MadFientist: The Hardest Part of Early Retirement Wasn't the Money

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Nov 5, 2024

Brandon Ganch, known as MadFientist, achieved financial independence by age 34 and now offers insights from his retirement in Scotland. He discusses the realization that retirement is more about math than age. Brandon shares how his family life has influenced his spending, notably investing in a home he genuinely enjoys. He reflects on his past 'hyper-frugality' and the importance of experiences over wealth, inspired by the book 'Die with Zero.' Traveling extensively helped him understand what truly fulfills him beyond financial goals.

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ANECDOTE

Unexpected Retirement

Brandon, working remotely in Scotland for a US company, sought further work flexibility.
This led to HR realizing his location and requiring his return to the US, prompting his early retirement.

ADVICE

Negotiating from Strength

Leverage financial independence to negotiate better terms, even if you plan to stay.
"No thank you money" demonstrates your willingness to walk away, increasing your negotiating power.

INSIGHT

Spending More in Retirement

Despite portfolio growth, Brandon has focused on increasing spending post-retirement.
Doubling spending in three years, he still remains below a 4% withdrawal rate.

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Get Rich Slowly

A Simple Plan for Building Wealth

J.D. Roth

J.D. Roth's "Get Rich Slowly" offers a practical and sustainable approach to personal finance. The book emphasizes gradual wealth building through consistent saving and investing, rather than quick riches. Roth shares personal anecdotes and actionable strategies for managing debt, budgeting effectively, and making smart financial decisions. He encourages readers to focus on long-term financial goals and emphasizes the importance of mindful spending. The book's focus on sustainable and achievable strategies has resonated with many readers seeking a realistic path to financial well-being.

The Simple Path to Wealth

JL Collins

Pete Adeney

JL Collins

In 'The Simple Path to Wealth,' JL Collins provides a clear and accessible roadmap to financial independence. The book, written in a conversational style, emphasizes the importance of living below your means, avoiding debt, and investing in broad-based index funds, such as Vanguard's Total Stock Market Index Fund. Collins discusses key financial principles like the 'F-You Money' concept, the 4% rule, and the dangers of engaging investment advisors. He shares his personal journey and investment mistakes, making the book relatable and inspiring. Although the book is heavily focused on the U.S. market, its underlying principles are applicable to a wide range of investors.

Die with Zero

Bill Perkins

Die with Zero presents a provocative philosophy and practical guide on how to get the most out of your money and your life. Bill Perkins argues against over-saving and under-living, advocating for investing in experiences early and maximizing positive life experiences. The book introduces concepts like 'time-bucketing,' 'net worth curve,' and 'fulfillment curve' to help readers optimize their life stages and make the most of their resources. Drawing from his own life experiences and insights from psychological science and behavioral finance, Perkins makes a compelling case for living large and accumulating memorable experiences rather than wealth.

#555: Brandon Ganch (known online as MadFientist) joins us from Scotland to share how his life has transformed since retiring in 2016 at age 34.

“I thought retirement was an age, not a function,” he said. “And when I realized it was just a math function, it changed my entire life.”

Eight years into retirement, Brandon talks about how his spending and lifestyle have evolved. While his investment portfolio has grown "exponentially," he's had to push himself to spend more money. He and his wife have doubled their spending in the last three years, yet still haven't reached the 4 percent withdrawal rate that's common in early retirement.

Having two young kids (a two-year-old son and one-month-old daughter) has changed their spending patterns. Restaurant bills and craft beer costs have dropped significantly, while they've invested in a house — their third, but the first one Brandon says he actually enjoys owning since he's no longer "hyper-frugal."

Brandon shares his few regrets from his journey to financial independence, mainly missing friends' bachelor parties in his twenties because he didn't want to pay for two transatlantic flights in one month. The book "Die with Zero" has shifted his perspective on spending, making him realize there are "seasons in life" for certain experiences.

Brandon suggests trying to live your "post-FI life" before actually reaching financial independence. By traveling for three months straight, he learned that constant travel wasn't actually what he wanted.

He emphasizes that financial independence isn't just about early retirement — it's about having choices and power in your career.

You can find Brandon at madfientist.com or listen to his music at madfientist.com/album.

A Sampling of MadFientist Articles:

Retirement withdrawal strategies: https://www.madfientist.com/discretionary-withdrawal-strategy/

Baseline portfolio vs. optimized portfolio:

https://www.madfientist.com/guinea-pig-experiment/

FI spreadsheets:

https://www.madfientist.com/financial-independence-spreadsheet/

FI laboratory:

https://www.madfientist.com/resources/

How to use an HSA as a Super IRA:

https://www.madfientist.com/ultimate-retirement-account/

How to Stack Tax Benefits:

https://www.madfientist.com/stack-tax-benefits/

And of course, his passion project in retirement — the album:

https://www.madfientist.com/album/

Timestamps:

Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths.

0:00 - Paula opens with a Guy Fawkes Day reference and historical background

2:06 - Brandon Ganch (MadFientist) introduces himself as having retired in 2016 at age 34

4:09 - Brandon explains how HR discovering his Scotland location led to his early retirement

7:01 - Discusses the "power of quitting" and how having FI helped him negotiate better work terms

11:26 - Explains how spending habits changed post-retirement, especially around house ownership

13:37 - Talks about having kids and how that decreased spending on travel, restaurants and beer

19:27 - Shares his only regrets about the FIRE journey, including missing friends' bachelor parties

26:58 - Discusses the "Die with Zero" book and its impact on his financial philosophy

33:32 - Explains why optimization and hyper-frugality are no longer priorities in his life

40:06 - Updates on his music passion project and performing live with his brother

44:21 - Advises people to start living their post-FI life before reaching financial independence

48:36 - Explains why FI might not be for everyone but financial security matters for all

51:28 - Shares thoughts on AI's impact on software development jobs and being glad he's already FI

For more information, visit the show notes at https://affordanything.com/episode555

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