Financial independence Sucks! So, I said it. It sucks. It makes your life needlessly complicated. It pretty much creates more problems than is solves. Okay, first world problems, but problems nonetheless. Freedom It starts out so nicely, enough money to live life and do your thing. No job needed. Time for you…. but that is when it starts! What is that “thing”. You suddenly don’t have to think about needing to go to work. It’s great that you can forget what non-work atire should look like. But it’s easy to start developing an identity crisis. What shall I do, what can I do, what should I do? Is there anything I need to do? Life suddenly get’s really hard! Especially for someone in the second half of his/her life who doesn’t know what he/she wants to do when they grow up. Financial Independence Sucks! – Enter Keuzestress “Keuzestress” “Keuzestress” or freely translated “the difficulty to make a decision due to many available options”. That is what FI is, too many choices. Shall I Iive here, or on the other side of the world. Shall I work for fun, or shall I become a volunteer, or both or nothing at all?! Is my calling maybe to become en entrepeneur. But if it is, what shall I do? Or shall I start my own (small) farm and be self-sustaining? About that, what shall I do for lunch today? Shall I go out, or make something at home. Sooo many choices to make, all day long, every day! It’s overwhelming, so much kezestress. Or shall I solve the whole FI problem and buy a boat? Gosh, don’t you hate first world problems? Hope to see you all on Sunday in Leiderdorp, so we can discuss these first world problems! The post Financial Independence Sucks! appeared first on Cheesy Finance.

The retirement account landscape seems like a mish mash of acronyms – 401(k), IRA, HSA, etc. If you’re new to this, as I was when I first started working, it can be overwhelming. Fortunately, there is an order of operations when it comes to saving for retirement. And it’s an order that works for everyone, regardless of your income or status. You may not have access to every type of account on the list but that won’t change the order, you’ll just skip a step. As long as you follow this order of contributions, you’ll be in good shape. Here it is: Contribute to a 401(k) up to the company match Contribute to a Traditional or Roth IRA to the annual limits Contribute to a Health Savings Account Contribute to a 401(k) up to the annual limit Contribute to a SEP-IRA Contribute to a taxable brokerage account Remember, you may not have access to each account (or you may have a different type), but if you follow this order you will be in shape. Table of Contents1. 401(k) up to match2. Traditional or Roth IRA3. Health Savings Account4. Maximize your 401(k)5. SEP-IRA6. Taxable Brokerage Account 1. 401(k) up to match 2025 annual contribution limit: $23,500 Many employers offer a retirement account match to incentivize you to save towards retirement. These are defined contribution plans and the most common is a 401(k) and 403(b), which is for non-profits and educational institutions. You will want to contribute as much as you can up to the match. My first employer, Northrop Grumman, offered a 50% match on the first 6% of contributions. This meant that by contributing 6% of my salary, Northrop Grumman kicked in an additional 3%. Be sure to review the vesting period if you intend to change jobs. A vesting period is how long you have to wait before the employer match is yours to keep. Your contributions are always yours to keep. 2. Traditional or Roth IRA 📝 The IRS defines an IRA as an Individual Retirement Arrangement but everyone calls it an Individual Retirement Account, which is what I’ll be doing throughout this article. It’s a difference without a distinction. 2025 annual contribution limit: $7,000 2025 catch-up contribution for ages 50+: $1,000 After the 401(k) and the free money, you will want to contribute to an Individual Retirement Account (IRA). It comes in two flavors: Traditional IRA – Contributions are tax deductible and the account grows tax free but you are taxed when you withdraw funds in retirement. Roth IRA – Contributions are not tax deductible (after tax) and the account grows tax free and you are not taxed when you withdraw funds in retirement. Each type has an annual limit, which is shared, and there are also contribution limits based on your income. You will have to determine which is best for you but the Roth IRA is a very attractive account because it grows tax free and

Peter Attia is a doctor, scientist, author, and all-around health advocate. His “Centenarian Decathlon“ is a framework that asks: “What 10 physical tasks do I want to be able to do at age 100?” Lofty stuff! From there, Attia works backward, identifying the strength, mobility, and endurance needed today to meet those goals in the future. This “decathlon” reframes fitness as preparation for longevity and independence, not aesthetics or performance. The idea is simple: train today for the functional life you want decades later. Can we do the same thing for retirement? What are the 10 most important aspects of a financially sound retirement, and how do we start preparing for that future today? The 10 Items In My Retiree Decathlon What matters in retirement? It’s crucial to focus on family, lifestyle, purpose, and all the other “soft” aspects of retirement. Episode 106 of my podcast focuses heavily on this side of retirement. In fact, most post-retirees realize that the “soft” stuff is more important than the financial “nuts and bolts.” Nevertheless, I want to focus on finances for this retiree decathlon. I want this to be about the 10 “nuts and bolts” tasks we should start today and work on throughout retirement. So let’s stretch those financial hamstrings and get fit! 1) Understand Your Future “Paycheck” Your cash inflow during your career is easy to understand. It’s (mostly) your paycheck. Simple. But, obviously, there’s a significant change in retirement. No more paycheck. All pre-retirees should understand where their future “retirement paycheck” will come from. Some people assume it’s 100% from Social Security, and others assume it’ll come 100% from their 401(k) savings. The truth is (usually) more nuanced. Your retirement paycheck will likely have multiple sources. It will change over time. It will be unique to you. It should be optimized for lifestyle, long-term sustainability, tax minimization, etc. Even if you’re years away from pulling the retirement trigger, it’s not too early to consider where your retirement paycheck will come from. (PS – this free downloadable dives into more detail) 2) Allocate and Build Your Portfolio “Save more.” Yep, that’s fine advice. But it behooves all of us to dig deeper. How much should we save? How do we allocate those dollars into different asset classes (stocks, bonds, etc.), and why? What assumptions should we make for future returns on investment? How will our allocations and growth assumptions change over time? (more in Step #7, below) Your portfolio will be a significant part of your retirement life. It might be the only part of your retirement paycheck for a few years if you plan on retiring early. 3) Understand Your Social Security Strategy On its face, you must decide when and how to claim Social Security for maximum lifetime benefit. But, yes, it’s more nuanced than that. I suggest asking questions like: What’s your family

It’s common to hear about an impending “retirement crisis” due to the modest levels of savings that most people have as they move into old age. And indeed, per the Federal Reserve’s SCF (Survey of Consumer Finances) data, the median person age 65-75 has $200,000 in savings (as of 2022, anyway). In other words, using the 3-5% retirement spending rates that people often discuss, the median retiree is looking at retirement income that could be […]

Hey everyone! It’s been 2 months since Mrs. RB40 retired from her career. Unfortunately, she is having a tough transition into early retirement. This is a typical experience for many early retirees. Most people don’t like changes, and retirement is a big one. Today, I bring you the view from the front row of the spousal early retirement show.   Loss of identity The biggest problem with early retirement is the loss of identity. One day, you’re an expert in your field. The next day, you’re a nobody lounging around in your PJs at home. It’s a big loss, and you need to adapt. Mrs. RB40 liked her job and didn’t really want to retire. She left because of a significant change in her organization. She felt useful and fulfilled at work. Now, she is rudderless. Unfortunately, her retirement was somewhat sudden, and she didn’t have a chance to prepare for the loss of her professional identity. When I retired from my engineering career, I had a couple of things lined up. This blog and a baby were waiting for me. I embraced my new role as a SAHD/blogger and never looked back. On the other hand, Mrs. RB40 didn’t have a chance to prepare, and the loss of identity is hitting her hard. Keeping busy I shared the secret to a happy retirement a while ago. You have to keep busy. If you have too much idle time, you’ll get bored and depressed. Now, I see that’s not the whole story. Staying busy isn’t enough. Mrs. RB40 has been very busy since she retired. She spent a ton of time in the garden, caught up on her hobbies, went to RB40Jr’s events, cooked, cleaned, rearranged the furniture, and more. However, I don’t think these are meaningful enough for her. IMO, she is busy, but she isn’t fulfilled. She probably needs to find a big purposeful project to dive into. Financial fears Mrs. RB40 is a frugal person, but she occasionally enjoys spending money. When she was working, she felt good about buying a new purse or going out to eat. Now that she doesn’t earn income, she feels guilty about spending on nonessential goods and services. It’s a big psychological change from making money to spending down your savings. That’s probably why I’m still trying to make money with this blog and delivery side hustle. My earned income is inconsequential, aka beer money. Well, I don’t drink beer anymore, but I just spent $65 on a LEGO set. My ceramic class also costs about $150/month. I can use my side hustle income on fun stuff, and I don’t feel guilty about it. This year, we also have some big bills coming up. We’re remodeling our kitchen, and RB40Jr’s Cochlear Implant surgery bill is hanging over our head. (We are appealing the insurance denial, but it doesn’t look good.) Mrs. RB40 is stressed out about these big expenses. I don’t think it’ll be a huge issue because we have

Yes, it’s time to announce the big one. It’s time for Utrecht on Fire – 2025 Edition! We (Ms Hoefnix and us) found and booked a venue on the western side of Utrecht (an old farm buidling) that can accomodate a large group of FIRE enthausiasts. We hope you want to join us too. For more details, please see below. When? Saturday November 15th, 2025 doors open at 12:30, program starts at 13:00. How Much? The ticket price is €20. This includes admission, fee for Eventbrite, drinks, snacks and a good time. In short, a steal of a deal! Utrecht on FIRE – 2025 Edition What to bring? Yourself (and partner, friend, family member, etc.) in good spirits, an open mind, desire to talk money, investing, life and FIRE. What? Albeit not all details and program content is decided yet (still looking for subjects and presentors), a rough outline is as follows: 12:30 – 13:00: Doors open 13:00 – 13:30: General Session & Introduction 13:30 – 17:15: Presentations, discussions and two breaks. 17:15 – 19:30: Drinks, Snacks & Chats! 19:30 – 20:00: Final drinks and clean-up (we have to be out by 20:00) Utrecht on FIRE – 2025 Edition Stuff to know Important stuff to know: The presentations and discussion sessions are in Dutch only! Location details are in registration link below. No lunch or dinner included in the registration fee. No admission at the door, online registration only. We will be discussing the program and are looking for a few more volunteers (to help with discussion sessions, presentations and help during the day) during the upcoming meetup in Leiderdorp on June 29th. If you are interested, please join or shoot us an email. The content of the day will be chose such that it includes something interesting for everyone, from beginner to retiree. Maximum number of participants is 90! Full = Full. No refunds. Registration? You can register for this already epic event here: Utrecht on FIRE – 2025 Edition Hope to see you on the 29th of June and/or the 15th of November! The post Utrecht on FIRE – 2025 Edition appeared first on Cheesy Finance.

When markets feel shaky or inflation dominates the headlines, it’s natural to start wondering whether you should branch out from the usual stocks and bonds. That’s when the term “uncorrelated assets” starts popping up. These are investments that tend to move independently from stocks and bonds, offering potential diversification benefits. But when it comes to retirement planning, is uncorrelated always better? Let’s take a closer look at two commonly discussed uncorrelated asset classes: natural resources […]

We can do two things simultaneously: accept our current circumstances and strive to improve. Read our terrific retirement links and become enlightened. Don’t fall for these six retirement myths. Morningstar Lifespan and healthspan are two different things. Advisor Perspectives Everything ends. Finding Joy You shouldn’t call yourself rich unless your hands are clean. Ryan Holiday Facing the truth is a superior…The post My Ambition Is To Have Ambition…..When Is My Retirement? appeared first on A Teachable Moment.