Here’s a quick Saturday note: Jacob and Darlene, both within a stone’s throw of 62.
Darlene just retired and Jacob is thinking about hanging it up. They’ve achieved financial independence by all reasonable definitions.
While they never made seven figures (annually) or hit a 100x return on a penny stock, they slowly saved, invested, and experienced the incredible miracle of compounding over the years.
Jacob essentially built the families’ wealth in a brokerage account by owning a hand full of blue-chip stocks, reinvested dividends, and monthly contributions; he maintained this for many years. Those who know Jacob know this level of discipline is not at all surprising, at almost 62, he runs triathlons and regularly attends CrossFit style workouts.
Together they have no debt and $2M+ liquid net worth. A great way to enter retirement!
As we got to know Jacob & Darlene as new Know My Plan clients, they shared their retirement plan, which included selling their house for $800,000 and buy another home in Eureka Springs, Arkansas. They enjoyed the artistic and historic feel – the wind streets and Victorian architecture.
Time goes on. Nothing quite fits. Until…
“We’ve never splurged for anything in 40 years of marriage; can we afford to buy our perfect house for $1.2m?”
Deep down I could tell they knew the math worked, but it was evident they wanted an independent sounding board to come to this conclusion without their influence.
We went to the whiteboard, ran through the numbers, and we gave them the green light. What fun is it to save for 40 years of marriage and NOT get the dream house?
Many mistake financial planning as a process of reducing one’s lifestyle and consumption.
I think it’s really the exact opposite. I’ve found that financial planning really helps people identify how they went to steward their assets to what is most important for themselves and their loved ones.
Saying yes to planning might just mean saying yes to a lot more things on your bucket list.
–Nic
Please note – names, locations, and dollar amounts have been changed to protect all of those involved.
