What The Fire (Financial Independence, Retire Early) Movement can Teach State Workers

I'm a fan of the FIRE (Financial Independence, Retire Early) movement. I wish I had learned about it earlier in my life. Those in the FIRE movement have a goal of retiring comfortably long before the age of sixty-five. It's less about career planning and more about life planning: How can I manage my income, spending, investing and debt to amass enough money to live on comfortably for the rest of my life before the age of sixty-five? The FIRE movement can involve frugality, sometimes mercenary career choices (sometimes doing what pays well versus doing what you love), aggressive investing, and perhaps even lifestyle choices at odds with what we're told we're supposed to do (renting versus buying), all with a financial target that enables you to retire early but comfortably. FIRE movement folks essentially create their own pension funds -- assets that, through interest, kick off enough income in order for you to live comfortably without touching the assets themselves.

Here is what State workers can learn from the FIRE movement: Come into State civil service with a life plan, not just a career plan. Determine how long you want to work for the State to get the retirement you want when you want it. Determine how much you will need to retire comfortably, knowing that this target may move over time. Then determine how, between your pension -- that means knowing your pension formula - as well as your Social Security, your deferred compensation retirement accounts, and any other investing you do - you will hit that financial target needed for retirement at the time you want to retire.

FIRE movement folks essentially do what CalPERS does for State workers - create a pension, but they do it in far less time. That said, they have a plan for how their work, salary, and investments will support the life they want for themselves in early retirement. FIRE movement folks are big picture thinkers about their own lives.

You may not want to put in twenty or thirty years with the State as a State worker. Depending on when you start, you may not want to work until sixty-five. You may want to stay long enough to vest and qualify for healthcare benefits and then leave for the private sector. You may want to move to other parts of State or local government that have pension reciprocity with CalPERS and higher salaries. However, if you don't have a plan, if you don't even think about how long you want to be in the workforce, the decision will be made for you by how you live your life without even thinking about how you live your life.

What I tell my State Jobs Bootcamps clients is this: Go into State civil service with a plan of how and when you want to get out of it. Have a plan for how your career is going to create and support the life you want, not the other way around.

This is what State workers can learn from the FIRE movement.