Created: January 25, 2019
Modified: June 7, 2023
Defining Financial Independence
[3:22] – Independence From Government Assistance Is A Good Thing.
- We’re not saying the government’s bad, but it’s good not to have to rely on Uncle Sam. Having independence from government assistance gives you the freedom to choose how you want to be cared for in retirement.
[5:22] – Achieve Financial Independence From Family.
- Simply put, you don’t want to have to rely on your children to take care of you in retirement. If you spend too much on them now, you’ll be relying on them later.
[6:30] – Don’t Rely On Your Job.
- It’s a freeing feeling not to have to rely on your job for a paycheck. Continue working or start a second career because you find your work to be fulfilling, not out of necessity.
[7:58] – Independence From Wall Street Is Desirable.
- Hear us loud and clear. We’re not saying you need to take your money out of the market when you retire. Instead, we’re suggesting a change in perspective. Your income shouldn’t be dependent on the market in retirement. We don’t want you to have to cut your paycheck simply because Wall Street has had a bad day.
[14:40] – The Drawbacks Of A 401(k).
- The 401(k) is a wonderful tool for building wealth, but it’s not the best fit for everyone. Joel shares examples of instances in which a 401(k) might not be for you.
[15:14] – If Your Employer Doesn’t Match Your Contributions, Your 401(k) Becomes Less Appealing.
- Don’t miss what we’re saying. For most people, the 401(k) is a great tool for building wealth. However, if your employer doesn’t match your contributions, you could do better with that money in other places.
[16:49] – Are Future Tax Increases Worrying You?
- If so, perhaps the 401(k) isn’t for you. After all, tax rates are at historic lows right now, and 401(k)s are tax-deferred accounts. This means if taxes rise, you could find yourself with a hefty tax bill when the time comes for you to withdraw from your 401(k).
[18:41] – Don’t Leave Your Money Behind.
- If you’re leaving your company, consider taking your money with you. Roll that 401(k) into an IRA or somewhere else.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
How Do I Get Out of Debt Fast?
Most people with debt want to get out of it quickly and efficiently. To do that, you first need a clear understanding of your financial situation. Second, you need a clear, actionable plan. In … -
Why Do I Need to Account for Inflation in Retirement?
Today’s question is: What is inflation and why is it important to account for in my retirement plan? Inflation is the rising cost of goods over time. Meaning, it will cost you more money next year… -
How Does a Tax Return Work?
As tax season concludes, it’s a good time to refresh your tax knowledge. In this week’s Money Wisdom Question Series, Ian Fergusson, RICP® discusses how filing your taxes works and why it’s essen… -
What Is a Fiduciary?
When it comes to managing your money, trust is everything. That’s why today’s question is one of the most common and important ones we receive: What is a fiduciary? In this week’s Money Wisdom … -
Podcast Episode 403: How to Approach Finances in a Second Marriage Later in Life
Getting engaged later in life is an exciting time, but it requires different financial planning conversations. With blended families, different retirement timelines, and evolving goals, couples in… -
Podcast Episode 404: Financial Goals You Shouldn’t Overlook
When it comes to preparing for retirement, most people focus on the obvious goals of saving enough and building an emergency fund. But in this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and … -
Understanding Retirement Planning
Planning for retirement isn’t just about saving – it’s about making smart financial decisions at every stage of life. A better understanding of the financial industry can help you avoid costly mis… -
Most Asked Social Security Questions
It’s no question that Social Security plays a crucial role in retirement planning, helping to provide a stable income stream for millions of recipients. In this week’s Better Money Boston with … -
Can I Get ‘Out’ of a Fixed-Rate Vehicle?
When you lock into a fixed-rate vehicle like a CD, fixed annuity, or fixed-indexed annuity, you’re committed to a specific interest rate for a set period. But what happens when after a few years, … -
Podcast Episode 402: How Often Should You Meet with Your Financial Advisor?
A good relationship between a client and their financial advisor relies on clear communication and regular check-ins to ensure everything is on track. In this episode of the Money Wisdom podcast, …
