In the eyes of the world, F.I.R.E means not actively working which means you don’t get any sorts of income and have to depend on living off your passive income in order to survive.
Many people that I know who’ve achieved F.I.R.E are either invested in:
- High Credit Rating Bonds – This applies to those whose capital is huge
- High Yielding Corporate Bonds – Lower ratings bonds offering higher coupons
- Equities – A Combination of Securities, Stocks or Reits
- Property – Rental Income
Most of these assets are susceptible to recession which can severely hurts the value of these assets in our portfolio.
And this is why most people gave this excuse about not pursuing F.I.R.E by not embracing them gracefully because they have this large misconception that a recession can destroy all that we’ve built.
You can see …