Many people equate financial independence with retirement and the two do go together very well. However, there can be significant differences between the two.
Understanding these differences can be very important in establishing the proper goal for you and your family. Many people retire and are not financially independent while others that are financially independent choose not to retire.
With financial independence, an individual achieves the freedom to make decisions based upon their desires instead of their needs because their needs have already been taken care of. Continuing to work can be based more upon the fulfillment that working provides you with on a personal and emotional level instead of a requirement to meet your financial obligations.
Many people will turn to a second career, self employment, part-time work, or volunteering as a solution for what they feel is missing from their life. Those that have financial independence have the luxury of designing and choosing those options that meet their goals and desires for their life with the flexibility to still do as I wish when I wish.
Social Security is available to most individuals with a wage-earning history but is not meant to be the sole source of income in retirement. For those individuals who have achieved financial independence, they have more options for deciding when they wish to start receiving Social Security to maximize their benefits.
Those that have not achieved financial independence may be forced into drawing Social Security at an earlier age due to unforeseen health issues, unemployment, or other circumstances.
If you wish to achieve financial independence, you must take your life into your own hands and create the financial assets and revenue sources necessary to accomplish this goal.
If you would like a complimentary analysis of your investment and retirement planning needs, please feel free to reach out to me to schedule a quick virtual meeting. Why wait to do something that should be done today.
The above is the opinion of the author and should not be relied upon as investment or legal advice or a forecast of the future. It is not a recommendation, offer, or solicitation to buy or sell any securities or any investment strategy. It is for informational purposes only. The above statistics, data, anecdotes, and opinions are assumed to be true and accurate. Grand Canyon Wealth Management does not warrant the accuracy of any of these.
Michael J. Day CPA PFS™ is the founder of Grand Canyon Wealth Management, where he provides financial planning, estate planning, wealth management, insurance, and investment services. For more information, or to schedule a complimentary consultation, visit grandcanyonwealthmanagement.com, call (480) 590-3590, or e-mail Michael.j.day@lpl.com. You may also follow him on Twitter @GrandCanyonWM. Securities and advisory services provided through LPL Financial, a registered investment advisor member FINRA/SIPC. Grand Canyon Wealth Management is not an affiliate company of LPL.