Financial Independence and Retiring Early (FIRE)

Achieving financial independence and retiring early is not just a dream—it’s a goal that can be planned and realized with the right strategies. At Sterling Adams Wealth Management, we provide tailored guidance to help you navigate the path to FIRE with confidence and precision. Whether you’re just starting out or are well on your way, our expertise can help you take control of your financial future.

What Is FIRE?

The FIRE movement focuses on achieving financial independence, having enough wealth to cover your living expenses without relying on active income from a job. By prioritizing savings, strategic investments, and mindful spending, you can retire early and pursue the lifestyle you’ve always envisioned. Angelo Cirinelli, New Jersey-based finance advisor, specializes in building sustainable plans for individuals who are passionate about gaining financial freedom sooner rather than later.

Our Financial Independence and Retiring Early Planning Services

Our financial planning process is designed to cater to your unique goals and challenges:

Step 1: Get a Clear Picture of Where You Stand

The first step in any FIRE journey is to get a solid understanding of your current financial situation. This is all about taking stock—where are you today?:

Money In: What are your current sources of income, and how much are you earning?
Money Out: What are your monthly expenses? Where is your money going?
Assets: Where are your savings and investments? What is the state of your retirement accounts, real estate, and other assets?
Liabilities: What kind of debt do you have? Student loans, credit cards, mortgages? What’s the interest rate?

At this stage, we’re not worrying about how to cut expenses or optimize your budget or portfolio—we’re just getting the lay of the land. Knowing where you are financially will help you make informed decisions about how to move forward.

Step 2: Define Your Goals and Timeline

The timeline for FIRE will vary depending on your income, expenses, and goals. Some people are aiming to retire in five years, while others may want a longer runway. Here’s where we break down the following:

When do you want to retire? Setting a clear retirement date is crucial as it will dictate how aggressive your saving rate and investments will be.
What does your ideal retirement look like? Think about how you want to spend your days when you’re no longer working, or working less. Do you want to travel the world? Spend more time with family? Start a passion project? Sit on a beach drinking margheritas? Understanding what makes you happy and what you want to do with your time will help craft a sustainable and realistic plan.

Step 3: Assess Feasibility of the Current Trajectory

At this point, we need to assess if your current trajectory will get you to your goal of early retirement.

Is it feasible on your current trajectory? Here is where you look at your existing financial habits and ask whether you’re on track to meet your FIRE goal. We use planning software to model what the current trajectory looks like and what the probability of FIRE success will be.
What minor changes could make a difference? Maybe you can adjust your budget, invest more aggressively, or increase your income. Or maybe you can utilize certain tax strategies to save big on taxes. This is where we dive into the nitty-gritty. How can you optimize your spending and savings rate? Cutting out unnecessary expenses—like dining out frequently, expensive subscriptions, or luxury purchases—could free up funds for investing, allowing you to reach your goal faster.
- Maybe you decide to take only one vacation a year instead of two or skip vacations entirely for a few years.
- You could downsize your home or explore creative ways to reduce housing costs, like house hacking (renting out part of your home).

These sacrifices can feel hard in the short term, but they’re often necessary to reach the freedom you’re seeking. Being honest with yourself about what you’re willing to cut out of your life is an essential part of the FIRE process.

If everything looks achievable with these small tweaks, great! But if you find that early retirement is still out of reach despite these changes, it’s time to think bigger.

Step 4: Bring in the Big Guns (Advanced Strategies)

At this point, we need to assess if your current trajectory will get you to your goal of early retirement.

Is it feasible on your current trajectory? Here is where you look at your existing financial habits and ask whether you’re on track to meet your FIRE goal. We use planning software to model what the current trajectory looks like and what the probability of FIRE success will be.
What minor changes could make a difference? Maybe you can adjust your budget, invest more aggressively, or increase your income. Or maybe you can utilize certain tax strategies to save big on taxes. This is where we dive into the nitty-gritty. How can you optimize your spending and savings rate? Cutting out unnecessary expenses—like dining out frequently, expensive subscriptions, or luxury purchases—could free up funds for investing, allowing you to reach your goal faster.
- Maybe you decide to take only one vacation a year instead of two or skip vacations entirely for a few years.
- You could downsize your home or explore creative ways to reduce housing costs, like house hacking (renting out part of your home).

If everything looks achievable with these small tweaks, great! But if you find that early retirement is still out of reach despite these changes, it’s time to think bigger.

Step 4: Bring in the Big Guns (Advanced Strategies)

Most people who come to me looking to FIRE have investment accounts, but what if returns from the stock market aren’t big enough, or you just don’t want to cut out any more expenses? Then this is where more advanced strategies can be used to possibly boost returns above the long-term stock market average of 8-10%.

Real Estate: If you’re willing to put in more effort, real estate investing could offer higher returns—around 15-20% or more—but it also comes with added risk and time commitments. Managing rental properties, finding tenants, and handling maintenance can be time-consuming.
Business Acquisition: For those who are entrepreneurial, buying and running a business can offer returns upwards of 30% or more. However, this strategy comes with higher risk and requires expertise in managing businesses. Also, you’re probably going to work an insane amount of hours when first starting out.

