Much of an early retiree’s retirement strategy is based on the continual meteoric stock market climb. Many F.I.R.E. (Financial Independence Retire Early) participants are in their late 20’s, 30’s or early 40s and many of them have never been through a financial crisis. I was just wondering, now that the stock market is down over 4,000 points and clearly in a correction, what are these early retirees going to do for income, now that the supposed good times may be over?
The simple solution may be to go back to work and get a job. But this stock market crash is global. That means that many companies around the world are going to be affected by the current crisis. Already Bed, Bath & Beyond just announced they’re laying off 10% of their staff internationally.
Whatever they decide to do, odds are fairly good that many of these early retirees don’t have a back up plan. For the first time, many of them will have to decide between global experiences or eating rice and beans. Stock market corrections are painful. Sometimes, even sacrifice is involved. Many of these 30 year olds never had to go without a thing. Sure they swapped their Porches for a backpacking lifestyle, but that was voluntary. They may be facing their first mandatory decline. And if history proves anything, this first decline maybe one of many.
I’m interested to see how it all turns out.