Retirement Planning: Strategies for Financial Independence

At 38, with $850k in 401k and $50k in brokerage, Robert seeks advice on adjusting savings to retire at 50.

### Strategies for Robert: Transitioning to Retirement at 50 with $900k in Assets
* 🎯 " You're **38 years old** with **$900,000 in income**. That's **incredible**.
* 🗓️  At 38, Robert has a **significant amount of time** to make adjustments to his savings strategy before retiring at 50.
* 💰 " You might end up arriving at this conclusion, '**Hey, I am what we like to call retirement rich**'.
* 📈  Step 7 of the financial order of operations is "**hyper-accumulation**," focusing on building taxable brokerage accounts to **bridge the gap between tax-advantaged retirement savings and accessible funds**.
* 🎯  As Robert approaches seven figures in assets, it's less about **pass or fail** and more about **optimizing his financial situation to achieve his desired lifestyle** and **make his money work hard for him**.
* 👩‍💼  Consider seeking help from a financial advisor to **navigate this transition** and prepare for **financial independence in your 50s**.
* 🔗  Resources for finding a financial advisor include "**8 questions to ask your financial adviser**" on their website and contacting them through **moneyguy.com** or **aboundwealth.com**.

[Music] Robert's question is up next. He says, I'm 38 with $850k in my 401k, but only $50k in my brokerage. To retire at 50, how drastically should I redirect my savings? After 15 years with the same strategy, I get analysis paralysis thinking about making any changes. So what, when you're starting to get a little fancier, what should he think about and what should he think about in this specific situation? Well, let's first address the facts. First, Robert, you're 38 years old with $900,000 in income. That's incredible. Like, that is unbelievable. I also love that you are beginning with the end in mind. You're thinking, Hey, I want to retire at age 50. So how should I begin thinking about what I'm doing right now? And what I love is that at 38, between 38 and 50, you still have a lot of time to make adjustments. So in my opinion, and we can't give you like specific advice

because we don't know the specifics of your situation, but I think you have a long enough timeline. You don't have to like do some drastic change. You don't have to like I'm doing this today, and tomorrow I have a completely different strategy at hand. But you are in that place where continuing on your present trajectory, continue to build assets the way you are. When you get to 50, you might end up arriving at this conclusion, Hey, I am what we like to call retirement rich. I've got a lot of assets in retirement accounts, a lot of stuff that's tax-advantaged. But when I'm 50, I can't get to it. I don't have access to the money that I need to pay for the things that I need to pay for. And so that becomes problematic. So for someone in Robert's situation, Brian, how would you propose that he think about that? How should he reframe how he's thinking about a saving strategy? By the way, Bo's spot on is that retirement rich is kind of a side effect.

for being a financial mutant because let's face it when you get through steps 1 through six of the financial order of operations you're really leaning into all the tax incentivized versions. But it's not uncommon you get you're doing it sooner than most people realize this but people get to the point they go man I like to start paying cash for my cars. I'd like to maybe retire sooner than the typical person does how am I going to do that since some of these accounts I can't even get access to until 55 59. Don't Panic you're crushing it this is very you're normal for the course but this is also why step seven of the financial water of operation step seven is hyper accumulation or where you thinking about exactly what Bo talked about you're beginning with the end in mind. This is where we talk about the three bucket strategy cuz you this is what you've woken up to and realize hey all my money is either tax deferred taxfree I'm going to need access to after tax or taxable brokerage account.

assets. How do I make this work? So, we've actually devoted an entire step of the financial order of operations to work through this. So, just like in Millionaire Mission, we talk about this building your Great Big Beautiful tomorrow. So, Robert, that's how I would attack it. Look at, yes, you're probably going to need to start since you're beyond steps 1 through 6. In Step 7, we need to be very deliberate about building those taxable brokerage accounts because you are going to need that bridge account to get you into the retirement that you've planned and saved and been so disciplined for. Let's just make sure that you actually get to fulfill because you're at that intersection of, hey, I just want to save, but then and invest, but now once you start thinking about how I'm going to use it, you've got to be very deliberate with what are the tools that are going to make that happen. And I would argue also, you know, at 38 years old crossing into or nearing that seven-figure mark, you're probably not like the past.

fail place like okay if I if if I do it this way, I'm going to fail. If I do it this way, I'm going to pass. It's less about that, it's more about optimization. How do I optimize my financial situation so that for me personally, I'm able to live the life that I want to live on my terms and have my money work as hard for me as I can. This might be a great time where you consider taking the relationship to the next level because you've not navigated that before. Okay, how do I shift from thinking about this as someone in my late 30s to someone actually preparing for financial Independence in my 50s. A really good financial advisor can help navigate you through that. We actually have a resource on our website you can go to, moneyguide resources, eight questions to ask your financial adviser to find someone that can help you navigate that, figure out what that looks like, and if you need somewhere to start, I would love for you to think about starting at money guy.com or abound.

wealth.com. Check out the work with us, and we would love to have that conversation with you.

Should I Redirect My Savings If I Want to Retire at 50?

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

Subscribe today to stay up to date with our latest episodes, livestreams, and highlight videos: https://www.youtube.com/c/MoneyGuyShow?sub_confirmation=1

Are you ready to go beyond common sense when it comes to your money? Check out all the free resources The Money Guy Show provides: https://moneyguy.com/resources/



The Money Guy Show

Financial Advice for Retirement Saving at 38

A 38-year-old with $850k in 401k and $50k in brokerage is planning to retire at 50, seeking advice on changing savings strategy.

With 12 years until retirement, it's recommended to make gradual adjustments to the savings plan, considering the need for accessible funds at the time of retirement.

It's important to reframe the saving strategy to ensure a balance between retirement assets and the availability of funds for future needs.

The Importance of Step Seven in Financial Planning

Many people want to achieve financial goals like early retirement and paying for expenses with cash, requiring a deliberate strategy for accessing money.

Step seven of the financial order of operations focuses on hyper-accumulation and the three bucket strategy to address this need.

Building taxable brokerage accounts is emphasized in this step to create a bridge for accessing funds and fulfilling long-term financial plans, especially for those approaching early retirement.

Optimizing Your Financial Situation for Long-Term Success

It's important to focus on optimizing your financial situation to live the life you want and make your money work for you.

Transitioning from your late 30s to preparing for financial independence in your 50s requires careful planning and a good financial advisor can help navigate this process.

You can find resources and guidance on finding a financial advisor through websites like moneyguy.