If you read the about section, you’ve gotten a picture of who I am. I started RCG in hopes to spread some financial literacy wherever I can. Whenever possible, I would like to tie my messages, tips, and tricks etc. back to the overarching theme of retiring early. It took only one week of sitting at a desk working 40+ hours a week for the milennial in me to know that this wasn’t it. 40 more years of commuting, lunch breaks, asking if it’s okay to take a vacation – not for me.
Thank God for this realization, all of my research has concluded that with considerable effort and focus, I could absolutely retire in 15-20 years. If not less. This blog will detail the lessons I’m learning as I navigate three things: corporate America, a side hustle, and I suppose life. Each of these things ties in to my journey towards an early retirement in its own way. I’ll do my best to share the things I’ve learned thus far, maybe it will help a person or two!
Perhaps I should have started with this, I’d say that my writing skills are somewhat hit or miss. My very kind and smart wife generously proofreads my Instagram posts & Tweets when she sees them, and let’s just say my grammar is usually lacking. I have decided it would be best to not task her with the painstaking job of proofing these blog posts, so please forgive the (likely many) grammar & spelling mistakes you may come across. I have no set schedule as of yet for how often these will come out, but feedback is welcomed & encouraged.
Moving on I would like, ideally in each post here, to provide some sort of value to anyone generous enough to take a few minutes to read. To start, I’ll throw in a thread I Tweeted recently detailing how I handle my personal retirement savings and explain it in slightly greater detail. Every situation is different, I am not an advisor and this material is only for educational purposes. I hope this example helps!
This is, again, just what works for me in my current stage of life. Hitting some of the high points, if your employer matches contributions to an Employer Sponsored account, that is quite litereally free money and you usually want to take advantage of free money. From here, many jump to HSA’s. I have not personally made this step yet, but intend to once I reach the next step in my career. Health Savings Accounts have many rules, but are an absolute wealth/retirement hack (a triple tax advantaged one at that) so I look forward to further educating myself on all of the rules and specifications. Preliminary research makes me a fan for sure.
The single most important part of my retirement plan (to me) after 59.5 years of age is my Roth IRA. I started this account shortly after graduating from college, and at the rate I’ve been able to grow the account I will be able to theoretically stop contributing in my early to mid 30’s and let compounding take over. Pending decade long bear markets, that account alone will grow to an amount large enough to fund my retirement post 59.5 (tax free I might add). Of course, I would never actually leave myself and my family depending on only one stream of income (how foolish that would be). I intend to roll my traditional 401(k) into a traditional IRA once I reach my early retirement age (TBD) and let that grow as well. Tax free growth is nice with traditional accounts, but I will have to pay income taxes upon taking distributions and I will also have to contend with Required Minimum Distributions (RMD’s) upon reaching the age of 72.
Once I have contributed to those accounts, I put all remaining income into my taxable brokerage account. This is what will actually pay my, “salary” from the day I retire early until I am 59.5 (and if things go as planned, I will not exhaust those funds by that point in time either). I’ll probably dive further in to that at some point. I’ve said it before and I will say it again, personal finance is personal and this is what works for me! I highly suggest you do your own research and see what does/doesn’t work for you, and even would encourage you to scrutinize my strategy as I do not have all of the answers.
Again, thank you for taking the time to read this first post. Hard to say how frequently these will come out at this moment, but check back often!
If you ever have suggestions, comments, or questions, do not hesitate to reach out!