing saved for tomorrow.

Batista FIRE - this style looks for financial independence and part time work. Income, even reduced income, offsets expenses. Many folks have a nest egg started before they transition to part time work.

And holding a job allows access to benefits such as health insurance. A CRNA could work PRN. Maybe locum 1 week per month.

This is often where people leave the job that pays the bills to follow their passion. Fill days with enjoyment and purpose. This sounds like good way to go.

Applied to CRNAs

I understand it's tough to have enough set aside in your 30s or 40s after entering a high opportunity cost profession. Student loans are difficult to overcome. All the more reason prospects should look into compensation to evaluate just how long those pesky student loans may hang around.

Many terminal degrees require a spare bedroom for student loans. Not CRNA programs. With the amazing income potential, most loans can/could/should see themselves out within 2-3 years. Maybe a few more with different priorities.

The average CRNA income more than allows access to each of the 3 FIRE options. I think all CRNAs should have an idea of their expenses, savings rate, and what their FI number may be. Even CRNAs in their 30s should have an idea of how much savings will be needed to retire decades from now.

The real reason to join the FIRE movement is personal finance awareness. Don’t end up on the wrong side of a retirement statistic. Feel on track to FI. Feel in control of your financial timeline.

Thanks for reading.