Early Retirement Resources 8/28/2023

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This week I start with a focus on the idea of determining how much is enough and learning to spend joyfully once you’ve reached that point.

Online retirement resources

Resources address what many people think is hard about investing and retirement planning…. building and managing a portfolio. We also address what I think is the real challenge, understanding the complex tax laws that govern different account types and other sources of retirement income and putting all the pieces together.

I close out with some positive spin on higher interest rates….

How Much Is Enough?

Ben Carlson makes a data driven argument that You Probably Need Less Money Than You Think For Retirement.

Christine Benz spoke to Manisha Thakor about the societal and psychological factors that make Finding Your Enough challenging.

Spending Once You Have Enough

Mark Trautman shares the perspective of an early retiree who saved more than enough, realized it, but still had problems spending in early retirement. His solution…. The Fun Bucket.

Timeless Investing Advice

Investing success largely comes down to creating a reasonable plan that makes sense for you and having the conviction and discipline to stick with it. Why is that so hard?

Jason Zweig opines, “One of the main reasons we are all our worst enemies as investors is that the financial universe is set up to deceive us.” He writes Saving Investors From Themselves.

Portfolio Construction

Larry Swedroe explains Why International Diversification Is Still The Prudent Strategy.

If you get hung up trying to find the ever elusive “perfect” asset allocation, consider Mike Piper’s Fruit Salad Theory of Asset Allocation.

Understanding Account Types

More challenging than selecting a portfolio and managing your investments is navigating the complex tax rules and regulations that govern different account types. Last week I explained The Benefits and Drawbacks of Taxable Accounts.

Jim Dahle provided a novel approach as to How to Think About a Tax-Deferred Account.

Unfortunately, not all retirement plans offer the following feature, but I agree with Christine Benz that they’re a “no brainer for heavy savers who have access to them.” She writes The Time Is Right for Aftertax 401(k) Contributions.

A Hidden Tax

Social Security taxation is also unnecessarily complicated, which I explained earlier this year when I answered the question How Are Social Security Benefits Taxed?

Marjorie Kondrack argues that because the amount of income that determines how much of your benefit is taxed is not adjusted for inflation, retirees are Getting Squeezed.

One Size Doesn’t Fit All

A lot has been written recently about the negative aspects of high interest rates including plummeting bond values and challenges for new home buyers and virtually anyone else who needs to utilize debt.

Sam Dogen explains Why High Interest Rates Are Great For Most.

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[Chris Mamula used principles of traditional retirement planning, combined with creative lifestyle design, to retire from a career as a physical therapist at age 41. After poor experiences with the financial industry early in his professional life, he educated himself on investing and tax planning. After achieving financial independence, Chris began writing about wealth building, DIY investing, financial planning, early retirement, and lifestyle design at Can I Retire Yet? He is also the primary author of the book Choose FI: Your Blueprint to Financial Independence. Chris also does financial planning with individuals and couples at Abundo Wealth, a low-cost, advice-only financial planning firm with the mission of making quality financial advice available to populations for whom it was previously inaccessible. Chris has been featured on MarketWatch, Morningstar, U.S. News & World Report, and Business Insider. He has spoken at events including the Bogleheads and the American Institute of Certified Public Accountants annual conferences. Blog inquiries can be sent to chris@caniretireyet.com. Financial planning inquiries can be sent to chris@abundowealth.com]

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