Hello and welcome back to Mortgage Advisor on FIRE. This week, I discuss the hidden costs of early retirement. Also, a good, but tiring, week, and yet more insanity from the United States.
Weekly Update
Each week, I think that the news coming out of the US can’t get any crazier, and then we have Trump posting images of himself as the Pope, and RFK claiming that the MMR vaccine contains aborted fetus debris.
I never thought I’d write the previous sentences about real life, yet here we are. In any other time, the US President posting an image of themselves as the Pope just days after the actual Pope was laid to rest would be enough to call into question their whole presidency. It’s one of those once-in-a-presidency gaffes that should be enough to shake confidence in the government. It should be, but it isn’t.
In the last week or so, in addition to the utterly batshit incidents I’ve mentioned, the Trump regime has argued that chemtrails are real, and somehow the Tango Man managed to sound like a five-year-old who hasn’t done their homework in trying to explain the Declaration of Independence.
He is so fucking stupid that I just can’t…
The thing is, it’s not just Trump and RFK. It’s Vance. It’s the Secretary of State getting schooled by the German Foreign Office, and it’s the leaking of sensitive information via the Signal messaging service.
Marco Rubio… Ah, yes, another intellectual… I’ll never forget this absolute gem:
Funnily enough, his latest embarrassment involves the German people. Recently, the German intelligence services classified a far-right party, the AfD, as extremist. Rubio, the Secretary of State in the US, described this as “tyranny in disguise”. The response from the German Foreign Office pulled no punches, stating, “this is democracy” and “We have learnt from our history that right-wing extremism needs to be stopped.”
This wasn’t the end of the issue, though, as JD Vance, one of the most unlikeable people on the planet, claims that the German establishment is rebuilding the Berlin Wall.
Anyway, enough of that nonsense.
Murder Trial Tonight
On Wednesday evening, we went to an event at Sheffield City Hall called Murder Trial Tonight, produced by Tigerslane Studios. The concept is great; a trial takes place on stage with performers acting out the roles of judge, barristers, witnesses, and the accused.
The whole thing starts on screen with a short film giving some background to the events. Then, the trial begins. In this case, it was a husband accused of murdering his wife. You hear the arguments from the prosecution and defence, as well as their examinations of the witnesses. Then, the audience acts as the jury and votes guilty or not guilty through a website. Once the votes are counted, the verdict is read out, and we then see what actually happened on screen to find out if we delivered the correct verdict.
We attended the third trial, and there will be a fourth one announced soon. I don’t want to spoil it for anyone who may be attending, but it was thought-provoking and entertaining. It pushed your buttons and made you confront some biases that you may not have realised you held.
Oana and I cast our votes correctly, I must add.
More Walking
It was an early start on Saturday as we went for another walk in the Peak District. Our friend, Yvonne, picked us up just after 7am and we drove out to Castleton before setting off to Mam Tor. Last time we went, it was very foggy and we couldn’t see anything from the summit. This time it was much brighter and we got some great views across the valley.
It’s great being out in the fresh air and seeing the natural beauty of this part of the UK. Sadly, some morons ruin it for the rest of us when they let their dogs poo without picking up after them. Then, some do pick up after their dogs but then leave the bags of poop on the paths and fields. I don’t blame the dogs. It’s the inconsiderate assholes that look after them.
We took a different route up to Mam Tor than last time, and even at such an early time, it was busy. Once we reached the top, we came back the same route we did on our previous trip, arriving back in Castleton.
It’s been years since I had food from a chippy, and we decided to grab some lunch at the one near Peveril Castle. It wasn’t great. The chips tasted weird, as did the ketchup. I left about two-thirds of mine.
All in all, it was a good day out, but it left us feeling exhausted.
The Hidden Costs of Early Retirement No One Talks About
When people talk about FIRE, the conversation usually leans heavily into freedom; freedom from the 9 to 5, from commutes, from pointless meetings and corporate nonsense. And that’s fair. Those things can wear you down. But in the rush to escape, too few people pause to ask: What exactly am I retiring to?
