BiggerPockets Money Podcast

446: FIRE by 50: How to Have FUN on Your Journey Toward Early Retirement

Sep 1, 2023

Financial independence advocate Mark Trautman shares his journey to early retirement, including maximizing 401(k) contributions and implementing Roth conversion strategies. He discusses enjoying the journey to FIRE, managing finances after the death of a spouse, minimizing tax liability, and the concept of a 'fun bucket' account for guilt-free indulgences. The podcast also covers comparing financial progress, managing taxes and health insurance in early retirement, teaching financial matters to children, and concerns with the 4% rule for retirement planning.

01:02:43

Episode guests

Mark Trautman

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Episode notes

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Quick takeaways

Find balance and enjoy experiences on the journey to financial independence and early retirement.

Create a separate 'Fun Bucket' savings account to fully embrace and enjoy the fruits of financial independence.

Strategically plan portfolio withdrawals and Roth conversions to optimize taxes and minimize unnecessary tax burden in retirement.

Deep dives

Mark's Journey to Financial Independence

Mark Troutman shares his money story, starting from his early mistakes with credit card debt and lease cars. He then learned about financial independence through books like The Wealthy Barber and The Millionaire Next Door, which shifted his money mindset. Mark focused on saving, maxing out his 401(k), and investing in equities. He retired at 50 with a portfolio that exceeded his financial independence number. Throughout his journey, Mark emphasized finding balance, enjoying experiences, and not overly depriving oneself during the path to FI.

Introduction

2min

Journey to Financial Independence

27min

Comparing Your Financial Progress and Importance of Savings

6min

Managing Taxes and Health Insurance in Early Retirement

13min

The Concept of the Fun Bucket for Early Retirees

5min

Teaching Financial Matters to Their Daughter

4min

Achieving Financial Independence with Mark

5min

Concerns and Alternatives to the 4% Rule for Retirement Planning

3min

The FIRE community is notorious for chasing early retirement at all costs. Many search for creative ways to earn more money and spend less of it, only to end up hating the journey. If you’ve ever felt burnt out or discouraged on the road to FIRE, you’re in for a real treat with today’s episode!

Welcome back to the BiggerPockets Money podcast! Today, we’re joined by Mark Trautman from Mark’s Money Mind. Early on, Mark decided that he was going to live life on his own terms. So, he and his wife worked their way out of debt and adopted the motto, “Make some, save and invest, and live on the rest.” After maximizing their 401(k) contributions, investing their money in other retirement accounts, and diligently saving each month, Mark and his wife were able to retire by the time he reached age fifty.

We wish Mark’s story ended there. A few years later, however, his life was turned upside down after the death of his wife. While grieving the loss, Mark needed to adjust how he used his nest egg going forward. By implementing smart Roth conversion strategies and opening a “fun bucket” account, Mark was able to not only minimize his tax liabilitybut also find new ways to enjoy retirement. Stick around for a true masterclass on how to relish the journey to FIRE!

In This Episode We Cover

How to enjoy the journey toward financial independence and early retirement

The financial implications you face after the death of a spouse

Reducing your lifetime tax liability with Roth conversion strategies

The “fun bucket” strategy you NEED to implement in retirement

How to start teaching financial independence to your children TODAY

And So Much More!

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