March 24, 2025 • 19 mins
Dreaming big and being intentional about planning for retirement can be the difference between merely surviving and truly thriving in your post-work years.
• Retire TO something, not just FROM something
• Test-drive your retirement dreams before committing fully, like renting in a new state before buying
• Be honest about how retirement will change your spending habits and social dynamics
• The first few years of retirement are critical – don't be too frugal when you have health and energy
• Spend generously on things you truly value and remain frugal on things you don't care about
• Put your retirement dreams into financial planning software to see if they're achievable
• Consider what would feel worse – spending too much or having regrets at 85 about not spending enough
• Dream big and think intentionally about what will make retirement fulfilling
Before executing any strategy discussed in this episode, please consult with your financial advisor, tax preparer, or estate attorney. This content is for educational and informational purposes only and should not be construed as financial advice. Submit questions at earlyretirementpodcast.com for consideration in future episodes.
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Ari Taublieb, CFP ®, MBA is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.
“Early Retirement – Financial Freedom” is a podcast produced by Root Financial Partners, an SEC-registered investment adviser. The content provided is for informational and educational purposes only. It should not be interpreted as investment, legal, or tax advice. I may reference planning situations based on real client experiences, but they’ve been simplified for clarity. Always consult your own financial advisor before making decisions.
Listening to this podcast does not create or imply an advisory relationship with Root Financial. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. Testimonials and endorsements do not reflect all client experiences and are not compensated. Learn more at our website or by reviewing our Form ADV at https://adviserinfo.sec.gov.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
This is my number one biggest recommendation to all
of you who want to retire early.
Even if you are retired, thiswill be applicable.
So this is going to be a story.
Some of my episodes I'm goingto go heavy on a financial
analysis, on a case study.
That's not this episode.
So if you're like, hey, thisstyle of going through a story,
yeah it's cool and I see you'reexcited telling the story, but
(00:20):
it's not for me, that's okay.
I have tons of other episodesthat are really heavy on the
financial analysis, technicalside, but this is not going to
be that episode.
So I just want you to be awareof that.
The reason I'm bringing this upis because I had a client and my
client said hey, ari, I'mreally not happy with you.
I said, okay, you know what isit I did.
I want to make sure I can fixthe issue.
(00:42):
They said, well, you helped meretire early, but, as you know,
we're very stimulating people.
It's hard for us to findfriends, and so you know what
are we supposed to do?
I said, hey, wait a second, areyou upset that I do not have a
best friend for you?
I helped you retire early andnow you're mad.
And they're like, kinda, nowthey're starting to half joke at
this point, but I was like, hey, like what are you guys going
(01:05):
to do in retirement?
Like we talked about it andthey were like, well, you had us
fill out the sheet where I'llask people to fill it out to
talk about, okay, if you were tohurt your back golfing, then
what are you going to do?
Because most people are likeI'm going to golf or I'm going
to spend time with family, andthen their kids are super busy,
(01:29):
they out with them, they hurttheir back golfing, and now
they're like you know, Iactually kind of miss my
coworkers.
I really don't know what it isI'm going to do.
So my point here I want to makesure whoever retires early,
whether it's you or a friend ora neighbor, you're retiring to
something, and that's a phrasewe talk about in our industry a
lot, so I hear it all the time.
But then I was thinking aboutit.
I'm like I don't know if all ofyou guys know this phrase.
If you already know it andyou're listening on the podcast
app, good for you.
If you don't, though, it's thisconcept of okay, you're
(01:49):
retiring from waking up early,you're retiring from a bad boss
from politics around the office.
What are you going to retire to?
Are you retiring tovolunteering?
Are you retiring to freedom andsome of these things?
People will just say I can'twait to retire and I no longer
(02:11):
have to worry about that smellycoworker.
Now, that's a joke, obviously.
But some people are reallyserious and they go hey, I'm
really trying to retire to myhealth, because right now I
can't prioritize that becauseI'm too busy.
But what I find a lot of peopledo is they're kind of lying to
themselves.
I'm not saying you're doingthis, but that's kind of what
happened in this case.
So this couple that I work with,they're really smart people.
They're like we're going toretire and we're going to travel
(02:31):
, and they were kind of bankingon that Meaning if they didn't
travel, they're like, well, thatjust doesn't even make sense,
like that's what we're going todo.
And they were like we're goingto do slow travel and we're
going to love it and we're goingto be in Montenegro and then
we're going to go to I forgetall the other places, but they
told me they were excited aboutMontenegro.
So that's what stuck in my head, because I thought it was a
(02:52):
country that I was like Ihaven't really heard that being
a popular country, but maybe I'mjust out of the loop there.
My point, really, they werelike we're going to travel.
Now I'm not saying all of youneed to have backup plan A
through Z, but what I'm sayingis can we get really intentional
before you retire?
And the common stories I'll tellare I have one couple that's
(03:14):
like I'm going to retire and I'mgoing to move to Hawaii.
And I said if you move toHawaii and you buy a home, I'm
firing you.
And they're like really, I'mlike no, not really.
But like don't go buy a home,like first see if you want to
live there.
And they're like we alreadyknow, like stop wasting our time
.
And I said okay, just likeAirbnb it for a month.
And they're like okay, and theyI never heard from them.
(03:34):
And then, about six weeks aftertheir supposed move or trip
because I once again didn't hearfrom them, I hear from them.
I said, hey, guys, I got toknow what happened.
Did you buy a home or did younot?
And they said we loved Hawaii.
And that was all the email saidI said, okay, they loved it.
I was wrong.
Good for me to learn a lesson.
Maybe they should have bought ahome.
They replied two minutes later.
We loved Hawaii period Notforever, was great for six weeks
(03:57):
, glad we didn't buy the home.
I'm like okay.
So the point here is, maybe ifthey bought the home they would
have also been happy.
But can we try out things?
And that's all the message oftrying to say, because a lot of
you are really good savers andyou have a lot of money and the
reason you have a lot of moneyis because financially, you are
very good with optimizing howmuch goes to a 401k and a
(04:18):
superhero and you save a healthyamount.
I don't want you mad at me whenyou're 80 with $10 million
going.
Why didn't I buy a bigger plane?
Now, the plane example is asilly one, but I'm using that
because I had a live show doneabout a month ago, not done.
I hosted it and I had someonecome on and it was a really nice
couple and if they're listeningright now, you guys know who
(04:39):
you are.
And they had about what was it?
3.2 million in a 401k.
There was an age gap betweenthem, so 57 and 46, I want to
say maybe 48.
I think it's 57 and 48, becauseit's a nine year age gap, and
then a million dollars in abrokerage account.
And they are pilots the woman,michelle, who's super nice.
(05:01):
She is a pilot for Delta.
And then Mike, the husband.
He is a pilot, but kind ofsemi-retired, still working, and
they make a healthy incometoday and they want to buy a
small plane worth about $300,000, and they're like we want to
fly with our kids, who are alsopilots, like what a cool family.
And I said the real risk here,guys, is that you don't buy a
(05:21):
bigger plane and you look backgoing we could have really
enjoyed it.
And what if, god forbid, youguys were to ever go down in a
certain, which hopefully neveroccurs?
But if something were to happen, are you gonna go wow, we're
really glad that we just did themost optimal Roth conversion
strategy to move x amount ofdollars to no.
No, you're gonna be so glad youbought a bigger, assuming
you're in a financial positionto do so.
So I'm not asking you all to go.
(05:43):
Oh my gosh, I'm going to haveno regrets because I'm going to
be so on it with before I retire.
I'm going to do the purposeanalysis and the worksheet
honest with yourself and say,okay, I'm probably going to want
to go out to eat a lot morebecause I'm going to have more
time.
I want to plan for that, in myanalysis, before I retire.
(06:05):
Because I see and that mightseem like a simple example, but
I'll see people who go yeah, I'mgoing to spend 5,000 a month on
retirement, just generalexpenses, and a thousand a month
that's going to be travel andgoing out to eat.
And then their friend is likehey, I'm retired too, can I come
with you?
And they're like, absolutely.
And then sometimes that friend,you're hanging out with them
(06:26):
and you can just feel, hey, whyaren't they doing that?
One more activity and we signedup for three facials.
They only signed up for one.
Like, maybe financially, theydon't have the means to do it.
So I had a couple where thishappened which is why I'm
bringing this up, this exampleand they didn't pay for the
facial of their friends which isso reasonable, by the way.
But they could feel the vibewas weird and they're like we
know, we have the financialmeans to do it, we just don't
(06:47):
want it to be weird.
Now, I'm a really transparentperson, so if I had the means to
do it and this is not metooting my horn, it's just who I
am.
I would say hey guys, it'sgoing to feel really weird.
I'm about to pay for yourfacials.
You're probably wondering do Ihave the money?
Do I not have the money?
Not your problem, I'm over themoon to do it.
Thank you so much for beingpart of this trip.
I'm happy to do it and I expectnothing in return.
And if you, you know, makejokes about this or that, like
(07:09):
great, so like, that's how I'llcommunicate.
Some people are like, hey, I'mnot saying any of you need to do
that, but I have a friend thatdoes not make a lot of money and
it is really fun for me totravel with them.
I pay for them to come on mytrips.
They are very frugal, naturally, so if they were some big
spenders, would I bring them onmy trips?
(07:29):
No, because, like one, Iprobably wouldn't want to hang
out with them in that case.
But they are not someone that'sspending for the sake of
spending.
They're just like look, we'rereally frugal.
And he's like I'm cool if Icome or if I don't come, and I'm
just like, look, my life'sgoing to be better if you do
come, in my financial meansallow me to bring you on this
trip.
So I want to do that.
So I'm asking all of you justdream.
(07:52):
That's all I'm saying.
That's the whole point of this.
My one recommendation is dreambig and you might go.
You know what?
I dreamt really big.
I'm going to Super Bowls everyyear, I'm going to buy a new car
every five years and then yourplan might say you will be on
track to run out of money at 80.
Okay, maybe we're dreaming bigand then we're going.
I still want the Super Bowl,but I don't want the cars.
(08:14):
But the biggest mistake ispeople will go buy a home in
Hawaii and then they're like itturns out I didn't love Hawaii,
take a huge financial hit andthe rest of their time is very
different.
Or, on the flip side, peopleare so frugal, they're saving
really well into their 401k, ira, roth, hsa, they're doing all
the right financial things, andthen they're 85 and they're like
(08:34):
hey, yeah, I do have a lot ofmoney now, but like I should
have spent way more when I wasin a good spot, when I had my
health and energy, and that'sthe really tricky part about
this.
The tricky part is the firstfew years of retirement are the
most important, because if youcan get through that time when
there's health care, whenthere's travel, when there's
home remodel, when kids are incollege, if you can get through
that, then it's like you're in areally good spot.
(08:55):
Social security is now helpingout.
Maybe there's inheritance.
It's less of.
Oh my gosh, the portfolio hasto take on the entire role.
On the flip side, if you docompletely what I just said and
go, I'm going to be reallycareful not really enjoy my life
to the fullest because, onceagain, I don't have social
security yet, I don't haveinheritance.
It's all up to my portfolio.
You'll probably have too muchmoney.
(09:17):
So where's that balance?
Well, that's what good planningis all about.
So I'm saying today my bigrecommendation please do dream,
please don't retire and go.
Yeah, so like we retired, butlike we didn't really plan for
the fact that we're going tohave more time and we're going
to want to do more activitiesand so we're going to spend more
money.
Some of you and I have anotherclient, and then I'll finish my
(09:38):
story.
Here they are, and I'm justthinking of them in case, if
you're listening on the podcastapp, you can't see my eyes, but
if you're on YouTube you can seeme and I'm looking off to the
side.
I'm trying to think of thisclient's name.
Oh, it's blanking on me.
Anyways, this client, they arebig RV people and they were like
hey, we're going to buy an RVfor $60,000.
It feels really weird becausewe never buy used cars, it's not
(10:01):
really in us, but we want thiscertain RV and we're going to
get it anyways.
I said, okay, good Cause,they're playing aloud for that.
But I was like, hey, honestly,you guys tell, told me a while
ago you're naturally frugal.
You don't really spend on a lotof things Most people spend on.
Your finances allow you to dothis.
Like, I think you should buythis $85,000 RV.
And they're like all right,I've never spent $85,000 on
(10:23):
anything in my life.
And I said then it's going tofeel weird, but you should still
do it because your financesallow for it.
And then you're going to be sohappy because you're going to
have the RV with the built-in.
You know, like, you know whatare they called?
I don't think there's a namefor it, but you guys know, when
there's those things in the wall, obviously called cabinets, but
I'm trying to think of draweris the word I'm thinking of.
(10:45):
And you know, when you pushback the drawer and instead of
it snapping and making a hard,loud noise, it will do like a
soft landing, like that thedrawer that if you were to pull
out, you know, like at home Idon't have this, but I have been
to houses that do have this andyou go get a fork and then if
you slam the drawer too fast itdoes a big clunk, not a big deal
.
Okay, but this couple's likewe've always wanted these like
(11:05):
soft landings of our drawers andwe didn't have that in our home
and we don't want to remodelthe home and we could get it in
this RV and it was like an extra12 K for that.
And they're like that's stupid,we don't need that.
And I was like you're right,you do not need that, you should
(11:25):
get it because you just toldplan allows for it.
Now, if that meant you doingthis soft landing of the drawers
would mean that now you don'tget to take three more trips or
help out a kid go to college,then yeah, that's probably not
worth it to you.
Like let's think about thattrade-off.
But we went through their plan.
They were able to do everythingthey wanted and more.
And so I'm like, hey, this isgoing to feel weird.
It's almost like like I havenever bought a first class
ticket.
I don't have it in me.
(11:45):
I'm like I'm going to wake upthere.
I'm, I sleep on planes anyways.
I don't really care, I don't.
I would feel worse getting offthe plane, even if I had the
financial means to do this.
I would feel worse getting offthe plane knowing I just spent
$8,000 to arrive in New Yorkwhen I could have spent $500 and
I wouldn't have known thedifference.
And I would rather stretchbefore and after the plane when
(12:07):
I get home at the hotel or home,home home in LA, do some yoga.
I'd rather even pay for amassage or a physical therapy
appointment for 200 bucks to go.
Okay, now my body feels greatbecause I know the chairs kind
of suck.
So my dad is the opposite.
He's like I would never flyanywhere.
That's not first class, becausewhen I was a child I never got
(12:28):
to fly first class, like mostchildren.
But he loved it.
And he's like I wake up and Iam renewed, I'm ready to explore
the city.
So I'm like it's a great thing.
My dad pays for first classbecause he wakes up and he's
like let's go tackle the city.
If we and I went to London withmy dad, if we got to London and
(12:51):
he's like my back hurts and nowI'm tired because I didn't
sleep and we lost the first twodays of the trip because of jet
lag and just not feeling well,well, that defeats the purpose.
So the point is just spendreally healthy on things you
love and be really, reallystringent Is that the word
frugal on things you don't careabout.
I'm not a wine guy.
I know a lot of people lovewine and spirits and it's just
(13:11):
not my thing.
I spend a lot of money.
I go to a specific physicaltherapist that works on soccer
players.
I spend $240 for that onesession every hour.
I love it, I'm excited to payit.
I'm excited all week.
I'm over the moon.
They're teaching me things thatI know a traditional physical
therapist would not teach andI'm over the moon to do it.
So that's my guilty pleasure isI get physical therapy
(13:33):
appointments and I'm not eveninjured at the moment, which is
another miracle.
So all of this to say, guys,please just dream big, think
intentionally, if you are goingto retire at some point which is
literally all of you if you'renot already retired, don't
retire and go.
Yeah, we can kind of get by.
I think we could do it.
It's like no think of thingsyou'd really love to do.
Plan it out, put it in thesoftware that I talk about, the
(13:56):
Academy.
See it with your eyes, becauseif you just write it out, that's
not really doing the fullexercise.
If you write out, for example,I'll do mine with big soccer guy
.
If you don't know already, Iwant to buy a soccer team.
That is something I want to doNow.
Maybe I will buy it and then Iwon't like it and I will need
(14:17):
root to grow a lot bigger if Iwant to buy a soccer team.
But let's assume that occursand in 10 years I can buy a
soccer team and I can make suremy kids I still want them to
have some skin in the game,because I just kind of believe
in that financially, because Ihad that and it really helped me
.
I felt it drove me.
But my point here is I wouldthink of more things like that
and I'd write them down.
(14:37):
And if I just like put them,wrote them down, I'd be like, ok
, cool, that's not helping meget confidence.
I can do these things.
I put them in the software andI can see.
Ok, if I get raises to thisdegree and I want to be able to
spend these things, here's whatI need to see happen.
Excuse me, I know you guys justliterally heard me burp.
There.
I have a new podcast editor, soI'm not going to tell them.
(14:59):
I just want to see if theycatch this.
Okay, so I'm about 15 minutesin.
This is going to be funny for me.
Maybe not for all of you, butyou just heard me burp.
I just had a blueberry smoothie, which you're probably thinking
.
Why would that make you burp?
But Jewish digestive system hasits own magic.
Okay, so hopefully not too muchof a visual, but regardless,
let's see if they catch it, guys, and if they don't catch it,
you can email me and go Ari, didthey catch it?
(15:21):
Well, actually, now that Ithought about it, you won't know
, because if this goes out andthey never caught this, then
that would be that.
In fact, I'll probably deletethis, unless they completely
ignore everything, and I cantell they don't actually edit
the podcast and they'reliterally just taking the audio
clip and posting it because Itell them to edit it, Make the
audio sound perfect when I saycertain things, and if I do that
(15:42):
, one P like this, it soundsweird on the microphone.
So, hey, could you try tominimize the volume on that?
This was a long, one minuterant.
But my point here let's see ifthey catch it and if, if they do
catch it, you'll never heardanything I just said, and if
they don't catch it, you'll hearthis and you'll probably be
laughing with me.
So that is it.
That is it.
Go, put your numbers in thesoftware.
(16:03):
See, okay, what am I on trackfor?
If you're a current clientworking with us at root and
you're like, hey, I just neededa reminder to dream big, yeah,
dream big, talk to your advisorabout that in more detail.
Hey, I was thinking aboutgetting a second home.
Hey, I was thinking abouthelping kids with college.
Hey, I was thinking aboutactually as weird as this sounds
starting a new business.
How much could I afford to loseto start this new business?
I have the and this I alreadysaid last story like 12 times
(16:26):
today, but my true last story isa wonderful couple and this guy
I think I've told this before,but this guy was like, hey, are
these going to sound really bad?
I'm like nothing sounds bad tome, go for it.
He goes how much money could myportfolio support to
essentially support my wife whomight start a business that's
more than likely to lose money?
And I'm like, wait a second,are you asking me like, if your
(16:49):
wife's business like doesn't dowell, like how long would that
last?
And they're like, yeah, that'sexactly right.
I said, okay, based off yourplan, like you could allocate
another 4,000 a month to thisbusiness and that's not going to
dictate whether or not you'regoing to be okay or not.
And he's like that's awesome,cause I really don't think this
book idea is going to work.
But she's so excited and Idon't know if it did work, but I
do know that they are stillreceiving $4,000 a month in
(17:12):
addition.
So I assume they're either loveand life or they didn't tell me
and it's going to IPO soon andthey're like we don't want Ari
to know about it because he'sgoing to want a piece of it.
No, that's not what they'reprobably thinking, but anyways,
that IPO, initial publicoffering for those of you who
don't know the acronyms that usfinancial advisors will say, so
we get to feel so smart.
There's so many out there and Ido not like when advisors do it,
(17:34):
because it's like just speak ina way we can all understand.
The latest one internally issomeone said hey, ari, don't
worry, bau, I'm like BAU.
What the heck does that BAU,I'm like.
So do you guys know what thatis?
Business as usual.
Okay, I'm like BAU.
There's new ones every day.
Now I sound like a real boomersaying that.
(17:54):
Anyways, that is it for thispodcast episode, not my
traditional episode.
Hopefully it was helpful.
See you guys next time.
Thank you all, as always, forlistening to the early
retirement podcast.
I love getting to host theseshows and make different content
for you guys every single week.
I've not missed a single weekin years and that is because I
love getting to do this.
Now, please be smart about this.
Before you actually execute anystrategy that you see me talk
(18:17):
about or hear me talk about,should I say Please talk to your
financial advisor, your taxpreparer, your estate attorney,
please be smart about this.
None of this should beconstrued as financial advice.
This is for fun, educational,informational purposes only.
Once again, just quickdisclaimer here.
Guys, please be smart aboutthis.
Appreciate you listening, asalways, and you can, of course,
(18:39):
submit a question on my website,earlyretirementpodcastcom.
If you, of course, want me toaddress a specific case study or
topic.
I will not promise I can get toit, but I respond to every
single person and if I find itwill be helpful for a lot of
people, I will absolutely makean episode on it, at the very
least give you some insight.
That's it, thanks, guys.
This is my number one biggest recommendation to all
of you who want to retire early.
Even if you are retired, thiswill be applicable.
So this is going to be a story.
Some of my episodes I'm goingto go heavy on a financial
analysis, on a case study.
That's not this episode.
So if you're like, hey, thisstyle of going through a story,
yeah it's cool and I see you'reexcited telling the story, but
(00:20):
it's not for me, that's okay.
I have tons of other episodesthat are really heavy on the
financial analysis, technicalside, but this is not going to
be that episode.
So I just want you to be awareof that.
The reason I'm bringing this upis because I had a client and my
client said hey, ari, I'mreally not happy with you.
I said, okay, you know what isit I did.
I want to make sure I can fixthe issue.
(00:42):
They said, well, you helped meretire early, but, as you know,
we're very stimulating people.
It's hard for us to findfriends, and so you know what
are we supposed to do?
I said, hey, wait a second, areyou upset that I do not have a
best friend for you?
I helped you retire early andnow you're mad.
And they're like, kinda, nowthey're starting to half joke at
this point, but I was like, hey, like what are you guys going
(01:05):
to do in retirement?
Like we talked about it andthey were like, well, you had us
fill out the sheet where I'llask people to fill it out to
talk about, okay, if you were tohurt your back golfing, then
what are you going to do?
Because most people are likeI'm going to golf or I'm going
to spend time with family, andthen their kids are super busy,
(01:29):
they out with them, they hurttheir back golfing, and now
they're like you know, Iactually kind of miss my
coworkers.
I really don't know what it isI'm going to do.
So my point here I want to makesure whoever retires early,
whether it's you or a friend ora neighbor, you're retiring to
something, and that's a phrasewe talk about in our industry a
lot, so I hear it all the time.
But then I was thinking aboutit.
I'm like I don't know if all ofyou guys know this phrase.
If you already know it andyou're listening on the podcast
app, good for you.
If you don't, though, it's thisconcept of okay, you're
(01:49):
retiring from waking up early,you're retiring from a bad boss
from politics around the office.
What are you going to retire to?
Are you retiring tovolunteering?
Are you retiring to freedom andsome of these things?
People will just say I can'twait to retire and I no longer
(02:11):
have to worry about that smellycoworker.
Now, that's a joke, obviously.
But some people are reallyserious and they go hey, I'm
really trying to retire to myhealth, because right now I
can't prioritize that becauseI'm too busy.
But what I find a lot of peopledo is they're kind of lying to
themselves.
I'm not saying you're doingthis, but that's kind of what
happened in this case.
So this couple that I work with,they're really smart people.
They're like we're going toretire and we're going to travel
(02:31):
, and they were kind of bankingon that Meaning if they didn't
travel, they're like, well, thatjust doesn't even make sense,
like that's what we're going todo.
And they were like we're goingto do slow travel and we're
going to love it and we're goingto be in Montenegro and then
we're going to go to I forgetall the other places, but they
told me they were excited aboutMontenegro.
So that's what stuck in my head, because I thought it was a
(02:52):
country that I was like Ihaven't really heard that being
a popular country, but maybe I'mjust out of the loop there.
My point, really, they werelike we're going to travel.
Now I'm not saying all of youneed to have backup plan A
through Z, but what I'm sayingis can we get really intentional
before you retire?
And the common stories I'll tellare I have one couple that's
(03:14):
like I'm going to retire and I'mgoing to move to Hawaii.
And I said if you move toHawaii and you buy a home, I'm
firing you.
And they're like really, I'mlike no, not really.
But like don't go buy a home,like first see if you want to
live there.
And they're like we alreadyknow, like stop wasting our time
.
And I said okay, just likeAirbnb it for a month.
And they're like okay, and theyI never heard from them.
(03:34):
And then, about six weeks aftertheir supposed move or trip
because I once again didn't hearfrom them, I hear from them.
I said, hey, guys, I got toknow what happened.
Did you buy a home or did younot?
And they said we loved Hawaii.
And that was all the email saidI said, okay, they loved it.
I was wrong.
Good for me to learn a lesson.
Maybe they should have bought ahome.
They replied two minutes later.
We loved Hawaii period Notforever, was great for six weeks
(03:57):
, glad we didn't buy the home.
I'm like okay.
So the point here is, maybe ifthey bought the home they would
have also been happy.
But can we try out things?
And that's all the message oftrying to say, because a lot of
you are really good savers andyou have a lot of money and the
reason you have a lot of moneyis because financially, you are
very good with optimizing howmuch goes to a 401k and a
(04:18):
superhero and you save a healthyamount.
I don't want you mad at me whenyou're 80 with $10 million
going.
Why didn't I buy a bigger plane?
Now, the plane example is asilly one, but I'm using that
because I had a live show doneabout a month ago, not done.
I hosted it and I had someonecome on and it was a really nice
couple and if they're listeningright now, you guys know who
(04:39):
you are.
And they had about what was it?
3.2 million in a 401k.
There was an age gap betweenthem, so 57 and 46, I want to
say maybe 48.
I think it's 57 and 48, becauseit's a nine year age gap, and
then a million dollars in abrokerage account.
And they are pilots the woman,michelle, who's super nice.
(05:01):
She is a pilot for Delta.
And then Mike, the husband.
He is a pilot, but kind ofsemi-retired, still working, and
they make a healthy incometoday and they want to buy a
small plane worth about $300,000, and they're like we want to
fly with our kids, who are alsopilots, like what a cool family.
And I said the real risk here,guys, is that you don't buy a
(05:21):
bigger plane and you look backgoing we could have really
enjoyed it.
And what if, god forbid, youguys were to ever go down in a
certain, which hopefully neveroccurs?
But if something were to happen, are you gonna go wow, we're
really glad that we just did themost optimal Roth conversion
strategy to move x amount ofdollars to no.
No, you're gonna be so glad youbought a bigger, assuming
you're in a financial positionto do so.
So I'm not asking you all to go.
(05:43):
Oh my gosh, I'm going to haveno regrets because I'm going to
be so on it with before I retire.
I'm going to do the purposeanalysis and the worksheet
honest with yourself and say,okay, I'm probably going to want
to go out to eat a lot morebecause I'm going to have more
time.
I want to plan for that, in myanalysis, before I retire.
(06:05):
Because I see and that mightseem like a simple example, but
I'll see people who go yeah, I'mgoing to spend 5,000 a month on
retirement, just generalexpenses, and a thousand a month
that's going to be travel andgoing out to eat.
And then their friend is likehey, I'm retired too, can I come
with you?
And they're like, absolutely.
And then sometimes that friend,you're hanging out with them
(06:26):
and you can just feel, hey, whyaren't they doing that?
One more activity and we signedup for three facials.
They only signed up for one.
Like, maybe financially, theydon't have the means to do it.
So I had a couple where thishappened which is why I'm
bringing this up, this exampleand they didn't pay for the
facial of their friends which isso reasonable, by the way.
But they could feel the vibewas weird and they're like we
know, we have the financialmeans to do it, we just don't
(06:47):
want it to be weird.
Now, I'm a really transparentperson, so if I had the means to
do it and this is not metooting my horn, it's just who I
am.
I would say hey guys, it'sgoing to feel really weird.
I'm about to pay for yourfacials.
You're probably wondering do Ihave the money?
Do I not have the money?
Not your problem, I'm over themoon to do it.
Thank you so much for beingpart of this trip.
I'm happy to do it and I expectnothing in return.
And if you, you know, makejokes about this or that, like
(07:09):
great, so like, that's how I'llcommunicate.
Some people are like, hey, I'mnot saying any of you need to do
that, but I have a friend thatdoes not make a lot of money and
it is really fun for me totravel with them.
I pay for them to come on mytrips.
They are very frugal, naturally, so if they were some big
spenders, would I bring them onmy trips?
(07:29):
No, because, like one, Iprobably wouldn't want to hang
out with them in that case.
But they are not someone that'sspending for the sake of
spending.
They're just like look, we'rereally frugal.
And he's like I'm cool if Icome or if I don't come, and I'm
just like, look, my life'sgoing to be better if you do
come, in my financial meansallow me to bring you on this
trip.
So I want to do that.
So I'm asking all of you justdream.
(07:52):
That's all I'm saying.
That's the whole point of this.
My one recommendation is dreambig and you might go.
You know what?
I dreamt really big.
I'm going to Super Bowls everyyear, I'm going to buy a new car
every five years and then yourplan might say you will be on
track to run out of money at 80.
Okay, maybe we're dreaming bigand then we're going.
I still want the Super Bowl,but I don't want the cars.
(08:14):
But the biggest mistake ispeople will go buy a home in
Hawaii and then they're like itturns out I didn't love Hawaii,
take a huge financial hit andthe rest of their time is very
different.
Or, on the flip side, peopleare so frugal, they're saving
really well into their 401k, ira, roth, hsa, they're doing all
the right financial things, andthen they're 85 and they're like
(08:34):
hey, yeah, I do have a lot ofmoney now, but like I should
have spent way more when I wasin a good spot, when I had my
health and energy, and that'sthe really tricky part about
this.
The tricky part is the firstfew years of retirement are the
most important, because if youcan get through that time when
there's health care, whenthere's travel, when there's
home remodel, when kids are incollege, if you can get through
that, then it's like you're in areally good spot.
(08:55):
Social security is now helpingout.
Maybe there's inheritance.
It's less of.
Oh my gosh, the portfolio hasto take on the entire role.
