Understanding the FI/RE Movement

If you actively follow investment news and blogs, chances are you’ve heard the buzz about FI/RE aka the Financially Independent/Retire Early (FI/RE) movement. The FI/RE community has taken the internet by storm by showcasing examples of thirty and forty-something influencers who have quit their day jobs after amassing wealth through saving and investing. To get to that point, they slashed their spending, saved fifty percent or more of their earnings, and aggressively invested to retire early or redefine what retirement means to them.  The movement has gained a massive following – particularly with millenials, but isn’t without its share of critics. Is it really possible to retire in your thirties or forties? Will you have enough for changes in health, lifestyle or other major emergencies? Let’s break it down.  Saving 50% to 75%: FI/RE influencers severely reduced their overhead and general spending and started saving early, usually in their early to mid-twenties. Those who have reached the FI/RE summit claimed to have lived off of only 25% to 50% of their income and saved and invested the remaining 50% to 75%.  Above average incomes: While some of the FI/RE members earned average salaries, many of the highest profile FI/RE influencers enjoyed a healthy six figure salary in their twenties and transitioned from working full time at their day job into building an online or other business. While they may no longer work a corporate job, many continue to earn a substantial income from their businesses.  Compounded Interest: We applaud their dedication to savings, cutting expenses, and investing. This kind of dedication reaped incredible rewards and by starting early, they can enjoy the benefits of stock market increases and compounded interest – provided they leave enough of the interest and all of the principal untouched.  Aggressive Investing: When we hear terms like “aggressive investing” our radar goes off as risk tolerances are as unique as investors’ preferences. If you’re curious about your own risk tolerance, take our quick quiz to determine your risk tolerance number.  When I’m 65….or 78, or 89: What does retirement look like for you? Will you continue to work? Will you increase your travel plans? How is your health and the health of your loved ones? Emergencies happen and the cost of living increases, so it is important to plan accordingly and be prepared based on your unique situation.  Are You Retirement Ready?: Dreaming of retiring early and on your terms is inspiring. Now, let’s get to work on making it a reality. Do you think you’re ready to retire – or just want to know what it will take to get there? Take our Quick Retirement Readiness Assessment The Right Strategy: Financial freedom is possible with the right savings plan, advice and investment strategy. Don’t go it alone. The right advisor will make all the difference in getting you to where you want to go. Contact Bob Rubin at Rubin Wealth Advisors today at bob@rubinwa.com to discuss your unique situation. 
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Matching Your Risk and Return: A Personalized Approach for Maximizing Your Financial Success
At Rubin Wealth Advisors, we believe that understanding your risk tolerance is the key to maximizing your financial potential. Traditional methods of categorizing risk with vague labels like conservative, moderate, or aggressive often lead to confusion. These terms can mean entirely different things to different people, which creates misalignment between your expectations and your investment strategy. That’s where problems can arise—and where opportunities can be missed.
 
We take a different approach. By using a precise, quantitative system to determine your Risk Number, we help you make informed decisions that directly benefit you. Your Risk Number is more than just a score; it’s a powerful tool that helps guide your financial strategy. If your Risk Number is 64, for example, both you and our team will know exactly what level of risk that involves and how it relates to potential returns. The guesswork is gone, replaced by clarity and confidence.
 
Here’s where it really benefits you: Understanding your Risk Number not only ensures that your portfolio is aligned with your comfort zone, but it also increases your chances of achieving a higher risk-adjusted rate of return over time. By matching your investments to your specific risk profile, you’re better positioned to optimize returns without taking on unnecessary risk—especially over a 3-5 year period, where market fluctuations can test even the most seasoned investor.
 
The process is simple and designed to serve your best interests. In just a few minutes, we’ll walk through a short conversation to determine your Risk Number. From there, we’ll craft an investment portfolio tailored specifically to you, ensuring that the level of risk is appropriate for your goals. This isn’t about avoiding risk entirely; it’s about taking on the right amount of risk so you can achieve the returns you need while remaining confident in your strategy.
 
By aligning your portfolio with your Risk Number, you gain the peace of mind to handle market volatility. You’ll know exactly how much downside risk is possible and what kind of upside you can expect. For example, a portfolio with a Risk Number of 64 might have a potential downside of -10% over six months but offers a possible 15% gain. This range helps you stay calm during downturns because you’ve already accounted for them, and it positions you to benefit when the market performs well.
 
We also stress-test your portfolio in various market conditions—such as economic downturns or inflation spikes—to ensure you’re always prepared. This proactive approach ensures your investments stay aligned with your risk tolerance, giving you the best chance for success regardless of what happens in the markets.
 
How does this benefit you? Managing risk properly allows you to maximize returns without exposing yourself to more risk than necessary. Over time, this careful balance increases the likelihood that you’ll achieve your financial goals—whether that’s building wealth, preparing for retirement, or preserving your assets.
 
At Rubin Wealth Advisors, a Boca Raton financial advisor, we’re committed to helping you achieve higher risk-adjusted returns. As a licensed fiduciary, we specialize in guiding clients through personalized wealth management strategies, ensuring your investments align with your long-term goals. Let’s work together to discover your Risk Number and build a strategy that sets you up for success over the next 3-5 years and beyond. Contact us today to get started.