SPRINGFIELD, Mo. – Financial independence can seem out of reach for those struggling with crippling student loans, credit card debt or overspending habits. Brad Pistole from Trinity Insurance and Financial Services has some tips to help you save some cash this summer.
What does it mean to be financially independent?
- Financial independence, or financial freedom, may mean something different to everyone.
- Some think of it as never working again because you have more money than you could ever spend.
- For others, it means being debt-free and earning enough money so you aren’t living paycheck to paycheck or retiring early.
Ed Slot, America’s IRA Expert and a CPA in New York, has a brand new show about financial freedom that’s airing all across the country right now called, Ed Slott’s Retirement Freedom. This is what he says about true retirement freedom involving four key things:
Freedom from taxes
According to Pistole, if you want to experience true freedom in retirement, you have to deal with the taxes that come from things like: Social Security and Tax-deferred retirement accounts like 401ks and IRAs. Income from those types of accounts is taxable. That’s why tax-free accounts like ROTH IRA’s are so important. They give you freedom from Taxes. Remember, it’s not what you make, it’s what you keep that counts.
Freedom from worry and freedom from risk
“Then there is the freedom from worry and risk. In 2022,” said Pistole. “We watched the stock market take a big dip of more than 20%. If you’re retired and taking your distributions from an account that’s dropping by 20%, you’re going lose sleep at night worrying about the risks you are involved in. True freedom means establishing a financial plan that free from worry and risk.”
Freedom from bad advice
And finally, there’s freedom from bad advice. Pistole said you can get financial advise just about anywhere these days. You can even get it from Tik Tok. But is that sound, financial advise? True financial freedom means working with a qualified financial professional who is a retirement income planning specialist.
A professional like this will be able to teach you how to establish freedom from Taxes, worry, risk, and bad advice. So, look for someone with special designations and training. Like a Certified Financial Fiduciary or a Retirement Income Certified Professional.