Retirement isn’t an age—it’s a number. And achieving financial independence means reaching that number with confidence, clarity, and control over your future. Whether you’re just starting your career or already midstream, smart planning today can open the door to freedom tomorrow.
1. Define What Retirement Means to You
Retirement looks different for everyone. For some, it’s a quiet cabin and no alarm clocks. For others, it’s part-time work, volunteering, or travel. Start by asking:
- When do I want to retire?
- What lifestyle do I want to maintain?
- Will I still want (or need) to generate income?
This helps determine how much you’ll need and when.
2. Know Your Financial Independence Number
Your “FI Number” is the amount of money you’ll need invested to safely support your expenses without relying on a paycheck. A common starting formula is:
Annual Expenses × 25 = Retirement Goal
(Assuming a 4% withdrawal rate)
But this should be refined with a personalized plan—accounting for taxes, inflation, healthcare, and income changes over time.
3. Maximize Tax-Advantaged Accounts
Use every tool available:
- 401(k) or 403(b) plans, especially if your employer offers a match
- IRAs (Traditional or Roth)
- HSAs (Health Savings Accounts), which can become a stealth retirement account
- Brokerage accounts for flexibility and early withdrawals
The earlier and more consistently you contribute, the more power compounding has to work for you.
4. Invest With Purpose
Your retirement strategy isn’t just about saving—it’s about growing what you save. That means:
- Staying diversified
- Understanding your risk tolerance
- Avoiding emotional decisions based on market swings
We help our clients design investment strategies that evolve as their needs and goals shift.
5. Don’t Forget the Safety Nets
Retirement isn’t all spreadsheets and projections. Emergencies happen. Medical bills spike. Inflation creeps in. Build:
- An emergency fund
- Long-term care planning
- Insurance strategies to protect your assets and your family
6. Review, Adjust, Repeat
Your retirement plan isn’t static. Life changes. The market moves. Laws shift. Make time to:
- Review your progress annually
- Rebalance your portfolio
- Update your projections
- Work with an advisor to adjust strategies as needed
We’re Here to Help
At Diligent Financial Strategies, we don’t believe in “set it and forget it” retirement plans. We believe in walking with you—from your first budgeting step to your last paycheck—and building a plan you can trust every step of the way.