Four Years of Financial Independence: The Slow Growth

For four years I’ve watched something slowly bloom. In my old life, the “before time” you might call it, I moved from task to task. If I wasn’t working, I unknowingly made a practice of turning recreational or hobbyist pursuits into something that, from an outsider’s perspective, looked an awful lot like work. Goals and accolades were everything, and the more quantifiable, the better. But the farther I’ve separated myself from this life in space and time, the more clarity I’ve gained. 

Grasping for metaphors, I was tempted to explain this budding awareness as a slowly growing flower. But for perhaps all the wrong reasons, I hesitated to describe my growth and awareness as floral, preferring to drop the metaphor. But I can’t quite shake it, because I have watched something slowly grow. It’s not me that has bloomed–again, all the wrong imagery–but it is the world I could not see then. I could not see the flawed logic buried in the cold and wet earth because I identified with it. It was my life, so I could not reject what protected me. And four years later I’ve watched something slowly take root.

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QA12: Will A Life Of Financial Independence Meet Expectations?

We’re back to the digital mailbag to answer your questions!

For this week:

  • An update on markets and our personal finance situation
  • The role of dividends in growth and withdrawal assumptions
  • Expectations vs reality on a life of financial independence
  • Our experience with health insurance without employer-sponsored plans
  • Real estate investing: an update on our experiences and economics as remote landlords
  • Health insurance considerations for long-term travel
  • Short- to medium-term savings goals (like a house) versus saving for retirement
  • Loss of purpose without a traditional job
  • So much more!
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“The Rewards of Being in One Place for a While” (Meghan Walker and Callan Cooper)

By popular demand, I’ve decided to extend a travel series centered around the topic of building community or maintaining our need for social interactions when away from home. Community building is especially complicated when abroad, where cultures and languages vary considerably from our own. My guests today, veteran travelers with considerable expat experiences, are perfectly suited to discuss this topic.

Meghan Walker, a previous guest who writes at awaytofi.com, spent many of her formative years living abroad in Kenya and New Zealand. Her husband, Callan Cooper, is an expat living in the United States from New Zealand, where they met. Meghan and Callan joined me in my home in Colorado for a rare in-person interview, where we discussed in detail the beauty and challenges of international extended travel, careers, evolving travel philosophies, and financial tactics that can have you living a similar life much sooner than you think.

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QA11: Laying It Out in Simple Terms

We’re back to the digital mailbag to answer your questions!

For this week:

  • How has my lifestyle evolved since achieving financial independence and how do I spend my time?
  • Updated thoughts on money and markets
  • Are we putting too much faith in institutions like Vanguard?
  • Can and should life insurance policies be used for retirement savings?
  • Tax avoidance versus accepting higher tax rates
  • What is a Simple IRA and how does it differ from a 401(k)? Can I still do Roth conversions?
  • Savings rates are great! Should I pay less on my loans to maximize my savings?
  • Big picture: Where do I start on getting my financial life together?
  • Outreach and presentations
  • So much more!
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Mike Piper: Down To The Essence Of Smart Money Management

Mike Piper is a CPA and the creator of the Oblivious Investor blog, where he teaches a philosophy of simple and low-maintenance investing.

Mike’s simple philosophy distills down to three primary principles:

  1. Diversify your portfolio
  2. Minimize costs (commissions, fees, mutual fund expenses, taxes)
  3. Ignore the noise.

Mike began his career as a CPA before realizing he could support himself by writing books. Surprisingly, he left his secure job during the 2008 financial crisis. He has gone on to publish seventeen books and is widely considered an expert in social security, tax, and a number of other personal finance topics. His work has been featured in the Wall Street Journal, Forbes, and Morningstar, to name a few.

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Six Important Reasons to Reconsider Early Retirement

Today on episode 65 I’m revisiting a post published almost exactly two years ago. At the time of writing, I’d been away from my corporate job for eighteen months. I spent six months of that time living in a tiny A-frame camper with my wife and dog before resettling in the St. George, Utah area.

