Early Retirement

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Giving Up What You Love

By Keith Taxguy / June 28, 2016 / 2 Comments

Financial independence means you can indulge your dreams. By 1995 I had reached a level of net worth where I could realize many of my dreams. Coming from an agricultural background I wanted to move back to the country and have a small farm. Ten acres with a house and barn came up for sale a mile from where I grew up. My dream was now owned.

In 1982 the family farm went through a wrenching bankruptcy. I was eighteen and had no future. Everything I knew related to farming. The pain etched a deep wound in my psyche that never went away. My desire to live in the country was not the whole dream. I had to own a small farm. In my mind I had to understand why the family farm died when I was at such an impressionable age.

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Passive Income Hoarder

By Keith Taxguy / June 25, 2016 / 3 Comments

When it comes to passive income I have an edgy side as the title indicates. Multiple streams of income showing up in your account regardless what you are doing is a powerful force to have on your side. Losing your job is only an issue if your job is the bulk of your income. Business owners know the loss of one client out of hundreds is no more than an annoyance. You can harness the same force in your finances.

Before I list the sources of passive income I have, let me share a short story that happened to me recently. Certain sources of passive income are offered to small groups only. I was fortunate enough in my business to have one of these sources. Mr. Money Mustache, a personal finance blogger named Pete, gave me a plug, including a plug for this new source of passive income. I did not expect a lot. When the numbers were finally tallied I was surprised. The revenue was much higher than I calculated. I shared the info with Pete along with traffic data. He responded with an email saying, “Welcome to the world of passive income.” It started me thinking about all the sources of passive income I have and how passive income cements my finances regardless of the economy or my business.

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Words: The Power to Create or Destroy

By Keith Taxguy / June 21, 2016 / 0 Comments

They seem so small and harmless: words. Yet words can create great beauty and wonderful works while at the same time destroy relationships, ruin happiness, disrupt wealth, even bring down empires. Words are a means to communicate. The accuracy of our words makes the difference between building great things and fantastic disasters.  NASA’s Mars Climate Orbiter failed in 1999 because engineers did not convert English measurements to metric. A word left unsaid wasted $125 million and countless hours of work.

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Financial Planning and the Death of a Spouse

By Keith Taxguy / June 15, 2016 / 0 Comments

There are critical times in the course of life when financial independence is at risk of destruction. A lifetime of planning, saving, and investing can go up in smoke in a few short years without an adequate plan to protect the most vulnerable member of a marriage (or any relationship, for that matter) after the death of a spouse or loved one. The trauma and grief after a loved one dies is acute. Deep pain and emptiness creates risks for the surviving spouse. Well intentioned, and lonely, people will try to connect with the bereaved. A couple committed to a lifetime of financial discipline will acquire a massive nest egg of retirement wealth. The surviving spouse is a prime target, a highly desired, person for this reason. Even people with honorable intentions can wreck havoc on the surviving spouse’s finances.

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Camp Mustache III Roundup

By Keith Taxguy / June 4, 2016 / 8 Comments

There is a raggedy band that gathers in the hills east of Seattle every year over the Memorial Day holiday in the States. From around the planet they gather, each with their own unique story. I was one of those stories.

Camp Mustache III was a resounding success again this year as Joe, Kristin, and Emma put together a hell of a program. Camp Mustache is a gathering of like minded people focused on financial independence and early retirement. Pete Adeney is the guest of honor as Mr. Money Mustache.

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The Power of Knowledge

By Keith Taxguy / May 23, 2016 / 0 Comments

Many years ago a young man entered my office wanting to see me. He had a fan folder filled with documents and needed his tax return prepared. In a weak moment I allowed him a meeting without an appointment. As I always do with a new client, I started to ask questions. It is my firm belief that you must know your client before you can help him.

Opening a file for a new client requires their Social Security Number. He questioned my need for this information. I explained how I cannot even open a file for him without the SSN. He grudgingly provided the number. As I continued asking questions to understand my new client I was met by a wall of resistance. Finally, the young man had had enough of my questions. He informed me I was on a need to know basis, to which I replied, “You need to know you need to leave.”

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The Retired Workaholic

By Keith Taxguy / May 10, 2016 / 0 Comments

There are certain characteristics common among people who achieve early retirement. Saving and investing are a serious part of the lifestyle of an early retired individual. Another common strait is a nervous energy to get things done. People who retire early, or at least can, tend to work hard and save.

I am an unusual type of retired person. Travel does not interest me, nor does sitting around. Like many people headed for an early retirement, or already there, I am full of pent up energy and filled with ideas and full of curiosity. So the question begs asking: What do you do once you are retired?

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Finding Balance in the FIRE Lifestyle

By Keith Taxguy / May 5, 2016 / 10 Comments

In the beginning it is hard to tell if you love your work because you have to work. That is why we preach early retirement here; not to bow out of life as soon as possible, but to live the life you want. Once you have amassed a large enough nest egg you are retired even if you chose to continue working your job. FIRE allows you that freedom.

Once you have moved beyond the need to work a job many people continue to do so. Self-employed people are the worst. I know, I’m living it! Just because you can quit doing what you do to earn income does not mean you should. If you enjoy the work environment, co-workers, clients, and the work itself, why would you quit? There is no shame in doing what you love as you work toward financial independence and even afterwards.

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