On the flip side, if you docompletely what I just said and
go, I'm going to be reallycareful not really enjoy my life
to the fullest because, onceagain, I don't have social
security yet, I don't haveinheritance.
It's all up to my portfolio.
You'll probably have too muchmoney.
(09:17):
So where's that balance?
Well, that's what good planningis all about.
So I'm saying today my bigrecommendation please do dream,
please don't retire and go.
Yeah, so like we retired, butlike we didn't really plan for
the fact that we're going tohave more time and we're going
to want to do more activitiesand so we're going to spend more
money.
Some of you and I have anotherclient, and then I'll finish my
(09:38):
story.
Here they are, and I'm justthinking of them in case, if
you're listening on the podcastapp, you can't see my eyes, but
if you're on YouTube you can seeme and I'm looking off to the
side.
I'm trying to think of thisclient's name.
Oh, it's blanking on me.
Anyways, this client, they arebig RV people and they were like
hey, we're going to buy an RVfor $60,000.
It feels really weird becausewe never buy used cars, it's not
(10:01):
really in us, but we want thiscertain RV and we're going to
get it anyways.
I said, okay, good Cause,they're playing aloud for that.
But I was like, hey, honestly,you guys tell, told me a while
ago you're naturally frugal.
You don't really spend on a lotof things Most people spend on.
Your finances allow you to dothis.
Like, I think you should buythis $85,000 RV.
And they're like all right,I've never spent $85,000 on
(10:23):
anything in my life.
And I said then it's going tofeel weird, but you should still
do it because your financesallow for it.
And then you're going to be sohappy because you're going to
have the RV with the built-in.
You know, like, you know whatare they called?
I don't think there's a namefor it, but you guys know, when
there's those things in the wall, obviously called cabinets, but
I'm trying to think of draweris the word I'm thinking of.
(10:45):
And you know, when you pushback the drawer and instead of
it snapping and making a hard,loud noise, it will do like a
soft landing, like that thedrawer that if you were to pull
out, you know, like at home Idon't have this, but I have been
to houses that do have this andyou go get a fork and then if
you slam the drawer too fast itdoes a big clunk, not a big deal
.
Okay, but this couple's likewe've always wanted these like
(11:05):
soft landings of our drawers andwe didn't have that in our home
and we don't want to remodelthe home and we could get it in
this RV and it was like an extra12 K for that.
And they're like that's stupid,we don't need that.
And I was like you're right,you do not need that, you should
(11:25):
get it because you just toldplan allows for it.
Now, if that meant you doingthis soft landing of the drawers
would mean that now you don'tget to take three more trips or
help out a kid go to college,then yeah, that's probably not
worth it to you.
Like let's think about thattrade-off.
But we went through their plan.
They were able to do everythingthey wanted and more.
And so I'm like, hey, this isgoing to feel weird.
It's almost like like I havenever bought a first class
ticket.
I don't have it in me.
(11:45):
I'm like I'm going to wake upthere.
I'm, I sleep on planes anyways.
I don't really care, I don't.
I would feel worse getting offthe plane, even if I had the
financial means to do this.
I would feel worse getting offthe plane knowing I just spent
$8,000 to arrive in New Yorkwhen I could have spent $500 and
I wouldn't have known thedifference.
And I would rather stretchbefore and after the plane when
(12:07):
I get home at the hotel or home,home home in LA, do some yoga.
I'd rather even pay for amassage or a physical therapy
appointment for 200 bucks to go.
Okay, now my body feels greatbecause I know the chairs kind
of suck.
So my dad is the opposite.
He's like I would never flyanywhere.
That's not first class, becausewhen I was a child I never got
(12:28):
to fly first class, like mostchildren.
But he loved it.
And he's like I wake up and Iam renewed, I'm ready to explore
the city.
So I'm like it's a great thing.
My dad pays for first classbecause he wakes up and he's
like let's go tackle the city.
If we and I went to London withmy dad, if we got to London and
(12:51):
he's like my back hurts and nowI'm tired because I didn't
sleep and we lost the first twodays of the trip because of jet
lag and just not feeling well,well, that defeats the purpose.
So the point is just spendreally healthy on things you
love and be really, reallystringent Is that the word
frugal on things you don't careabout.
I'm not a wine guy.
I know a lot of people lovewine and spirits and it's just
(13:11):
not my thing.
I spend a lot of money.
I go to a specific physicaltherapist that works on soccer
players.
I spend $240 for that onesession every hour.
I love it, I'm excited to payit.
I'm excited all week.
I'm over the moon.
They're teaching me things thatI know a traditional physical
therapist would not teach andI'm over the moon to do it.
So that's my guilty pleasure isI get physical therapy
(13:33):
appointments and I'm not eveninjured at the moment, which is
another miracle.
So all of this to say, guys,please just dream big, think
intentionally, if you are goingto retire at some point which is
literally all of you if you'renot already retired, don't
retire and go.
Yeah, we can kind of get by.
I think we could do it.
It's like no think of thingsyou'd really love to do.
Plan it out, put it in thesoftware that I talk about, the
(13:56):
Academy.
See it with your eyes, becauseif you just write it out, that's
not really doing the fullexercise.
If you write out, for example,I'll do mine with big soccer guy
.
If you don't know already, Iwant to buy a soccer team.
That is something I want to doNow.
Maybe I will buy it and then Iwon't like it and I will need
(14:17):
root to grow a lot bigger if Iwant to buy a soccer team.
But let's assume that occursand in 10 years I can buy a
soccer team and I can make suremy kids I still want them to
have some skin in the game,because I just kind of believe
in that financially, because Ihad that and it really helped me
.
I felt it drove me.
But my point here is I wouldthink of more things like that
and I'd write them down.
(14:37):
And if I just like put them,wrote them down, I'd be like, ok
, cool, that's not helping meget confidence.
I can do these things.
I put them in the software andI can see.
Ok, if I get raises to thisdegree and I want to be able to
spend these things, here's whatI need to see happen.
Excuse me, I know you guys justliterally heard me burp.
There.
I have a new podcast editor, soI'm not going to tell them.
(14:59):
I just want to see if theycatch this.
Okay, so I'm about 15 minutesin.
This is going to be funny for me.
Maybe not for all of you, butyou just heard me burp.
I just had a blueberry smoothie, which you're probably thinking
.
Why would that make you burp?
But Jewish digestive system hasits own magic.
Okay, so hopefully not too muchof a visual, but regardless,
let's see if they catch it, guys, and if they don't catch it,
you can email me and go Ari, didthey catch it?
(15:21):
Well, actually, now that Ithought about it, you won't know
, because if this goes out andthey never caught this, then
that would be that.
In fact, I'll probably deletethis, unless they completely
ignore everything, and I cantell they don't actually edit
the podcast and they'reliterally just taking the audio
clip and posting it because Itell them to edit it, Make the
audio sound perfect when I saycertain things, and if I do that
(15:42):
, one P like this, it soundsweird on the microphone.
So, hey, could you try tominimize the volume on that?
This was a long, one minuterant.
But my point here let's see ifthey catch it and if, if they do
catch it, you'll never heardanything I just said, and if
they don't catch it, you'll hearthis and you'll probably be
laughing with me.
So that is it.
That is it.
Go, put your numbers in thesoftware.
(16:03):
See, okay, what am I on trackfor?
If you're a current clientworking with us at root and
you're like, hey, I just neededa reminder to dream big, yeah,
dream big, talk to your advisorabout that in more detail.
Hey, I was thinking aboutgetting a second home.
Hey, I was thinking abouthelping kids with college.
Hey, I was thinking aboutactually as weird as this sounds
starting a new business.
How much could I afford to loseto start this new business?
I have the and this I alreadysaid last story like 12 times
(16:26):
today, but my true last story isa wonderful couple and this guy
I think I've told this before,but this guy was like, hey, are
these going to sound really bad?
I'm like nothing sounds bad tome, go for it.
He goes how much money could myportfolio support to
essentially support my wife whomight start a business that's
more than likely to lose money?
And I'm like, wait a second,are you asking me like, if your
(16:49):
wife's business like doesn't dowell, like how long would that
last?
And they're like, yeah, that'sexactly right.
I said, okay, based off yourplan, like you could allocate
another 4,000 a month to thisbusiness and that's not going to
dictate whether or not you'regoing to be okay or not.
And he's like that's awesome,cause I really don't think this
book idea is going to work.
But she's so excited and Idon't know if it did work, but I
do know that they are stillreceiving $4,000 a month in
(17:12):
addition.
So I assume they're either loveand life or they didn't tell me
and it's going to IPO soon andthey're like we don't want Ari
to know about it because he'sgoing to want a piece of it.
No, that's not what they'reprobably thinking, but anyways,
that IPO, initial publicoffering for those of you who
don't know the acronyms that usfinancial advisors will say, so
we get to feel so smart.
There's so many out there and Ido not like when advisors do it,
(17:34):
because it's like just speak ina way we can all understand.
The latest one internally issomeone said hey, ari, don't
worry, bau, I'm like BAU.
What the heck does that BAU,I'm like.
So do you guys know what thatis?
Business as usual.
Okay, I'm like BAU.
There's new ones every day.
Now I sound like a real boomersaying that.
(17:54):
Anyways, that is it for thispodcast episode, not my
traditional episode.
Hopefully it was helpful.
See you guys next time.
Thank you all, as always, forlistening to the early
retirement podcast.
I love getting to host theseshows and make different content
for you guys every single week.
I've not missed a single weekin years and that is because I
love getting to do this.
Now, please be smart about this.
Before you actually execute anystrategy that you see me talk
(18:17):
about or hear me talk about,should I say Please talk to your
financial advisor, your taxpreparer, your estate attorney,
please be smart about this.
None of this should beconstrued as financial advice.
This is for fun, educational,informational purposes only.
Once again, just quickdisclaimer here.
Guys, please be smart aboutthis.
Appreciate you listening, asalways, and you can, of course,
(18:39):
submit a question on my website,earlyretirementpodcastcom.
If you, of course, want me toaddress a specific case study or
topic.
I will not promise I can get toit, but I respond to every
single person and if I find itwill be helpful for a lot of
people, I will absolutely makean episode on it, at the very
least give you some insight.
That's it, thanks, guys.
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