Today, I describe the differences in financial planning for those in the financial independence movement. I did not record this video from heaven, but I did include some prophetic tips!
Highlights include the following:
A high savings rate could mean you need to consider asset location in addition to allocation. Consider that bonds and bond funds produce more taxable income due to their interest payments, it might make sense to keep these in a tax deferred account. On the flip side, keeping stocks or a particular type of stock in a Roth IRA might make sense if you expect outsized growth from these assets.
Additionally, thinking about your required rate of return to meet your goals, since the FIRE community usually want to reach financial independence as soon as possible, it’s not as easy as saying you need a 7% rate of return for 15 years and you’ll reach your goals.
Finally, consider whether that your spending may increase in early retirement!
Thanks for taking a look at this video, if any of these points resonated with you, please schedule a call with me so we can talk about what your goals are and how I may be able to help you.