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| They All Retired Before They Hit 40. Then This Happened. | They All Retired Before They Hit 40. Then This Happened. |
| (3 days later) | |
| Earlier this month, Eric Richard was in Bali, Indonesia, enjoying the tropical weather and carefree life of a retiree. Last summer, at 29, Mr. Richard had quit his job as a corporate operations manager to become a “digital nomad.” | Earlier this month, Eric Richard was in Bali, Indonesia, enjoying the tropical weather and carefree life of a retiree. Last summer, at 29, Mr. Richard had quit his job as a corporate operations manager to become a “digital nomad.” |
| Now he is hunkered down at his parents’ house in Michigan, having returned to the United States as concerns over the coronavirus outbreak grew and travel bans were put in place around the world. He is in self-isolation as a precaution. And in recent weeks, he said, he has seen his net worth drop by more than $100,000. | Now he is hunkered down at his parents’ house in Michigan, having returned to the United States as concerns over the coronavirus outbreak grew and travel bans were put in place around the world. He is in self-isolation as a precaution. And in recent weeks, he said, he has seen his net worth drop by more than $100,000. |
| “It’s definitely not a great feeling, to say the least,” Mr. Richard said. | “It’s definitely not a great feeling, to say the least,” Mr. Richard said. |
| He is an adherent of the FIRE movement, the personal finance strategy popular among millennials. It stands for “financial independence, retire early.” | He is an adherent of the FIRE movement, the personal finance strategy popular among millennials. It stands for “financial independence, retire early.” |
| The FIRE movement was born during the stock market’s historic 11-year-long wealth-creating run. Professionals in their 30s and 40s were saving up million-dollar nest eggs and quitting their jobs in the prime of life to live off investments. It was unheard-of in modern times, at least for anyone without a trust fund. | The FIRE movement was born during the stock market’s historic 11-year-long wealth-creating run. Professionals in their 30s and 40s were saving up million-dollar nest eggs and quitting their jobs in the prime of life to live off investments. It was unheard-of in modern times, at least for anyone without a trust fund. |
| Now the coronavirus has thrashed several nations’ economies, from Japan to Germany. The U.S. stock market had its steepest drop ever in March. Naturally, some are predicting the decline or end of the FIRE lifestyle. | Now the coronavirus has thrashed several nations’ economies, from Japan to Germany. The U.S. stock market had its steepest drop ever in March. Naturally, some are predicting the decline or end of the FIRE lifestyle. |
| Pete Adeney, a.k.a. Mr. Money Mustache, a guru of the movement, said he has been hearing from disciples who are asking if they should “sell everything now.” Reddit’s FIRE message board is filled with nervous chatter, as those “firing” and those who have already “fired” seek advice and comfort. | Pete Adeney, a.k.a. Mr. Money Mustache, a guru of the movement, said he has been hearing from disciples who are asking if they should “sell everything now.” Reddit’s FIRE message board is filled with nervous chatter, as those “firing” and those who have already “fired” seek advice and comfort. |
| “Anybody here own property they use as Airbnb’s?” one user asked, referring to a popular FIRE strategy for generating income. “What’s your situation looking like?” | “Anybody here own property they use as Airbnb’s?” one user asked, referring to a popular FIRE strategy for generating income. “What’s your situation looking like?” |
| The answer came back: “Airbnb is a mess right now.” | The answer came back: “Airbnb is a mess right now.” |
| In 2018, many people in the FIRE movement believed they had the financial resources to enjoy retirements as long as six decades. If they whittled their living expenses to nothing and withdrew no more than 4 percent each year from their portfolio (known as the 4 percent rule), all would be fine. | In 2018, many people in the FIRE movement believed they had the financial resources to enjoy retirements as long as six decades. If they whittled their living expenses to nothing and withdrew no more than 4 percent each year from their portfolio (known as the 4 percent rule), all would be fine. |
| Kristy Shen and Bryce Leung, a married couple from Toronto who in 2015 quit their tech jobs in their early 30s to travel the world, were also in Bali when the global outbreak struck. They watched their investment portfolio drop by six figures in one day, a stomach-churning moment for anyone. | Kristy Shen and Bryce Leung, a married couple from Toronto who in 2015 quit their tech jobs in their early 30s to travel the world, were also in Bali when the global outbreak struck. They watched their investment portfolio drop by six figures in one day, a stomach-churning moment for anyone. |
| But the couple, who wrote a FIRE how-to guide, “Quit Like a Millionaire,” consider themselves “some of the most pessimistic people in this space,” Ms. Shen said. That caution, along with their engineer training to create multiple backup plans, has served them well. | But the couple, who wrote a FIRE how-to guide, “Quit Like a Millionaire,” consider themselves “some of the most pessimistic people in this space,” Ms. Shen said. That caution, along with their engineer training to create multiple backup plans, has served them well. |
| “Based on interest and dividends that got paid out last year, we can cover this year’s expenses,” Ms. Shen said. | “Based on interest and dividends that got paid out last year, we can cover this year’s expenses,” Ms. Shen said. |
| Mr. Leung, who invested through the Great Recession, added: “There was a lot more reason to be scared in 2008. They were saying money is going to be toilet paper.” | Mr. Leung, who invested through the Great Recession, added: “There was a lot more reason to be scared in 2008. They were saying money is going to be toilet paper.” |
| Jason Long, a former pharmacist in rural Tennessee who retired in 2017 at age 38, with about $1 million, said he is better off now than then — even after the stock market plunge and discounting his living expenses. For three years, he has sat back and watched his investments grow. | Jason Long, a former pharmacist in rural Tennessee who retired in 2017 at age 38, with about $1 million, said he is better off now than then — even after the stock market plunge and discounting his living expenses. For three years, he has sat back and watched his investments grow. |
| “We’re in a society that values capital more than labor,” Mr. Long said. “I don’t like that, but I take advantage of it, I guess.” | “We’re in a society that values capital more than labor,” Mr. Long said. “I don’t like that, but I take advantage of it, I guess.” |
| Mr. Long said he feels for the FIRE folks who retired in 2019 and had less of a cushion. “I probably wouldn’t have been able to sleep if I had been in that situation,” he said. | Mr. Long said he feels for the FIRE folks who retired in 2019 and had less of a cushion. “I probably wouldn’t have been able to sleep if I had been in that situation,” he said. |
| That unfortunate circumstance is where Mr. Richard finds himself. Not only did he retire less than a year ago, but he also practices “lean FIRE” — generally defined as a net worth of between $500,000 and $1 million (as opposed to the $1 million and greater many accumulate before “firing”). | That unfortunate circumstance is where Mr. Richard finds himself. Not only did he retire less than a year ago, but he also practices “lean FIRE” — generally defined as a net worth of between $500,000 and $1 million (as opposed to the $1 million and greater many accumulate before “firing”). |
| And with the current travel restrictions, Mr. Richard and others can’t live in a cheap foreign country, a common FIRE tactic known as “geographic arbitrage.” In Bali, for instance, he and his girlfriend were staying in “a lovely guesthouse with a pool,” minutes from the beach, he said, for less than $800 a month. Who knows when he can get back? | And with the current travel restrictions, Mr. Richard and others can’t live in a cheap foreign country, a common FIRE tactic known as “geographic arbitrage.” In Bali, for instance, he and his girlfriend were staying in “a lovely guesthouse with a pool,” minutes from the beach, he said, for less than $800 a month. Who knows when he can get back? |
| Still, he had his own lucky timing: He sold a portion of his investments in February, at the peak, earnings he will live on until the market comes back. And if the market continues to go down, Mr. Richard said, “I wouldn’t be opposed to picking up part-time or freelance work. Financial independence, to me, gave me the freedom to leave my corporate job to pursue things I’m passionate about. It’s not about never doing anything to earn money again.” | Still, he had his own lucky timing: He sold a portion of his investments in February, at the peak, earnings he will live on until the market comes back. And if the market continues to go down, Mr. Richard said, “I wouldn’t be opposed to picking up part-time or freelance work. Financial independence, to me, gave me the freedom to leave my corporate job to pursue things I’m passionate about. It’s not about never doing anything to earn money again.” |
| Updated June 12, 2020 | |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| For Mr. Adeney, the current moment is a test of the principles of financial independence. For years, he has taught his fellow “Mustachians” to not be reliant on a job, to live modestly, to squirrel away an emergency fund, to invest in the stock market consistently over the long term. And he has been reassuring his followers on his blog that those practices can offer psychological comfort, now more than ever. | For Mr. Adeney, the current moment is a test of the principles of financial independence. For years, he has taught his fellow “Mustachians” to not be reliant on a job, to live modestly, to squirrel away an emergency fund, to invest in the stock market consistently over the long term. And he has been reassuring his followers on his blog that those practices can offer psychological comfort, now more than ever. |
| “This is a happier way to live whether you are in an economic boom or a deep recession,” Mr. Adeney wrote in an email. “But its biggest moment of strength is at times like this.” | “This is a happier way to live whether you are in an economic boom or a deep recession,” Mr. Adeney wrote in an email. “But its biggest moment of strength is at times like this.” |
| He added, “This could all be misinterpreted as smugness, but I don’t intend it that way. My hope is that by being self-sufficient ourselves, we are in a better position to help out other people who really need it.” | He added, “This could all be misinterpreted as smugness, but I don’t intend it that way. My hope is that by being self-sufficient ourselves, we are in a better position to help out other people who really need it.” |
| Ms. Shen and Mr. Leung are similarly sanguine about their continued future as millennial retirees, though they are making lifestyle adjustments. “Going forward, we are going to live on $40,000 a year, and maybe less,” Ms. Shen said. “Because I’m finding all kinds of deals.” | Ms. Shen and Mr. Leung are similarly sanguine about their continued future as millennial retirees, though they are making lifestyle adjustments. “Going forward, we are going to live on $40,000 a year, and maybe less,” Ms. Shen said. “Because I’m finding all kinds of deals.” |
| Indeed, Ms. Shen and Mr. Leung, back in Toronto and self-isolating for two weeks, will soon be moving into a two-bedroom condo downtown they found on Airbnb that normally rents for $111 a night. | Indeed, Ms. Shen and Mr. Leung, back in Toronto and self-isolating for two weeks, will soon be moving into a two-bedroom condo downtown they found on Airbnb that normally rents for $111 a night. |
| The rate now? $39. | The rate now? $39. |