Financial Independence, Retire Early

If you’ve been hearing FIRE AKA financial independence, retire early floating around but you aren’t quite sure what it all means, you aren’t alone. The FIRE movement has gained traction in previous years and if it’s something you’ve been considering adopting but you’re not sure how, this guide is for you. 

Our team of experts at Allied Wealth have extensive experience in the world of retirement planning and we have broken down where FIRE came from and what exactly it is. 

What is Financial Independence, Retire Early (FIRE)? 

FIRE is a movement of people that are committed to a life of extreme saving in the hopes to retire far earlier than other individuals may be able too. It’s not known exactly where FIRE originated, but a core premise of the movement is that you should be evaluating every single expense in terms of the number of hours you had to work to pay for those expenses.

What’s the purpose of FIRE? 

The FIRE movement aims to get individuals to retire early, instead of the regular retirement age of 65, the FIRE movement encourages people to dedicate a majority of their incomes to savings so that they can retire and live off their savings years before they reach the traditional retirement age. 

FIRE is an extreme saving lifestyle that encourages people to save up to 70% of their yearly income. When their savings reach 30 times their yearly expenses, they are able to leave their jobs or retire all together. 

The movement also encourages people to make small withdrawals from their savings after they retire early, roughly 3-4% of the overall balance a year. This requires diligence and extensive budgeting to ensure the success of their efforts. 

Who is FIRE made for? 

You wouldn’t be alone in thinking that FIRE is designed for individuals who get a substantial income and can afford to save a majority of their salary and if you’re trying to retire by your 30s or 40s, that’s probably true. BUT there is also a lot to be learnt from the movement that can help people save for their retirement and achieve an early one, even if it isn’t quite as early as retiring in your 30s. 

What are the variations of FIRE? 

There are three variations of the FIRE movement, Fat Fire is a more laid-back approach that encourages people to save more while giving up less. Lean FIRE will require individuals to be devoted to a very minimalist lifestyle and Barista FIRE which is for people wanting to quit their 9-to-5 and are willing to cut back on their spending and only work part time. 

What can Allied Wealth do for you? 

At Allied Wealth we are committed to providing you with a financial plan that best suits your needs, goals and expenses. If you’ve been considering undertaking the FIRE movement as part of your retirement planning, contact us today to find out how we can help you achieve your goals and plan for your future. 

Is there a difference? 

If you’re new to the financial planning world, you’ve probably heard the terms “independent financial advisor” and “financial advisor” thrown around a lot and also often used interchangeably which can be confusing if you’re new to the financial planning landscape. 

Understanding the differences between these two roles is crucial in order to help you make an informed decision about the type of financial expert you should choose that will best suit you and your needs.

What are the key differences? 

Independence

The key difference between a financial advisor and an independent financial advisor is their independence. If you’re looking for financial advice that isn’t associated with banks or financial institutions an independent advisor is the way to go! Independent financial advisors don’t have limitations on the products and services they can recommend so their advice is unbiased and aligns with your financial goals.

Types of recommendations 

Financial advisors may have a vested interest in recommending specific products or services that they are affiliated with or that are offered by their employer. Independent financial advisors have the freedom to recommend products and services from a huge range of providers so your needs are always met rather than trying to meet a quota for a financial institution. 

Client focused 

Independent financial advisors are more known to be client focused, taking the time to understand your individual needs and goals. It’s a personalised approach that allows them to tailor their advice to you and your specific circumstances whilst financial advisors may have to offer more generalised advice due to guidelines put in place by their employers. 

Fee structures 

The cost and fee structures can vary from financial advisor to independent financial advisor. This may be because financial advisors may earn a commission based on products they sell. Our independent advisors work to be completely transparent with our fees and you can be sure that the way we charge is not at all influenced by any commissions. 

Choosing the right advisor for you

When you’re choosing between a financial advisor or an independent financial advisor it all comes down to you and your financial goals. At Allied Wealth we offer you the expertise of independent advisors that are completely committed to your financial growth, independence and transparency. 

Understanding the difference between independent financial advisors and financial advisors is crucial when it comes to making an informed decision that best benefits you. 

What Every Retiree Should Consider

When you’re nearing retirement age, it’s vital to understand your finances so you can live comfortably during the later years of your life. At Allied Wealth we know how complex and confusing it can be to understand all the nuances of financial planning for retirement. We know there are a different set of challenges faced by individuals who are planning to retire and our independent financial advice is tailored to make your retirement financial planning as easy to navigate as possible. 

