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Episode 145R
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Embracing Financial Independence Through Career and Investment Strategies
The landscape of career options and financial independence has shifted dramatically in recent years, creating new opportunities for growth and transformation. In this article, we will dive deep into actionable strategies for navigating career pivots, enhancing your financial independence, and building effective investment strategies, ensuring you are well-equipped to thrive in today's ever-evolving economy.
Pursuing Career Pivots with Certificate Programs
The Role of Certificate Programs
As the job market changes, many individuals find themselves reconsidering their career paths. Certificate programs are an excellent way to facilitate transitions into high-demand industries, particularly technology and real estate. These short-term educational programs focus on specific skills and can often be completed at a lower cost than traditional degrees. If you are contemplating a career pivot, consider exploring options such as Salesforce – a rapidly growing field with impressive starting salaries, even for those new to the industry.
Taking Action
- Research Certificate Programs: Visit platforms like Coursera, Udemy, or community colleges to explore available certificate programs that align with your interests.
- Network within Your Desired Industry: Join online communities and social media groups related to your interests to learn from professionals and gain insights into the job market.
Understanding Financial Independence
Redefining Retirement
It's crucial to recognize that financial independence is not solely about retiring early. Instead, it is about gaining control and option over your life. Financial independence provides the freedom to make decisions based on personal values rather than financial necessity. As Jonathan Mendonsa emphasizes, "Money empowers you with choices and control over your life."
Developing a Financial Plan
- Assess Your Financial Goals: Take a moment to evaluate your financial aspirations. Are you seeking early retirement, flexibility in your career, or the chance to pursue passions without the pressure of a paycheck?
- Create a Budget: Develop a budget that aligns with your financial goals. Use tools like Mint or YNAB (You Need A Budget) to help you stay organized.
Strategic Investing for Long-Term Success
The Importance of Diversification
Investing wisely is another essential component of achieving financial independence. One strategy to consider is real estate investment, particularly through options like turnkey properties. These offerings can provide access to larger deals without requiring extensive hands-on management.
Building an Investment Strategy
- Educate Yourself on Real Estate Investment: Familiarize yourself with real estate strategies. Websites like BiggerPockets and Fundrise offer valuable resources for beginners.
- Consider Passive Income Options: Passive income isn't merely free money; it's about putting in the upfront work to create revenue streams that will sustain you in the future.
Leveraging Community Support
Engaging in Local Groups
Building a support system within your community can enhance your journey to financial independence. Engaging with local groups or online communities can provide encouragement, shared experiences, and valuable connections.
Actionable Steps
- Join Local Meetups: Participate in local ChooseFI groups or similar organizations to network with like-minded individuals and share strategies for achieving financial independence.
- Seek Accountability: Share your financial goals with your community, helping to maintain focus and commitment as you work towards achieving them.
Practicing Mindfulness Amid Investment Volatility
The Value of Meditation
Investing can be emotionally taxing, especially during market fluctuations. Incorporating meditation practices, like the guided meditation from JL Collins, can help soothe investor anxiety and cultivate a more composed mindset.
Implementing Mindfulness Techniques
- Develop a Routine: Set aside time for meditation or mindfulness practices. Use apps like Headspace or Calm to guide your sessions.
- Read Books on Financial Psychology: Explore literature on the psychology of investing to understand your emotions better and create a more disciplined approach to your investment strategies.
Conclusion: Taking Control of Your Financial Journey
In summary, your pursuit of financial independence and career satisfaction is not a destination but a continuous journey. Embrace the opportunities available through certificate programs, craft a thoughtful financial plan, invest wisely, and surround yourself with a supportive community. By being proactive and intentional about your choices, you will be in a better position to realize your financial goals and enjoy a life filled with options and freedom.
Your Action Items:
- Explore Certificate Programs: Research and enroll in a program that aligns with your career aspirations.
- Reflect on Financial Goals: Assess your motivations for pursuing financial independence and create a suitable budget.
- Consider Investing in Real Estate: Research turnkey opportunities or platforms like Fundrise to explore investment options.
- Join a Local Community: Find a local ChooseFI group to connect with others and share your goals for encouragement and support.
By taking these steps, you actively participate in shaping your financial future, allowing for greater flexibility and agency in your career and investments.
A discussion of what to do with a windfall, a review of turnkey real estate investing, and a meditation for stock market investors when the market is falling.
[elementor-template id="143609"]Fincon In Main Stream News
In last week's episode, Brad and Jonathan discussed their experience at Fincon. This week, Brad found two articles about Fincon in the mainstream news.
One journalist felt that Fincon needed to be more political. J.D. Roth wrote a rebuttal on Get Rich Slowly, check that out here.
The second was by Chuck Jaffe, "Make Gaining Choice And Not Early Retirement Your Real Goal." At Fincon, a 20-something FIRE blogger told Jaffe that he was not FIRE. However, by any standard, Jaffe has the means to retire. He chooses to continue working because he enjoys his line of work.
He went on to explain that most people in the FIRE movement don't really retire. Instead, they find more meaningful work with less emphasis on the pay. The choice of FI should be choices not necessarily retiring forever. The intermediate timeframe of FI allows us to map out our passions for post-FI.
There's no downside to having more options in your life. And Financial Independence, that's what it gives you.
Many people hope to find something that they love to do. Some already have. For example, someone posted in the Facebook group about someone with a great side hustle on South Padre Island. They teach people how to build elaborate sandcastles on the beach. As it turns out, that is Brad's cousin!
Dennis himself also posted about it and included a video. Check that out here.
What To Do With A Windfall?
Recently, Jonathan sold his home and received a significant amount of cash from the sale. Now, he is left to consider where it is best invested. Brad and Jonathan go through their thought process of where to place a windfall sum. In this exercise, they are working with $100,000.
Their first thought is to max out any pre-tax buckets that you can. Make sure your 401k, HSA, and IRA are maxed out for the year before considering your next options.
Control what you can control.
By choosing to maximize pre-tax options, you can limit your tax liability for the current year.
Next, there are a few options to consider.
You could put the money towards your mortgage. However, this option will be more attractive if you are looking to eliminate your mortgage payment or if you want to eliminate your PMI.
You could put some of the funds into an emergency fund. A few good options for your emergency fund are Ally and CIT Bank. Both will earn you a reasonable return in the range of 1.5% APY. CIT Bank has flexible terms that could get you up to 1.30% APY for your emergency fund. Most of us would sleep better with a fully-funded emergency fund.
Check out our full review of CIT Bank here.
After a fully-funded emergency fund, Brad and Jonathan would look to invest the rest of the money in a taxable account. Likely, they would use Vanguard for this large lump sum investment. If you couldn't fathom putting all of the money in the market on a single day, then make a plan and space it out. Don't get caught up in your own head.
Of course, the way you deploy your windfall will depend on your situation. If you have any outstanding debts, then you might want to tackle those first. If you are nearing retirement, then you might want to eliminate your mortgage payment for more flexibility.
FI 101 Refresher
A quick tip for this week! Make sure to contribute enough to your 401k to receive the full match from your employer. Check to see what the rules are surrounding your company's 401k. If you don't contribute the full match then you are basically giving up free money.
Don't forget to sign up for our FI 101 course waitlist. Currently, it is in beta review, but it should be ready soon. It is an entirely free resource for our community to share this foundational information.
Mediate With J.L. Collins
J.L. Collins recently created a guided meditation for investors of the stock market. You can find the video here.
Plus, learn more on his site about best practices for investing.
Real Estate
This week's episode was a deep dive into turnkey real estate investing and building a team.
Real estate offers a way to diversify your portfolio because of the general lack of correlation with the stock market.
Turnkey investing means different things to different people.
One example is deal syndication which is similar to accessing a mutual fund that it focuses on real estate. However, it also includes single projects. With this, you'll need to do your due diligence on both the projects and the people involved. It can be an incredible about of research to ensure you are investing in a solid proposition. With several thousand dollars on the line, it is critical to do your research.
A second example is someone that agrees to do all of the work upfront. However, their interests are not aligned with yours so it is important to do your research. One place the Brad and Jonathan have looked into is Roofstock which vets homes before putting them on their marketplace.
Seek out third party sources of information.
No matter which route you choose in turnkey investing, it is vital to seek out your own information.
We had some interest in learning more about Fundrise this week. Brad has used Fundrise to invest around $14,000 but could not offer too much information on the company. Overall, it was a way for him to start diversifying his portfolio before he bought his two single-family homes. Fundrise offers REITs for different regions and pulls together investment capital from many investors. Fundrise is not FDIC insured. It is an interesting way to invest, but it requires more research before you dive in.
Listen: Turnkey Real Estate Investing And How To Build A Team With Paula Pant
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Shout Out to Eva
She paid off her student loans as a 40th birthday present. Congrats!!
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