You don’t have to choose just one path; you can combine strategies. Many successful FIRE achievers use a mix of real estate, retirement accounts, and business ownership to create a diversified portfolio that aligns with their risk tolerance, desired returns, and lifestyle.

But remember, increasing your return potential usually means taking on more risk. The higher the potential reward, the more time and knowledge you’ll need to manage those investments effectively, which is where an advisor who is knowledgeable on real estate and business acquisition can come in.

Step 5: Address the “What-Ifs”

Life doesn’t always go according to plan, and when you’re aiming for early retirement, you need to have contingency plans in place. Here are some common scenarios to prepare for:

Early Death or Disability: What if something happens to you, and you can’t work or provide for yourself and your family? Make sure you have appropriate insurance (life, disability, etc.) to protect your financial future.
Lower-than-Expected Returns: What if your investments don’t grow as quickly as projected? Diversifying your investments and having an emergency fund can help weather market downturns in early retirement.
Job Loss: If you lose your job, how will that affect your FIRE timeline? Having multiple income streams or a side hustle can help mitigate this risk.

Contingency plans help ensure that you won’t be derailed by unforeseen circumstances, so you can keep moving forward toward your goal. Having a plan B, C, D, & E can

Step 6: Implement and Monitor

Once you’ve created a clear, actionable plan for FIRE, it’s time to execute. But the work doesn’t stop there. Financial independence is a long-term goal, and things can change along the way.

- Monitoring and Adjusting: As your life circumstances change, or as market conditions shift, it’s important to monitor your progress regularly. Are you hitting your savings and investment goals? Do you need to adjust your budget or investment strategy? Life doesn’t always go according to plan, and a flexible approach will help you stay on track.

Constantly Look for Improvements: Mortgage rates are currently at around 7%, but in the coming years they will most likely drop. At that point it may make sense to re-finance into a new mortgage. This is just one example of how things can change to create more opportunities to save money.

With a solid plan in place and a willingness to monitor and adapt, you can stay on course toward early retirement.

Why Pursue FIRE?

Financial Independence and Retiring Early (FIRE) offers more than just a chance to leave the workforce early. It’s a lifestyle transformation. Imagine the freedom to wake up without an alarm clock, fully in control of your day. FIRE allows you to focus on activities that bring joy, such as traveling, hobbies, or starting passion projects. Beyond this, achieving FIRE ensures financial security, creating a robust safety net against life’s uncertainties. It also enables you to prioritize your health and enjoy your best years while you’re still vibrant and active. With FIRE, you can build a legacy of wealth and self-sufficiency, breaking free from the stress of living paycheck to paycheck and creating a lasting foundation for future generations. This pursuit not only offers immediate life satisfaction and mental well-being but also lays the groundwork for a meaningful and fulfilling life ahead.

Why Choose Sterling Adams Wealth Management ?

Customized Strategies: No two FIRE journeys are alike, and our personalized approach ensures your plan fits your lifestyle and aspirations.
Expert Guidance: Angelo Cirinelli brings financial planning experience, with a focus on early retirement strategies.
Transparent Support: Clear communication, upfront pricing, and a commitment to your success.

Get Started Today

Take charge of your financial future and start your journey toward financial independence with Sterling Adams Wealth Management. We are here to help you build a personalized FIRE strategy that fits your vision and goals. Let’s work together to turn early retirement into your reality. Call us today at 862-261-5195 or fill out our convenient contact form to schedule your consultation. Your path to freedom starts here!

Frequently Asked Questions

Is FIRE realistic for everyone?

FIRE can be tailored to suit different income levels, goals, and timelines. Whether you aim for Lean FIRE (minimal expenses) or Fat FIRE (a more comfortable lifestyle), the key is creating a plan that aligns with your situation. Starting early and getting expert advice can make the journey more achievable.

How much money do I need to achieve FIRE?

The amount you need depends on your desired lifestyle, annual expenses in retirement, and types of assets. For brokerage investments, a common rule of thumb is to save 25 to 30 times your expected annual expenses, based on a safe withdrawal rate of 3-4%. For a real estate portfolio, the cash flow after expenses and reserves is your income in retirement. Depending on interest rates and equity, cash out re-financing of properties can be another option discussed. Working with a financial advisor can help you define your specific FIRE target.

Do I need to sacrifice my current lifestyle to achieve FIRE?

Not necessarily. While FIRE does encourage saving and mindful spending, it’s about striking a balance that works for you. By optimizing expenses, increasing income, and investing wisely, you can make progress without completely giving up your current lifestyle.

What does achieving FIRE mean, and why is it important?

Achieving FIRE means reaching a point where you have enough wealth to cover your living expenses without needing to work a traditional job. It’s important because it gives you the freedom to live life on your own terms, whether that means retiring early, pursuing your passions, or simply enjoying peace of mind knowing you’re financially secure.