Early retirement is often sold as the finish line, but in reality, it’s the start of something else entirely. And like anything worth having, it comes with its own set of challenges. Some are financial, some are emotional, and some simply catch you off guard.
Retiring From vs. Retiring To
There’s a quote that stuck with me when I was first exploring FIRE: “You need to retire to something, not just from something.” It resonated then, and it resonates even more now.
Too often, people view early retirement as the end goal, as the reward for years of frugality, investing, and disciplined saving. But once the victory lap is over, you’re left with long, unstructured days and the question: Now what?
Without a clear sense of purpose or a framework for how you want to spend your time, early retirement can feel less like liberation and more like limbo.
Loss of Identity and Routine
For many, work is more than just income. It’s identity. It’s structure. It’s the answer to “What do you do?” at social gatherings. When that goes away, especially at a younger age, it can create a void that’s not easily filled.
This hit home for me after redundancy. I wasn’t even fully retired, but I caught a glimpse of what it’s like to have your professional identity stripped away. It’s not just the lack of a title, it’s the disorientation that comes when your days suddenly have no built-in rhythm.
Some people thrive in that blank space. Others, myself included, realise they need a sense of direction and a reason to get up in the morning that goes beyond just “not working.”
The Financial Surprises That Creep In
Even the most meticulous FIRE plans can be derailed by the unexpected. Here are a few I don’t see discussed often enough:
Healthcare and Insurance: In the UK, we’re lucky to have the NHS, but early retirees might still face costs for private treatment, dental, or long-term care later on.
Inflation: A few years ago, 3% inflation seemed normal. Now, we’re facing figures that can seriously erode your purchasing power, especially if you’re drawing down from a portfolio too early.
Lifestyle Creep: More free time can lead to more spending, and not always intentionally. Extra holidays, new hobbies, or just more meals out because you can.
Family Responsibilities: As your parents age, or if your children need more help (financially or otherwise), being “retired” can turn into being a full-time unpaid carer — something that affects both your time and your finances.
Boredom, Purpose, and the “Now What?”
From listening to those further along, there’s a honeymoon phase when you hit FIRE. The first few months feel like an extended holiday. You do the things you’ve always wanted to do. You sleep in. You relax.
But once the novelty wears off, you may start to feel restless.
And here’s the kicker: FIRE doesn’t solve the human need for purpose. If anything, it amplifies the need to find something meaningful; something you want to wake up for.
For me, writing this blog, spending time with Oana, and a real hunger to learn new things give me a reason to keep thinking, creating, and contributing. But if you don’t have something to “retire to,” that blank canvas can feel intimidating and depressing.
Relationship Shifts
When one partner retires early and the other doesn’t, it can lead to tension. This is not necessarily because of resentment, but because the dynamic has changed. Even when both partners are on the same page, spending more time together (often in the same space) can reveal little cracks in communication or differing expectations of how the day should be spent. I’m not going to lie, at the end of the working week, it takes a decent amount of convincing from Oana to wake up at 6am for a walk. It’s worth it, though.
In the context of a relationship, FI is not just about the money. Couples must talk about shifting responsibilities within the relationship and what each person expects of the other.
Planning Beyond the Spreadsheet
The FIRE community is brilliant at optimising numbers: withdrawal rates, asset allocations, and tax efficiency. But it’s less focused on emotional preparedness, and that’s just as crucial.
Here are a few questions I recommend asking before you hit “retire”:
- What does an ideal day look like for me?
- How will I stay mentally and physically active?
- What relationships do I want to invest more time in?
- How will I handle the feeling of being “left behind” when others are still working?
And here’s a practical tip: try a mini-retirement first. Whether it’s a sabbatical, a career break, or a six-month gap, it gives you space to test the lifestyle without fully committing to it.
FIRE with Eyes Wide Open
Early retirement is not a magic fix for an unfulfilling life. It’s a powerful tool, but only if used with intention.
So if you’re chasing FIRE, chase it smart. Chase it with purpose. Don’t just run from burnout and instead run towards something that energises you. Build a life you don’t need to escape from.
