Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) - Do We Have Enough To Retire (And Never Go Back To Work)?

Do We Have Enough To Retire (And Never Go Back To Work)?

03/25/24 • 21 min

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Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Ever wondered why some folks can retire comfortably at 53, while others work well into their golden years? The answer isn't as simple as how much money you've saved up—it's rooted in your monthly expenses and lifestyle choices. Today's episode peels back the layers on retirement planning, debunking the myth of a magic retirement number and introducing you to the concept of Financial Independence, Recreational Employment. We're discussing how it's not about quitting work entirely, but about having the freedom to choose how and when you work. Join us as we navigate through personal stories and financial examples that bring to light the true indicators of retirement readiness.
Diving into the heart of financial planning, we meet Ari, who's wrestled with retirement decisions and wondered if they're on the right track. I'll walk you through Ari's journey, highlighting how personal values can significantly shape financial decision-making. We're also tackling the common mistake of equating retirement expenses with your current salary, and why it's essential to have a realistic budget reflecting your actual living costs. If you've toyed with the dream of retiring to a sun-soaked village in Portugal or Spain, we even touch on the financial implications of relocating. Don't miss this chapter where we also share a handy tool—a cash flow spreadsheet linked in the description—to help keep your spending habits transparent.
Wrapping up, we shift gears to focus on the brass tacks of a solid investment strategy that will carry you through retirement without hiccups. I guide you through evaluating your savings, understanding the impact of taxes, and how to balance equities with fixed income to ensure a comfortable and sustainable lifestyle. Plus, we discuss why having pensions might actually allow you to take a bolder approach to investing. Remember, this is about more than just numbers—it's about crafting a retirement that fits your life. So, whether you're planning early retirement or simply curious about the financial future, tune in and let's explore what it takes to retire on your terms.

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Ari Taublieb, CFP ®, MBA is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.

Previous Episode

The 2 Portfolio Withdrawal Mistakes To Avoid If Retiring Before Age 65

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Get access to the same software I use for my clients and join the Early Retirement Academy here
Unlock the secrets to a rich retirement as we dissect the myths of withdrawal rates and prove why it's not just about surviving post-work life, but thriving in it. This week, I pull back the curtain on the story of a client whose journey shatters the illusion that the lowest withdrawal rate is the safest bet. Together, we navigate beyond the oversimplified 4% rule, emphasizing the need for a personalized strategy that adapts to market shifts and personal spending. Tailoring your retirement to your unique timeline and expenses is not just smart—it’s essential.
Strap in for a candid exploration of the pitfalls of static withdrawal plans and how a diverse investment portfolio can be your golden ticket to an optimized retirement. I reveal the significance of dynamic strategies that respond to the ebb and flow of markets and life changes. Plus, we'll address the risks of a one-size-fits-all investment approach and how avoiding it can lead to more favorable tax outcomes and a retirement that's as varied and full of life as you are.
As we wrap up, I extend an invitation to you, the listeners, to become an active part of our community by submitting your burning questions and stories. Each piece of advice here is a stepping stone to customize your retirement blueprint, but remember, the nuances of your journey require the finesse of a professional’s touch. So, tune in, take notes, and get ready to craft a retirement as unique as you are.

Next Episode

5 Situations When It Does NOT Make Sense To Implement Roth Conversions

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Ever wondered why Roth conversions might just be the financial cauliflower you didn't know you needed? We're peeling back the layers of this tax planning strategy to show you how it could supercharge your retirement savings or possibly trip you up if it's not the right fit. Today, we're walking you through the pros and cons, armed with real-life examples like the time I advised a client to steer clear of conversions due to their health and retirement horizon. Think of it as a tailored suit – Roth conversions need to be customized to your financial physique, or they just won't look good on your bank account.
Feeling jittery about upcoming changes in tax brackets, or confused about when to convert your 401(k) to a Roth IRA? Grab a cup of coffee, and let's talk timing and tactics. We're not just talking theory; we dive into a case study of a forward-thinking couple who used a market downturn to their advantage with a Roth conversion, illustrating that with careful planning and a pinch of courage, you too can navigate the financial market waves and sail smoothly into retirement. Whether you're a seasoned investor or a newcomer to the retirement planning game, this episode is your invitation to become a part of the conversation and make decisions that resonate with your future financial well-being.

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) - Do We Have Enough To Retire (And Never Go Back To Work)?

Transcript

Speaker 100:00:00.040

You might see an article that says you need a million dollars to retire and you might see another article two hours later saying that a million dollars is nowhere near enough . They're both wrong , and here's why I have clients that have $500,000 and they are retiring and they're spending north of 15,000 a month , but they also have a pension that covers the majority of their nee