A popular early retirement strategy in the FIRE movement could be derailed by AI, one investing pro says - Business Insider

Nick Maggiulli, chief operating officer at Ritholtz Wealth Management, warns that the Coast FIRE retirement strategy could be undermined by AI's impact on white-collar job security. Coast FIRE is a variant of the Financial Independence, Retire Early movement where individuals save aggressively early in their careers, then shift to lower-stress or part-time work to cover living expenses until full retirement. Maggiulli argues that AI's potential to disrupt traditional employment threatens the stable income needed during this 'coasting' phase.

The article explains that Coast FIRE relies on continued employment in some capacity after the initial savings phase, often in white-collar roles that may be vulnerable to automation. Maggiulli did not specify which jobs are most at risk, but highlighted general concerns about AI 'eating away' at job security. The warning comes amid broader discussions about AI's effect on labor markets and financial planning.

Context includes the growing popularity of FIRE strategies among millennials and Gen Z, coupled with increasing AI adoption in workplaces. The piece suggests that individuals pursuing Coast FIRE may need to reassess their plans in light of technological changes, though it does not propose alternative strategies. Maggiulli's comments reflect ongoing uncertainty about how AI will reshape employment and retirement timelines.