021R | Our First Ever Crowd-Sourced Case Study | Paul

Podcast Episode Summary

Review of Episode 21, the Pillars of Financial Independence

What areas of financial independence did we leave out of the episode?

Might have under-discussed savings rate as a pillar of FI

Choose FI as one of the ‘5 people you spend the most time with’

The value of $100 savings per month after 20 years or 40 years

Can Jonathan really do 50 pullups?

Comment from the audience: Charlotte mentioned Geographic Arbitrage as a pillar of financial independence

Comment from the audience: Mary suggests that taxes are the largest line item in your budget, not housing like we mentioned

Comment from Frank: He thinks we can do an entire episode on how to educate your children on money

Comment from Matt: The expense ratio on Vanguard’s VTSAX fund was just lowered to 0.04%

FIRE in the News: Anti-frugal event that Isaac showed us and Financial Panther’s list of best new podcasts

The value of travel rewards for people in the FI community

Frugal wins of the week from the audience: Andrew starting his own Gracie Garage, Tom’s list of incredible life changes, Cassie’s reduction in car insurance, Neal maximizing gift cards that were lying around the house, Tanner saving on free and used items, Heidi cutting cable

Live case study from Paul – his responses to our questions from last week’s episode. Find the beginning of the case study here.

Paul’s response to “how much do your expenses cost you each year”

Paul’s response to the question, “do you want to quit your job?”

Paul’s response to “what does your post-FI life really look like?”

Brad’s thought that the pursuit of FI is not about money – it’s what you value in life and finding happiness both in the journey and post-FI

Frank’s question to Paul about what they have planned for his daughter’s college education

Will $43,000 of savings be enough to fully fund a four year college education?

Thoughts on college education and the value of that education

Question to Paul about what is psychologically holding him back

Question to Paul about his plans to include Social Security into his FI plan

Question to Paul about the breakdown of his investment accounts between different ‘buckets’

Paul’s plan for a Roth-IRA conversion ladder

Paige’s comment about the ‘Age of 55’ rule for distributions from your 401k if you are 55 or older after your separation from service

Our follow up questions for Paul based on his case study

Itunes reviews and book giveaways

Links from the show:

Life Optimization

Fees, Frugality, and 401K Fears | Ep 428

On what is considered a very personal journey, how do you handle changes that feel like setbacks? Whether its spending more when you feel you should be saving, or re-evaluating goals based on what needs immediate attention, do you feel equipped to handle it with confidence? This week we are having a weekly roundup, and are re-joined by Ginger to not only answer listener’s questions, but discuss travel rewards, retirement accounts, and breaking away from the ultra frugal caricature often depicted alongside FI. While saving is an important factor on this journey, the main purpose of FI is to learn and live your life with intention as it relates to your money, goals, and values. Remember that it’s okay if some of your goals and values will change along the way! Allowing yourself to be flexible as it relates to external factors, like market volatility and your investments, will give you more power and control to continue ahead with confidence and optimism!

Retirement

Drawdown Strategies: Karsten vs. Fritz | Ep 427

In this episode: the “average” withdrawal, Karsten’s strategy, Fritz’s strategy, fixed withdrawal rates, the bucket strategy, and refilling.