In a lot of ways I think that I’m so much better off for being so active in my own finances and early retirement planning. All around me I see people who have not taken control of their financial future – and it devastates them.
They are stuck working at jobs they hate until well into their golden years. They have to miss family engagements. They are under the servitude of others until their health no longer allows them or qualifies them to be.
It’s a sad way to go out, and it’s not something that I will ever allow for myself or my family.
But despite my best intentions to achieve what others feel is unachievable,
Is there a dark side to my obsession with planning for an early retirement?
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There’s all sorts of things to do when it comes to retiring, and it’s important to understand what annuities are. Here’s a crash course on understanding their benefits.
Pop quiz: If you could choose to save $10,000 using one of two retirement income strategies, either a 401k or a regular taxable stock brokerage account, which one would you choose?
If you said “401k” (or really any other tax deferred savings account), then that’s what I would have expected you to say. Why? Because that’s what conventional financial planning advice teaches us. We all know that if we want to have a solid retirement income, then we need to max out our tax-deferred savings, let it grow, and then worry about paying the taxes later. And why not? Things like 401k’s and IRA’s are perfectly valid strategies for saving as much as you can and building up your nest egg.
So you can imagine my hesitation and apprehension as I’m about to do the opposite with some of my money.
If you don’t think you’ll be able to retire early, then YOU are your own biggest problem. The fact that millions of Americans out there are only saving 2% of their income and holding 401k balances less than $100,000 is not an average retirement savings target that you should strive for. That’s just a financial epidemic that you won’t want to have anything to do with. You can do better! In this post we’re going to walk through a step-by-step plan for how to become financially independent with the honest hopes that you will be able to copy of my method and decide for yourself what parts of it will work for you.