I was climbing a lot and working on this website, but I can now comfortably admit that I was in a bit of a low spot in terms of overall life satisfaction. The issue was one of expectations. In other words, I expected too much about a life without my career and I took for granted elements of my work life that enhanced life satisfaction. I was feeling stale with this project—I wouldn’t start the podcast until late summer—and despite having all the time in the world to dedicate to the craft of climbing, I was slowly coming to the realization that I’d used climbing as an attempt to fill a void that was not yet clearly defined or outlined.

Two years later, I’ve spent considerable time addressing each of the areas discussed in this post, to varying degrees of success. Stay tuned in the coming weeks and months for other changes still ongoing.

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Jeff and Priti Wright: You Might Need a Sabbatical

Today on episode 64 I’m excited to welcome Priti and Jeff Wright, two accomplished young professional alpinists from Seattle, WA. In 2020, Priti, a software developer, and Jeff, a mechanical engineer at Boeing, embarked on a year-long sabbatical to travel across the globe and climb alpine objectives in Patagonia, France, and Pakistan, finishing by the beach in Hawaii.

The trip was wildly successful, even amid the raging pandemic, including ascents of the Cerro Torre, the six classic North Faces of the Alps in a single season (including the Eiger North Face in winter), culminating in the first ascent of K6 Central and the third ascent of K6 West—both 7000+-meter peaks—in the Karakoram Range of Pakistan.

In contrast to early retirement, Priti and Jeff make the compelling case for a traditional career peppered with sabbaticals. This episode is filled with lifestyle and career philosophy, planning concepts, detailed financial considerations, and just a damn good time. And they are even planning their next sabbatical in 2024, which will look drastically different than their trip in 2020. You won’t want to miss this one.

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The Great Comfort of Longevity in the Stock Market

Since the financial crisis of 2008, two dominant views on stock market investing have emerged:

  1. Stock market investing is volatile and risky, akin to gambling.
  2. Stock market investing is reliable and free money.

The Great Recession produced a decline in overall equity values in the range of 50%+ from 2007 to early 2009. The event created a lasting and widespread change in mindsets around personal finance, even what it means to be securely middle class. However, for those that stayed the course, the subsequent Great Bull Market produced exorbitant wealth for almost anyone investing in almost anything.

If there’s a lesson to be learned here, it’s that market growth and declines are cyclical. These cycles are influenced by a complex blend of fiscal policy, business practices, and perhaps most important of all—animal spirits: human behavior and emotion. To balance risk and reward, one should invest broadly in the market as a whole and increase the investing timeline. The latter in particular is easier said than done. In this post today, we quantify the power of longevity in the market. We have reason to rejoice, so long as we can hang on!

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QA10: Bear Markets and Bank Failures

We’re back to the digital mailbag to answer your questions!

For this week:

  • Are new investors part of an “unlucky cohort” that won’t achieve financial independence in the often-cited timelines?
  • Is it worth it to hire a tax professional? And if so, how should I find one?
  • Can you help me understand all these confusing public sector retirement accounts?
  • Should I do a Roth conversion now or just make a contribution to a Roth IRA?
  • Thoughts on the recent bank runs and instability in financial markets
  • So much more!
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Five Lessons from Three Years of Financial Independence

One evening, circa 2011, I sat over dinner with my future wife in our small and sweaty Houston, TX rented bungalow. I was and still am an occasional cheap bastard, so the air conditioning was almost certainly set to engage on an “as-needed” basis, far from anything resembling comfort. The concept of financial independence wasn’t on the radar.

During downtime at work—I told you I was distracted—I was scouring numerous free WordPress blogs documenting the travels of zealous climbing dirtbags. They were camping and climbing and making whatever money they needed along the way. People were even starting to live and travel in vans, something I associated with sixties and seventies surfer culture. I wanted that life.

At this point in my late twenties, I was maybe barely a year into my career as a geologist in the oil and gas industry. But I could see the writing on the wall—this would not and could not be my career for the next 35-40 years. In fact, at that moment, I couldn’t see myself lasting my target three to five years until I expected to return to school for a career in academia. And there was a new problem: I’d kind of grown obsessed with this new hobby of rock climbing.

Twelve years later, I finally found a very different path to a life of freedom, if such a thing even exists. After three years of financial independence, what follows are some key lessons I’ve learned along the way.

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