Recently, I made a rather impolite statement about the "absolute sack of sh*t" that our society has cultivated regarding retirement planning.
I apologise for the crude language, but I wanted to convey my frustration with the prevailing narrative - that early retirement or financial freedom is essentially unattainable without taking massive risks.
In this article, I'll debunk the notion that early retirement is only for the lucky, crazy, or reckless few who defy conventional planning.
With some fresh perspectives, a personalised plan, and a bit of courage, financial independence is within reach for those willing to tune out the "absolute sack of sh*t" messaging and forge their own path.
Problems with the Traditional Retirement Plan
The typical path laid out by most financial planners involves slow, conservative investments that steadily build wealth over decades.
I'm talking about maxing out 401ks stuffed with mutual funds, dollar cost averaging into index funds, etc. This plays it safe but restrains how rapidly your money can work for you.
The fees, market turbulence, and sequence of returns risk associated with most conventional retirement investments further erode growth over time.
One market crash at the wrong time can set you back years.
There is also an inherent conflict of interest, as the workforce depends on experienced professionals staying as long as possible. So, governments reinforce the narrative that early retirement is unrealistic.
Retirement ages keep getting pushed further out even as loyalty to longtime employees wanes.
This frustration boils over most self-made business owners and entrepreneurs. They hustled hard to attain financial security but then faced pressure to entrust their money to the same system they defied.
Rather than empowering alternative ways to invest for their desired lifestyle, the message is often “do it our way or risk losing it all.”
As a self-made entrepreneur myself, I fully understand the desire for more autonomy over one’s financial future.
But I also see how we can get stuck in conventions that no longer serve us. What worked for past generations may not apply to our current opportunities.
A Better Approach
The core of my proposed strategy is to increase the "velocity" of your money - how rapidly you can get it working for you through smarter investments.
This means seeking out opportunities beyond the conventional slow-growth options, looking instead at vehicles capable of generating annual returns of 8-10% or more.
Step #1 - First, calculate your unique "Freedom Formula" to determine the level of passive income that would fund your ideal lifestyle.
Get clarity on the lifestyle costs and how much capital it would take to generate 8-10% returns to cover that nut.
Step #2 - Take stewardship over optimising your current investments by categorising assets into "winner" and "lame duck" buckets.
Shed the losers and double down on what's working. Consolidate advisor relationships rather than having fragmented advice.
Step #3 - Determine what percentage of capital you're willing to allocate to alternative investments capable of those juicy 8-10% returns.
Even small slices can supercharge overall cash flow. But only risk what you can afford to lose and diversify across multiple vehicles.
Step #4 - Finally, carefully evaluate your current team of advisors.
Do they offer access to full wealth-building strategies or just push their limited products? Are they incentivised to keep you working versus achieving financial freedom on your timeline? Ask tough questions.
Client Case Study
I have a client named Frank who worked tirelessly over 30 years to amass an impressive property portfolio and a solid passive income stream.
However, we realised he was leaving tons of potential on the table and could increase his income by 50% in the next few years by tweaking his strategy.
We simply identified new income goals, segmented his assets more effectively, and deployed a slice of capital into select alternative investments capable of higher returns.
The key insight was that once the hard work of building capital is done, the transition to financial freedom is more about optimisation than taking big risks.
For Frank and many clients like him, "having your cake and eating it too" is within reach with the right roadmap.
Final Thoughts
Rather than resign yourself to decades of mandatory employment, why not at least explore if financial freedom is closer than you thought?
You've likely already put in the hard work...now comes the fun part of putting your money to work smarter and faster.
The time for a seismic shift in the retirement planning mindset is here. Will you lead the charge in your circle? I'm happy to help show you the way.