Financial Independence, Retire Early! The catchy slogan of the FIRE movement is suddenly known throughout Flanders thanks to the documentary series of the same name on VRT MAX, but unfortunately not for the right reasons. How bad is such a series? We consulted two financial experts: Stefan Willems, the only participant in the series who is praised on the internet as a member of the FIRE movement and the driving force behind savings pigs.be, and economics professor Pascal Paepen (KUL).
Pascal Paepen: “I saw the four episodes yesterday and I was shocked. If it was a reality show on VTM, I could have accepted it, like The Sky Is the Limit or Temptation Island, but for the public broadcaster it is a disgrace. Of other people’s business from Kamal Kharmach, the VRT provided useful advice on money matters, which is also part of its duties, but this is pure horror. The dubious figures that are presented are simply spreading misinformation.”
Stefan Willems: “I only became aware of the other participants since last Thursday, but I am not going to comment on them. I just want to make it clear that if something seems too good to be true, it usually is.”
What is so harmful about what they say?
Paepen: “Financial literacy is very low in Belgium, so many people simply believe everything. If I didn’t know much about it and I hear people say that I’m crazy to work for 3,000 euros a month, when you can earn it in one day, I would try it too. Especially if that advice comes from the public broadcaster. “You’re a loser if you work!” is their message. No, they will be the losers afterwards, because they will be left empty handed. Now the VRT is advertising fraudulent practices.
“When one of the students in Thailand told me that he did it for his children, while the tears were in his eyes, I thought: damn it, don’t do that! You will never see those thousands of euros again.”
Wout Schrijvers from Diepenbeek claims that he achieves a daily profit of 1.4 percent, without making any effort.
Paepen: “I feel sorry for him, because he probably doesn’t realize what he’s gotten himself into. It is bad that the public broadcaster abuses him for a program. He needs guidance, not a podium.”
Willems: “If someone asks me whether a profit of one and a half percent per day is feasible, I can answer no with certainty. That simply does not exist. With such a profit you would be billions of euros rich after a few years. We did before humor a few years ago an investigation into Questra Holding. He also promised 6 percent profit per week, but that was of course pure fraud. Just like anyone who promises such profits.”
Paepen: “I’m afraid Wout has lost all his money, but he doesn’t realize it yet. He is the victim, not the winner.”
He does show off photoshopped holiday photos in luxurious hotels on social media.
Paepen: “In this way he wants to convince others to follow his advice, and he may even receive a commission for this. Then he is in a pyramid scheme and he is both victim and perpetrator. It’s a shame that even after a documentary about his finances, we still don’t know exactly what he does.
“In Belgium, by the way, pyramid schemes are punishable, just like most of what is shown in that documentary.”
Will there be casualties from such a series?
Paepen: “The series can be seen on VRT MAX, a platform that mainly focuses on young people. Parents should warn their children about what is shown in that documentary. Wanting to get rich quickly leads to accidents. Every five years a major scandal comes to light, and every time there are numerous victims. For people who go along with it, it could become a Lernout & Hauspie squared (West Flemish speech technology company that was declared bankrupt in 2001 after fraud came to light; thousands of Flemish investors lost all their money, ed.).
“This is not an informative documentary, but entertainment with which the makers want to achieve the highest possible viewing figures. The mischief it causes will be many times greater than the amusement it brings.”
Should such practices be silenced?
Paepen: “On the contrary. But the VRT should have warned the viewers against that scam, and thus could have protected the weaker members of society. And she should not have presented those figures as an expert, because Wout is one of those weaker himself, although he will not like to hear that.”
So is the entire FIRE movement dangerous?
Paepen: “Certainly not, she’s just a fad. I have often thought: I am FIRE avant la lettre. And with me most Flemish. It’s about living frugally and putting some money aside.
“The mistake many people make is that they put that money in a savings account. You have to let your money pay off, but then I’m talking about 8 percent per year, not per week. That is impossible. Boring investing simply remains the best investing.”
Willems: “I’m still happy that I participated in the documentary, because I feel like I’m telling the real FIRE story. I hope I can inspire young people to work on their financial freedom. Of course I don’t have a unique recipe, but it is possible. Also in Belgium.”
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Wout lets us know via private messages on Instagram that he earns his money through The Future Trade. That platform has been exposed as a scam several times, like here.
© Humo
