ChooseFI - 428 | Fees, Frugality, and 401K Fears

428 | Fees, Frugality, and 401K Fears

03/13/23 • 73 min

1 Listener

In this episode: personal investments, 401k contributions, FI is for everyone, travel rewards, task management, and taxes.

On what is considered a very personal journey, how do you handle changes that feel like setbacks? Whether its spending more when you feel you should be saving, or re-evaluating goals based on what needs immediate attention, do you feel equipped to handle it with confidence? This week we are having a weekly roundup, and are re-joined by Ginger to not only answer listener’s questions, but discuss travel rewards, retirement accounts, and breaking away from the ultra frugal caricature often depicted alongside FI. While saving is an important factor on this journey, the main purpose of FI is to learn and live your life with intention as it relates to your money, goals, and values. Remember that it’s okay if some of your goals and values will change along the way! Allowing yourself to be flexible as it relates to external factors, like market volatility and your investments, will give you more power and control to continue ahead with confidence and optimism!

Timestamps:

1:04 - Introduction
3:31 - FI Is For Everyone
9:16 - Personal Investments
14:08 - Paying For Experiences
19:09 - An Introduction To FI
28:20 - Task Management
35:19 - Travel Rewards
47:06 - 401k Contribution Question
61:00 - Tax Season Hack
68:51 - The Content We Are Consuming
75:28 - Conclusion

Resources Mentioned In Today’s Episode:

In this episode: personal investments, 401k contributions, FI is for everyone, travel rewards, task management, and taxes.

Timestamps:

1:04 - Introduction
3:31 - FI Is For Everyone
9:16 - Personal Investments
14:08 - Paying For Experiences
19:09 - An Introduction To FI
28:20 - Task Management
35:19 - Travel Rewards
47:06 - 401k Contribution Question
61:00 - Tax Season Hack
68:51 - The Content We Are Consuming
75:28 - Conclusion

Resources Mentioned In Today’s Episode:

Previous Episode

427 | Drawdown Strategies: Karsten vs. Fritz

In this episode: the "average" withdrawal, Karsten's strategy, Fritz's strategy, fixed withdrawal rates, the bucket strategy, and refilling.

Preparing for retirement can look different for all on the journey to FI. All of our goals differ, but we are still in the mindset of positioning ourselves for the coming years. This week we are having a face-off between returning guests Karsten and Fritz, as they discuss their own receptive drawdown strategies, their advantages, and how you can best prepare yourself mentally and financially for your retirement. While a large part of preparing for retirement means saving, that does not mean you should be afraid to spend. Even in retirement, there are strategies that can allow you to not only spend comfortably within your means, but also spend confidently!

Fritz & Karsten:

Fritz's Website: theretirementmanifesto.com
Karsten's Website: earlyretirementnow.com

Timestamps:

1:35 - Introcution
2:09 - Karsten's Strategy
6:05 - Fritz's Strategy
13:28 - Fixed Withdrawal Rates
18:08 - Your Retirement Spending Mentality
23:01 - The Source Of The Bucket Strategy Debate
30:46 - Refilling The Buckets
40:40 - The Cheap Gimmick
45:13 - The Importance Of Rebalancing
51:03 - The Key Takeaways/The "Average" Withdrawal
59:06 - Conclusion

Resources Mentioned In Today’s Episode:

Next Episode

429 | FI Frugal Hobbies | Chris Terrell

1 Recommendations

In this episode: finding your why, creating space, deprivation, board games, lesson learning, and decision making.

Whether you’re years into your FI journey or just beginning, evaluating your finances and spending, you may feel like you have to make some cuts into your favorite hobbies in order to reach your goal quicker. However, deprivation and cutting out the things that bring enjoyment into your life should never be the only option. This week we are joined by friend of the podcast Chris Terell to talk frugal hobbies, new experiences, and the parallels between strategies in board games and the strategies employed while on the journey to FI. While trying to optimize your experiences may mean changing hobbies and evolving, while doing so you may find new enjoyment, new communities, and values that come with these changes. Not everyone may have the same approach to a game, just as not everyone will have the same approach to achieving FI, but as long as you remember that being open to changes will allow you to not only optimize your experiences on that journey but optimize your FI.

Timestamps: