Financial Independence Archives - Page 9 of 18

April 12, 2021March 19, 2023

The Bold And Beautiful Roth Conversion Ladder

Hi. Good morning. How are you? I’m excited this week to bring you a much more in-depth analysis of the Roth Conversion Ladder, a method used to spend retirement money early without penalty and with little to no tax burden. I’ve already talked about this method here, here, and here, but I decided this very important topic needed its own special post.

Changing subjects momentarily, I get a real kick out of directly translating ridiculous American expressions in other languages. For instance, when in a German grocery store in 2018, I suddenly wondered if German lovers addressed each other as honig, the German word for honey.

Honig! I’m home!

See, isn’t that fun?

This week we will investigate the intricate web of methods designed to spend the money you’ve saved. It’s not all milch und honig.

April 5, 2021April 5, 2021

Six Lessons From a Year Without a Job

I almost didn’t write this post. It’s been such a strange and bizarre year that I didn’t at first consider it representative of the typical “early retirement” experience. Upon further reflection, however, I realized that life—just like those “irregular” regular one-off expenses—is typically atypical. It’s still life, just without a job.

With so much information about self-care, wellness, early retirement, and a life-by-design, I’ve had a lot of time to sift through the noise. And shockingly, perhaps I don’t recommend retiring early.

Here are some lessons from one year without a job…

March 29, 2021March 29, 2021

Your Questions Answered: Volume 2

This week we’re taking another look at your specific questions. Today we examine the thorny subject of income and how much is needed to pursue financial independence, how we fund our lives without a job, the best option for medium-term saving goals, some discussion of real estate investing, and a requested expansion on last week’s post about emotional fragility, plus plenty more.

Here’s what you wanted to know…

March 15, 2021March 18, 2021

Some Fantastic News on Health Insurance Costs

Back in October, after the passing of Supreme Court Justice Ruth Bader Ginsburg, I wondered if healthcare was about to get a lot more expensive. Now, health insurance is about to be far more affordable for those of us at lower income levels.

The American Rescue Plan Act (ARPA) is a $1.9 trillion stimulus package, signed into law on March 11, 2021. And this thing is massive! Tell them Large Marge sent ya! Mainstream media has expectedly latched on to the $1,400 stimulus checks and the very generous extended child tax credit. However, the news bulging my eyeballs is the boost coming to the Affordable Care Act (also lovingly known as Obamacare).

March 8, 2021March 8, 2021

Eliza Marsh: We Can Make This Happen

Good morning. My ankle is doing much better. Sorry to alarm some of you with last week’s post. The photo was bad, but I’m fairly certain it’s only a sprain. Much more importantly, this week I want to welcome Eliza Marsh.

In this week’s interview, we discuss how Eliza has balanced a career with extended travel, and some of her unexpected surprises of life on the road. We examine how she manages full-time remote work, and how she recently stumbled on a new and exciting path towards saving for financial independence, which she rightfully recognizes as a great privilege. Perhaps most importantly, we’ll see how Eliza has completely reframed her mindset around money, her future, and how she plans to use this great gift of financial freedom.

February 22, 2021February 22, 2021

Expense Ratio & Fees: They’ll Hose You Big Time

Expense Ratio and Fees: They'll Hose You Big Time

Fees and expense ratios are some of the most poorly understood and (unfortunately) most impactful elements to long-term investing success. While someone investing at all is ahead of the curve, we must be fully aware of the corrosive impacts of the expense ratio and other fees.

This week we explain common sources of fees and analyze just how much they are costing us. Are you paying a financial advisor? We’ve got you on this one!

Let’s go!

February 15, 2021February 15, 2021

The Frugal Professor: Let’s Get Deep in the Weeds

Alrighty, folks. This week I’m pleased to bring you a low-down-and-dirty financial deep dive with climber, writer, father of five, and lover of personal finance: The Frugal Professor. In this interview, we hold our breath and plunge into complex issues surrounding actually spending all this money we save for periods of no traditional income, meanwhile navigating the treacherous, shark-infested waters of the US healthcare system.

I’ve always said that saving and generating wealth is shockingly simple once some key concepts are understood, implemented, and doggedly followed, through thick and thin. And I’m sticking to my story.

What is not so straight-forward, however, is threading a very fine needle on living off the money we’ve saved. In a period of no traditional income⏤call it “retirement” if you want⏤we shouldn’t be just selling shares and calling it a day. We have to optimize healthcare spending, minimize taxes, and avoid early withdrawal fees and penalties meant for a much more traditional retirement.

But with a little planning, it ain’t no thang.

Let’s roll up our sleeves with the Frugal Professor and get a little dirty, shall we?

February 8, 2021August 9, 2021

Your Questions Answered: Volume One

This week I decided to dig through my emails and finish answering some questions.

In this post we take another look at investing now vs later, the dynamics of financial independence without retiring early, housing and home ownership, more on day trading and investing apps, what the hell I do with my time, and much more.

Here is what is keeping you guys up at night, or at least spurring mild curiosity.

February 2, 2021May 1, 2021

The GameStop Saga: Hedge Funds, Reddit Investors, and Why They’re All Wrong

Well, I wouldn’t normally post two posts in a week, much less two in two days! But by popular demand, I have a few words on this GameStop fiasco. What do you guys think I am, some kind of journalist?!

I hate when news stories like this come out. These sorts of headlines give rise to the kind of stock market talk that promotes the age-old myth: the entire system is run by wealthy Wall Street Fat Cats, the small people can’t get a piece of the pie (or only lose money), and boy wouldn’t it be great if we could tear it all down!

This is flawed thinking. Here’s why:

February 1, 2021February 10, 2021

The Wondrous And Fantastic Power Of Compound Growth

(And Why It Doesn’t Pay to Wait)

It’s so easy to assume that saving, investing, and even considering a retirement is something to do later. Unfortunately, well…no. We don’t need board room salaries or country club memberships to consider a retirement. But we do need an ally. And who can we put on our side of the ring? Compound growth.

Today we delve into the concerning data behind millennial retirement planning, some misconceptions on what retirement should be, and the shocking power of compound growth and how it can, quite possibly, save us from ourselves.