I’m thinking of retiring, where do I start? 

If you’ve been thinking about retirement for a while now but you’re just not sure where to start on your financial planning journey, you aren’t alone – and we are here to help! Financial planning for retirement is crucial and we know there are a whole range of considerations you have to keep in mind.

When you’re starting on your retirement financial planning journey you’ll need to regularly  assess your financial situations as well as your ongoing needs and goals. 

At Allied Wealth we know that there are different financial concerns for Australians that are at different stages of their lives which is exactly why we provide retirees with specialised guidance. 

One of the biggest concerns for Australians considering retirement is ensuring that you have the funds to be comfortable and secure. At Allied Wealth we do it all, from evaluating your current savings to helping you invest, our advisors help you every single step of the way. 

Consider health care costs 

It’s no secret that as you age, the cost of health care needs to be included as a significant part of your budget. At Allied Wealth we can help you plan for these potential costs to ensure you have the finances to cover any medical procedures or appointments and the cost of private health insurance. Planning for health care expenses (whether expected or unexpected), ensures you have the finances to handle whatever life may throw at you! 

Estate planning 

When you are in the midst of planning for your retirement, estate planning cannot be overlooked! We can help you to create a comprehensive plan for your estate that respects exactly what you want and protects your assets. Our advisors can help you with your estate planning so you can pass on your assets to future generations.

Think about potential tax benefits 

Navigating possible tax benefits within retirement can be a difficult thing to do, but it’s an important part of any financial planning process. We can help you explore tax-efficient strategies that help you to make the most of your finances. Our advisors provide you with personalised insights and potential tax benefits that can make a significant difference to your financial situation. 

Why Choose Allied Wealth? 

When you’re beginning to plan for retirement, checking over your finances and ensuring they align with your future goals is crucial. With Allied Wealth at your side, you can handle your retirement with confidence knowing that you have experienced advisors who provide personalised guidance to help you navigate the Australian financial landscape. 

When you’re trying to navigate your finances and unlock a future of financial freedom, choosing an independent financial advisor that has your back and your best interests in mind is crucial. 

Just one quick Google search will unlock a number of different independent financial advisors, but which one will be best for you? 

Choosing an independent financial advisor that aligns with your goals and has ample experience in the Australian financial landscape is crucial, at Allied Wealth we have the tools to help you on your financial journey. These are our six key considerations we think you should keep in mind when you are trying to choose an independent financial advisor. 

1. Try to find an independent financial advisor 

Independent financial advisors are a great choice when you’re looking for an independent financial advisor. Independent advisors like our team at Allied Wealth aren’t tied to a specific financial institution so you can be sure that the advice you receive is completely unbiased and based on your best interests. This independence also allows them to give you objective advice that is tailored to your unique financial situation. 

2. Look for experienced advisors 

Financial planning isn’t easy, and experience and expertise is crucial to ensure you get relevant advice. When you’re picking an independent financial advisor you may want to consider the number of years experience they have. At Allied Wealth our independent financial advisors have over 20 years of experience so you can be sure you’re getting informed, relevant and tailored advice. 

3. Check client testimonials & reviews 

Before you commit to a decision, you’ll want to check out what other people have to say about the services on offer. Checking out client reviews and testimonials is a great way to gauge how satisfied previous clients have been with the independent financial advisor you’re considering. At Allied Wealth, we value your satisfaction – and our client testimonials are proof of our commitment to offering quality advice. 

4. Find someone who prioritises YOU

A good independent financial advisor prioritises you and your individual goals and dreams. Pay attention to whether or not your independent financial advisor listens to your concerns and goals, and how well they tailor their advice to your specific financial situation. We are committed to maintaining a client-centric approach to fully understand your circumstances and how we can best help you reach your financial goals. 

5. Look for an advisor with transparent fees

When choosing an independent financial advisor, understanding how they charge is crucial. You may want to ask for a breakdown of the fee’s to understand exactly how your independent financial advisor is being compensated. Fee transparency is a crucial aspect to build trust between you and your advisor. 

6. Look for a range of services

You’ll want to look for an independent financial advisor who offers a comprehensive range of services that meet all your needs. Whether you’re after retirement planning, wealth management or wealth growth strategies, our team at Allied Wealth can help you out! 

How can we help you? 

At Allied Wealth, we are committed to independence, experience and your overall satisfaction. If you’ve been on the hunt for an independent financial advisor but haven’t had any luck, contact us for all the tips and tricks you need to find an independent financial advisor who prioritises you with Allied Wealth.

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram