On October 8, 2025, we decided to go on a family vacation I was decidedly unexcited about. That entire week was supposed to be my time to attend the Fairfield Challenger tennis tournament every day with my buddy Richard. September and October are tennis paradise months in the Bay Area, with multiple tournaments and ideal weather. This year was especially exciting with the Laver Cup in town.

However, October 9 and 10 happened to be school holidays for my kids, followed by Columbus Day on October 13. My wife and children really wanted to visit San Diego to see Legoland and SeaWorld for the first time.

I, on the other hand, was perfectly happy to stay home, save ~$5,000, and enjoy watching professional tennis, one of my absolute favorite activities, for $45 or less per ticket. But as frugal tennis fanatics, we actually volunteer as ball boys to get in free and get free lunch. However, the biggest joy is having the absolute best seats in the house – right on the court!

Before having kids, I used to fly to New York City to visit my sister and watch the US Open in Flushing. I could go from 10 a.m. to 10 p.m. without missing a beat. But after becoming a parent, I could no longer justify that kind of indulgence.

My Great Dislike Of Flying

I dislike flying due to the lines, the delays, the costs, seat hogs, and sometimes unruly passengers. After taking around 200 work flights over 13 years, I’ve experienced every kind of travel misery imaginable. And if I’m being honest, I still think about death every time I board. The trauma from 9/11 never fully fades. I lived just a couple blocks away and had attended a conference at the top of the North Tower earlier that year.

If I’m going to fly, I’d rather it be to visit my parents in Honolulu, not to stand in endless amusement park lines. But I also know these trips aren’t really for me, they’re for the kids. So off we went, me internally reluctant but outwardly enthusiastic.

Oh, how I envy those parents who genuinely love Legos, roller coasters, and Disney characters. They look like they’re having the time of their lives! Life really is better when you have more interests.

So here I am – the reluctant, slightly grumpy dad – sharing my thoughts before takeoff on why you should take as many vacations as you can while you’re still working. Vacations are not only more enjoyable while you’re still in the grind, but they’re also therapeutic, helping you recharge and extend your career longevity.

Over the long term, the more vacations you take, the more money you very well make!

Why Vacations Aren’t As Great Once You Retire Early

In a previous post, I discussed how being truly FIRE is terrible for entrepreneurship. Now here are three reasons why vacations lose their magic after early retirement.

1) You Take Your Freedom for Granted

The “problem” with FIRE is having endless freedom and choices. On paper, that sounds incredible with no boss, no meetings, no deadlines. But in reality, too much freedom can start to feel like a burden. When every option is available, deciding what to do with your time can feel oddly heavy.

Every weekday after dropping my kids off at school, I have total discretion over my day. I can play tennis, write, nap, go on a hike, or do absolutely nothing. There’s nobody to tell me what to do or how to do it. Yet, when every day can feel like a vacation, the novelty eventually wears off.

After 13+ years of freedom, I don’t wake up excited by the idea of being able to do whatever I want. Autonomy has become my default setting, not a luxury. What once felt liberating now simply is. That’s the paradox of early retirement: the more freedom you have, the less you notice it.

To counteract this complacency, I’ve found it’s essential to maintain a sense of structure and challenge. That’s one reason why I’ve kept up a consistent 3–4X per week writing schedule since July 2009, even after leaving my job in 2012. Writing gives me a sense of purpose and accountability that pure leisure can’t provide.

Without some form of productive struggle, the days can blur together, and even paradise starts to lose its shine.

2) It’s Hard to Spend Money on Fun When You’re Already Happy

FIRE can make you reluctant to spend money on leisure. It’s like paying extra for tap water, you already have access to what you need.

Since retiring from a traditional day job in 2012, I’ve discovered plenty of inexpensive activities that bring me joy: playing tennis, playing pickleball, writing, hiking, and watching tennis.

So spending ~$5,000 on a trip I’m not excited about doesn’t feel great. I’d rather have used the kids’ school holidays for giving them tennis and soccer lessons (free), followed by a pool day with a big swirly slide (utilizing my underutilized sports club membership that costs $180/month). Daddy day camp to the max!

In addition, I had recently spent three weeks dealing with tenant turnover, which is always unpleasant. I had to list the property for rent again, clean up what I could for showings, evaluate prospective tenants, draft a new lease, help with onboarding, and coordinate with the departing tenants on their move-out and cleanup. After all that effort, to then spend more than half of one month’s rent on a trip felt uncomfortable.

If you’re the person responsible for your household finances, you can’t help think about cost-benefit analysis. But it’s important to think about the other members in your family and what they want to do. Since I turned 45 in 2022, I’ve being trying my best to spend more money.

3) Your Vacation Property Likely Won’t Be as Nice as Your Home

Another post-FIRE downer: the vacation property usually isn’t as nice as your primary residence. This pertains to most workers who vacation too.

You could spend a small fortune renting a luxury spot, but you probably won’t because that’s not how most FIRE practitioners think. We spent years saving aggressively and avoiding excess. The idea of dropping thousands to rent a house for a week, let alone a day, goes against that conditioning.

Instead, you’ll likely settle for a modest Airbnb or hotel room, cramming everyone in. Only the truly wealthy, the top 0.1%, would rent a vacation home as nice as their own. When you’ve got lots of active income coming in, it’s much easier to spend.

If you’ve recently bought a house you love, you’ll also be more reluctant to leave it. I love our home – the Toto Washlets, the view, the space inside and out. Every day already feels like living in a luxurious vacation property. So paying money to downgrade feels off while our existing home sits empty while we’re away.

Remember, the true cost of your vacation is the cost of your vacation plus the daily cost of maintaining your existing home. Here’s my vacation spending guide to help you spend more responsibly while away. It is very easy to go nuts while in vacation mode.

When Vacations Are Better Post-Early Retirement

Vacations are most exciting post-FIRE if you’ve never traveled before. If your parents never took you anywhere, your job never sent you on trips, and you never studied abroad, by all means travel! You’ll finally have the freedom and means to explore.

Hopefully, you’ll visit multiple continents, immerse yourself in new cultures, and realize how fortunate we are in the U.S. The world would be a better place if more people traveled and shared meals with those from completely different backgrounds.

It’s hard to hate someone once you’ve broken bread with them.

Vacations are also better if you retire closer to the traditional age of 60-65. After a lifetime of trading time for money, you will appreciate your freedom and the time you have left more than the early retiree.

Sadly, the thrill of travel has faded for me because I grew up living abroad for 13 years. As a foreign service officer’s kid, I lived in six countries, studied abroad my junior year, traveled throughout Asia and the U.S. for work for 13 years, and checked off bucket-list sites like Angkor Wat, the Taj Mahal, the Blue Mosque, the Colosseum, and the Winter Palace.

Sure, I’d still love to visit Cairo and Petra, but they can wait until our kids get older.

The Best Vacations Are When You’re Still Working

If you’re still working toward financial independence, enjoy the incredible privilege of getting paid while on vacation. It’s the same joy as receiving paid parental leave. What wonderful work benefits that should not be taken for granted.

So take all your vacation days. Don’t hoard them out of fear you’ll lose your job or miss a promotion. The only exception is your final year before FIRE. Bank those days since your employer has to pay them out in cash when you leave.

The more you’re micromanaged and undermined at work, the more you’ll enjoy your vacations. Paid time off feels like sweet revenge for all the nonsense you put up with. But once nobody’s telling you what to do, vacations lose that contrast. You’re not escaping anything anymore.

You’ll Still Have Fun While Away

Even though vacations aren’t quite as thrilling after early retirement, I still appreciate the freedom to travel whenever I want. I’m revisiting this post after returning from LegoLand and SeaWorld, and you know what? I had a blast!

But more importantly, our kids had the time of their lives. They told their mom and me, “It was the best time ever.” That kind of feedback is truly priceless and motivating to go on more vacations for them.

As a FIRE parent, it’s also nice never having to ask for time off when your kids are on break. That’s a privilege I didn’t fully appreciate until I realized how many working parents scramble to find childcare during random school in-service days.

If you want to retire early, but are afraid kids will spoil your ideal post-work lifestyle, don’t worry! Kids nowadays have so many days off from school, between local holidays, federal holidays, and in-service days, that you’ll have plenty of days off to travel. We’re talking 3.5 – 4.5 months off a year, which is more than enough vacation time.

Do Hard Things in Retirement To Better Appreciate Vacations

If you want to get excited about vacations again in retirement, do something challenging in retirement. It’s helpful to juxtapose the hard with the easy to better appreciate the good life.

For me, that’s been writing books because writing articles is no longer hard. Each book takes about two years to complete, and when I published Millionaire Milestones: Simple Steps to Seven Figures in May 2025, I felt a tremendous sense of relief and accomplishment. It even made the USA TODAY national bestseller list. Not easy when there are only 100 spots across all genres while more than 300,000 books are traditionally published a year.

That achievement made me more motivated to vacation in Honolulu for five weeks because I felt like I deserved it. Of course, it wasn’t a completely relaxing trip. I was remodeling my parents’ in-law unit, confronting difficult childhood memories, and trying to prove my Hawaiian roots. But this time, the vacation felt more meaningful because it followed a period of hard, creative work.

Don’t assume early retirement will create a life full of thrilling vacations. You might go travel-crazy at first, but eventually the novelty fades, and you’ll start craving productivity and purpose again. Enjoy a nice balance!

Reader Questions

Fellow retirees, have you found vacations to be less exciting now that every day can feel like one? Did you travel less than you originally planned, or burn out after going too hard early on? Do you struggle to spend money on new adventures once you’ve found plenty of inexpensive ways to enjoy life at home?

And what do you think – are vacations really that fun once you no longer need an escape from work?

If You Want To Go On Permanent Vacation

If your goal is to one day live like you’re on a permanent vacation, you need to save and invest diligently while keeping close track of your finances. Freedom without financial clarity can easily turn into hidden stress.

Since 2012, I’ve used Empower’s free wealth management tools to monitor my net worth, manage cash flow, and reduce investment fees. The platform has helped me stay disciplined and organized long after leaving my day job.

If you have more than $100,000 in investable assets, whether in savings, taxable accounts, 401(k)s, or IRAs, you can get a free financial check-up from an Empower financial advisor by signing up here. It’s a simple, no-obligation way to have an experienced professional review your finances and provide objective feedback.

A fresh set of eyes can reveal hidden fees, inefficient allocations, or opportunities to optimize your plan. The clearer your financial picture, the greater your confidence in your path to financial independence. And confidence is what allows you to fully enjoy the freedom you’ve worked so hard to earn.

The statement is provided to you by Financial Samurai (“Promoter”) who has entered into a written referral agreement with Empower Advisory Group, LLC (“EAG”). Click here to learn more.

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You’ll make many decisions when preparing for retirement. Choosing when to file for Social Security benefits is one of the most important of those choices.

You have a long period when you could file for benefits, as you can claim as early as 62, but can also wait and increase the amount of your benefits until age 70. Picking the right moment within that eight-year timespan helps you maximize your income and build a more secure retirement.

For many people, an early claim seems like the obvious answer since you can start collecting right away and enjoying the benefits you’ve worked hard to earn all your life. In reality, though, claiming at a young age — and especially before your designated full retirement age — could be something you end up really regretting.

Here’s why.

An early claim limits your ability to work

If you start receiving Social Security before your designated full retirement age (FRA), your decision could impact your ability to work because when you earn too much before FRA, your benefit checks are reduced or even eliminated.

For example, in 2025, if you won’t reach FRA during the entire year, then once you earn more than $23,400, you’ll lose $1 in benefits for every $2 earned above that limit. This could quickly lead to your Social Security checks disappearing entirely, since the Social Security Administration withholds full checks when you go above the limit.

This rule prevents double-dipping of benefits and a paycheck in the years before you reach FRA, and it can lead to a lot of hassle if you’re trying to track earnings to avoid losing benefits.

Eventually, you do get credit if checks are withheld, as your benefit is recalculated at your full retirement age to account for the missed money — but the process of slowly recovering the benefits you missed out on due to exceeding the work limits can be very frustrating.

You’ll take a big benefits cut that is permanent

Since you have an eight-year window to claim Social Security, there are rules in place to try to equalize out lifetime benefits so you get the same amount of money no matter when you claim.

One of those rules is that if you claim Social Security benefits before FRA, benefits are reduced by early filing penalties. But if you wait until after FRA, benefits are increased due to delayed retirement credits.

The penalties and credits apply monthly, as you’ll lose 5/9 of 1% of your standard benefit for each of the first 36 months you receive a check ahead of your FRA. If you claim even sooner, you lose an additional 5/12 of 1% for any of the prior months.

The monthly penalties add up to an annual 6.7% reduction from your standard benefit for years one, two, and three. For years four and five when you were collecting early Social Security benefits, the reduction in benefits is 5% annually. This means that a claim at 62 instead of at an FRA of 67 results in a 30% cut to benefits overall. That cut is permanent, and benefits will always be 30% smaller than they would have been had you waited to claim.

If you delayed beyond FRA until 70 instead, though, you’d have increased your benefits by 2/3 of 1% or 8% per year and received more benefits instead of smaller checks.

You’ll shrink your survivor benefits

You are not the only one who could regret your early Social Security claim. Your spouse could as well. When you die, your spouse either gets to keep receiving their own benefit or keep receiving yours. If you were the higher earner in your family and your Social Security benefit is a lot bigger, then keeping your benefit would be better for your surviving spouse.

The problem is, if you claimed Social Security ahead of schedule, you’d have shrunk your benefit — so your surviving spouse would be left with a smaller survivor benefit than they could have had. Since living on a single Social Security check instead of two is hard, your spouse could end up really wishing you hadn’t claimed early.

You stand a good chance of missing out on lifetime income

Finally, research has shown that around 7 in 10 retirees would find themselves with more lifetime income if they delay benefits until 70 instead of claiming at a younger age. If your goal is to maximize the lifetime income Social Security offers so you don’t have to rely as much on your 401(k) or other retirement plans, then you’ll want to avoid shrinking your lifetime income.

That’s especially true as Social Security is a reliable source of funds since there are cost-of-living adjustments built in that help you avoid losing buying power due to inflation.

Ultimately, an early claim is simply not the right option for many. When you are making your retirement plans, think seriously about whether you should prepare to try to put off your Social Security claim. If so, have a plan to do that, such as living on retirement savings until the day comes when you can claim a large benefit and set yourself and your spouse up for a more secure future.

For Travel + Leisure’s column Traveling As, we’re talking to travelers about what it’s like to explore the world through their unique perspectives. Burnt out from corporate America, Kelly Benthall got her finances in order and gave up her Texas lifestyle to retire at 53 and live around the world in Airbnbs with her husband, Nigel. Here’s her story… 

I was living in Texas and working in oil and gas. As time went on, and the kids left, my job became extraordinarily stressful—to the point that I had to be wheeled out on a gurney through the lobby, hooked up to an EKG. After all those years of feeling like I needed to overachieve, my doctor said my job was trying to kill me.

Once I realized that, my husband, Nigel, and I got a financial advisor who gave us some sound projections and advice. I always thought I would retire at 65 and play golf. Nigel didn’t have a retirement plan. He was going to work forever, and it took me a couple of years to get him to turn the corner. But at 53 years old, I decided to retire. 

Once the job went away, all my stress dissipated and my levels returned to normal.

I wasn’t raised traveling. Our family would take our modified van from Texas to Ohio every year to see my grandmother—that was our big trip. I didn’t even have a passport until I got married the first time in my 20s, and we just went to Mexico. Eventually, at work, I said yes to every single trip that came up because I was interested in seeing the world. I love foreign languages and talking to people from different countries. One time, one of my contractors was pregnant and couldn’t go to Kalimantan, Indonesia. I knew nothing about what she was doing, but I went anyway.

I find travel quieter and calmer [than being at home]. I’m attuned to every little thing because it’s new and different, so I relax and take it in. I am not a playground tourist—I don’t go to all the major tour sites. I might walk by and walk in, but I like just hanging out at a cafe and chatting with people.

While I have lots of friends and family in Houston, it’s not ultimately where I wanted to be, sof when Nigel and I both retired, we got the idea to travel the world, living for a month at a time in Airbnbs. 

We started with a trial run in 2023, spending a month in Mexico to make sure we could actually live with just each other. At the time, we had been married for about seven years.

We stayed in the middle of the jungle in Tulum in a very intimate space—the door between the bedroom and kitchen was glass, so there was no privacy at all. But we did Pilates on the roof together every morning and cooked dinners. We bought a Christmas tree and decorated it. And we did a great job—I was very proud of us. So we came back and started planning our global travels. 

I watched all the YouTube videos I could find and listened to people’s advice. Initially, I went to some local real estate agencies, but I like places that have local flair. What I found is that Airbnb, more than other platforms, is good with that because we can connect with local hosts. Plus, we can search easily for things that are important to us, like outdoor space. We’ve had some nice places with rooftop pools that weren’t expensive. Being able to see all the ratings and not having to sign a lease makes it easy. 

It’s also been affordable. We’re now staying in this place in Aix-en-Provence, where we’ve been for eight weeks, and got a 70 percent discount for a long stay. So we could stay for a week somewhere, or we could stay for six weeks for the same price. I thought, how did no one ever tell me about this? That really is the thing that’s made this all possible, and I’m grateful for it.

We started in Dubrovnik, and took Nigel’s 87-year-old mom with us. It was interesting because the language is so different. We did a walking tour with someone who spoke English so we could get the lay of the land. The city was amazing, like a movie set. We learned to walk up and down its hills. We stayed in a neighborhood that had these local bodega-type shops. The older guys would play buće (bocce) in the evenings, and we would go out and sit with them. 

We asked our Airbnb host what we could do for the community even though we don’t speak the language, and ended up helping harvest grapes at this small winery. They can’t hire too many people because of tax issues, so they rely on volunteers. It was hot and difficult work, but a fun way to learn about the culture. 

Since then, we’ve also picked up trash on beaches in Mauritius. When you’re a tourist, you might not think about it, but when you’re visiting for longer, it’s different. That’s one of the things that helps us connect with the locals. They know we’re not just using and leaving. We hope to get more involved with our community work. We would eventually like to work with kids, but we’ll have to stay longer to earn that trust and get the language down. 

When we get to a new place, we’ll usually start by finding a local market. We’ll explore and find the things locals do. In Seville, for example, we were across the street from a community center, so we’d go and see all the classes people were taking. It was easy to get involved with the neighborhood because they would all gather outside in the evening, so we joined them. That’s usually how we acclimate ourselves.

We also like to walk around and get lost. Since we’re in places for so long, we have time to ask around. A few times a week, we’ll do day trips. The other day, we took the train to Avignon and went wine tasting in Châteauneuf-du-Pape. 

In Mauritius, we got really close with our Airbnb host. They lived across the street and invited us over to use their property. We spent New Year’s Eve with them. It was just lovely. We stayed in Lecce for a month and would drive to the different coasts. We spent a few days south of there, and I met a woman who took my photograph from behind while I was watching a sunset and drinking a glass of wine. She invited us to a dinner party the next night, so we extended our stay. No one spoke English, except for one kid. We sat in the middle of the table with the hosts, and everyone sat as far away as possible because they knew we didn’t speak the same language. But by the end, we were able to communicate using Google Translate and through the child. That was memorable, and I still keep in touch with them.

I find comfort in spreadsheets, so we use one to plan our travels. It’s color-coded following the sun by region. Then, I have the cost of living compared to the U.S. We also don’t want to spend a ton of money on flights, so we pick a general area. Right now, we’re doing Europe, and we do a bit of the Schengen shuffle if we need to because we can’t stay too long. 

Nigel’s family is in England, so it’s been our jumping-off point. We have six kids, and one daughter, two grandkids, and Nigel’s mom are all there. Our other kids are in California, Utah, and Texas, so we do a U.S. round for about three months. 

We stay in each place for at least a month to get the discount. We wanted to spend some more time in Provence because neither of us had been, so we’ve been in the region for three months now. Next, we’re going to go back to England since I’ve never seen my husband’s home country. Then, we’re going on a road trip and will spend a month in Ireland. Airbnbs there are about $65 a night, pretty cheap. You can’t even get some hostels for that amount.

We could stay in bed-and-breakfasts on this road trip, but I don’t want to be put together and mingle all the time. I need my own space and a kitchen. We cook all the time with ingredients from the local markets. It saves us money, and it gives us a lot of privacy, which we don’t get in hotels. In Mauritius, we did go to a hotel for a nice meal on Christmas Eve, and I was like, “Oh, I forgot how nice hotels are because everyone is serving you rather than serving yourself.” But I don’t think I could live in a hotel.

After that, we’ll go back to the spreadsheet and feel it out. I know we want to go to Asia, then New Zealand. We also want to go to Bali and South America. We’ve got all of these big-picture plans.

There are definitely challenges. I miss our friends and family, and being able to drop in on people. We always book a place with an extra room so we can have people visit. But it can also be a bit isolating if we don’t make an effort.

It’s not just being in another country. Being retired is weird at this age. At first, I felt a little guilty doing nothing. Now, I realize it’s OK to be bored. I enjoy it. I’ve gotten a lot more creative in this chapter, a lot more introspective. Nigel always wants to go and do things, and I have to remind him, we’re here for a long time. You don’t need to see everything right away. We’re not here as tourists. We’re here as kind of locals, while also doing a bit of touring.

People will ask where we’re from, and that’s a complicated answer. They also ask what we do—not so much overseas as they do in the U.S. We’re fortunate to have this lifestyle, but it’s difficult to explain to people in a way that doesn’t sound braggadocious. I tell people we’re looking for places where we belong in the world and are exploring and looking for adventure.

My background is in behavioral psychology, so I like that I get to walk in the shoes of other people and understand their perspectives. It’s been eye-opening. In Texas, we say hello to everyone. In places like France, people are super-friendly, but they’ll say bonjour and that’s it. They don’t automatically become friends with you. It depends on where we are in the world. 

Once we spend a month in a place, it feels like home. We always feel like we should spend more time there because just when we’re getting to the point where we know where everything is, it’s time to go. We have our local wine bar and fishmonger, and it’s time to leave again. We can’t stay during the high season because it’s expensive and I don’t like crowds.

I’ve found observing and absorbing cultures to be very unifying. The world is giant, but also so small, and traveling really teaches us respect. I have so many friends and family members who just don’t understand what we’re doing. But if everyone would just go and explore, it would break down these perceived barriers we all have. You realize people have stereotypes about you that may not be true. I can’t force my interests on other people, but I do feel strongly about it and think it’s something everyone should do.

I love index funds and ETFs for their low-cost nature and simplicity of ownership. However, if you want to build generational wealth before traditional retirement age, consider looking beyond just index funds and index ETFs.

Since starting Financial Samurai in 2009, I’ve written extensively about investment strategies, financial independence, and retiring earlier to do what you want.

Based on years of reader surveys and conversations, it’s clear this community is one of the wealthiest on the web. A significant portion of you have already surpassed the $1 million net worth mark, while many more are closing in. In comparison, the median household net worth in America is only about $200,000.

With this in mind, it’s time to acknowledge a simple truth: the richest people in the world don’t rely mainly on index funds and ETFs to build their fortunes. Instead, many use index funds primarily to preserve their wealth, not create it.

Why Index Funds Alone Aren’t Enough

Most of us love index funds for their simplicity, low fees, and historical returns. But if your goal is to achieve financial freedom before the traditional retirement age, or to reach a top 1% net worth, index funds alone probably won’t get you there before age 60.

To get rich sooner, you need either:

• A massive amount of income to consistently invest large sums into index funds, or
• To take more calculated risks in other asset classes

Simply put, index fund investing is best for capital preservation and slower, steadier growth. A potential 10% annual return is fantastic. But at that rate, your investment only doubles every 7.2 years. Hey, I’ll take it, and so would many of you. However, it’s simply not good enough for the richest people.

Your life is finite. Most of us only start working full time after age 18. Forty years might sound like a long time to build wealth, but trust me—it flies by. I’m 48 now, and I graduated college in 1999 at age 22. The past 26 years have zoomed past.

If I had only invested in index funds, I wouldn’t have been able to leave the workforce for good in 2012 at age 34. Don’t forget, there was a “lost decade” for both the S&P 500 and NASDAQ from 2000 to 2012. Relying solely on index funds would have delayed my financial freedom indefinitely.

Besides getting lucky, the only way to achieve financial freedom sooner than average is to take above-average risks by investing beyond index funds and ETFs. Looking back, I wish I had taken more risks.

The Average Rich Versus the Richest Rich

First off, if you’re rich—or feel rich—congratulations! You’re ahead of at least 90% of the world, which also means you’ve bought yourself more freedom than most. Although it’s tough, try not to let someone richer than your already-rich self get you down. The key is appreciating what you have.

That said, it’s important to distinguish between two types of rich, because they’re not the same. The personal finance community mostly focuses on the first kind—The Average Rich—partly because it’s easier to explain and attain, and partly because many financial creators don’t have finance backgrounds.

In fact, the lack of financial depth in the space was one of the main reasons I launched Financial Samurai in 2009. Back then, nearly every blogger only emphasized budgeting and saving their way to wealth. That’s solid advice for most people, however, I wanted to go beyond that. You can only do so much saving your way to wealth.

I wanted to escape the finance industry altogether and retire early. That’s when I started writing about FIRE for the modern worker. With the internet making it possible to earn and live in non-traditional ways, I saw an exciting opportunity to pursue a different lifestyle.

Ironically, it was 2009—during the global financial crisis—when the digital nomad trend really took off, as millions found themselves out of traditional jobs and searching for something new.

Now let’s definite the two types of rich people.

1. The Average Rich

This group includes individuals or households with investable assets between $1,000,000 and $5 million. They tend to be highly educated, dual-income professionals who max out their 401(k)s, invest in low-cost index funds, and own their primary residence.

Most of their investments are in public markets and real estate, and they typically feel financially stable but not truly rich. Some would describe this as the mass affluent class. Many started off or are HENRYs (High Earners Not Rich Yet), but then often slow down their pace of wealth accumulation once kids arrive.

You might think of the everyday rich person as someone with grey hair, a portly figure, and retiring around the more traditional age of 60–65. They’ve got a median-priced home and might fly Economy Plus if they are feeling particularly spendy. They aren’t eating at Michelin-star restaurants, except maybe for a rare special occasion, like a 30-year wedding anniversary.

The Average Rich know they’re wealthier than most, yet they still don’t feel rich. Instead, they feel closer to the middle class than to the truly wealthy.

2. The Richest Rich

These are the people with $10 million-plus in investable assets, often owning second and third vacation homes, flying first class, and making high six-figure or seven-figure investments. Their kids mostly go to private grade school, which they can comfortably afford without financial aid. They also freely donate significant sums of money regularly.

Instead of investing mostly in index funds to get rich, their money came from:

They might own index funds, but it wasn’t a driver for them to get rich. Instead, index funds are a place where they park their money, almost like a cash plus, until they find a potentially better opportunity.

20% plus or minus moves in the S&P 500 don’t phase them as the Richest Rich often experience much more volatile swings. In fact, the Richest Rich often have investments go to zero as they continuously fortune hunt for the next multi-bagger investment. So often, index funds and ETFs are a small percentage of their overall net worth (<20%).

The Richest Rich Tend To Be Seen as Eccentric

The Richest Rich are often viewed as eccentric, agitators, or downright weird by the general public. That’s because they tend to reject the status quo and do things their own way. As a result, they attract critics—sometimes lots of them—simply for not following societal norms.

They refuse to spend their entire careers working for someone else to make that person rich or organization rich. They aren’t spending a fortune to get an MBA only to work for someone else. Instead, they bet heavily on themselves through entrepreneurship and alternative investments. Index funds and ETFs? Boring. Too slow. These folks would rather build something from scratch or swing for the fences.

Many of the Richest Rich also go all-in on optimizing their bodies and minds. They train hard, eat clean, and track every metric they can—often in the hopes of staying fit enough to extend their grind and lifespan.

To most, they come across as quirky or intense. But from their perspective, it’s the rest of society that’s asleep, trapped in a system they’ve managed to escape.

Real-World Net Worth Breakdowns

Here are a few anonymized examples of the Richest Rich:

Example 1 – $30 Million Net Worth

• 30% ownership in business equity they started
• 30% real estate
• 20% public equities (65% individual stocks, 35% S&P 500 index funds)
• 15% venture capital funds
• 5% muni, Treasury bonds, cash

Example 2 – $300 Million Net Worth

• 40% ownership in business equity they started
• 20% real estate
• 20% in other private companies
• 15% stocks (half in index funds)
• 5% cash and bonds

Example 3 – $600 Million Net Worth

• 5% ownership in a massive private money management firm as one of their senior execs
• 15% real estate
• 50% in other private companies
• 10% stocks (half in index funds)
• 20% cash & bonds (~$180 million at 4% yields a whopping $6.4 million risk-free a year today)

None of them got rich by only investing in index funds. Instead, index funds are simply a low-risk asset class to them where they can park money.

Net Worth Breakdown By Levels Of Wealth

Here’s a good net worth breakdown visualization by net worth levels. The data is from the Federal Reserve Board Of Consumer Finances, which comes out every three years.

Let’s assume the mass affluent represented in the chart below is at the $1 million net worth level. Roughly 25% of the mass affluent’s net worth is in their primary residence, 15% is in retirement accounts, 10% is in real estate investments, and 12% is in business interests.

In comparison, for the Richest Rich ($10M+), at least 30% of their net worth is in business interests. Intuitively, we know that entrepreneurs dominate the wealthiest people in the world. Therefore, if you want to be truly rich, take more entrepreneurial risks and investment risks.

Time + Greater Risk Than Average = Greater Than Average Wealth

Building meaningful wealth often comes down to how much risk you take—and how early you take it. When you’re young, lean into bigger bets. Invest in yourself. Build something. Own something beyond just index funds. If you lose money, you’ve still got time to earn it back—and then some.

If I could rewind the clock, I would’ve taken more calculated risks in my 20s and early 30s. Rather than playing it relatively safe, I would’ve gone bigger on business opportunities and leveraged more into real estate. I also would’ve made larger, concentrated bets on tech giants like Google, Apple, Tesla, and Netflix. The CEO of Netflix, Reed Hastings, spoke at my MBA graduation ceremony in 2006 when the stock was only $10 a share.

In addition, I would have started Financial Samurai in 2006, when I graduated business school and came up with the idea. Instead, I waited three years until a global financial crisis forced me to stop being lazy.

But honestly, I was too chicken poop to invest more than $25,000 in any one name—even when I had the capital to put $100,000 in each before 2012. The scars from the dot-com bust and the global financial crisis made me hesitant, especially after watching so many wealthier colleagues get crushed.

Still, I still ended up saving over 50% of my income for 13 years and investing 90% of the money in risk assets, most of which was not in index funds. I’ve had some spectacular blowups, but I’ve also had some terrific wins that created a step function up in wealth.

Don’t Be Too Easily Satisfied With What You Have

One of the keys to going from rich to really rich is pushing beyond your financial comfort zone—especially while you’re still young enough to bounce back from mistakes.

You’ve got to be a little greedier than the average person, because let’s face it: nobody needs tens or hundreds of millions—let alone billions—to survive or be happy. But if you’re aiming for that next level of wealth, you’re going to have to want it more and take calculated risks others won’t.

I was satisfied with a $3 million net worth back in 2012, so I stopped trying to maximize my investment returns. Big mistake. The economy boomed for the next 10 years, and I missed out on greater upside.

Then in 2025, after another short-term 20% downturn, I shifted my taxable portfolio closer to a 60/40 asset allocation. The temptation of earning 4%+ risk-free passive income was too strong. From a pure returns perspective, that’ll probably turn out to be another mistake long term.

To balance things out, I’ve deployed a dumbbell strategy—anchoring with Treasury bills and bonds on one end, while taking bolder swings in private AI companies on the other. And you know what? It feels great. I get to sleep well at night knowing I’ve got protection on the downside, while still participating in the upside if the next big thing takes off.

Final Thought On Investing In Index Funds And ETFs

Index funds are great. I own multiple seven figures worth of them. You should too. But they are best suited for those on the traditional retirement track or those looking to preserve wealth.

If you want to achieve financial freedom faster or join the ranks of the Richest Rich, you’ll need to invest beyond index funds. Build something. Take risks. Own more of your future.

That’s how the richest people do it.

Free Financial Analysis Offer From Empower

If you have over $100,000 in investable assets—whether in savings, taxable accounts, 401(k)s, or IRAs—you can get a free financial check-up from an Empower financial professional by signing up here. It’s a no-obligation way to have a seasoned expert, who builds and analyzes portfolios for a living, review your finances. 

A fresh set of eyes could uncover hidden fees, inefficient allocations, or opportunities to optimize—giving you greater clarity and confidence in your financial plan. The richest people in the world get regularly financial checkups.

The statement is provided to you by Financial Samurai (“Promoter”) who has entered into a written referral agreement with Empower Advisory Group, LLC (“EAG”). Click here to learn more.

Diversify Your Retirement Investments

Stocks and bonds are classic staples for retirement investing. However, I also suggest diversifying into real estate—an investment that combines the income stability of bonds with greater upside potential.

Consider Fundrise, a platform that allows you to 100% passively invest in residential and industrial real estate. With over $3 billion in private real estate assets under management, Fundrise focuses on properties in the Sunbelt region, where valuations are lower, and yields tend to be higher. As the Federal Reserve embarks on a multi-year interest rate cut cycle, real estate demand is poised to grow in the coming years.

In addition, you can invest in Fundrise Venture if you want exposure to private AI companies like OpenAI, Anthropic, Anduril, and Databricks. AI is set to revolutionize the labor market, eliminate jobs, and significantly boost productivity. We’re still in the early stages of the AI revolution, and I want to ensure I have enough exposure—not just for myself, but for my children’s future as well.

I’ve personally invested over $400,000 with Fundrise, and they’ve been a trusted partner and long-time sponsor of Financial Samurai. With a $10 investment minimum, diversifying your portfolio has never been easier.

To increase your chances of achieving financial independence, join 60,000+ readers and subscribe to my free Financial Samurai newsletter here. Financial Samurai began in 2009 and is the leading independently-owned personal finance site today. Everything is written based off firsthand experience. 

What do you do when you’ve reached financial independence? JL Collins says it depends entirely on your spending rate, not just your net worth.

Collins joins us for part two of our conversation about what happens after you reach financial independence. He tackles the question of whether you should invest differently once you’ve “won the game.”

Someone with $5 million spending $100,000 per year sits in a completely different position than someone with the same amount spending $200,000 per year. The first person can afford to stay aggressive with stocks. The second person needs bonds to smooth the ride.

Collins walks through his withdrawal strategy using his daughter as an example. She stepped away from corporate life in her early thirties and now follows an 80-20 stock/bond allocation. 

She pulls dividends from both funds into her checking account, covering about 2.5 percent of her target 4 percent withdrawal rate. Vanguard automatically sells shares to cover the remaining 1.5 percent.

