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Listen to Money Wisdom with Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® and gain key financial insights to help you make informed decisions for your future. Jake and Nick aim to provide clarity and guidance, addressing your questions and shining a light on the real financial challenges facing today’s retirees.
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  2. Declare Your Financial Independence

Declare Your Financial Independence

Mar 22, 2019

Declare your independence from Uncle Sam, your paycheck, and market volatility. Discover how to live freely with peace of mind in retirement.

What You'll Learn:

1:53 – A Fun Fact Of The Week.

  • On Good Friday in the year 1930, the BBC reported, "There is no news." Instead, they played piano music throughout the podcast. Imagine that happening today!

3:06 - What Is Financial Independence?  

  • We want you to have financial independence in retirement. We don't want you relying on others, and we especially don't relying on the government to take care of you. Don't depend on the government for nursing home care. Maximize Social Security, but don't rely on it. Declare independence from Uncle Sam.

6:24  - You Must Be Emotionally Independent.

  • Retirement is also a mindset, and you have to be emotionally ready to retire. True independence from employment means you don't HAVE to work. Get debt-free, and generate an income plan. Continue working only because you want to work.

7:40 - Be Independent From The Stock Market.

  • No, we're not telling you to take your money out of the stock market. Instead, we're telling you not to rely completely on the stock market. If your income will dive in retirement as the market falls, you need to adjust the amount of risk in your portfolio. Don't be a victim to something you cannot control. Achieve financial independence from Wall Street.

11:40 - Should You Take Advantage Of Your Employer's Offer To Buy Company Stock At A Discounted Price.

  • Historically speaking, most of our clients who have done that have done well. However, you don't want to rely solely on your company stock doing well. Buy it as an added benefit to your portfolio. Don't base your portfolio on your company stock.

13:45 - Your 401(k) Might Not Be The Best Place For Your Money.

  • Yes, it's a wonderful tool, and most of you should continue to fund it. However, if your employer doesn't match your contributions, you might need to consider investing elsewhere.

15:54 - If You're Worried About Tax Hikes, A 401(k) Might Not Be For You. 

  • Taxes will most likely increase in the future, and 401(k)s are tax-deferred. This means you'll have to pay taxes on your 401(k) withdrawals when you retire. If you're worried about tax increases, consider alternatives.

17:44 - If You Leave A Company, Take Your Wealth With You.

  • Don't leave your 401(k) with your old employer when you retire or move to another job. Consider a 401(k) rollover. Transfer your wealth to an IRA, and give yourself more investing options.

Final Thoughts:

"We want to be independent. We do not want to be over-reliant on the stock market for our returns in such a way where we're victims to something we cannot control."  - Joel Johnson

Additional Resources:

ScheduleYour Money Map Review: http://retire.johnsonbrunetti.com/contactjohnsonbrunetti

For further exploration of this topic and additional resources, check out our blog here: https://johnsonbrunetti.com/declare-your-financial-independence/