408: Finance Friday: Why Retiring Early Isn’t As Simple As You Think

BiggerPockets Money Podcast

English - May 05, 2023 06:00 - 49 minutes - ★★★★★ - 2.8K ratings
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Early retirement is the holy grail of financial freedom. With a large enough nest egg, you no longer have to work, giving you the time to spend with your family and friends or do whatever you want. The problem? Hitting financial independence is much easier than most FIRE-chasers think, and achieving their biggest goal comes with unintended consequences. The fact of the matter is, retiring early is a hard choice, and it’s NOT as simple as walking away from your job.
Today, we talk to Phil, who’s bringing in a large salary and doing a job he loves but wants to take more time off work to be around his growing family. Phil has reached financial freedom. He has plenty of money in his retirement accounts, a short-term rental property portfolio paying him a median-income salary, and lots of cash on hand in case he runs out. He’s also got a job that makes him a stellar salary and has the flexibility to allow him to increase or decrease his shifts as he sees fit.
Phil has done it. He’s found financial freedom and built a fortress of assets to hold up his lifestyle for the rest of his life.But, the idea of walking away from work is stopping him from taking the time off that he needs. With such high pay and work that gives him meaning, how can Phil slowly start stepping away from work without sacrificing his identityor ability to help others? This is a struggle for many who have hit financial independence, and you, too, may face the same dilemma in the not-so-distant future!

In This Episode We Cover
Building multiple income streams so you can reach financial freedom faster
Giving up the high-pay of a skilled job to spend more time with your family
When to pay off your properties and whether living mortgage-free is worth it
Transitioning out of a career and why stepping away from work is more complicated than it seems
Building your ideal post-FI life (even if that means working!)
The “middle-class trap” and why over-investing in retirement could be a mistake
And So Much More!
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Finance Review Guest Onboarding
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Mindy on BiggerPockets
Scott's Instagram
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The Real Estate Rookie Podcast
Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets
Money Moment
Mr. Money Mustache on Life After FI: The Truth About Retiring Early
How to Avoid the “Middle Class Trap” When Building Wealth
The “Deathbed Toolkit” That Makes Building Wealth Much More Enjoyable w/Doc G
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Today, we talk to Phil, who’s bringing in a large salary and doing a job he loves but wants to take more time off work to be around his growing family. Phil has reached financial freedom. He has plenty of money in his retirement accounts, a short-term rental property portfolio paying him a median-income salary, and lots of cash on hand in case he runs out. He’s also got a job that makes him a stellar salary and has the flexibility to allow him to increase or decrease his shifts as he sees fit.

Phil has done it. He’s found financial freedom and built a fortress of assets to hold up his lifestyle for the rest of his life.But, the idea of walking away from work is stopping him from taking the time off that he needs. With such high pay and work that gives him meaning, how can Phil slowly start stepping away from work without sacrificing his identityor ability to help others? This is a struggle for many who have hit financial independence, and you, too, may face the same dilemma in the not-so-distant future!

In This Episode We Cover

Building multiple income streams so you can reach financial freedom faster

Giving up the high-pay of a skilled job to spend more time with your family

When to pay off your properties and whether living mortgage-free is worth it

Transitioning out of a career and why stepping away from work is more complicated than it seems

Building your ideal post-FI life (even if that means working!)

The “middle-class trap” and why over-investing in retirement could be a mistake

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding