Can’t count the ‘boyfriend’ in her FI journey. Boyfriends and partners come and go. She should protect her assets and continue to do taxes separate as with everything else financial while single.
This person wants to retire early and has access to a 457b plan. Possibly the best retirement account for folks that want to retire early as once you leave your employer there is no penalty for withdrawals no matter your age. I think this tidbit was missed in the episode as the advice to invest in non retirement accounts doesn't make sense in her situation. She really should continue to max out her 457b and Roth IRA.
She could roll over her other retirement accounts to the 457B. Most 457B have Roth options on it. If I were her I would make her boyfriend max out 401K every year & pay him to do the yardwork she is outsourcing.
Can you do a vid on achieving FI while being financially responsible for all of a parent’s or parents’ long term care/healthcare costs associated with aging (ie nursing home costs, assisted living, caretaker costs, etc)? As the population ages this will become more of a concern/challenge for people. Would love to see a story or stories on people who achieve FI while having a parent dependent on them financially.
It's all about income and expenses. I'd suggest figuring out what you think it will cost to take care of your parents and just add it to your expenses now. You could start investing that amount now and then when you actually have to take care of them you are already used to that amount of expenses and it won't be a shock to the system. The trick will be learning how to still invest on top of your expenses.
I would suggest asking your parents to see a financial planner w/ you because your parents should have things in place to provide for these things. But if they aren't in that position and you see that it will become an issue in the future than, I agree with the other comment to add this to your expenses now and save/ invest for the future on your parents behalf. I would encourage you to get long term care insurance as your parents approach 60 years old. That's when its the cheapest for them. This will help with some if not most of their needs. If they are in the low income category they maybe eligible for medicaid which will pay for nursing homes. If they have assets like a home the nursing home will use the home and may require it to be sold or the person will sign it over to them to get the money for long term care if there is no insurance or if it's not adequate.
@@almmason7 Well 'now' has already come for me...I'm around the age of 40 and my mother is around the age of 60 and she just had a stroke (needing 24-hour care). She has no income or retirement or pension or assets or job or Medicaid (single mother all her life). She's in a nursing home right now (pending Medicaid) however I was asking the question because I don't want to lose hope of achieving FI while knowing I will now need to step in (alone) to take care of all medical expenses going forward, and I was wondering how to still achieve FI in spite of this situation as I 'prefer' her to not have to stay in the nursing home.
@@TheRetirementality Well as mentioned, 'now' is already here for me actually (kindly see details in reply to almmason7). If I find it's not possible to still achieve FI considering the current circumstances, hopefully the channel will still consider my question as it may help someone else down the line. I know I am not FI yet so it's worth talking about what to do in you end up in a situation like mine where you aren't FI or retirement age yet and you have to be the sole provider to an aging/sick parent who does not have income/assets/insurance/etc.
is your local government hiring? I work federal in San Francisco and I barely make low 6 figure here. the cost of living comparison is ridiculous between San Francisco to central Florida.
Every couple dynamic is different and everyone is different so it is better to not jump to conclusions. Perhaps he is disabled. Perhaps he is trying to find a full time job. Lots of possibilities. Ultimately none of our business
Nice show. She wants cash flow ASAP. I'd frame her situation as a cash flow problem. She needs to cut her expenses by a lot. What is her principal on the mortgage? By paying off the house and cutting expenses she really needs less than 3k per month to leave her 9-5 job. I'd blow out the mortgage while putting less into those retirement accounts. Once her mortgage is paid off in a couple of years she's pretty much done so long as she keeps her side job. I see this as the quickest way to flexibility. Maximum profit in her retirement accounts is NOT her goal. Humbly my 2 cents. Jason the mailman:)
There's no reason to have this couple on the show, they're young and make silly good money so they have no urgency to think about getting to FI, which is painfully apparent with the $40K a year they're blowing on unaccounted for expenses. $1800/month on lifestyle expenses...lol. And that didn't even include the cleaning every two weeks, lawncare, etc.. Honestly, if they could find the discipline and motivation to buckle down, they could probably get to lean FI in under a decade, easy..
If she would stay with her current job for 4.5 to 5 years. Lock in the pension which would give her another $1000 in retirement. In that 5 years she builds more equity in her home which gives her more options in buying a property that generates income. Also in 5 years her emergency fund would be fully funded. I would build the retirement plan to take effect in 5 years.
Great episode!! Something I will say… is the insurance industry in Florida is a nightmare. I lived there for almost 30 years and most companies don’t even offer homeowners insurance there (another reason for the expensive cost). Car insurance is also crazy expensive… but shopping around for other vehicle insurance, cell phone plans etc. are at least an options. The Florida real estate market is also extremely inflated. Depending on what’s left of her mortgage, if she’s risk averse she can also just work to pay off her mortgage early to eliminate the $1400 expense. Definitely seems they have opportunities for additional savings!
We r 40, debt free, own our home in Midwest, 1 income household making 110,000$, investing 48% in all Roth accounts, is this too much? In need help addicted to investing. It a whole lot left for fun 1000$ margin, but we do enjoy steak house dinners 3 times a week and things get tight. We have 250 K in retirement accounts.
Love this episode.... getting closer to FI. Love episodes in what to do after FI. I am a busy body not satisfied with my current law career. I would appreciate career options for after. Btw, i am binge watching your shows!! Thank you for the content
I’d really like an example of someone that makes an average salary. How does someone reach financial freedom making $50,000 a year? My company doesn’t offer a 401K or any kind of retirement. In fact, none of the companies I’ve worked for in the last twenty years offered any retirement plans so I’m in my late forties and just learning about how to do an IRA and learning about index funds. It’s easy to imagine getting ahead making a high six figure income, but when rent is $1800for a small one bedroom and inflation is through the roof, there’s not thousands left over for retirement. How does the average person do this?
Well, it looks like you're a realtor. That's generally a crappy profession for a variety of reasons. Saturated market of realtors trying to make a quick buck, realtors are generally not even needed, etc. Guaranteed you haven't worked as hard as people in other professions. Some people I work with do real estate on the side. That's the way to do it - especially since that type of work is extremely cyclical - Not make real estate your FT job. So, you've lived on easy street "selling" houses for the last 20 years. Plus, with nothing to show for? Sounds like you would have been better off working a low level state job. You'd at least have a pension, 403b, 457, etc.
@@holdencawffle626 Thanks for your comment. You've actually assumed wrong. I do have my license but have never practiced. Got it five years ago and it's been in retirement. I went to school twenty years ago and got a BA in design. At the time of that writing above I was working for a local cabinet company. But I got laid off due to sluggish sales. I am now working for a window coverings company. Most designers don't make more then $50K - $60K a year. Maybe in a big city like NY you can make more but cost of living is higher. So I have not been living on easy street or making a quick buck as you put it.
@@ingababy5196 I did. Unfortunately life events have eaten away at a lot of it. Major surgery, a global pandemic, layoffs, dental work. I'm determined to get this right I just wish more people on RU-vid offered advice for older people. When I was in my 20's we didn't have RU-vid, or things like Robinhood making investing easy. I also was fiscally irresponsible because no one ever taught me to invest for my future. For years I actually thought debt was ok because everyone had debt. But I cannot cry over spilled milk. I'm almost 50 and basically starting at ground zero. I don't have any debt but I also don't make six figures. I cannot be the only one in this boat. Maybe I need to start my own RU-vid channel about this journey!
@@amafid Please explain how because I'm trying to look at different avenues and opportunities to dramatically increase my income to get into some house hacks.
