Bulletin
Investor Alert

London Markets Close in:

Dec. 29, 2018, 2:03 p.m. EST

Retire early? You need ‘at least $5 million,’ according to Suze Orman

This lifestyle leaves you exposed if disaster strikes

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

By Shawn Langlois, MarketWatch


Flickr/Jacqueline Zaccor
Suze Orman during a LinkedIn “influencer” interview in 2014.

Suze Orman just threw cold water all over the FIRE movement that’s been spreading across the internet.

FIRE is short for “financial independence, retire early.” Work hard, make money. SAVE!!! And, then, stop slaving away for “the man.” Envision your dream of a flexible future, and then do what it takes to make it happen.

Sacrifice now, enjoy later. That’s the gist.

On Reddit, there are more than 433,000 subscribers gathering to discuss their FIRE tips and experiences daily. “At its core, FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible,” the group’s description reads.

For many a work-worn millennial, it’s the Holy Grail. For one of the biggest names in personal finance, however, the approach has disaster written all over it.

“I hate it. I hate it. I hate it. I hate it.”

Tell us how you really feel Suze.

“Listen everybody. I know you want to retire at 25. At 30. At 35,” Orman told the “Afford Anything” podcast . “But... as you get older, things happen.”

What things, Suze? That’s when the interview turned dark:

“You get hit by a car. You fall down on the ice, You get sick. You get cancer,” she said. “If a catastrophe happens, if something goes wrong, what are you going to do? You are going to burn alive.”

‘I personally think it is the biggest mistake, financially speaking, you will ever, ever make in your lifetime.’

Suze Orman

Then, Orman, with a net worth estimated to be in the neighborhood of $30 million, dropped a reality bomb of self awareness.

“Listen, if you have 20, 30, 50 or 100 million dollars, be like me, OK?” she said. “If you have that kind of money and you want to retire, fine.”

If not, and that’s most of us, better build that cushion, because, she says, if you stop stashing money, you’re losing the compounding years of your life.

Page 1 Page 2
This Story has 0 Comments
Be the first to comment
More News In
Retirement

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.