By now I’m guessing you’ve heard of the FIRE movement—you may even know someone who’s following this “extreme” form of retirement saving.
An acronym for “financial independence, retire early,” FIRE advocates look to retire earlier than the traditional age of 65—and I mean way earlier. Some even clock out in their 30s!
They do it by building up a huge cash hoard over a period of years, then making steady withdrawals (with some going by the flawed 4%-withdrawal rule) to sustain themselves. Some keep working during their “retirement”; others clock out entirely.
I was thinking of the FIRE folks this week and wondering how they’d fare if they tapped into the wealth- (and income-) generating power of closed-end funds (CEFs), which boast monster yields, sometimes north of 10%.… Read more