Q&A: Help! I’m STUCK On A Financial Tracking Hamster Wheel
Jul 12, 2024
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Emily Anne seeks advice on overcoming her financial tracking obsession, while an anonymous caller and partner plan for early retirement through geo-arbitrage. Also, a couple reconsiders their real estate investments. Joe Saul-Sehy provides insights on these financial dilemmas.
Manage obsessive tracking behavior by seeking balance in financial management.
Utilize geo-arbitrage for early retirement planning and relocation to lower cost areas.
Consider diversifying investment portfolios with sophisticated strategies for risk mitigation.
Deep dives
Geo Arbitrage for Financial Independence
Tom discusses his plan to use geo arbitrage to retire early on a $3 million portfolio, considering relocating to a lower cost of living to withdraw less, allowing the portfolio to grow until it reaches the $3 million mark for a return to the US or moving elsewhere.
Portfolio Diversification and Sophisticated Strategies
Recommendation to diversify Tom's VTSAX-heavy portfolio with more sophisticated strategies as he nears retirement to mitigate risks and optimize returns, highlighting the need for comprehensive financial modeling and planning.
Model Different Withdrawal Assumptions and Return Expectations
Suggests modeling various withdrawal assumptions and return expectations to understand the impact on portfolio growth, emphasizing the importance of assessing different scenarios to prepare for varied outcomes.
Considerations for Potential Challenges and Risks
Addressing potential challenges like unexpected return to the US, political stability, currency fluctuations, inflation, language barriers, and loneliness in new locations while geo arbitraging, advising on proactive risk mitigation.
Plan Flexibility and Trial Periods for Geo Arbitrage
Encouragement to have a flexible plan, trial living in potential locations, plan for snail mail management, and be prepared for unexpected changes or challenges in new living circumstances, maintaining adaptability and readiness for adjustments.
#522: Emily Anne is worried about her obsessive tracking behavior. She’s in great financial shape but struggles to shake the constant compulsion to check her accounts. What should she do?
An anonymous caller and his partner plan to use geo-arbitrage to retire early before reaching their financial independence number. Can they have their cake and eat it too?
Kevin and his wife are having second thoughts about their Delaware Statutory Trust (DST) real estate investments. How do they back out without compromising their estate plan?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.