ChooseFI

471 | Mailbag: Inflation and FI, ACA Subsidies, Roth vs. Trad and More | Cody Garrett

9 snips
Jan 8, 2024
Guest
Cody Garrett
In this episode, Cody Garrett, Founder of Measure Twice Money, joins the hosts to answer listener questions on topics such as inflation and financial independence, ACA subsidies for early retirees, Roth 401k vs. Roth IRA, and diversifying a concentrated portfolio. They discuss the importance of accounting for inflation when calculating the FI number, maximizing ACA subsidies through strategic withdrawals, and strategies for reducing concentration risk in investments. A valuable episode for those interested in early retirement planning and optimizing their financial strategy.
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INSIGHT

Inflation and FI

  • Account for inflation when calculating your FI number, especially if retirement is far off.
  • The 4% rule accounts for inflation adjustments during retirement, not before.
ADVICE

Calculating Coast FI with Inflation

  • Use an inflation-adjusted calculator to accurately determine your Coast FI number.
  • Consider various real return rates (e.g., 5%, 7%, 10%) when planning for FI.
INSIGHT

4% Rule Considerations

  • The 4% rule is a guideline, not a strict rule, and already incorporates inflation adjustments.
  • Don't neglect other income sources, like Social Security, when calculating your FI number.
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