This post is partly about the eponymous movie, featuring outgoing FIRE exponents like MMM. It will be shown in Birmingham on the 5th of July, well done Cashflow Cop for getting this shown outside the Great Wen. But I couldn’t help thinking about the other meaning, too…
The Ermine is an introvert1, so I fought the FI battle as a loner. For sure, I learned from other people – Monevator for how and sort of why2, Early Retirement Extreme for why though not so much how, I was too old and too wedded to some creature comforts to live the ERE life.
At that time the FIRE blogosphere was ruled by introverts too, unlike now, where I’d say extroverts rule the roost. I’m glad I started when I did, because I could relate to people’s narrative. We were crawling from the twisted wreckage of the credit crunch. The credit crunch had squeezed The Firm I worked for, and what had been a decent job for 20 years started to go bad, fast.
I read this post shortly after what I interpreted as a manager trying to run me out of the company. I was more than a decade away from retirement and needed a fast track out. I had been living the usual life of hedonism, though I didn’t carry consumer debt.
The world looked very different then – as Monevator described people’s emotional state was in the pits, the financial world was ending. I read that, and yes, I was one of the people that thought he was barking mad. Rather that yell abuse, however, I asked myself “what if this nutter is right, there is some logical coherence in what he says”. If he were right, this was a remote chance to stick a rocket on my exit plans. So I bought. That committed money to a remote chance, but that money wasn’t anywhere near enough to buy me out of 10 years of working. Looked at in that way, it was a rational choice, though a long shot.
I chose individual shares and a HYP approach, because I thought I was smarter than perhaps I was. I still have most of those HYP shares. It didn’t matter what you bought then, everything was down the toilet. It mattered that you bought.
Swimming in troubled waters – if I will fall, may I fall slowly, all is lost
I recall coming across the song Désenchantée from a colleague, and even with schoolboy French I got the feeling and it matched my mood playing on my work PC as I put half or the 2008/9 allowance into a Cash ISA and half into an III S&S ISA.
I had been slaughtered in the dot-com bust a decade before. Intellectually I saw the logic of Monevator’s words, but I did not feel that there was any hope, after all, it hadn’t worked out that well last time. I invested that money because I saw I was going to fall, though not when the end would come3. I did not have 10 years of working life left ahead of me. Your late 40s is often a troubled time of life, you cannot live the afternoon of life by the principles of the morning.
The next month I did the same again, in the new tax year, but I also signed up to the company salary sacrifice AVCs and pushed my pay down to virtually the minimum wage, investing in a 50:50 UK:Global index fund. The other options were cash or 100% UK. I did not do this because I was an optimist, I was of the view that this was most likely a lost cause, but that there was a worthwhile chance.
The modern FIRE landscape is a very different place from that lonely and desperate world
We stand on the ramp of a long bull run from those troubled times. Extroverts are optimistic guys, they need to feel things can only get better. Let’s hear it from MMM on the practical benefits of outrageous optimism. Pete isn’t the sort of fellow to play Désenchantée on loop as he throws overboard the trappings of a comfortable middle class lifestyle into the bottomless stock-market pit for a low chance of a big win. He knows he is going to clean up and face-punch the bad guys. Every last one of them. Self-doubt is for pussies.
His story is better, and it’s been turned into a movie. Well, there’s more to it than that. Apparently it was shown in London earlier this month. I totally agree with Cashflow Cop that it shouldn’t just be the Londoners that should get the benefit. CfC has been instrumental in getting this sorted so it will be shown in Birmingham on the 5th of July. Take a look at Cashflow Cop’s site more generally – he is a UK FIRE aspirant who doesn’t live in London or work in finance. As for the movie,
It’s all rather American, but the principles of financial independence are the same. Go and see it for inspiration, particularly if you are an extrovert.
But leaven the feelgood story with the knowledge that…