2 out of 3 People Hope to Be 'Firejok'
'Stocks', 'Real Estate', and 'Cryptocurrency' Are Major Investment Methods
Experts Say "Approach with Caution"
The number of MZ generation individuals hoping for early retirement by earning significant profits through stock and cryptocurrency investments has greatly increased. [Image source=Yonhap News]
[Asia Economy Reporter Kim Choyoung] "There is no lifelong job, but I don't want to work myself to death."
As more office workers who have earned billions through investments and are about to resign emerge, the so-called 'FIRE tribe' dreaming of early retirement through stocks and cryptocurrencies is significantly increasing among the MZ generation. Experts emphasize the need for a cautious approach.
Last month, an anonymous post on the office worker community 'Blind' attracted attention, claiming that an employee of Samsung Group invested 50 million KRW in Bitcoin, earned over 40 billion KRW, and resigned.
Samsung Electronics stated, "It is true that the employee resigned, but the reason for resignation is personal information and it is inappropriate to disclose," yet the story gained credibility as a post presumed to be from the person in question spread on social media.
Previously, a person named Han, who worked in the PR team at Shinhan Card, shared news of earning profits in the 3 billion KRW range within about a year by investing 230 million KRW, including a 100 million KRW loan, in cryptocurrencies. In an interview with the media, Han revealed that 60% of their assets were in Bitcoin and Ethereum, 30% in stocks, and 10% in cash.
Cases of resigning after making large profits through investments in stocks and cryptocurrencies are appearing one after another, showing a significant increase in the FIRE tribe hoping for early retirement within the MZ generation.
A recent online survey conducted by NH Investment & Securities' 100-Year Life Research Institute on 2,536 domestic MZ generation (ages 25-39) investors on the 4th and 5th of last month found that 65.9% responded that they "dream of early retirement."
They aim to retire at an average age of 51 by gathering 1.37 billion KRW in investable funds (excluding house prices). The main investment methods to accumulate retirement funds were △stocks (92.8%) △savings and deposits (63.9%) △real estate (43.2%) △funds (38.5%) and cryptocurrencies (19.3%).
The FIRE tribe refers to those who hope for early retirement (Retire Early) based on financial independence (Financial Independence). Originally, it referred to people who aimed to retire early by their late 30s or early 40s at the latest, practicing extreme frugality by reducing consumption from their 20s and saving 70-80% or more of their income, but with the emergence of a new FIRE tribe centered on the MZ generation, its meaning has diversified.
The FIRE tribe is broadly divided into four categories: 'Lean Fire,' who consume only limited amounts; 'Fat Fire,' who prepare for retirement while maintaining their living standards; 'Side Fire,' who prepare for retirement with side income; and 'Barista Fire,' who consider part-time work after retirement to cover retirement expenses.
The MZ generation shows a preference for 'Fat Fire' and 'Side Fire' at 43% and 42%, respectively. They tend to want to maintain a certain living standard while saving for retirement rather than controlling spending extremely.
Jung, a 28-year-old office worker who hopes for early retirement, said, "'Financial independence' resonated deeply with me, so I decided to become part of the FIRE tribe," adding, "I study stocks by reading related books or watching YouTube videos for an hour after work." Jung also mentioned, "I make small efforts to reduce spending, such as cutting back on taxi use and drinking stick coffee."
Lee, a 31-year-old office worker who has been practicing so-called 'jjantech' (frugal finance) for just over a year to become part of the FIRE tribe, said, "I decided to become part of the FIRE tribe because I want to live happily," adding, "Without a goal, it was hard to find meaning in life while working." Lee said, "I have a goal of 'the next 10 years' and study stocks and real estate in my spare time," adding, "I am working hard to live a comfortable life after retirement."
Experts emphasize the need for cautious investment. Professor Kim Daejong of Sejong University's Department of Business Administration said, "In the case of cryptocurrencies, there is no physical entity or intrinsic value, so the investment risk is very high," warning, "Although there are currently about 200 exchanges, with the implementation of 'real-name accounts,' many exchanges are likely to close in September, so caution is necessary."
Professor Kim also pointed out, "The same goes for stocks. There are currently about 2,000 companies listed domestically, but 20 go bankrupt every year," adding, "There is no guarantee that the companies I invest in will not be among them." He advised, "If you want to invest in stocks or cryptocurrencies for early retirement, it is advisable to focus on the top 10 blue-chip stocks by market capitalization and consider holding about one Bitcoin for cryptocurrencies."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
