Posts by David Baughier

It is natural for us to want to shout the message of Financial Independence from every mountain top. Remember the first time the idea of Financial Independence truly clicked and you wanted to share it with the entire world? So do I. But is voicing the benefits of Financial Independence with such zeal prudent?  What…

Geoarbitrage reduced our FI timeline by 9 years! This proves that if someone is willing to take advantage of geoarbitrage, they can achieve FI much sooner than once expected. Our FI number is a combination of our investment portfolio and our expenses. We can achieve FI quicker either by increasing the size of our portfolio,…

How do taxes work? Few of us have even a basic understanding of the U.S. tax system. Understanding taxes is something most of us put off until, well forever. We believe it is easier to hire someone to file our annual income tax returns. Depending on the complexity, paying for tax return preparation can absolutely…

When we have children, we don’t automatically know how to teach kids about money. Be kind to others…say please and thank you…max out your Roth IRA? Imparting lessons of financial literacy isn’t normally at the top of our parenting priorities. Today, with children subject to social media, television, games, and friends, it is important that…

Learning how to save money on groceries has benefits other than saving money. Once you learn how to save money on groceries, you can invest more money and reduce the number of years you have to work for money. We’ll get to exactly what that can mean for your financial future. But first I wanted…

Why is it better to automate the boring stuff? Once we automate finances, in particular the boring financial stuff on our way to Financial Independence, we can focus on other important aspects of our lives with the assurance that we are doing the things necessary to reach our goals. Putting our routine financial processes on…

Why does Renting vs Buying a House Matter? Renting vs buying a house is a major decision. Housing is our largest monthly expense and it can significantly impact our FI plan. Assuming that living under a family member’s roof and paying little or no rent is not an option, this decision should be deliberated at…

What are pension plans? Pension plans are funds to which an employee and/or employer contributes. The expectation is that the value of this fund grows over time. The employee then receives periodic payments to support their lifestyle in retirement. In the U.S., prior to the 1980s, a company or government Defined Benefit Plan (DBP), commonly…

Passive investing is a well-established investment strategy used by many in the financial independence community that aims to achieve long-term growth by minimizing active trading and embracing a diversified portfolio. This article provides insights into passive investing, its benefits, and practical steps to get started on your journey towards building wealth. Understanding Passive Investing Passive…

Welcome to the topic of diversification in investing. If you are seeking to achieve investment success, understanding the importance of diversification is key. In this article, we will provide you with valuable insights and expert advice on how diversification can help you build a robust investment portfolio, manage risk, and enhance your chances of achieving…