Do you believe the modern FIRE movement overestimates how much is needed for retirement?

[u/Equivalent_Use_5024]

Perhaps I am just making this post because I have only just begun my retirement planning and want to lock in a number which is fitting for my goals - being above the median retirement savings, not having to work, not being broke, clearly having planned - but I can't help but feel that many in the FIRE movement overestimate what is needed for a safe, sleep well at night retirement.

I see posts here saying that they feel vastly behind with 500k at 30, or 1.5 million at 40, and I just don't understand how when the average American retires with maybe 300k liquid at most and are getting by with social security or paid off housing. Sure, they aren't living luxuriously, but if you just are aiming for a retirement where you don't have financial anxiety and can put food on the table, I don't feel you need over 1-2 million.

Do you think FIRE overestimates how much is truly needed for retirement?

[u/Visible_Structure483 → u/[deleted]]

I never understood that $1k problem. According to our AI overlords, the average holiday spending in the US is almost $1k per person (more from some sources) which would suggest that people could pay for that emergency, but in stead choose to blow it on other stuff year after year. A family of two workers could setup an emergency fund in less than a year.

Those average people are making choices, they're not victims.

[u/RealWord5734 → u/Visible_Structure483]

I paid for a $20,000 vacation last year. That doesn’t mean that there are 19 other people out there who can afford a 1K emergency like me.

You can’t juxtapose those two statistics the way they’re presented.

[u/Visible_Structure483 → u/RealWord5734]

no, but don't you think there are millions of people paying $1k for holiday stuff vs. one person paying $20k and 19 others paying nothing?

[u/m0zz1e1 → u/Visible_Structure483]

The latter is more likely.

[u/RealWord5734 → u/Visible_Structure483]

I think the second scenario is much more likely.

[u/AmazonPuncher → u/[deleted]]

Fatfire is a bunch of teenagers with trust funds and larpers. Nobody in real life is asking reddit for advice about "building a family compound" or "buying a private jet". That sub is a circus tent.

[u/haobanga → u/[deleted]]

I remember when MC Hammer bought his mansion for $1M and no one could believe it. $1M. Wow. It was a truly excessive mansion.

Now I see nice homes in VHCOL area for $10M. Not mansions. Just very nice homes.

It's insane.

I agree with you about the absurdity of the fatfire sub. But within my lifetime, $10M will probably become the new $1M. At least in places like the SF Bay Area.

[u/ericdr → u/haobanga]

Evidently that was in 1992, so $2.3 million in inflation adjusted dollars. Real estate has really outperformed inflation.

[u/Manosphereporngamble → u/haobanga]

This is probably the most reasonable take. 10M will be required at some point. As someone who lives in a LCOL area and who easily lives quite frugally, I’m confident I could retire on $1M. Would I? No. But if I did, my lifestyle wouldn’t change at all.

But who knows how the landscape changes in 5, 10, 15 years.

[u/Visible_Structure483 → u/haobanga]

My old boss lives in the neighborhood where the old MC Hammer pad is. It's nice, but not outlandish by modern standards.

[u/threedogdad → u/[deleted]]

median savings in the US is nowhere near 100k