Category Archives: Financial Independence

A new bank program targets Palestinian women, offering them affordable accounts, credit cards and small-business and other types of loans. Image by Hugo Goodridge/Al-Monitor

Author:Entsar Abu Jahal Posted July 19, 2017

GAZA CITY, Gaza Strip On July 5, the Ramallah-based National Bank (TNB) launched its latest version of Hayati (My Life), a program that targets women. The privately owned bank first introduced the program in 2015, focusing on savings accounts and offering a limited number of 0% interest loans for modest amounts. The revamped program, the first of its kind in Palestine, offers comprehensive banking services for women, including accounts of all types, credit cards and low-interest housing, personal, car and small-business loans.

The program framework stems from a February 2016 memorandum of understanding signed by Abir Awda, the Palestinian minister of economy, and Rajaa Rantision, the board director of the Ramallah-based Business Women's Forum (BWF), to increase womens participation in the economic arena.

The initiative aims to empower women by enhancing their financial capabilities in the management of private business projects and to strengthen womens roles and independence in a society that continues to hinder their joining the labor market. Some Palestinian women still have an outdated understanding of saving and therefore continue to buy gold and hoard money at home.

TNB general manager Ahmad al-Haj Hassan told Al-Monitor about an internal bank study that led to its first women's savings program under Hayati. Women's consumption patterns differ from that of men, he said. Moreover, the study suggested that womens savings rate was higher than men's, but they tended to save in traditional ways, not using banks. According to Hassan, women who saved did so to feel financially secure, to have a steady income reserve and to complete their education.

Hassan said of Hayati, TNB has financed 120 women's projects worth $2.5 million, benefiting nearly 400 women over the past two years as part of the old program, by offering a limited number of loans. After a detailed feasibility study of the clients projects and their ability to repay, the bank would provide women with zero interest loans.

He also said that the bank relaunched the program to include comprehensive and new services commensurate with the needs of women, including credit and debit cards and current accounts at a small cost and without commissions. With the new program, the bank also offers loans at half the going interest rate and the possibility of repaying in 10 installments instead of 12 per year.

As for the banks previous offer of zero-interest loans, Hassan said the bank could only afford them for a limited period of time, as they could negatively affect the banks growth. That is why the new program offers more loans at a reduced interest rate rather than zero interest for a limited number of customers.

Under the new program, women can apply for any type of loan. The loan conditions can be found on the programs webpage. The 2015 program issued loans for small-scale projects only to women who met a set of limited criteria. The TNB of course assesses how successful a projected business might be, the ability of the borrower to repay the loan and the nature and possible uniqueness of the project. TNB set up a Hayati-related webpage where women can follow up on and track their financial transactions.

At the annual awards celebration held by the magazine Banker Middle East in Dubai May 11, TNB won Best Bank for Women's Empowerment because of its Hayati program.

Amale al-Natche from Nablus told Al-Monitor that she had been thrilled to hear about Hayati's expanded loan program and plans to apply for a car loan. She has wanted to buy a car for years but did not have enough money, and the going bank interest rates were too high.

Ramallah resident Bahia Fleifle told Al-Monitor, I joined the [old] program in June 2016 so I could benefit from the zero interest loans to start my hand embroidery project. [The business] gives me a sense of self-fulfillment and allows me to support my family.

Fleifle said she works from home and remotely employs 40 other women, who also work at home. She provides them with the raw materials. Fleifle promotes the embroideries through her network of personal connections at home and abroad.

She noted that she had been working in embroidering since 1990 with associations and institutions, but earning a pittance. She could not afford to start a business enterprise of her own, but now she intends to open a shop in the United States with the help of an acquaintance who lives there.

Safaa Mohammed told a similar story: I applied for a loan as part of the [old] TNB program in October 2016, so I could start my own business making custom-printed paper cups in different sizes for institutions and companies. Mohammed said she started thinking about owning her own business after her divorce 12 years ago. She worked in pastry shops and had other irregular or temporary jobs, and therefore could not save enough to pursue a business.

I got a zero-interest loan from TNB, which allowed me to buy the necessary machinery and employ seven workers, who are now, in turn, supporting their families, Mohammed said. The equipment and machinery were set up in the yard near my house.

She stressed that she has faced difficulties in terms of societys view of women, whose potential continues to be disregarded in the labor market. Mohammed said she was able to prove herself with the quality of her products, noting that she wants to expand her project. I have been able to make a decent income, prove myself socially and develop my administrative and financial potential, she said.

Doaa Wadi, BWF executive director, told Al-Monitor, The participation of women in the economic process plays a major role in increasing family income and improving the economic and social conditions of their families. This is not to mention that women become independent within society.

She noted that programs like Hayati contribute directly to improving the economic status of women, giving them the proper incentives to enter the labor market.

Working women have a say in family decision-making and a direct role in it, unlike nonworking women, who often are oppressed at home, especially in a patriarchal society, which undermines womens work and ability to bring about change, she said. The government should create a supportive environment for womens participation in the labor force. Civil society institutions should also work on creating material, moral and educational incentives for women to participate in the economic process.

Wadi noted that Labor Law No. 7 does not discriminate against women working, but patriarchal Palestinian society limits the application of the law. In the eyes of society, women are not capable of taking the lead like men, which limits them to stereotypically female fields of work, such as teaching and nursing.

Read More: http://www.al-monitor.com/pulse/originals/2017/07/palestine-bank-program-women-loans-savings-economy.html

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Bank project offers Palestinian women independence - Al-Monitor

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Do you wish you could find financial independence? Are you struggling to save money, and if you can save, watching it go up and down in the stock market? Then it's time to take charge and do something for yourself and your family. Our Financial Planner is going to show you how to get started right away, no more procrastinating! Joseph Quijano is a Certified Financial Planner, published author, and National Financial Educator. He's hosting three FREE educational events to show you how to make your money work for you. Joseph joined us this morning to talk about how he can change your life.

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Gain Financial Independence Attend a FREE Educational Event - FOX31 Denver

PLEASANTON, CA (July 11, 2017) For the past year, 1st United Credit Union has provided support to the Alameda County Family Justice Centers (ACFJC)STEP-UP programwhich seeks to empower survivors of domestic violence to take control of their independence.

Through the 7-week STEP-UP program which stands for Survivor Training and Empowerment Program, Utilizing Your Potentialparticipants are taught financial literacy, employment success strategies, goal setting, and other life skills. During the past year, 1st United has taught the basics of money management, credit scores, debt management, and identity theft protection to almost 100 women.

Our goal is to give these women the tools to feel in control of their finances, explains Greg Pulliam, 1st United Credit Unions Chief Administrative Officer. Our trainerstry to instill in the participants the discipline to make the right financial choices while living within their means which will keep them on track to meet their financial goals.

According to the National Coalition Against Domestic Violence, financial self-sufficiency can be the difference between staying or leaving in a domestic violence situation. For 1st United Credit Union, partnering with the ACFJC is a means to helping their neighbors. Its just another way we can give back to our community beyond donationsby providing hands-on support through volunteerism and financial literacy.

Envisioned by the Alameda County District Attorney, Nancy OMalley, and led by Executive Director, Cherri Allison, Esq., the nationally-recognized ACFJC provides comprehensive services to victims of interpersonal violence in a collaborative and coordinated way all under one roof.

beautiful young woman shows piggy bank in front her office building focus on the piggy bank

It doesnt get simpler, faster and friendlier than 1st United Credit Union. As one of the first credit unions in California, 1st United Credit Union was founded in 1932 and has been thriving in the San Francisco East Bay Area ever since. Membership is available to anyone who lives, works, or attends school in Alameda, Contra Costa, San Joaquin, Solano, Stanislaus, or Kings counties in California. We believe in local, neighborly banking and hope you will too. For more information, visit http://www.1stunitedcu.org.

The Alameda County Family Justice Centers mission is to ensure the safety, healing, and self-empowerment of victims of domestic violence and their children, ofvictims of sexual assault and exploitation, human trafficking, child abuse, stalking, and elder and dependent adult abuse through easily accessible, coordinated, comprehensive and culturally sensitive services. The center is made up of over 30 onsite and over 50 offsite agencies and programs that provide services and support to individuals and families. For more information, visit http://www.acfjc.org.

Lisha Fabris Communications Manger 1st United Credit Union (925) 598-4782 lfabris@1stunitedcu.org

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1st United Credit Union steps up, empowering women to find financial independence after abuse - CUinsight.com (press release)

As the Fourth of July should remind us all, independence is something worth fighting for. Independence means the ability to make your own decisions and live the way you choose to live. When it comes to financial independence, though, many people believe it is only a dream. Here's how to declare your own financial independence day.

TUTORIAL: Budgeting Basics

There is no absolute definition of financial independence. The most common sense of the term is that someone has enough wealth to live as they wish for the rest of their life without having to work. This is a foggy definition, though isn't picking a stock "work?" What about people who own a business and are not involved in day-to-day activities, but still step in for major decisions?

Here's a different definition: Financial independence should mean the ability to live more or less as one wants to, within reasonable limits. It may not mean the absolute freedom to never work another day again, but it may mean the ability to quit a bad job, go back to school or start a new business without major sacrifice. Likewise, financial independence should mean the ability to deal with life's ups and downs without scrimping, sacrificing or going into debt.

It is hard to fight for independence without allies. Financially speaking, that means assets that work for their owners and throw off cash. A savings account or CD is a really basic example (especially with today's microscopic interest rates), but a portfolio of dividend-paying stocks or a portfolio of bonds (or bond funds) can serve that role.

Where else can investors look for returns that can help them build wealth? Rental properties can throw off impressive amounts of cash flow not only paying for themselves, but throwing off cash above and beyond that. Writers, musicians and inventors can also look at royalties as long-term (if not lifelong) sources of income that require little additional effort. Last and not least, ownership of a business can certainly spin off significant amounts of cash, even if the owner is not directly involved in day-to-day management.

For example, say an investment of $8 or $9 in rental properties can produce $1 of rental income. Even allowing for expenses, it is not hard to get a mid or high single-digit return meaning that $1 million real estate nest egg could potentially deliver $50,000 or $60,000 in income. Likewise, simply having $1 million invested in a corporate bond fund could generate upwards of $50,000 a year in pre-tax income. (For an example of an income generating investment, read Bond Funds Boost Income, Reduce Risk.)

If you're reading this in your 20s or 30s, planning how to handle a $1 million nest egg may sound ridiculous, but it is attainable.

For starters, a careful budget is important. To make the most of every penny, it is vital to know where every penny goes. It isn't possible to plug leaks without finding them first. There is plenty of budgeting advice out there, but the three most important elements are (1) to build an emergency fund, (2) to allow some fun discretionary spending, and (3) to make saving an integral expense every bit as important as rent or food.

Once a budget is in place, cutting costs and maximizing savings can take precedence. Almost everybody spends more than they need to and a little careful consideration can usually turn up avoidable (or reducible) expenses. Saving $50 a month is not going to make anybody a millionaire, but every extra dollar prudently invested can multiply the value of that extra $50 many times over. It's known as the undeniable power of compound interest.

Financial independence is all but impossible without taking some risks. The key here is "smart" risk investing $100,000 in a risky biotech hoping to get a 10-bagger is not a smart risk, it's gambling. But doing a lot of research and spending $100,000 on a rental property in an attractive neighborhood is not nearly as risky, nor is starting a business based on a marketable skill and a real desire to do something different than the competition.

Nobody is born knowing anything about the stock market or rental properties, and most people do not have a parent or mentor to learn from at a young age. Instead, most people learn by researching, reading and experimenting with different strategies to see what works. That process never ends there is always more to learn, not only about investing but about specific investments as well.

Likewise, financial independence requires a lifetime commitment to continuous investment. It's not simply a process of saving some money, investing that money and calling it a day. Instead, those who would be financially independent have to be on the lookout for new opportunities and new ways to make the most of their hard-earned capital. After all, the price of freedom is eternal vigilance. (To help improve your investing knowledge, check out 10 Books Every Investor Should Read and 3 Business Books to Read Over the Summer.)

Independence does not come simply because people demand it or decide they want it. It is important to take that first step and make a declaration of what you want, why you want it and what you are prepared to do to get it.

Decide what financial independence means to you. Once those decisions are in place, come up with a clear plan that outlines what you need, what you want, what you have today and what you can do to move towards independence (this includes the budgeting, cost-cutting and investment plans). Last and not least, stick to that plan and keep the goal in sight.

Financial independence is not easy, but it is not impossible for those who are willing to show resourcefulness and invest years of hard work into the process. (For some tips, see 10 Simple Steps To Financial Security Before 30 and Two Roads: Debt or Financial Independence?))

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Declare Your Own Financial Independence Day

Work seems to have gotten a bad rap in PF blogs, as many are primarily focused on financial independence and early retirement. Is work really that bad? Has everyone caught the early retirement bug, or just a select few that have loud online voices?

To shed some light on this controversial topic,we decidedtointerview some excellent bloggers and ask them their views on financial independence, work, and everything in between.

We got a diverse set ofresponses,which makes for a great read.

So check out what all 19 had to say about financial independence and share your viewsin the comments below.

Jacob from theCash Cow Couple:

1. What does financial independence mean to you and how are you pursuing it?

Financial independence (FI) is achieved when your passive income streams cover allyour living expenses. Most people include pensions, Social Security, portfolio income (stocks, bonds, etc), and things like rental income from real estate in the passive category.

Its more aboutfreedom than money. Ultimately, its freedom from the 9-5 constraints that plague most Americans.

Were only halfheartedly pursuing FI right now. Neither of us are making as much money as possible, but we do have a high savings rate. Our savings rate will almost always be above 75% for the foreseeable future.

2. Would you rather quickly reach financial independence working a job that you hate or pursue a career that you love and work for many more years?

Even though I created this question, I dont know the answer because its not possible to simultaneouslyexperience both options. Ive definitely chosen the latter in my current situation and I think its a more desirable path (assuming its actually possible to find a career that you love).

Im currently in the middle of my PhD in financial planning/finance, getting paid much less than I could make elsewhere. But its a long term play. I should make a decent income when I graduate, and Ill always have numerous employment options because Im building human capital right now.

I was speaking to one of my professors a few days ago about this very subject. Hes a highly coveted speaker, writer, and consultant who makes good money outside of his academic position. He could leave academia at any time and find higher paid positions in industry, but is not interested in doing so. He told me that another pay increase is irrelevant. He already makes good money and can afford anything that interests him. When I asked about financial independence or early retirement, he chuckled and said something like this

I love what I do, and Id do the same things even if retired. Why would I give upmy currentincome to continue reading,writing, and speaking from home?

For individuals like him (and hopefully me), financial independence almost becomes irrelevant.

3. How much money would you need to stop working and call yourself financially independent? How did you arrive at that amount?

The common rule of thumb that youll hear repeated is the 4% rule. This rule is based on academic research from several years back which suggested that a portfolio could sustain a 4% withdrawal rate for 30 years time, without being depleted. So a $1 million portfolio could provide $40,000 of income each year (adjusted for inflation),for30 years, without being completely depleted.

There are a couple of problems with this, but Ill try to keep it brief. First of all, most of the people talking about the 4% rule on the internet are attempting to retire in their 30s or 40s. If someone is retiring at age 40, they should plan on their portfolio lasting 50+ years. The original research on the 4% rule was based on a 30 year retirement horizon. The portfolio would have been depleted many times with a 50+ year horizon, and the person would be forced back into work.

The second problem is the fact that many experts dont expect equity (stock) returns to continue being close to 10% each year. Some think the equity premium is lowering, and that the stock market is overpriced with respect to company earnings. The result would either be a large correction (less likely, I think) or a period of lower returns moving forward (more likely).

If both of these facts are true (and they might not be),4% is too optimisticwhen designing an early retirement portfolio. Id feel much safer around a 3% withdrawal rate. The result is a rather large increase in required principle. Instead of $1 million, you now need roughly $1.33 million to support that same $40,000 of income.

(the math is easy, just multiply yearly expense by 25 to get required savings for 4%, or multiply by 33.33 to get required savings for a 3% withdrawal rate)

But herein also lies the beauty of frugality. If you can manage tolive on roughly $10,000 as year like us, you only need $333,000 to call yourself financially independent.Even annual expenses of $20k per year only require $665,000.

Of course, living on $10k is shocking to some people, but I think somewhere between $10k and $20k is entirely doable in a low cost of living area, without a mortgage payment. Therefore at the current time, Id consider us financially independent when we are mortgage free, and our investments reach $500,000.

4. What will you do after you are financially independent and free from the constraints of a job?

The same things that I do now, which is why Id rather choose to work a fulfilling career over many years. I enjoy reading, writing, teaching, hanging out with my wife and family, and traveling. I also like being productive, and believe that some form of work is a very healthy thing.

If I do decide to retire from my first career, Id like to sell used cars. I love buying and reselling in general, but used cars can have great margins and they are always in demand.

5. Any other relevant thoughts or advice on the topic?

Understand financial independence before pursuing it. I think many people get caught up in the sexy story of FI, but they dont actually think it through. Sure, having a high savings rate is always recommended. Thats a good part of this blog. But socking away money is completely different than choosing a career based on earning potential alone, or waking up one day and deciding that its time to quit your job simply because you have enough assets to cover your living expenses.

Those are major life decisions, and in complete honesty, I dont think its healthy for some people to stop working. They dont have sufficient hobbies to fill the time and are left void of purpose. This is the dark side of financial independence and the reason that people should do a little soul searching before they make these huge decisions.

There isnt any one size fits all approach to reaching financial independence, but there is a superior path. Figure out what brings you satisfaction and joy in life, then try to design a lifestyle around that. Work doesnt have to be soul crushing. If your current position makes you miserable, save enough to take a year or two off, so that you can find a way to make money doing what you enjoy. Its not all rainbows and butterflies, but I think its possible to find meaningful work and still achieve financial independence along the way.

James fromRetirement Savvy

1. What does financial independence mean to you and how are you pursuing it?

I equatewealthywith financial independence; and I define wealthy as being able to live your chosen lifestyle on passive (e.g. income from defined benefit plans , Social Security benefits, rental property, etc.) income and portfolio income (e.g. defined contribution plans such as 401(k)s, IRAs, etc.) and do not require earned (labor) income. Therefore, I am wealthy when I am financially independent.

Currently, the savings/investment rate in my household on an income of $190,000 is 39%.

2. Would you rather quickly reach financial independence working a job that you hate or pursue a career that you love and work for many more years?

I dont know that it is necessarily a case of choosing one or the other. At least that has not been my experience. My experience is that most people end up in a profession or on a career path through circumstances, some factors within their control, others not.

My suggestion to younger people, Im 47, is to learn and/or receive formal education in two disciplines (my undergraduate degree is a dual major in business administration and communications technology and I also possess an MBA) and pursue a career that you believe you will enjoy. However, recognize that life has a way of throwing many curveballs, hence the suggestion for multiple disciplines. Dont spend too many years chasing a dream job or career. It probably is not as great as you think it will be and you have to be careful not to waste too much time in the pursuit.

