February 3, 2025 • 14 mins
The episode explores the intersection of financial decisions and emotional well-being through personal stories. It addresses the dilemma between paying off a mortgage and investing extra capital while emphasizing the importance of confidence in navigating retirement planning.
• The dentist's journey inspires a discussion on the importance of financial planning
• A couple contemplates balancing mortgage payoff versus investment strategies
• The psychological impact of debt vs. investment returns is examined
• Sequence of return risk and market volatility influence their decisions
• Emotional security plays a crucial role in financial planning strategies
• Personal anecdotes illustrate the significance of aligning financial choices with core values
• Confidence in financial decisions leads to a more fulfilling retirement experience
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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):
I am so excited for today's podcast episode.
So welcome back to the show Ifyou're a frequent listener, if
you're a new listener.
I love getting to do differenttopics, whether it be tax
strategy, withdrawal, healthinsurance.
Today is none of those.
It is going to be a story.
Now, it's going to be a fewstories and I hope you actually
enjoy it, more than some of mycase studies where I will go
(00:21):
through specifics on socialsecurity and withdrawal
strategies and Roth conversionsand, yes, I love that stuff.
But today is a story and thereason for this is because I
just got back from the dentistand I will not be telling you
about all of my teeth, eventhough I know you guys are dying
to know.
No, I know you're not bad joke,but the point here is my
(00:41):
dentist is a new dentist and heis a dentist because he was a
hockey player and he got all ofhis front teeth knocked out and
just the thought of that made mebe like, yeah, I am never
playing hockey, not that I wasever debating it, but he was
telling me because naturally,I'll get into.
Okay, here's why I became afinancial advisor.
It's cool hearing why you're adentist and we got went back and
(01:02):
forth.
We were not doing that when hewas evaluating my teeth, because
we've all been there wherethey're like so how's your day
going?
And you're like I don't know,your hands are in my mouth, I
can't really talk.
But the point here is thisdentist is a really nice,
awesome guy.
I'm going to even link belowhis information in case you guys
want to reach out to him.
But he has a father who gotdementia at 60.
(01:26):
And he was asking me why I lovedoing financial planning and I
was saying, to be honest, it'sbecause of cases like that, and
of course I had it to add.
I needed to add some contextreal quick there, because or
else it just sounds terribleLike I became an advisor because
your dad got dementia at 60.
And so I said, look, it'sbecause did your dad save and
invest and he goes?
(01:46):
Well, he didn't really invest,but he did save and he worked
really hard and then at 60, allof what he saved for is really
just going to long-term careexpenses and that's really sad.
I want someone like his fatherto enjoy his life and so if that
means you retire earlier andyou prioritize your health and
you save the right way and youget more family time.
(02:06):
Well, that's why I love thisstuff.
So today is just a story aboutthe power of not just good
planning but almost doing thewrong financial thing, but
leading to a better life.
Let me explain what that means.
So I'm going to go through thattoday.
If you are new to the show,welcome.
I love getting to make contentaround all these different
strategies.
(02:26):
You can submit a question on mywebsite,
earlyretirementpodcastcom.
If there's a topic you have notseen me talk about, that you go
.
I want you to do one on thisNow.
If you're a new listener, youmay have just not heard that
episode.
So one of you reached outrecently who said hey, I haven't
seen you do an episode onlong-term care insurance, so
I'll gladly have my team sendyou the link to that, and I
(02:49):
often will just respond quicklybecause I know what it's like
looking for.
You know a piece of contentthat you cannot find, and so I
totally get it.
If you are a frequent listener,I rely on you guys to help grow
the show.
So if you're listening on thepodcast app, please do go leave
a review, whether you've likedit, not liked it.
I often like to highlightreviews.
(03:10):
This is your show, so some ofyou guys are very transparent
and I love the transparency.
This was two reviews I'm gonnahighlight.
The first one comes from ShaneSchna, who says there are some
strong podcasts in the field,but none more concise,
well-versed and straight to thepoint than this one Quick
analysis on a variety of topicsthat all need to consider as we
(03:33):
determine when it is the righttime meaning to retire, review
the historical content to gaingreat insights on specific topic
that relate to your ownspecific situation.
Thank you, ari and team.
Now, that's one of them.
The other one comes from coolair one, two, three who says
this is wordy but pointless.
So I get that as well, and sonaturally, when I make content,
(03:57):
there's going to be a lot of youthat resonate and all you that
don't resonate.
So if you don't resonate,number one like, of course, you
do not have to tune into theshow.
But number two, I'm gonna tryto be more clear up front when I
go.
This is an episode that's goingto be more story based, so I
could see if this person wasreaching out looking for
guidance on interest rates thathe'd go.
Well, this is wordy and notthat helpful because it's not
(04:18):
directly related to a specifictopic.
Some of my videos will be veryspecific and I will will say hey
.
By the way, when I said veryspecific, it reminds me of the
joke that I told a few weeks agoof my dad who says you can
never have a very full flight.
It's either full or not full.
It cannot be very full, so itcannot be very specific.
That would be me repeatingmyself.
(04:39):
It is specific, so I will makea specific video on a topic.
You should collect socialsecurity at 62.
If you are, these five things,boom.
That might be what thatperson's looking for.
So I try my best, but here's mypoint and here's the story for
today.
So this couple I was speaking towas all about having no debt.
That was their whole thinggrowing up.
(04:59):
That was, those were theirvalues.
Now I do not have it in me tonot bring up financial examples
when the evidence is clear,meaning whether you like me or
don't like me, I need you to beaware of this, and I showed them
the value of not paying off amortgage early and instead
investing the rest, and theywent okay.
(05:20):
So, like you're changing mymind financially, but I still
don't want to have a mortgageand they have about $400,000
mortgage, but they also have 2million in a 401k and about
another one and a half in abrokerage account.
So they're a year or so outfrom retirement and they're
debating do we go pay off thismortgage because we have the
(05:41):
money to do it?
We have one and a half millionin a brokerage account, which I
call what, let me know in thecomments Superhero account,
because it is the mostunderutilized account when
someone wants to retire early.
So what I did is I showed themhey guys, if you did not pay off
the mortgage early, so you letthis money keep growing in your
(06:02):
superhero account and youaverage 8% growth.
Your one and a half millionwould become boom, boom, boom,
boom, boom.
So two, 2.2, 2.5.
And they said that makes sense.
I said so do you see here how,like if you were to pay off the
mortgage early, yeah, you'dsleep better, but there's
400,000 fewer dollars that arenow going to be working for you
(06:24):
because it went paid off themortgage.
And they said hey, that's agood point, but that mortgage,
that's about $3,200 a month forus.
The fact that we could nolonger have that expense in
retirement, wouldn't that bebetter for us?
Because now, if you need tosend me $10,000 a month, well,
you now only need to send me$6,800 a month, because, because
(06:44):
that's 3,200 less because Idon't have a mortgage, I said
great point, let's factor it in.
So we basically were going backand forth in the financial
analysis and what I learned wasthat, no matter what I told this
couple, they were going tosleep better at night by not
having a mortgage.
We went through examples ofwhat if they got 8% growth and
(07:05):
their current mortgage, by theway, I'll 3.5%.
So the simple math says whydon't I not pay down the
mortgage in full?
Instead, invest the money,because if I can get 8% growth,
that's better than paying downat 3.5%.
But they brought up a wisepoint.
(07:26):
The point that they brought upwas they said that makes sense
over time, but markets don't do8% every year.
They average 8, 9, 10, 11, 12%,and so what we want to do is go
what's the most efficient wayto let us sleep at night and how
do we optimize our investmentsto do that?
What if this couple got unlucky?
(07:47):
And they brought this up?
And they said there's somethingcalled sequence of return risk.
They learned it from my podcastand then became a client, and
what that means is what if youget unlucky?
So what if they retire and theyget unlucky and markets go down
10%?
Well, they're gonna wish theypaid off that mortgage, because
now their brokerage account,with a one and a half million,
(08:08):
has 150,000 fewer dollars andthey would have slept better by
paying off that mortgage, havingless of an expense there.
So we are going through allthese what-if scenarios and
modeling out all these thingswith the software that I talk
about all the time in my videos,which all of you can get access
to, regardless.
If you have $3.5 million, it'sfor 300 bucks.
(08:29):
You could go and just get itright now in the description of
this episode.
But here's my point we wentthrough all these different
scenarios and it came down toconfidence.
Now, based off the scenarios weran, there was a very good
chance that they would come outon top financially if they did
not pay the mortgage offentirely, paid the minimum and
invested the rest, meaning youlet your superhero keep growing.
(08:52):
But there was, you know, a 20%to 25% chance that they would
not come out on top, meaning ifmarkets did not do well in the
coming years because they havehealthcare, they're going to
travel, there's a lot ofexpenses.
And so they said, look, Iunderstand, financially I might
come out behind doing what'sgoing to let me sleep at night.
(09:13):
And I said you just didfinancial planning.
They're like what do you mean?
I'm like, well, you justrealized that there's a
financial answer to somethingand that doesn't mean you have
to do it.
So they realized that they'relike we're going to sleep better
at night knowing that there'sno mortgage.
That's an additional expense Idon't have to worry about.
And yeah, maybe we get unluckyand markets do really well and
(09:34):
they're up 20%, but we don'tneed to be up 20% to be okay.
And that was their bigrealization they realized they
don't need to hit 15, 20%returns to be okay.
They're going to be okay eitherway.
Now there's going to be moremoney at the end if they were to
not pay off the mortgage infull and instead invest over
(09:55):
time.
But they're like you know whatthe opportunity cost of that
$400,000, yeah, we realized thatcould keep growing.
But having that paid off, Ithink we're going to feel more
confident spending in retirement.
And I'm like wow, wow, wow, youguys are getting it.
And so there's so manyfinancial answers in life Max
out your Roth IRA, do the megabackdoor, make sure you do the
(10:18):
HSA, on and on and on, and thosecan be great.
But I see people that save andinvest so well that they don't
spend money on what matters most.
So, going back to the dentist,I have no idea if my new dentist
dad was sacrificing lifestyle,but he's 60 with dementia.
Well, he was 60, now he's mucholder, but he retired at 60 and
(10:42):
he had dementia.
Now I have no idea if it was inthe family or what, but I had
an episode I put out I don'tknow I'm recording this in
January, right now, maybe twomonths ago where this woman
called me up and she waslegitimately upset that she had
over $3 million.
And I'm like look lady, I don'thear that all the time Like why
are you upset that you have $3million plus?
(11:02):
And she's like well, it'sbecause I didn't need $3 million
.
I needed about $2 to $2.2 tolive my retirement, and now I
have sciatica in my leg becauseI've been sitting for so long.
My retirement, and now I havesciatica in my leg because I've
been sitting for so long and nowI can't hike to the degree I
want to in retirement.
I'm like that's powerful stuff.
So for all of you out theresaving and investing, don't
always do the financial answer.
(11:24):
Be aware of it and you might goI'm going to do it, which, yes,
I'm all about that.
But here's a couple that's likelook, we're going to sleep
better, not having a mortgage,we're going to worry less.
It's one less thing that youknow, when it comes to financial
planning, I have to worry about.
Yeah, there's mortgage interestand I know I could deduct that.
Yeah, it turns out I couldinvest better, but what if I
(11:44):
don't?
And retirement is aboutbuilding confidence.
And if you just do all theright financial things on paper,
what could happen is I'm notsaying you're going to do this,
but a lot of you will underspend, meaning you retire at 60.
You're like I don't want to runout of money, you don't spend
as much as you can.
And now you're 80 with $20million going.
Look, I'm in a fine spot anyways.
(12:04):
Like why didn't I spend morewhen I had my energy and my
health, when I could haveactually, you know, enjoyed it
to the fullest?
So the story is really onsaying are there things that
will just let you sleep at nightbetter.
And I use myself as an examplehere I buy cars outright.
It makes it sound like I buy alot of cars.
(12:24):
I don't.
I drive a Mazda, mazda CX-5, nobig deal, but I bought it
outright.
Should I have done that?
Nope, I could have gotteninterest rate that was better.
I'm going to invest the next 50, 60, 80 years.
I don't know why I skipped 70there, but I am going to do that
because I understand compoundinterest and the value of it.
But look, I sleep better justbuying the car, and it's one
less monthly thing I have todeal with.
(12:45):
So here I am telling a clientthat they should save and invest
more, and I'm doing the samething, just not with a home, but
with a car.
So all of us have biases andheuristics, and so one of the
things we pride ourselves onhere is behavioral finance.
Not just what is the financialmath say, but what do we feel
about that recommendation?
(13:05):
Does it resonate with us likegut check wise?
So that is it for this episode.
If you guys enjoyed this, thistype of story, let me know.
I have so many more storiesthat I'm begging to share that I
cannot wait, but I want to makesure it resonates with you.
So if you like this, please letme know in the comments of this
video.
Please leave a review on iTunes.
Please like it if you listen onSpotify or wherever you listen.
(13:27):
That helps more people listento the show, and that's what I
love doing.
I love getting to help peoplelike you guys.
So thank you for allowing me todo this and I'll 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
(13:48):
love getting to do this.
Now, please be smart about this.
Before you actually execute anystrategy that you see me talk
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.
(14:09):
Once again, just quickdisclaimer here.
Guys, please be smart aboutthis.
Appreciate you listening, asalways, and you can, of course,
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
(14:30):
people, I will absolutely makean episode on it, at the very
least give you some insight.
That's it, thanks, guys.
I am so excited for today's podcast episode.
So welcome back to the show Ifyou're a frequent listener, if
you're a new listener.
I love getting to do differenttopics, whether it be tax
strategy, withdrawal, healthinsurance.
Today is none of those.
It is going to be a story.
Now, it's going to be a fewstories and I hope you actually
enjoy it, more than some of mycase studies where I will go
(00:21):
through specifics on socialsecurity and withdrawal
strategies and Roth conversionsand, yes, I love that stuff.
But today is a story and thereason for this is because I
just got back from the dentistand I will not be telling you
about all of my teeth, eventhough I know you guys are dying
to know.
No, I know you're not bad joke,but the point here is my
(00:41):
dentist is a new dentist and heis a dentist because he was a
hockey player and he got all ofhis front teeth knocked out and
just the thought of that made mebe like, yeah, I am never
playing hockey, not that I wasever debating it, but he was
telling me because naturally,I'll get into.
Okay, here's why I became afinancial advisor.
It's cool hearing why you're adentist and we got went back and
(01:02):
forth.
We were not doing that when hewas evaluating my teeth, because
we've all been there wherethey're like so how's your day
going?
And you're like I don't know,your hands are in my mouth, I
can't really talk.
But the point here is thisdentist is a really nice,
awesome guy.
I'm going to even link belowhis information in case you guys
want to reach out to him.
But he has a father who gotdementia at 60.
(01:26):
And he was asking me why I lovedoing financial planning and I
was saying, to be honest, it'sbecause of cases like that, and
of course I had it to add.
I needed to add some contextreal quick there, because or
else it just sounds terribleLike I became an advisor because
your dad got dementia at 60.
And so I said, look, it'sbecause did your dad save and
invest and he goes?
(01:46):
Well, he didn't really invest,but he did save and he worked
really hard and then at 60, allof what he saved for is really
just going to long-term careexpenses and that's really sad.
I want someone like his fatherto enjoy his life and so if that
means you retire earlier andyou prioritize your health and
you save the right way and youget more family time.
(02:06):
Well, that's why I love thisstuff.
So today is just a story aboutthe power of not just good
planning but almost doing thewrong financial thing, but
leading to a better life.
Let me explain what that means.
So I'm going to go through thattoday.
If you are new to the show,welcome.
I love getting to make contentaround all these different
strategies.
(02:26):
You can submit a question on mywebsite,
earlyretirementpodcastcom.
If there's a topic you have notseen me talk about, that you go
.
I want you to do one on thisNow.
If you're a new listener, youmay have just not heard that
episode.
So one of you reached outrecently who said hey, I haven't
seen you do an episode onlong-term care insurance, so
I'll gladly have my team sendyou the link to that, and I
(02:49):
often will just respond quicklybecause I know what it's like
looking for.
You know a piece of contentthat you cannot find, and so I
totally get it.
If you are a frequent listener,I rely on you guys to help grow
the show.
So if you're listening on thepodcast app, please do go leave
a review, whether you've likedit, not liked it.
I often like to highlightreviews.
(03:10):
This is your show, so some ofyou guys are very transparent
and I love the transparency.
This was two reviews I'm gonnahighlight.
The first one comes from ShaneSchna, who says there are some
strong podcasts in the field,but none more concise,
well-versed and straight to thepoint than this one Quick
analysis on a variety of topicsthat all need to consider as we
(03:33):
determine when it is the righttime meaning to retire, review
the historical content to gaingreat insights on specific topic
that relate to your ownspecific situation.
Thank you, ari and team.
Now, that's one of them.
The other one comes from coolair one, two, three who says
this is wordy but pointless.
So I get that as well, and sonaturally, when I make content,
(03:57):
there's going to be a lot of youthat resonate and all you that
don't resonate.
So if you don't resonate,number one like, of course, you
do not have to tune into theshow.
But number two, I'm gonna tryto be more clear up front when I
go.
This is an episode that's goingto be more story based, so I
could see if this person wasreaching out looking for
guidance on interest rates thathe'd go.
Well, this is wordy and notthat helpful because it's not
(04:18):
directly related to a specifictopic.