Because once the spreadsheets are done and the champagne’s popped, that life is yours to live, and design, every single day.
What I’m Doing
Listening: Hope Street by Mike Gayle
Watching: YouTube channels; In Deep Geek, Side Projects, Mega Projects.
Mike Gayle is one of my favourite authors, largely because his characters feel genuinely real. You can imagine them existing beyond the final page, continuing their lives off the paper. Unlike some writers, whose characters seem like puppets moved solely to serve the plot, Gayle’s creations drive the story through their choices, their flaws, and their humanity.
Hope Street delivers the emotional depth I’ve come to expect from his work. The story centres on Connor, a young man whose mother has been missing for years. Connor is neurodivergent, and the book doesn’t shy away from portraying the real-life challenges that autistic people often face in society. Some of these moments felt particularly close to home. While I initially found aspects of Connor’s character difficult to connect with, by the end of the novel I had few reservations and a great deal of empathy.
Support Mortgage Advisor on FIRE
Make a one-time donation
Make a monthly donation
Make a yearly donation
Choose an amount
Or enter a custom amount
Your contribution is appreciated.
Your contribution is appreciated.
Your contribution is appreciated.
Financial Update
Assets
Premium Bonds: £30,500.00.
Stocks and Shares ISA: £101,813.84.
Fuck It Fund: £4.00.
Pensions: £90,023.69.
Residential Property Value: £239,368.00.
Total Assets: £461,709.53.
Debts
Residential Mortgage: £184,205.56.
Total Debts: £184,205.56.
Total Wealth: £277,503.97.
It was nice to see my pension creep above £90k again, and I’m hopeful that my ISA will not drop below £100k again, especially as I’ll be putting a few thousand more in there next week.
My Fuck It Fund now stands at £4. Yes, four whole pounds. This was residual interest back from when the balance in the account was much higher. I’ll probably do something with it at some point, but it just feels a bit pointless.
I am going to cash in some of my bonds and use them to max out my ISA for this financial year. The next priority is getting our mortgage sorted. I’ve explained in previous posts that as part of my redundancy, I was allowed to retain my staff rates of interest on my mortgage for a year. That time is fast approaching. Before we switch to a new deal, we want to get our loan-to-value below 75%, as the rates will be lower. Our current LTV is 76.95%. Based on our current valuation, we need to reduce the mortgage debt to £179,500, so it will take some time.
One of the most discussed points in FI communities is the “overpay on your mortgage vs investing” debate. Should your FI plan assume you have no housing costs, or should you factor in mortgage or rent payments into your planning?
I don’t think there’s a right answer to this. I come back to the “sleep well at night” test; which scenario makes you nervous, and which one makes you more comfortable?
It’s important to remember that this doesn’t have to be an either/or issue. I think we will adopt a middle-of-the-road approach, where we bring the mortgage payments down to a reasonable level and then let it ride. Whenever I’ve done the number crunching on this, investing seems to come out ahead of overpaying. The context matters here, as if you have a mega-high rate of interest on your mortgage, the calculations will look different.
There’s also the point that having a home you own outright is psychologically liberating. There can’t be too many people who have no rent or mortgage commitments at all.
At the moment, we pay just under £1k per month on our mortgage. With some of the rates available, we could drop our payments by roughly £60pm. Later this year, we plan to move to interest only, which should save us a further £300pm, which can then be invested.
Paying off a mortgage is a great goal to have, but it’s not always the best option. As always, seek independent professional advice before committing to any major financial decision. Every person has unique circumstances, and it’s important to get expert advice on your unique situation before throwing money at anything.
That’s all for this week. Thanks for reading and have a great week.
DISCLAIMER
The views and opinions in this blog are my own and do not represent the views or opinions of my former, current, or future employers, nor should they be considered advice.
If you want personalised financial advice, seek an appropriate professional. If you are in financial difficulty, seek advice via the resources below:
Biolink
You can now find all my social media pages by checking out my Biolink:
bio.link/davidscothern.