We’re in an unprecedented moment in history, with people staying home, businesses closed, stock markets going for a wild ride, and most of all, fear for our lives as the coronavirus pandemic worsens. What does all of this mean for the FIRE movement? What does it mean for you? Read on.
It seems that the period of stock market volatility we’ve been in the past few months is here to stay for a while. Does that have you feeling anxious? If so, you’re normal, but you don’t have to stay that way. Learning not to let the markets or their machinations affect you is surprisingly easy to do if you make that your intention. Let’s talk about how.
We’re supposed to save 2 times our salary by age 35, or is it 25 times our expenses to retire early? We’re supposed to ignore Social Security, but also claim it at 62 to hedge against market risk. We should try to get out of debt as quickly as possible, but also paying off a mortgage early is missing out on potential market gains. There is so much “truth” out there, so many “right” answers, and many of them conflict. How to make sense of them and decide which are actually true? Start by tossing out the whole notion that financial truth exists in the first place.
You don’t have to agree on what’s causing climate change to agree that it’s happening, that it’s getting worse and that it will affect those of us who are retiring early (just like it will affect everyone on the planet). So how do you account for something as massive as climate change in your financial and life planning? What do you do with the doom and gloom news stories, besides throw your hands in the air and declare it hopeless? Let’s break it down into actionable steps.
A topic we don’t discuss often enough as a society is how to help our parents as they age — what’s expected of us as adult children, what the emotional toll might feel like and how much time it will all require. But those things are real, and they’re crucial to incorporate into your early retirement planning.
We didn’t contribute to Roth accounts when we were under the income limit, and for years didn’t think it was a big deal. But now we’re filled with Roth remorse. Here’s why.
If we know we can’t achieve something the way someone else did, or the way we might have originally have envisioned for ourselves, it’s easy to throw up our hands and decide that it’s not even worth trying. Here’s how I let go of the idea of perfection to get on a better financial path, and some tips for how you can stop letting notions of perfection and imperfection hold you back.
Even though we’re not in the savings phase of our early retirement journey, we often talk about what we’d do differently if we were just now starting to save at this point in time. Here’s a rundown on what we’d change about our approach, and what we’d do the same.
Some recent home organizing brought me to a bit of an archaeological find: a snapshot of my finances almost exactly 10 years ago, before Mark and I got married. I’ll bet they’re not what you expect, but what’s more, they show why it’s so important not to get discouraged if your financial progress feels slow in the beginning, or even for years!
You know all the math. You’re saving at a high rate. You’re optimizing your spending and avoiding investments with high fees. But do you REALLY have what it takes to achieve early retirement? Come find out.
Do the roller coastering markets have you concerned about the your early retirement plan? Sequence risk is by far the biggest risk early retirees face, and that risk can come from market crashes, long-term mediocre returns and even rising health care costs. Fortunately, though, we can all put ourselves in a good position to head off that risk, without lengthening the timeline to early retirement, by making some smart choices with asset allocation and behavior.
We’re about to go through a life and financial transition as big as graduating from college or getting married — and that’s switching from earning plenty while working to earning very little in early retirement. Which means that we need a new set of systems to ensure our financial success, especially given our status as anti-budgeters. But it also means that we’re bringing back a tool we gave up years ago: the personal allowance.
Just as we have a mission in early retirement to figure out what we want to do when we grow up, and to adventure more, we also have a mission to be more charitable, both by volunteering and by giving money directly to important causes. Which may seem harder when we have less cash flow coming in. But there are some good ways to build charitable giving into your retirement financial plan, including with a donor advised fund. What’s your charitable mission?
Today we’re continuing the mini-series on Social Security and Medicare by looking at whether or not you should build Social Security into your retirement plan. We’re not counting on it, in part because we don’t need to, but also for some big reasons that are worth considering for everyone who wants a secure financial future. Give it a read and then let us know what you think!
Holy moly — it’s our *very last* quarterly financial update before we retire early in a little over two months from now! (Can I just keep typing exclamation points and have that count as an intro?) !!!!!! The third quarter was a good one for us, and it’s looking like we have a good chance of hitting our stretch “magic number” goal. Come see where we are, and then share your Q3 progress with all of us!
It’s a two-for-one post today! First up, an examination of the joint urges among FIers to DIY our lives and finances, but also to optimize as much as we can. Let’s discuss how compatible those joint impulses really are, and the joy that comes from embracing the suboptimal. And then, it’s pre-reveal contest time! Check out the DIY swag I made just for the lucky winners, and enter your guesses for where we live, what we do for work, and any other fun facts you want to throw out there. Good luck!
There is plenty of financial advice out there, including some very prescriptive advice about how to achieve financial independence or virtually any big goal you can think of. The only problem is: that advice, while great for some, is guaranteed to be bad advice for others. Rather than trying to follow advice to the letter — or give it out in a prescriptive way — let’s focus on the formula instead, a formula with three key ingredients that can get anyone in nearly any life circumstances to achieve big goals.
Today I’m (finally) sharing something that I’ve wanted to write about for a long time, but haven’t tackled because there is no easy formula: how to determine what is “enough” to save for early retirement. “Enough” is perhaps the centrally important concept to early retirement, but it can feel overwhelming to quantify your own. Here’s a breakdown on how we calculated ours, and how you can do the same for your own circumstances.
We know — the excitement of the *early* part of early retirement is powerful. So much so that it’s easy to focus our retirement planning mostly on those early years. The later years are also so much harder to predict — more variables, a longer time horizon, more unknown unknowns. But as we’ve seen in our own planning, it’s easy to have an inadvertent early phase bias built in — here’s how to suss that out and ensure that you’re planning for both your early retirement and traditional retirement.
We don’t walk around in the world feeling like some financial masters of the universe. I blog about money, of course, so I think about it a fair amount – though less […]
There’s a principle in medicine that the dose makes the poison. Which means, very few substances are good or bad for us no matter what. Instead, what matters is how much of them we take. And it’s exactly the same with money. It’s easy to make symbols of things like buying lattes or paying for cable, but those behaviors aren’t objectively a problem. What might be the problem, however, is the dose. Why we’re big believers in focusing on the dose, in context, and embracing a sense of radical moderation.
It’s time for our second quarter early retirement progress report — our second to last! — complete with charts galore. This quarter we hit another milestone that’s both wonderful and a relief, and we’re setting our sights on building up a sizable cushion by year’s end for future health care unknowns. Plus: we’ve launched a reader survey and we’d LOVE your input.
Today we’re talking options, and keeping them open. Early retirement isn’t an ending, after all — it’s a beginning. And if we go into that beginning with a limited set of options, and no ability to change our course, we could be setting ourselves up for a less-than-ideal future. Here’s why it’s so important to have an exit plan from your exit plan, which really just means you’re giving yourself the financial and logistical resources to change your mind.
Our early retirement might be right around the corner, but we still have a lot to do before the year is up to make sure that we’re truly ready to make the big leap. Then after we pull the plug, we have a different set of things to do. Here are our big lists of things to do before we retire early, and right after, as well as things we’ve already checked off the list this year. Are we missing anything? Let us know!
Lately we’ve been mulling over a question: Is it a win or a fail to die with money leftover? Of course we can’t know how long we have, but if we could, would we prefer to spend our assets down before we die, or to be able to leave a big legacy behind? There’s a lot behind this question, and today we dig into all of it!
We’ve been lucky in many ways, but one of those ways is that we’ve been almost completely supported in our early retirement plans by our friends and family (at least the ones who know!). But we know that many aspiring early retirees aren’t so lucky, and today we hear from lots of them about how they handle that lack of support!
This year has been flying by, and we can’t believe it’s already time for our first quarter update. And it’s not just numbers on our minds — getting this close to retirement has us feeling all kinds of contradictory feelings, and the recent market boom has us in a state of disbelief.
An interesting thing happens with a lot of financial independence bloggers. As your audience grows, you suddenly have this incredibly opportunity not only to reach more readers, but to earn more from the blog. Which is wonderful! Except when it means you’re only telling part of the story. Here’s why this matters, and what we should all keep in mind as we read FI blogs.
It’s so fun and exciting to plan for financial independence and early retirement that it’s easy to focus only on what happens when things go well. But it’s important to pressure test our plans to make sure they will still hold up even if (or when!) things don’t go as planned. Here’s our suggestion on one way to do that.
Today I’m on the Mad Fientist podcast! To celebrate the occasion, we’ve got a monster post with the full rundown on every aspect of our financial plan and financial philosophy, so new readers can get a better sense of us, and long-time followers can see everything all in one place.
Blogging is a hugely time-consuming endeavor, and anyone who tells you otherwise is selling something. But we wouldn’t trade this blog or the time it takes to write it because of how much it has done for us. Today, a closer look at how blogging has sped our progress to financial independence and early retirement.
I never took a break between high school and college, or between college and starting my career. And so for years, I thought I’d missed my chance to do something awesome, as though that’s something only young 20-somethings can do. But seeing people in our mountain town piecing together lives of adventure in all different ways made us realize: we haven’t missed out on anything. In fact, we’re probably doing this the better way, because our life of adventure will be built on solid financial footing.
We’re generally optimists about things and — though it seems like a paradox — we become most optimistic when we’ve delved into all the bad stuff that could possibly befall us. That’s the only way we can really know that we’re well prepared — and it’s easy to be optimistic when you’re prepared. And it only makes sense to prepare for market crashes, because they’re inevitable and inescapable. Here’s our game plan for dealing with them.
The good financial news keeps rolling in over here at the Our Next Life house. We hinted at it recently, but today we’re sharing loads more detail about our ahead-of-schedule progress toward early retirement, with charts galore. It’s starting to feel downright magical around here!
As we promised in our recent pre-retirement to do list post, we’re dedicating a whole post to the question of what we’ll do with our 401(k) accounts after we retire next year. Our 401(k) accounts make up a major part of our portfolio — and up to 100% of what we’ll live on after age 60 — so we want to be sure they’re taken care of.