F.I.R.E or I.C.E.?

February 20, 2024

We had the pleasure of interviewing Jonathan Clements, the longtime personal finance writer for The Wall Street Journal and the current editor of the excellent financial website HumbleDollar, for our podcast. We discussed a range of topics (growing up in England and the United States, attending Oxford University, career, housing renovations), but the most interesting part of the conversation was Jonathan's views on retirement, which have shifted. 

F.I.R.E.

By now most of the personal financial world is familiar with the F.I.R.E. movement. Broadly speaking, it's the idea that frugal living and massive savings early can result in an early work exit allowing one to pursue hobbies and interests or do nothing in particular. Jonathan said that in his twenties he "cooked up this notion" that by the time he was 40 the goal was to have saved $250,000 that by 60 could grow to $1 million. At 40 he could earn just enough to cover the bills. Implicit in this notion was that doing "as little as possible" in your 60s was the goal. That is the "good life," he concluded. Today, at age 61 he is on the other end of that spectrum. He's now thinking that he will never retire. And he has name for this concept.  

I.C.E.

What makes a good retirement? Research (and Netflix documenataries) points to several key factors: steady income, social network, sense of purpose, intellectual stimulation. How can one achieve this? By having a job, Jonathan says. "If you have a job you have the social stimulation, you have the intellectual stimulatiuon, you have the steady income, you don't have to worry about runninng out of income." He's coined a term for this: I.C.E.: I'll Continue Earning. Short video clip of Jonathan explaining this concept.  

Stay wise and well (here's to achieving a healthy, fulfilling retirement).

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