In the last few years, advisors have faced a new push by some young clients who want to retire early — very early. The phenomenon is called FIRE, which stands for Financial Independence, Retire Early. The idea is to save as much as possible in one's early working years, spend little, and retire as early as their 30s or 40s. This idea certainly puts a twist into financial planning for retirement, especially when the typical 30-year drawdown period could be stretched out to 50 years or more. "In early February 2021, advisory firms began to see an increased focus on retirement planning and career changing within the client base, " Angie Herbers, CEO and senior consultant of Herbers & Co. told ThinkAdvisor. "Many of these trends are driven by the reassessment of values clients are having post pandemic; missing family members, changes in how people work, desire to move to lower cost of living areas, etc. We are seeing many advisory firms double down on financial planning and psychology tools to help clients reassess their values," Herbers explained. But issues arise, such as limited time working means any Social Security benefits are severely reduced. Perhaps it's the younger generations' way of showing they aren't relying on the government program to help them as they age.
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