Most of us will end up in jobs that we are good at, or at least capable of performing moderately well, and will find sufficient pleasure in that job. I believe most people will be much better served by just going with the flow with respect to which career path they end up on and spend much more energy in cultivating rewarding relationships and attaining personal finance literacy. They both will pay significantly better dividends than a career that you love.

I believe it is a lot better to be sufficiently satisfied with your career and have significant, deep-rooted relationships and financial independence. That way, when you do walk away from the career which will happen at some point, either through choice or circumstances you are in a position to enjoy the relationships and the comfort that comes with being wealthy.

3. How much money would you need to stop working and call yourself financially independent? How did you arrive at that amount?

Our current projection is that at 60, our income from passive income (six sources) will exceed our expenses. Therefore, we really will not require portfolio income. However, we have established $1.5M as our portfolio goal. Individuals can only arrive at their number through detailed retirement planning.

A quick example, discounting inflation for the moment. Assume a family decides that they want to retire in 20 years and have an annual income of $120,000. Assume, that like me, one spouse is retired from the military and is currently receiving a $20,000/yr. pension; which they project will be $25,000/yr. (COLA increases) in 20 years. Further assume the following factors: neither has a job with a defined benefit plan (traditional pension) and they project that their Social Security benefits will equal $35,000. That gives them a projected income of $60,000 from passive sources.

That leaves them with $60,000 they will need from portfolio income. How large does their portfolio need to be to support withdrawing $60,000 a year and not run out for ~ 30 years? We turn to the 4% rule. That 60,000 x 25 (or 60,000 / .04) gives us an answer of $1,500,000.

Assume they currently have $50,000 in various retirement accounts. The question then becomes, how much do they need to save on a monthly basis (most of us operate financially on a monthly basis) to reach their goal?

Turning to a good compound interest calculator I like the one atMoneyChimp lets plug in some numbers:

Current Principal $50,000

Years Until Retirement 20

Annual Rate of Return Lets assume they are assuming 5%

Annual Contributions $39,390

Result = $1,500,256.21

This family would need to contribute $3,282.50 (39,390 / 12) monthly to reach their goal. Of course, if they change any of the factors, everything changes. Running ahead of pace? Contribute less. Get much better rate of return for a few years? You can lessen the requirement going forward.

4. What will you do after you are financially independent and free from the constraints of a job?

Travel, golf, travel, lift weights, travel, ride bike, travel, hike, volunteer.

Brian fromLuke 14:28

1. What does financial independence mean to you and how are you pursuing it?

The termindependentmeans to be free from outside control; not depending on anothers authority. In that regard, a person cant be financially independent until they are completely free from the constraints of debt. Until all consumer debt, school loans, the mortgage and any other debts are retired a person is not technically independent, even if they have vast wealth. They are still beholden to another party and have obligations that require their money go in a certain direction.

Once those obligations are gone, the individual has total freedom to use their money in any way they desire. That is what my wife and I have found now that we have eliminated all our debts. Financial independence means the freedom to pursue anything you desire with money that is 100% yours.

2. Would you rather quickly reach financial independence working a job that you hate or pursue a career that you love and work for many more years?

The desire and capacity to work is something built into our nature as humans. There can be pleasure and fulfillment found in our work. For me, no amount of money would be worth the job that I dreaded going to each morning when the alarm clock sounded.

There is something to be said for the process of building money over time. Quick fixes dont satisfy in the long run. The stack of money will taste sweeter and will be appreciated more through the effort of consistent and diligent work that a person loves and feels called to.

3. How much money would you need to stop working and call yourself financially independent? How did you arrive at that amount?

I prefer not to use specific dollar amounts. Instead, I see it summed up this way: When the money a person has saved and invested makes more for them in a year than they make for themselves in a year at their job, they are financially independent. (The caveat being of course they have no outstanding debt as I said earlier.)

However, just because a person reaches this point doesnt mean they should automatically stop working. There are other life situations to consider including years to formal retirement age, ones health, lifestyle and future plans.

4. What will you do after you are financially independent and free from the constraints of a job?

My wife and I have really focused and worked hard over the past decade to budget properly, eliminate our debt and grow our investments. Part of that effort included my wife transitioning careers from high school math teacher to CPA. For her that dream career presented an opportunity to earn more and speed up the possibility of becoming financially independent.

The result of all these efforts is that, after 17 years of teaching high school students myself, Ive been able to transition to stay at home dad and personal finance blogger. Because we have reached a level of financial independence, it allowed me, and us, to invest more time in the lives of our four kids.

5. Any other relevant thoughts or advice on the topic?

Only that financial independence isnt the end-all to life. All the money in the world wont cure the emotional or spiritual hurts present in our lives. Nor will it bring true happiness and contentment. Only God can meet those needs in a persons life.

Dee fromColor Me Frugal

1. What does financial independence mean to you and how are you pursuing it?

To us, financial independence means being able to choose when and how we work. Wed like to develop enough passive income streams so that wed have the freedom to choose to quit our relatively well-paying but stressful jobs and pursue a less stressed out life. We are aggressively saving and working hard to pay off our debt to achieve this goal. We live on a small percentage of our income. Currently we put about 15% of our post-tax income into savings, but right now a whopping 40% of our income is going toward our debt repayment because we want to be debt-free so badly (darn student loans!) We also heavily contribute to retirement accounts.

2. Would you rather quickly reach financial independence working a job that you hate or pursue a career that you love and work for many more years?

Definitely the latter! Life is just too short to spend a significant amount of time being miserable. Like MasterCard always says, having a job you love is truly priceless.

3. How much money would you need to stop working and call yourself financially independent? How did you arrive at that amount?

Oh dang, this is a hard question! To be honest, Im not totally sure. We tend to think more in terms of our passive income, and we would want, at a minimum, our basic expenses to be covered by passive income streams (right now we are working on rental properties and investment income among others). But my hubby is extremely cautious by nature AND he really likes his work (not so much his current employer but his work, yes). So in truth I think that he will probably keep working long after weve technically achieved financial independence. As for myself- I see being a stay-at-home mom in my future.

4. What will you do after you are financially independent and free from the constraints of a job?

Enjoy life! And like I said, hubby will likely keep working at least part time. We love travel, being outdoors, reading, writing (me), and I think that wed love to have the luxury to spend ample time with our future children as they are growing up.

5. Any other relevant thoughts or advice on the topic?

Financial independence is a possibility! I would encourage everyone out there to dream big. If you want it, go after it. But know that it will likely take years of dedication, planning, and hard work to achieve this goal. In the end, we think it will be worth it.

1. What does financial independence mean to you and how are you pursuing it?

Financial independence to me means not having any debts including mortgage debt and being able to pay my household bills easily through a reliable source of income. At the moment, Im working on clearing my debts and then Ill be focusing on saving money and creating different income streams.

2. Would you rather quickly reach financial independence working a job that you hate or pursue a career that you love and work for many more years?

I have been in that place before where I was trapped in a job I hated, yet paid quite well. I wouldnt recommend it! I think that if you can do something you are passionate about for a living, then theres nothing wrong with working many more years. Im not planning on being the kind of person that just gives up anyway even when I have reached financial independence.

3. How much money would you need to stop working and call yourself financially independent? How did you arrive at that amount?

I havent really thought about this all that much before now, but I would think that I could stop working at this moment in time with a sum of 1million (around $1.6million) in the bank. I reached that figure because this amount would need to last me until the end of my life, Im currently 33 years old. This lump sum would need to be invested safely in order to grow the amount and so that I could take an income from it.

4. What will you do after you are financially independent and free from the constraints of a job?

I guess I would find something I really enjoy doing and relax a little more! I would try to make life a bit better for my family and friends too. It would mean a lot to me to be able to help them out both financially and also by just being around more when they need me the most.

1. What does financial independence mean to you and how are you pursuing it?

Financial independence to us means having the ability to make life decisions based on what is best for our family, with money not being a determining factor unless we want it to. We are not yet pursuing FI, but working fervently on debt payoff.

2. Would you rather quickly reach financial independence working a job that you hate or pursue a career that you love and work for many more years?

Thats a tough question, but I think Id rather work for a shorter term in a job that I hate and get it done quickly.

3. How much money would you need to stop working and call yourself financially independent? How did you arrive at that amount?

We could retire right now on a million dollars. We could easily take care of our family of six on $25k a year, and add in another 5k a year for fun stuff. We could earn this in interest alone on a million dollars.

4. What will you do after you are financially independent and free from the constraints of a job?

When our debt is gone and we are FI, it will leave Rick free to stay at his job if he wants, or to quit. He would love to have his job consist of what needs to be done on the farm here, even if it doesnt bring in any income.

5. Any other relevant thoughts or advice on the topic?

If you really are interested in FI and having the freedom to do what you want to do, start NOW. Dont wait another minute.

1. What does financial independence mean to you and how are you pursuing it?

To me, financial independence means being able to live a comfortable life (not extravagant) with the amount of money I have in savings. I am currently pursuing it by maxing out myRoth IRAeach year (currently limited to $5500) and maxing out my contributions to my SEP IRA.

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15 Experts Chatting About Financial Independence | Cash Cow ...

5 tips to achieve financial independence

Bryan Piatt, KARE 4:29 PM. CDT July 06, 2017

A basket of golden eggs (Photo: Monkey Business Images Ltd, (c) Monkey Business Images Ltd)

GOLDEN VALLEY, Minn. If the 4th of July got you thinking a lot about independence, that can also carry over to your finances.

Justin Halverson of Great Waters Financial stopped by the KARE 11 News at 4 to talk about tips to achieve financial independence.

Halversonhas insight on five of the most commonly overlooked expenses in retirement and how to plan ahead to combat them.

Sequence of Risk

Market volatility can dramatically impact the longevity of ones retirement assets. Pulling money out of savings and investments when the market is down will deplete assets at a much faster rate. As you approach retirement be sure to evaluate your risk exposure and adjust your investments accordingly.

Healthcare

The out-of-pocket medical expenses such as insurance premiums, co-pays and prescription drugs can add up to more than $200,000 per couple in retirement with traditional Medicare insurance. This does NOT include long-term care, which statistically one out of two adults will require in retirement. Dont underestimate the cost of healthcare in retirement. Plan ahead by considering long-term care insurance. If you qualify, you may also want to consider opening a heath savings account.

Inflation

The cost of living will continue to increase in retirement. Planning ahead for an increase in daily living expenses, a new car, home repairs and even leisure activities is crucial to maintaining financial independence in retirement. Simply savings cash wont help you stay ahead of inflation. To stay ahead of inflation you may want to consider investments such as annuities or bonds. You may also have to be realistic about adjusting your spending habits in retirement. If you dont want to sacrifice your quality of life, then youll need to find ways to bring in more income before you retire.

Taxes

Rarely does the cost of taxes goes down. Even though your tax bracket may be lower in retirement, it doesnt mean that the rates will stay that way forever, or that your circumstance will not change as you age. Tax planning should be a year-round practice so work with a qualified professional to review your entire financial house and see where you can implement tax-advantageous strategies such as charitable giving.

Longevity

Retirement could be 30+ years, and even without the other four obstacles above, outliving ones assets can be a real possibility if longevity is not planned for well in advance. There are many ways to offset longevity, including working longer rather than retiring early. Planning ahead can help you find ways to make your money stretch over 30 or 40 years.

2017 KARE-TV

Originally posted here:

Tips for financial independence | KARE11.com - KARE

Setting Up For Financial Independence

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Many of us dream of a time when we can live off the assets we've accumulated without having to spend our days toiling away at work. If your goal is to achieve financial freedom, we're here to help.

What is financial freedom? In a nutshell, it's the ability to live your life the way you want it, without having the pressure to earn money hold you back. And while it might seem like a far-off dream, attaining financial freedom, or independence, is doable even if you're an average earner with no immediate wealth to boast of. Here, we'll outline a path to financial freedom and show you what steps to take to reach your goals.

IMAGE SOURCE: GETTY IMAGES.

The whole point of achieving financial independence is to not be reliant on an incoming paycheck to cover the bills. It therefore stands to reason that you'll need a pretty solid savings cushion to reach that point. And that's where your emergency fund comes in.

The purpose of an emergency fund is to serve as a backup source of income when the unexpected arises. Most folks are advised to amass enough savings to cover three to six months' worth of living expenses. If you're seeking financial freedom, however, you'll want to stash away even more to ensure that you're covered when unanticipated expenses rear their ugly head.

How much should you aim to save? At a minimum, start with a year's worth of expenses and adjust that figure accordingly as your circumstances change. For example, if you're diagnosed with a health condition down the line, you may want to pad that account to allow for a temporary string of higher medical bills.

Financial freedom should also include freedom from debt -- especially the high-interest credit card variety. If you're intent on securing financial independence, work on tackling your costliest debts first and work your way downward until you've paid off your balances in first.

But it's not just credit card debt you'll want to eliminate. Ideally, you'll want to shed all forms of debt, from student loans to car payments. Oh, and that mortgage of yours? You'll want to pay that off, too. Even though mortgage debt is the good kind to have, especially since you can deduct the interest you pay on your taxes, part of attaining financial freedom is ridding yourself of as many predictable expenses as possible -- including your housing payments.

Even if you're willing to take frugality to a reality show-worthy extreme, you'll still need some income to maintain your status as a functional human being. And that's where your investments can make a world of a difference.

Your goal in investing for the long haul should be twofold -- to grow your money with compoundingand to secure an ongoing, reliable income stream. You can accomplish the latter with both dividend stocks and bonds, both of which can serve as a steady source of income provided you choose the right companies or issuers. (Ideally, you'll want to favor stocks over bonds, as they've historically delivered much higher returns.)

For the former, the key is to start investing as much as you can, as early as you can, and let the magic of compounding turn a series of smaller contributions into a significantly larger sum. The following table shows how much your portfolio might grow to based on your investment window:

If You Invest $500 Per Month for This Many Years...

Here's What Your Account Value Will Grow To*...

5

$35,000

10

$87,000

15

$163,000

20

$274,000

TABLE AND CALCULATIONS BY AUTHOR. *ASSUMES AN AVERAGE ANNUAL 8% RETURN, WHICH IS JUST BELOW THE STOCK MARKET'S AVERAGE.

As you can see, the longer you give your investments to grow, the more impressive a sum you'll accumulate -- and that's money that can buy you continued freedom. Remember, once you've amassed whatever sum your investment strategy allows for, that money is yours to withdraw or reinvest. And that, in additional to your emergency fund, interest payments, and dividend payments, is how you secure enough income to kiss the workforce goodbye at an age when most folks are still plugging away.

Achieving financial freedom is really a matter of setting goals and making them your utmost priority. The path to financial independence may be a long and winding one, but if you keep working at it, you'll get there eventually.

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Seeking Financial Freedom? These Moves Will Help - The Motley Fool - Motley Fool

Santa Fes Independence Day tradition of Pancakes on the Plaza and the classic car show is something I look forward to each year. Its always fun to see a wide spectrum of city residents enjoying the day while also supporting good causes.

But the concept of Independence Day doesnt only mean pancakes, cars, fireworks and flags. It can also be applied to your personal finances. Are you currently financially independent, or headed in that direction?

For Baby Boomers who have retirement in their sights, and are aiming for financial independence, here are some planning items to consider:

Where will you get retirement income? According to research firm Standard & Poors, Americans 65 and older, on average, derive 33 percent of their income from Social Security, 32 percent from earnings from work, 21 percent from pensions, 10 percent from investments and 4 percent from that catch-all category dubbed other. That last category may include rental income and gifts.

If you are preparing to retire in the foreseeable future, now is a good time to evaluate the various income streams available to you.

Will your money last as long as you do? The number of Americans living to age 100 is skyrocketing. According to 2016 data from the Centers for Disease Control and Prevention, the number of people reaching the century mark grew 43 percent between 2000 and 2014. Its true that medical science and lifestyle improvements, such as car safety and reduced rates of smoking, are lengthening our life spans. Nonetheless, a longer life requires more money and therein lies the problem for many people. Long gone are the days when people retired at 65 and passed away a few short years later. Todays 60-something retiree needs to be certain his or her available resources will cover the expenses for several more decades. It doesnt cut it anymore to estimate your life expectancy based on how long your parents lived.

Will your investments weather a severe market downturn? The market crash of 2008 is still fresh in most of our minds. Unfortunately, many investors panicked and sold out, locking in steep losses. Others invested only in big American stocks, which suffered a lost decade between January 2000 and December 2009, posting a total decline of 9.1 percent. During that same decade, other types of assets, such as bonds, smaller U.S. stocks, real estate investment trusts and international stocks, finished with sizable gains.

An overreliance on any one type of investment results in inappropriate levels of risk. In the next major downturn, these risky portfolios are likely to fall sharply, which could lead to new round of panic selling. Before that occurs, determine the level of risk you are taking. Will your portfolio generate the return youll need for the next few decades, while allowing you to sleep at night without worrying about losing all you have?

How much can you spend in retirement? You may have heard of the 4 percent rule, popularized in the 1990s by financial planner William Bengen. In a nutshell, this formula suggests withdrawing 4 percent a year from your investment portfolio, increasing the dollar amount each year to adjust for inflation. In theory, this amount should give you enough income for the next three or even four decades. However, that rule has been questioned recently for one glaring reason: Interest rates are significantly lower today than 25 years ago.

Instead of relying on a quite-possibly-outdated formula, start by getting a handle on your expenses. Forget the tired old advice that your expenses will decrease in retirement. As it turns out, plenty of research shows that expenses may actually go up for younger, active retirees who want to travel and engage in long-neglected hobbies. Maybe it sounds like fun to spend $15,000 or $20,000 per year on world travel, but is that realistic? Consider doing a financial plan, which will show how much you can spend, how your investment mix is likely to perform over time, how much you can leave to your family or favorite causes, and whether an event like a major illness could dash your hopes.

Unfortunately, theres no one-size-fits-all number or rule for retirement. Each situation is unique, and each requires its own deep dive into not only the numbers, but also the human factor: How do you envision your own financial independence? Thats hardly something you can find in a mathematical equation.

If you would like more information about planning for the retirement of your dreams, I am hosting a seminar, Secrets To Achieving Financial Independence from 12:30 to 1:30 p.m. July 12, at the La Farge Branch Library, 1730 Llano St. Call me at 844-507-0961, ext. 702, to reserve your space.

Kate Stalter, founder of the independent firm Better Money Decisions, helps people throughout Northern New Mexico plan for retirement. Contact her at 844-507-0961, ext. 702, or kate@bettermoneydecisions.com.

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Plan a financial Independence Day for retirement - Santa Fe New Mexican

Celebrate your financial independence this 4th of July Kansas City Star As a financial planner, I urge my clients to plan for their own personal financial independence day. The day when you are free! And it means different things to different people. Maybe your goal is to be free from work (retirement), free from debt, or ...

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Celebrate your financial independence this 4th of July - Kansas City Star