Category Archives: Financial Independence

When you think of a person who reached early retirement, the image of a 20-something who made a high salary by working in tech might come to mind. They might've hit that ambitious financial goal and left the workplace earlier than most folks by either investing in a handful of real estate properties or growing a side business.

That wasn't the case for Jackie Cummings Koski. She decided to pursue FI/RE (financial independence, retire early) in her mid-40s. Fast forward five years later, and in 2019, she had a net worth of $1.3 million at the age of 49 enough to leave her full-time job. Here's how she did it.

One of the most powerful things Koski has ever done with her finances is to create a net worth statement. "Once you know where you're starting, you can move the needle in the right direction," says Koski, who is a financial literacy advocate and author of the book "Money Letters 2 My Daughter."

In 2013, Koski began tracking her net worth. She tallied up her income, expenses, savings, and investments. To her surprise, she had $500,000 in net worth. When she decided to pursue FI/RE in 2014, her net worth had grown to nearly $600,000.

She used the 4% rule to figure out how much she needed to save; the 4% rule is a popular retirement rule that states you can safely withdraw 4% of your retirement fund in your first year after you retire. You can then take out the same amount each year (adjusted for inflation) for 25 years without depleting your funds.

She figured out that she would need a $1 million net worth to live off of $40,000 a year in retirement. She did some simple calculations, and realized that if she continued to invest and save for retirement, in about five years' time she would no longer need to rely on a paycheck.

Koski managed to hit $1.3 million net worth at 49 primarily from maxing out her employer-sponsored 401(k), Roth IRA, and HSA since 2009. She worked a corporate job as an account executive for a well-known global data company for 20 years. She also had different roles where she managed accounts for clients in the legal services industry and also in government.

Koski's average income for the last 10 years before she reached financial independence was $80,000. Her income was made up of a base salary and commissions, with her lowest annual income at $65,000 and the highest at $95,000.

While Koski primarily focused on investing and her increasing earning potential and didn't meticulously budget, she also kept her annual living expenses to between $40,000 and $45,000 a year. She managed to do it while raising a daughter on her own.

She kept her housing costs down by living in Southwest Ohio, where the cost of living is lower than other parts of the US. Her monthly mortgage payment, which included the principal, interest, taxes, and insurance, was $800.

Koski made the conscious choice to not pay off her mortgage early because her interest rate was locked in at a low 3%. When she retired at 49, she had $70,000 left on her mortgage. She currently has $58,000 left on her mortgage, and her home is valued at $215,000. Koski also kept her transportation expenses down by buying pre-owned cars when they'd be sold at 50% off the original price tag, and keeping each car for up to eight years.

Koski got into the habit of saving in high school when she got her first job. Raised by a single parent in a family of six kids, Koski describes growing up very poor. "I didn't have any kind of a safety net if something went wrong, so I felt like it was all on me," says Koski. To make sure she had enough for a rainy day, she squirreled away a little of her paycheck each week into a savings account.

To boost her financial education, she listened to podcasts and read well-regarded personal finance books and blogs. When it came to investing, she knew next to nothing. She was also a bit intimidated by the idea of investing. That changed when she joined a local stock investment club in 2008. It was supported by a nonprofit organization called BetterInvesting.org.

With a focus on education and community, Koski absorbed all she could from fellow members. "Having this outlet for my interest in investing really helped me to understand the stock market rather than fear it," says Koski. That's when she started maxing out on her 401(k), Roth IRA, and HSA.

"I'm much better at investing and income than budgeting," says Koski. "So I focused on maxing out my retirement accounts and earning." Koski recommends that anyone who aspires to achieve FI/RE find what she calls your "superpower."

"What's the one thing that you're really good at and really love?" says Koski. In Koski's case, she combined living in a part of the country with a low cost of living, keeping her transportation costs down, and optimizing her taxes, company benefits, and HSA, to reach financial independence. "A side business or real estate are two ways to do that, but there are so many other ways," she says.

The first year after she retired, she boosted her net worth. Koski made $5,000 from offering financial workshops and presentations, and also earned money from her stock investments.

She decided to devote her time in retirement to financial coaching and pursuing a Master's degree in personal finance planning and financial therapy at Kansas State University. She's tapping into $30,000 of 529 college savings money that her daughter didn't end up needing for her higher education.

By making the most of her income from a traditional corporate job and maximizing benefits and tax-advantaged accounts that were available to her, Koski was able to reach financial independence. "I figured if I could do this after starting with nothing, it was my duty to share what I've learned with others," says Koski. "It is now my life's work and I finally get to follow my dream of creating a financially literate society. And that is something I never want to retire from."

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A Single Mom Who Retired at 49 Says She Took 6 Steps to Reach Her Goal - Business Insider

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

The 34.1% share of adults in the 18 to 34 age range in Pennsylvania who live with their parents or grandparents is closely in line with the comparable share nationwide.

The decision to live at home in the early stages of one's career is often influenced by financial considerations. While goods and services in Pennsylvania are 3.0% less expensive than they are nationwide on average, making it easier for young adults to achieve financial independence, there are other hurdles. For example, the March unemployment rate in the Keystone State was 7.3% -- well above the comparable 6.2% national jobless rate.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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This Is How Many People Live With Their Parents In Pennsylvania - The Wellsboro Gazette

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

An estimated 34.9% of the 18 to 34 year old population in New Hampshire live with at least one parent or grandparent, only slightly higher than the share nationwide.

The decision to live at home in the early stages of one's career is often influenced by financial considerations. While goods and services in New Hampshire are 6.5% more expensive than they are nationwide on average, making it more difficult for young adults to achieve financial independence, the state also has some advantages. For example, the March unemployment rate in New Hampshire of 3.2% was nearly the lowest of any state and well below the comparable 6.2% national rate, suggesting that young adults in the state have an easier time securing a job than those in much of the rest of the country.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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This Is How Many People Live With Their Parents In New Hampshire - The Laconia Daily Sun

Mothers have always taken up the central role of a caretaker in the family, they are responsible for the financial needs of the family as well.

Of all the rights of women, the greatest is to be a mother. Indeed as Mothers Day is approaching and we pay tribute to one of the most important people in our lives, the roles and responsibilities that mothers take are often overlooked. The roles of mothers, in general, have changed and evolved over time. For a long time, it was the fathers responsibility to take care of the familys financial needs. With time, women have taken on the responsibility of shouldering the familys financial needs and with this, it is time for them to acknowledge the importance of life insurance for themselves.

Life insurance is a crucial element of any individuals financial plan; all mothers require life insurance including those who are not working professionals. Term life insurance pays out a lump sum if the policyholder meets an untimely demise within the policy period, thus proving to be an inexpensive way to protect the familys financial future. It helps in providing the family with funds to pay off debts, any form of disability or critical illness. Additionally, a term insurance plan is an excellent way to ensure a lifetime of financial security for your family.

Single Mothers- All mothers should have life insurance, but it can be argued that single moms need it the most. When couples invest in a plan with the possibility that one spouse will remain to care for the children. Single parents do not have this luxury. Your children look to you as their means of survival.

Working Mothers- Income replacement is one of the most important reasons to buy life insurance. In case of uncertainty, a term life insurance policy provides a death benefit to beneficiariesthat rely on your income to survive. As a mom, your children rely on your income for food, clothing, shelter, education etc.

Stay-at Home Moms They might not work outside the home to provide an income, but do a lot of work inside the home to save money home chores, managing kids and other responsibilities. In case of her absence, the father will have to take care of the children and ensure the mothers duties are managed well.

Financial Independence in the long term Life Insurance is critical for mothers to prepare for their future expenses. Whether a long term-life milestone or a provision for children, insurance plans are a great way to save for goals and provide a sense of financial independence.

Saving for the future- It is important to maintain the dual-income in case of your or your spouses retirement. A life insurance policy ensures that you continue to contribute to the welfare of the household.

Coverage for critical illness- Medical emergencies can prove to be a great burden, so invest in policies that cater to critical illness planning. In case of expensive treatment, one doesnt have to break a bank and can protect the family from the burden of high bills.

Protection for children and leaving behind the legacy Life Insurance provides children with the capital needed for a successful future. The money can help go a long way towards education, marriage, buying a house or making personal investments.

Insurance policies help everyone create a financial cushion for themselves and their loved ones. They are instrumental in preparing for unforeseen circumstances. And as Mothers have always taken up the central role of a caretaker in the family, they are responsible for the financial needs of the family as well. And adequate insurance is of utmost priority to strengthen the contingency plan and secure the future of their loved ones.

by, Vinit Kapahi, Head of Marketing, Aviva India

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Why should mothers opt for life insurance? - The Financial Express

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

Young adults in the Midwest are among the least likely of all Americans in the same age group to reside with their parents or grandparents. In Indiana, a smaller than average 29.9% share of the 18 to 34 year olds live with their parents.

Like other parts of the region, Indiana has a low cost of living and a relatively strong job market -- both factors that can make it easier for those in the early stages of a career to achieve financial independence and afford their own place. Cost of living in the state is 11.3% below the national average and the unemployment rate in Indiana stands at 4.7% -- below the 6.2% unemployment rate nationwide.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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This Is How Many People Live With Their Parents In Indiana - pdclarion.com

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

Just 30.4% of the 1.6 million 18 to 34 year olds in Tennessee live with parents or grandparents, below the national share.

The reduced likelihood of young adults living at home in the state is likely due in part to certain economic conditions that make it easier for those in the early stages of a career to achieve financial independence and afford their own place to live. For one, Tennessee is relatively inexpensive, with a cost of living 10.3% below the national average. Young people in the state are also more likely to be employed than their counterparts nationwide as the unemployment rate in Tennessee stands at 5.1% -- below the 6.2% unemployment rate nationwide.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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This Is How Many People Live With Their Parents In Tennessee - Kingsport Times News

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

In Illinois, young adults are more likely to live with a parent or grandparent than in any other state in the Midwest. An estimated 36.2% of the state's population between the ages of 18 and 34 live with their parents.

One potential explanation for the greater likelihood is the state's relatively weak job market, which can make it more difficult for those in the early stages of a career to achieve financial independence. An average of 9.5% of the state's labor force were unemployed in 2020, and as of March 2021, the jobless rate in the state stood at 7.1%. Meanwhile, the comparable unemployment rates nationwide were 8.1% and 6.2%, respectively.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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Young Adults in Illinois Are More Likely than Average to Live with their Parents - The Center Square

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

Maine is one of only a few states in the Northeast where a smaller than average share of young adults live with their parents. Just 27.8% of the state's 18 to 34 year olds live with parents or grandparents.

The reduced likelihood of young adults living at home in the state is likely due in part to certain economic conditions that make it easier for those in the early stages of a career to achieve financial independence and afford a place of their own. For one, the state is relatively inexpensive, with a cost of living 0.7% below the national average. Young people in the state are also more likely to be employed than their counterparts nationwide, as the unemployment rate in Maine stands at 5.4% -- below the 6.2% unemployment rate nationwide.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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This Is How Many People Live With Their Parents In Maine - Conway Daily Sun

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

The share of Oklahoma residents in the 18 to 34 age group who live with their parents is just 27.3%, less than in most states and well below the comparable national average.

Certain economic conditions in Oklahoma make it easier for young adults to achieve financial independence and afford their own place to live. For one, the state is one of the least expensive in the country, with a cost of living 12.8% below the national average. Young people in the state are also probably more likely to be employed than their counterparts nationwide, as the monthly jobless rate in Oklahoma stands at just 4.1% -- well below the 6.2% unemployment rate nationwide.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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This Is How Many People Live With Their Parents In Oklahoma - Purcell Register

The public health and economic toll the coronavirus pandemic caused are well documented. Perhaps less understood are the social impacts. According to a report from Pew Research Center, young adults in the United States were more likely to be living with at least one parent in July 2020 than at any time since the Great Depression.

The historic numbers of young adults either moving back home or choosing to remain there during the pandemic appears to have been a continuation of a broader trend. According to data from the U.S. Census Bureau, 34.4% of Americans between the ages of 18 and 34 lived with at least one parent, grandparent, or former guardian in 2019 -- compared to 31.5% in 2010.

The likelihood of young adults residing with their parents varies considerably from state to state.

Many of the states where young adults are less likely to reside with their parents are in the Midwest. One of them is Nebraska, where just 21.4% of the 18 to 34 year olds are living at home with parents or grandparents.

A strong job market can make it easier for young adults to achieve financial independence and afford their own home. In Nebraska, the monthly unemployment rate of 2.8% is the lowest in the country and less than half the comparable 6.2% national jobless rate.

To determine the states where the most young adults live with their parents, 24/7 Wall St. reviewed data on family and household type from the Public Use Microdata Sample summary files of the U.S. Census Bureau's 2019 American Community Survey. States were ranked on the percentage of adults 18 to 34 years old who live with their biological parents, adoptive parents, steparents, foster parents, or grandparents in 2019. Supplemental data on the median age at first marriage of the 15 to 54 year-old cohort came from the Census Bureau's 2019 ACS. Data on regional price parity used to calculate cost of living came from the Bureau of Economic Analysis and is for 2019.

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This Is How Many People Live With Their Parents In Nebraska - Norfolk Daily News