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Most people worry about running out of money in retirement.
And fair enough too. Nobody wants to leave work, only to end up stressed about money.
But I think this fear is much bigger than it needs to be.
In this week’s article, I explain why the factors at play are much bigger than your portfolio. I cover:
— Why the 4% rule is very conservative for many people
— The idea of “flex rate” and why it matters
— The backup plans available if markets get ugly
— How to think about retirement risk more realistically
— A simple exercise to work out how much flexibility you have
If you’re worried your money won’t last, this should give you a lot more confidence.
Read: How to Never Run Out of Money in Retirement
STRONG MONEY PODCAST
So many people are obsessed with their house or rental property going up in value.
But equity is not freedom. This thinking keeps people trapped in the workforce far longer than they need to be.
The truth is, you can have millions in wealth, but unless it’s parked in the right places, it could mean nothing for your ability to leave work.
I break this down with real-life examples.
🎧 Listen here on Spotify, Apple, or on the website
📄 Read the article version here
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AUSSIE FIRE PODCAST
How should investors handle periods of war? Keep investing and ignore everything? Sell and wait for things to calm down? Or somewhere in the middle?
In the latest pod, Hayden and I look at how share markets have handled major wars throughout history, and what lessons we can learn.
The data is pretty interesting and definitely not what most people would expect. I was honestly pretty surprised reading through it myself.
🎧 Listen now on Spotify, Apple, or on YouTube
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THOUGHTS OF THE WEEK
Personal responsibility is the most despised concept in the modern world. It’s also the only thing that will genuinely change your life.
The whole goal of investing is getting to the point of ‘enough’. But this does not mean you reject additional money. It means you no longer sacrifice your time, energy, and peace of mind for the sole purpose of getting more money.
You’re only as rich as the life you can afford without working. By that measure, most people are broke AF.
CLASSIC ARTICLE
Something about the recent budget brought out people’s strongest underlying beliefs.
One of those, which I came across a few times, was the idea that people shouldn’t be allowed to live off their wealth and retire early.
The argument is that if you’re able-bodied, then working is your moral obligation to society (and the economy) – even if you can afford not to.
This is the most anti-freedom mindset I have ever heard and I find it disturbing. Some people believe financial independence is immoral.
I wrote about this years ago, after a conversation with an emailer who said my content and message was bad for society 🙃
