513 | Make Your Own Dividend | Mailbag with Rachael

ChooseFI

In this episode: getting started early with FI, the 4% rule, retirement accounts, real estate, and safe withdrawal rates.

This episode is packed with actionable information that can help with maximizing your financial future, from house hacking to Roth conversions, and strategies for living off your investments. Brad and Rachael dive into real-world listener questions to help you navigate your FI journey with confidence.

Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.

🔑 Key Themes Discussed:

• The benefits of getting started early with financial independence (FI)
• Evaluating the 4% rule and how to live off investments in retirement
• Understanding the difference between Roth vs. Traditional retirement accounts
• Tax strategies for early retirement and avoiding penalties
• House hacking as a way to reduce housing costs and boost savings
• Real estate as an investment: risks, rewards, and misconceptions
• Maximizing income while keeping expenses low for young professionals
• Safe withdrawal rates, dividends, and managing investments post-retirement
• The psychological aspects of early retirement and maintaining financial health

🕒 Chapters:

• 00:00 – Introduction to Mailbag with Rachael
• 01:00 – Starting Early with FI: Gabby’s Journey
• 03:00 – Roth vs. Traditional Retirement Accounts for Young Investors
• 06:00 – House Hacking and Real Estate Strategies
• 09:00 – How the 4% Rule Works for Early Retirement
• 12:00 – Income Maximization for Young Professionals
• 18:00 – Managing Dividends and Withdrawal Strategies in FI
• 24:00 – Safe Withdrawal Rates and Creating Your Own Dividend
• 31:00 – Listener Questions: Roth IRA Conversion Ladder
• 36:00 – Tax Strategies and Avoiding Penalties in Early Retirement
• 43:00 – Rethinking Real Estate and House Hacking Risks
• 51:00 – Wrap-Up and Final Thoughts on Financial Independence

🔗 Mentioned Links and Resources:

• Mailbag: Getting Started with FI, Debt vs. Investing, Dividends, 4% Includes Taxes?, Roth 401k | Rachael Camp | ChooseFI Ep 505
• Mailbag: Roth vs. Trad, $35k Roth to 529, Combining Finances | Rachael Camp | ChooseFI Ep 496
• How to Access Your Retirement Accounts Before 59.5 | Sean Mullaney | ChooseFI Ep 475
• Drawdown Strategies: Karsten vs. Fritz | ChooseFI Ep 427
• House Hacking With Coach Carson | ChooseFI Ep 16
• Scott Trench | Set For Life | ChooseFI Ep 63
• Subscribe to The FI Weekly!

More Helpful Links and FI Resources:

• Top 10 Recommended Travel Rewards Credit Cards
• Empower: Free Dashboard to Track Your Finances
• CIT Bank Platinum Savings Account
• M1 Finance: Commission-Free Investing, 1-click rebalancing
• CashFreely: Maximize Your Cash Back Rewards
• Travel Freely: Track all your rewards cards and points
• Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
• Student Loan Planner: Custom Consult (with $100 Discount)
• Get a cheaper phone plan with Mint Mobile