I’ve recently met with a few friends of mine to talking about financial freedom as they want to start getting more proactive with their money. Phil and Beth (40/44) had a five-year-old son who is full of energy and enthusiastic about all things that little boys can get. Beth is an HR and Phil is in Medtronic sales. They love to camp, go hiking, work on yard projects and have outdoor adventures.
As their finances have blessed them enough to move into a home and fully renovated it to be their forever home, they do talk about what the future may look like and what they want to accomplish further.
We discussed how important it was to not just focus on retirement accounts, but also a brokerage account that can be used for future projects or dreams. A couple things they may want to do is start a business in the next five years that Phil would run. Or they may want to continue to build up cash reserves in anticipation of putting in a pool.
When we look back on folks that were able to invest money, both in the pre-retirement accounts, as well as a brokerage account, we find a higher rate of financial freedom and a lower rate of the cortisol levels, aka stress.
The real 45-year-old flex is having $100,000 to $500,000 in a brokerage account in which you can either start that dream business or shift your focus towards spending it in ways that are appropriate and enjoyable.
Maybe you’re past the age of 45, but there is still retirement to consider. That same flexibility is even more powerful as you approach the final working years and want focus on building or moving into your dream home for retirement.
Here is an example of what could be, if you start investing today. The chart below is displaying what $250 a month @ 8% growth for 15 years could be inside a brokerage account.
Whether you are 30 or 50, there is plenty of time to start this work now to help put you future self and family in a financially secure situation. I hope these numbers are encouraging to you, it is never too late to change your financial future.
We all have friends and family wanting to have more clarity on this topic, send them this email and have them reach out. I will gladly give them 20 minutes free of my time to talk through their financial future and how I can help them reach their goals.
- Peyton
P.S. - Here are a few things I am reading/watching/listening to: