Redefining Early Retirement

Protecting Your Finances During COVID-19

Have you ever dreamed of retiring early? Or wondered what your life would be like if you didn’t have to work a 9 to 5? An increasing number of people are redefining what retirement means for them.

In this episode of Protecting Your Finances, Karen Boothe from Engage Forward is chatting with Heather Culp and Kim Edwards about the FIRE (Financial Independence Retire Early) movement.

Using FIRE principals, Kim accomplished her goal of retiring before the age of 40. In this episode she shares her take on whether anyone can accomplish FIRE or if there are only specific situations that allow people to achieve FIRE.

According to Kim, there are a lot of ways that people can achieve FIRE including real estate, stock plans, and pension plans if this is something that they want to pursue. With this in mind, to achieve FIRE it’s important for anyone to be aware of what that final dollar amount is that they need to retire.

If you think FIRE might be a financial goal you want to aim for, you have to have a plan. You can start by identifying the amount you want, what age you can get there, and how you can get there sooner. An important aspect of FIRE is being aware of what you’re willing to give up to get there.

Featured on the Podcast

Name: Heather Culp

What she does: Heather is an attorney at Essex Richards in Charlotte, North Carolina. She and her colleagues have significant experience helping North Carolinians, their businesses, and their families through their financial challenges. Heather has over 20 years of experience and has helped clients navigate the 2008 recession and rebuild.

Name: Karen Boothe

What she does: Karen is the Founder of Engage Forward LLC. Engage Forward exists to consult and educate all clients about how to obtain sustain and maintain financially healthy lifestyles. Karen is committed to helping her clients to develop and transform into a better version of their current state.

Name: Kim Edwards

What she does: Kim, a former e-commerce executive, retired from her career early at the age of 39 and now spends her time traveling, investing, and learning. Previously, she served in executive level roles at Wayfair, Converse, and management level roles at Amazon and Walmart.

💵 Key Takeaways 💵

Top takeaways from this episode of Protecting Your Finances During COVID-19

➔ Pursuing entrepreneurship doesn’t guarantee success. Starting your own business can have more hidden risks than some people realize. There are a lot of benefits to working for an employer, including retirement savings and health coverage. If you do decide to pursue entrepreneurship, be fully aware of what you’re getting into before you quit your day job.

➔ Consider the 4% rule. Kim explains how she uses the 4% rule for her own FIRE retirement — she spends only 4% of her investment portfolio on her living expenses each year. With most stocks and investments growing at a rate that is higher than 4% this means that her overall portfolio still grows year after year.

➔ Having a plan is key. Having a clear financial plan is key to achieving FIRE, you need to know where you’re at and how you can get to where you want to be. This includes being aware of what you’re willing to sacrifice and how you’ll adjust to bumps in the road along the way. If FIRE is not for you, you still need to have a plan for how you’ll get to retirement.

💡 Episode Insights 💡

[02:03] High income salaries not always required: Kim shares how high income salaries are not the be all and end all to achieving FIRE. She recognizes that earning potential can fluctuate throughout someone’s career.

[03:50] Calculate your number: Knowing the number you have to get to for retirement helps you plan for FIRE and identify your gaps. Kim uses the 4% rule to determine what she can withdraw from investments in her retirement.

[07:25] Consider your changes: FIRE might not be for everyone, knowing what changes you’re willing to make including having a smaller family, living in a city with a low cost of living, or changing your lifestyle are all considerations to make.

[13:25] Work hard and plan well: We can’t all retire before 40, but as long as you’re making a living wage, you should be able to reach a comfortable retirement goal if you plan ahead.

About the Podcast

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For more information, you can visit Essex Richards at www.essexrichards.com. You can reach attorney Heather Culp at [e-mail] or 704.377.4300 and Karen Boothe at [e-mail] or [phone].

This podcast was recorded and is being made available by Essex Richards and Engage Forward for informational purposes only. By accessing this podcast, you acknowledge that Essex Richards and Engage Forward make no warranty, guarantee, or representation as to the accuracy or sufficiency of the information featured in the podcast because laws, regulations, and policies are changing every day. The views, information, or opinions expressed during this podcast series are solely those of the individuals involved and do not necessarily reflect those of Essex Richards or Engage Forward. This podcast should not be used as a substitute for competent legal or financial advice from a licensed professional in your state and should not be construed as an offer to make or consider any investment or course of action. You should direct any specific legal or financial questions to a legal or financial professional licensed in your state. You should direct any specific legal or financial questions to a legal or financial professional in your state.