Pre-Retirees and FIRE
FIRE: Financial Independence, "Retire" Early. It's about valuing your one life, so your money works for you, not the other way around.
Yes, there are financial professionals who believe in early financial independence. That also want to be financially independent sooner. Like you.
Yes, there are advisors who really invest their lives into what they preach.
In some business models, some advisors mislead clients with perfectly "legal" hidden conflicts of interest. Is that okay with you? It's not okay with us.
Did you know?
- Yes, you can plan (and prepare) for the next recession or 30% market drop, so you stay focused on which sunscreen SPF to use at the beach, playing guitar on stage, your granddaughter’s talent show, and everything else life's really about in financial independence.
- You don’t have to wait till the age of your parents to "retire." Want it to be age 30? 40? 50? You pick. What would you do if you had decades more life to live, precisely as you wish? (Ahem. Not at that desk of yours).
- Most people misunderstand the trade-offs and nuances of social security in their specific situations, and many end up missing opportunities or falling prey to myths and misinformation that cost them hundreds of thousands of dollars.
- If your advisor charges you based on assets under management, there are many serious conflicts of interest related to whether you should: roll over assets vs. a pension payment, pay off your mortgage, start a business, buy a rental, take risks with your investments, delay social security, execute a back-door Roth IRA, or be charitable, among many other things that might be important to you. (Of course, maybe they don’t want to make more money...)
- You can prudently buy or start a business in retirement to create and craft through meaningful work and challenge; however, without considering social security, taxes, and how this fits into to your finances, this can cost you your ability to retire.
- You can qualitatively score your ability, willingness, and need for risk-taking capacity. This can help you sleep better at night and limit marriage stress between the risk-taker and the risk-averse. ("Savers," "spenders," "risk-taker," "risk averse," that’s so 1999. You are unique).
- You can create a harmoniously seamless system with your spouse to track your expenses, so you can still have fun tonight without running out of money tomorrow.
- Many rules of thumb and top-ten Google lists, if mindlessly followed for retirement, could cost you your ability to retire at all, or cause you to retire either too early or way later than you need to. You’re unique, right? That’s why you’re here, right?
- You can prepare for the “tax torpedo” when you start taking required minimum distributions and your social security comes in at 70 ½, avoiding paying taxes in an elevated tax bracket.
- Properly timed tax-efficient withdrawals and tax location within the accounts could add hundreds of thousands to millions more, with the right multi-year planning.
- Timing, targeting, and harvesting long-term capital gains could take place in a 0% federal tax rate, with careful planning.