Planning can aid early retirement
“FIRE” movement requires aggressive saving, cost-cutting to reach goals
By Kristen Dohrmann, Ohio Public Employees Retirement System
Dec. 17, 2019 — You may have seen or heard people talking about the FIRE movement: Financial Independence, Retire Early. So, what is it? It’s a method of extreme saving, sacrificing and investing to be able to retire sooner. Folks on FIRE live frugally and save aggressively. They’re always looking for ways to keep expenses low and raise their income.
This type of extreme saving may not be realistic for most people, and in fact, there are a few downsides to retiring early. Life takes many twists and turns and so there may be events and expenses you just can’t plan for like the rising cost of health care, a down market cycle or increasing cost of education.
But there is no downside to applying the principles of the FIRE method and forming new habits that can help you become more financially secure and save more for your retirement.
- Start thinking about and planning for your retirement now.
- Keep track of your spending (OPERS has a great budgeting tool to help you identify where your money is going.)
- Review spending habits and question why you’re spending what you’re spending.
- Find ways to keep expenses low.
- Get in the habit of saving.
- Boost your income.
- Let OPERS help you assess your financial wellness.
Visit the Financial Wellness section of opers.org for access to webinars, online tools and information about planning and saving for your retirement.
12 thoughts on “Planning can aid early retirement”
What is going on with the OPERS Roth IRA? Thank you.
OPERS doesn’t offer a Roth IRA. If you’d like to see the quarterly investment results for the DC Fund, you can find them at https://www.opers.org/investments/Defined-Contribution/index.shtml.
I second the question about the Roth IRA. Our local rep said that there is a Roth IRA in the works for 2020. Is the answer that it is no longer happening or there isn’t any information on it yet?
Ohio Deferred Compensation is offering a Roth IRA, not OPERS. For more information, go https://www.ohio457.org/iApp/tcm/ohio457/learning/news/2019/roth_option_planned.jsp.
Thank you Julie for your reply that ROTH is not offered.
Are there any after-tax funds offered?
The Roth IRA option is being planned by Ohio Deferred Compensation. You can read more about it at https://www.ohio457.org/iApp/tcm/ohio457/learning/news/2019/roth_option_planned.jsp.
Are you thinking of the one deferred comp is starting?
You are correct, Jen. For more information about the Roth IRA, go to the Ohio Deferred Compensation website at https://www.ohio457.org/iApp/tcm/ohio457/learning/news/2019/roth_option_planned.jsp
i have ben with opers for 2 years. i am 55 years old now. if i retire at 65. what will my retirement be a month. on a traditional plan
You can get an estimate of your pension through your online account. Please call us at 1-800-222-7377 if you have questions.
Are there options within OPERS to “buy” years of service?
With some limitations, you may be able to purchase service credit. For example, you can purchase time served in the military or for working in the federal government. More information on purchasing service credit can be found beginning on p. 4 of the service credit leaflet, https://www.opers.org/pubs-archive/leaflets/ISL-F.pdf.