The Road to Financial Independence: How to Achieve FIRE in Your 50s

Financial Independence and Retiring Early (FIRE) is often viewed as a dream for the young or those who started saving decades ago. But the truth is, FIRE isn’t limited to 20- or 30-somethings. If you’re in your 50s, you can still take control of your finances and create a future where work becomes optional—not mandatory.

Here’s how you can set yourself on the path to financial independence later in life and take meaningful steps toward retiring early.

1. Start with a Clear Plan

Financial independence looks different for everyone. Some may want to leave the workforce completely, while others might prefer part-time work, consulting, or passion projects.

  • Define your ideal retirement lifestyle.

  • Estimate your annual expenses and income needs.

  • Set a realistic yet ambitious target age for financial independence.

Pro Tip: Create a detailed financial plan that maps out your expected income, living expenses, savings goals, and investment returns. Clarity today drives freedom tomorrow.

2. Focus on Savings and Investments

If you’re starting later, you’ll need to be more aggressive. Maximize contributions to RRSPs, TFSAs, or any employer-sponsored pension plans.

  • Automate your savings to ensure consistency.

  • Increase your savings rate by cutting discretionary spending.

  • Explore tax-efficient investment strategies to maximize growth.

Pro Tip: Treat your savings like a non-negotiable bill. Pay yourself first, and let compounding do the heavy lifting.

3. Evaluate Your Expenses

Your 50s often bring new opportunities to reduce costs—mortgages might be smaller, children may be independent, and lifestyle priorities often shift.

  • Review your monthly spending and identify areas to cut.

  • Consider downsizing your home or simplifying your lifestyle.

  • Adopt a “less but better” mindset to free up more cash for investing.

Pro Tip: Track every dollar for three months. You’ll be amazed how small tweaks can unlock big savings.

4. Build a Diversified Investment Portfolio

To reach FIRE faster, your money must work harder than you do.

  • Diversify across stocks, bonds, real estate, and possibly a small business or side hustle.

  • Balance risk and return with your timeline and tolerance in mind.

  • Reinvest dividends and interest to accelerate growth.

Pro Tip: Partner with a financial advisor to customize your portfolio for your retirement timeline.

5. Stay Focused and Adjust as Needed

Achieving FIRE in your 50s isn’t a straight line. Market changes, family obligations, or health issues may arise.

  • Review your plan annually.

  • Adjust savings and investments to stay on track.

  • Celebrate small wins to keep your motivation high.

Pro Tip: Treat your FIRE journey like training for a marathon. Progress and persistence matter more than perfection.

Conclusion:

Achieving FIRE in your 50s is ambitious—but absolutely attainable. By clarifying your goals, saving aggressively, reducing unnecessary costs, and building a diversified investment strategy, you can create a future where your time belongs to you. Financial independence isn’t about age; it’s about action. Start now, and build the retirement you’ve dreamed of—on your terms.

Mike Gomes, CFP