Some of my videos will be veryspecific and I will will say hey
.
By the way, when I said veryspecific, it reminds me of the
joke that I told a few weeks agoof my dad who says you can
never have a very full flight.
It's either full or not full.
It cannot be very full, so itcannot be very specific.
That would be me repeatingmyself.
(04:39):
It is specific, so I will makea specific video on a topic.
You should collect socialsecurity at 62.
If you are, these five things,boom.
That might be what thatperson's looking for.
So I try my best, but here's mypoint and here's the story for
today.
So this couple I was speaking towas all about having no debt.
That was their whole thinggrowing up.
(04:59):
That was, those were theirvalues.
Now I do not have it in me tonot bring up financial examples
when the evidence is clear,meaning whether you like me or
don't like me, I need you to beaware of this, and I showed them
the value of not paying off amortgage early and instead
investing the rest, and theywent okay.
(05:20):
So, like you're changing mymind financially, but I still
don't want to have a mortgageand they have about $400,000
mortgage, but they also have 2million in a 401k and about
another one and a half in abrokerage account.
So they're a year or so outfrom retirement and they're
debating do we go pay off thismortgage because we have the
(05:41):
money to do it?
We have one and a half millionin a brokerage account, which I
call what, let me know in thecomments Superhero account,
because it is the mostunderutilized account when
someone wants to retire early.
So what I did is I showed themhey guys, if you did not pay off
the mortgage early, so you letthis money keep growing in your
(06:02):
superhero account and youaverage 8% growth.
Your one and a half millionwould become boom, boom, boom,
boom, boom.
So two, 2.2, 2.5.
And they said that makes sense.
I said so do you see here how,like if you were to pay off the
mortgage early, yeah, you'dsleep better, but there's
400,000 fewer dollars that arenow going to be working for you
(06:24):
because it went paid off themortgage.
And they said hey, that's agood point, but that mortgage,
that's about $3,200 a month forus.
The fact that we could nolonger have that expense in
retirement, wouldn't that bebetter for us?
Because now, if you need tosend me $10,000 a month, well,
you now only need to send me$6,800 a month, because, because
(06:44):
that's 3,200 less because Idon't have a mortgage, I said
great point, let's factor it in.
So we basically were going backand forth in the financial
analysis and what I learned wasthat, no matter what I told this
couple, they were going tosleep better at night by not
having a mortgage.
We went through examples ofwhat if they got 8% growth and
(07:05):
their current mortgage, by theway, I'll 3.5%.
So the simple math says whydon't I not pay down the
mortgage in full?
Instead, invest the money,because if I can get 8% growth,
that's better than paying downat 3.5%.
But they brought up a wisepoint.
(07:26):
The point that they brought upwas they said that makes sense
over time, but markets don't do8% every year.
They average 8, 9, 10, 11, 12%,and so what we want to do is go
what's the most efficient wayto let us sleep at night and how
do we optimize our investmentsto do that?
What if this couple got unlucky?
(07:47):
And they brought this up?
And they said there's somethingcalled sequence of return risk.
They learned it from my podcastand then became a client, and
what that means is what if youget unlucky?
So what if they retire and theyget unlucky and markets go down
10%?
Well, they're gonna wish theypaid off that mortgage, because
now their brokerage account,with a one and a half million,
(08:08):
has 150,000 fewer dollars andthey would have slept better by
paying off that mortgage, havingless of an expense there.
So we are going through allthese what-if scenarios and
modeling out all these thingswith the software that I talk
about all the time in my videos,which all of you can get access
to, regardless.
If you have $3.5 million, it'sfor 300 bucks.
(08:29):
You could go and just get itright now in the description of
this episode.
But here's my point we wentthrough all these different
scenarios and it came down toconfidence.
Now, based off the scenarios weran, there was a very good
chance that they would come outon top financially if they did
not pay the mortgage offentirely, paid the minimum and
invested the rest, meaning youlet your superhero keep growing.
(08:52):
But there was, you know, a 20%to 25% chance that they would
not come out on top, meaning ifmarkets did not do well in the
coming years because they havehealthcare, they're going to
travel, there's a lot ofexpenses.
And so they said, look, Iunderstand, financially I might
come out behind doing what'sgoing to let me sleep at night.
(09:13):
And I said you just didfinancial planning.
They're like what do you mean?
I'm like, well, you justrealized that there's a
financial answer to somethingand that doesn't mean you have
to do it.
So they realized that they'relike we're going to sleep better
at night knowing that there'sno mortgage.
That's an additional expense Idon't have to worry about.
And yeah, maybe we get unluckyand markets do really well and
(09:34):
they're up 20%, but we don'tneed to be up 20% to be okay.
And that was their bigrealization they realized they
don't need to hit 15, 20%returns to be okay.
They're going to be okay eitherway.
Now there's going to be moremoney at the end if they were to
not pay off the mortgage infull and instead invest over
(09:55):
time.
But they're like you know whatthe opportunity cost of that
$400,000, yeah, we realized thatcould keep growing.
But having that paid off, Ithink we're going to feel more
confident spending in retirement.
And I'm like wow, wow, wow, youguys are getting it.
And so there's so manyfinancial answers in life Max
out your Roth IRA, do the megabackdoor, make sure you do the
(10:18):
HSA, on and on and on, and thosecan be great.
But I see people that save andinvest so well that they don't
spend money on what matters most.
So, going back to the dentist,I have no idea if my new dentist
dad was sacrificing lifestyle,but he's 60 with dementia.
Well, he was 60, now he's mucholder, but he retired at 60 and
(10:42):
he had dementia.
Now I have no idea if it was inthe family or what, but I had
an episode I put out I don'tknow I'm recording this in
January, right now, maybe twomonths ago where this woman
called me up and she waslegitimately upset that she had
over $3 million.
And I'm like look lady, I don'thear that all the time Like why
are you upset that you have $3million plus?
(11:02):
And she's like well, it'sbecause I didn't need $3 million
.
I needed about $2 to $2.2 tolive my retirement, and now I
have sciatica in my leg becauseI've been sitting for so long.
My retirement, and now I havesciatica in my leg because I've
been sitting for so long and nowI can't hike to the degree I
want to in retirement.
I'm like that's powerful stuff.
So for all of you out theresaving and investing, don't
always do the financial answer.
(11:24):
Be aware of it and you might goI'm going to do it, which, yes,
I'm all about that.
But here's a couple that's likelook, we're going to sleep
better, not having a mortgage,we're going to worry less.
It's one less thing that youknow, when it comes to financial
planning, I have to worry about.
Yeah, there's mortgage interestand I know I could deduct that.
Yeah, it turns out I couldinvest better, but what if I
(11:44):
don't?
And retirement is aboutbuilding confidence.
And if you just do all theright financial things on paper,
what could happen is I'm notsaying you're going to do this,
but a lot of you will underspend, meaning you retire at 60.
You're like I don't want to runout of money, you don't spend
as much as you can.
And now you're 80 with $20million going.
Look, I'm in a fine spot anyways.
(12:04):
Like why didn't I spend morewhen I had my energy and my
health, when I could haveactually, you know, enjoyed it
to the fullest?
So the story is really onsaying are there things that
will just let you sleep at nightbetter.
And I use myself as an examplehere I buy cars outright.
It makes it sound like I buy alot of cars.
(12:24):
I don't.
I drive a Mazda, mazda CX-5, nobig deal, but I bought it
outright.
Should I have done that?
Nope, I could have gotteninterest rate that was better.
I'm going to invest the next 50, 60, 80 years.
I don't know why I skipped 70there, but I am going to do that
because I understand compoundinterest and the value of it.
But look, I sleep better justbuying the car, and it's one
less monthly thing I have todeal with.
(12:45):
So here I am telling a clientthat they should save and invest
more, and I'm doing the samething, just not with a home, but
with a car.
So all of us have biases andheuristics, and so one of the
things we pride ourselves onhere is behavioral finance.
Not just what is the financialmath say, but what do we feel
about that recommendation?
(13:05):
Does it resonate with us likegut check wise?
So that is it for this episode.
If you guys enjoyed this, thistype of story, let me know.
I have so many more storiesthat I'm begging to share that I
cannot wait, but I want to makesure it resonates with you.
So if you like this, please letme know in the comments of this
video.
Please leave a review on iTunes.
Please like it if you listen onSpotify or wherever you listen.
(13:27):
That helps more people listento the show, and that's what I
love doing.
I love getting to help peoplelike you guys.
So thank you for allowing me todo this and I'll 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
(13:48):
love getting to do this.
Now, please be smart about this.
Before you actually execute anystrategy that you see me talk
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.
(14:09):
Once again, just quickdisclaimer here.
Guys, please be smart aboutthis.
Appreciate you listening, asalways, and you can, of course,
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
(14:30):
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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