Hey everyone! Did you have a good month? November was an interesting month. We had the Presidential election in the U.S. and emotion ran high. I was disappointed with the result, but that’s life. You win some, you lose some. I’ll be on a news diet for the next 4 years, though. I don’t need the endless drama. The rest of the month was pretty good. I kept busy with classes and shuttling RB40Jr around. We ended the month with a nice relaxing Thanksgiving week at home. On the personal finance side, November was rough. I spent a little more than usual due to Black Friday. Also, our FIRE income was lower than normal. As a result, we had a big negative cash flow month. We’re still okay for the year, though. I’ll add it all up next month. On the positive side, our net worth increased quite a bit due to the stock market. 2024 is turning out to be a banner year for investors. Alright, I’ll share how I’m doing with my New Year goals. Then, I’ll go over our net worth and cash flow. Let’s go! 2024 Goals Here is my 2024 goal spreadsheet. It works well. Try it out if you can’t keep up with your New Year goals. The key is to review the spreadsheet monthly to track your progress. That way, you can see which goals need extra attention. 2024 is almost done. Let’s finish strong! Financial Goals FI ratio > 100% The FI ratio is passive income divided by expense. If you can generate enough passive income to cover your expenses, then you’re set. For 2024, I reduced this goal to 100%. We are getting older and I feel we can spend a bit more. After 11 months, our FI ratio is 110%. Not bad!   *FI Ratio = passive income / expense 3% Rule Everyone is familiar with the 4% retirement withdrawal rule, right? Basically, you should have a successful retirement if you withdraw less than 4% of your investable assets annually. Let’s see if we can spend less than 3% in 2024. This is a good way to test your retirement readiness. I’m calling this one. We spent way below 3% this year. We didn’t do any home improvement projects, though. Track net worth and hope for +10% I’ve been tracking our net worth since 2006. It’s great to see the progress. This year, I’d like to see 10% gains. At this point, the gain is completely dependent on the stock market and there isn’t much I can do to influence this goal. I’ll just track it and keep my fingers crossed. Our net worth gained 22.1% this year. That is insane! I haven’t seen this kind of gain for years. Health Goals Exercise 3x per week Now that I’m 50, health is job 1. I need to exercise consistently so I can stay healthy longer. I joined a gym and plan to exercise at least 3 times per

You gotta sell shares to not sell yourself short. Oh, the irony. This week I published a very popular (and unpopular) post on Seeking Alpha. The post showed how a retiree could greatly increase their income by selling shares of the popular ETF – Schwab’s SCHD. A retiree might boost the spend rate by 30% to 50% or more by combining dividends with homemade dividends. By homemade dividends I mean share sales, of course. When […]

A more in-depth talking head version of this article is available on YouTube (view below).  I chased early retirement for almost two decades. My early retirement goal made me a disciplined saver and investor, but I wholeheartedly believe early retirement is the wrong goal.  This is humbling to write. In this article, I’ll provide three… The post Early Retirement is the Wrong Goal appeared first on Retire Before Dad.

How do you know when to fire your financial advisor? Breaking up is hard, especially when it means letting go of a long-term member of your Money Team. And what if your financial advisor is a friend or even a family member? In this podcast episode, which is Part 2 of Hiring and Working with a Financial Advisor, I’ll cover how to make a good choice when hiring an advisor, tips on cultivating a positive long-term relationship with them, and red flags that are sure signs of when to fire an advisor. Let’s dive in! [embed]https://youtube.com/watch?v=RYTsyw653xk&feature=oembed[/embed] Ask Good Questions in the Hiring Process Asking good questions when you hire a financial advisor means you’ll be less likely to fire them in the future! Treat it like a job interview – because it is (and you’re the boss)! This person is auditioning for a part in the production called “Your Money Team!” Interview at least two advisors, and be sure your spouse or partner is involved in the process. The top three questions you MUST ask in the hiring process are: “How do you get paid, and what am I getting for the fee?” “Do you have clients just like me, in similar life situations?” You don’t want to be your advisor’s “unicorn.” “Do you follow a fiduciary standard?” A fiduciary must always act in the best interests of his or her clients and place clients’ best interests before his or her own. When making your final decision, look at the facts AND trust your gut. Use FINRA’s Broker Check to make sure your advisor isn’t in any legal or financial trouble. FREE RESOURCE ALERT! Download my handy checklist of the 10 Questions to Ask Your Next Financial Advisor to take to your interviews! Are your spiritual beliefs affecting your financial health? And NOT in a good way? Cultivate a Positive Long-Term Relationship with Your Advisor Meet and communicate regularly with your financial advisor! Be honest with them about what’s going on in your finances and your life. Share family and life situations, along with your feelings about money. Financial decisions can change based on these factors. The more information they have, the better job they will do for you. Ask them questions when you don’t understand or need clarification. He/she should be happy to help educate you and recommend resources to expand your knowledge. When to Fire Your Financial Advisor If you feel brushed aside, ignored, or disrespected, these are big red flags. If you ask questions or challenge a recommendation, and it’s met with defensiveness, dismissiveness, or talking in circles, that’s a problem. (That’s exactly what happened to one of the members of the Wealthy Woman Book Club. Watch or listen to the episode to hear her story.) Beware of advisors peddling “once in a lifetime opportunities,” which are the “next Apple or Amazon.” Be careful with investments where money is invested outside of your brokerage account. Yes, the advisor is the expert