We cover Collins’ thoughts on the 4 percent rule, which he calls extraordinarily conservative. He references Bill Bengen’s research showing that 5 percent withdrawals succeed 86 percent of the time. 

Collins would take those odds to escape a soul-crushing job, especially since most financially independent people end up accidentally making money anyway.

We discuss the tension between frugal habits that build wealth – and learning to spend money once you have it. Collins flies first class, but he drives a basic car.

Collins explains why financially independent people often stay engaged with work — the problem was never work itself, but working without agency.

Timestamps:

Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths.

(0:00) Intro

(2:00) Investing when you’ve won the game

(5:30) Spending rate versus total wealth

(8:00) Three-year versus ten-year timelines

(11:00) Adding bonds gradually or all at once

(14:00) Why 4 percent is extraordinarily conservative

(17:00) Soul crushing jobs and 5 percent risk

(24:16) Withdrawal frequency and dividends

(27:16) Automatic share sales setup

(31:16) Starting business while financially independent

(36:16) Accidentally making money after retirement

(47:09) Agency versus having to work

(50:09) Spending advice for frugal philanthropists

(54:09) Charity auction magnifying effect

Resources Mentioned:
How I Discovered the 4% Rule, with Bill Bengen | Podcast
Bill Bengen created the 4% rule. Now He Thinks We Can Withdraw More  | Podcast

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On July 3, the House narrowly passed the One Big Beautiful Bill Act (OBBBA) with a 218–214 vote. According to the nonpartisan Congressional Budget Office (CBO), the bill will add an estimated $3.3 trillion to the budget deficit over the next 10 years. Trump signed the bill the next day on July 4.

To help pay for it, OBBBA cuts funding to Medicaid, SNAP (food assistance), and clean energy tax credits, while also raising the federal debt ceiling by $5 trillion. Unfortunately, the CBO also estimated that 11.8 million people could lose health insurance coverage because of the legislation’s Medicaid cuts and other provisions.

A recent Quinnipiac University poll found that 53% of registered voters oppose the bill, while only 27% support it. In other words, it is deeply unpopular, but there’s not much we can do about it now but look at the positives.

If you have a job with benefits, and you’re pursuing financial independence or early retirement (FIRE), this bill should work in your favor. Why? Because when taxes go down, your ability to save, invest, and build wealth goes up.

Key Provisions of OBBBA That Affect FIRE Seekers

For context, I helped kickstart the modern-day FIRE movement in 2009 when I launched Financial Samurai and began sharing my journey to escape the finance industry and retire early.

In 2012, I negotiated a severance package and haven’t returned to full-time work since. Instead, I’ve focused on writing for this site, publishing books, and fatherhood. Everything I write is based on firsthand experience because money is too important to leave to guesswork.

The road to financial independence is full of twists and turns, so it’s important to stay ready for change. Here are the key tax and savings provisions from the OBBBA that can help FIRE followers accelerate their journey.

1. Slightly Greater Risk Of Losing Affordable Health Insurance

The most commonly asked question for those considering early retirement is: Do I have enough money? A close second is: How will I afford health insurance?

The U.S. is one of the few developed countries where affordable health care is closely tied to employment. If you retire before age 65—when Medicare kicks in—you’ll need to get health insurance through the Affordable Care Act (ACA) marketplace.

Previously, if your household income exceeded 400% of the Federal Poverty Level (FPL), you were ineligible for premium subsidies. This is called the subsidy cliff. However, after previous legislation, subsidies are now based on a sliding scale, and there is no longer a hard income cutoff at 400% FPL. This means even higher-income early retirees may still qualify for subsidies—especially if ACA premiums exceed 8.5% of their income.

That said, depending on who you ask, between 10 and 16 million people may lose health insurance coverage over the next decade. One major reason is the planned reduction in enhanced ACA tax credits—particularly for those earning more than 400% of the Federal Poverty Level (which is $124,800 for a family of four in 2025). On average, these enhanced tax credits have reduced premium payments by $705 per year for eligible enrollees.

Other contributing factors include:

• A shorter open enrollment window (reduced from January 15 to December 15, starting November 1), so stay organized
• New income verification requirements for those applying for premium tax credits, and
• Restrictions on coverage for DACA recipients.

25X Household Expenses In Investments Is Uncomfortably Low

If you rely on health insurance subsidies to make early retirement feasible, try to keep your income under 400% of the FPL. Otherwise, you may face significantly higher premiums—or be forced to work longer.

One workaround is to start a small business with your spouse or partners, allowing you to get group health insurance and deduct the cost from your business income, effectively reducing your premiums by your business’s marginal federal tax rate. However, this approach only makes sense if the business earns enough to justify the expense.

For context: when my wife retired in 2015 and I could no longer piggyback on her employer-subsidized plan, we began paying $1,680/month for a Gold plan for just the two of us. Today, with a family of four, we’re paying $2,500/month for a Silver plan. It’s a steep cost, but one we’ve accepted as the price of financial freedom.

After not having a day job since 2012, I truly do not believe having an investable net worth equal to 25X annual household expenses is enough to comfortably retire early. You can see the evidence by men who claim FIRE and still pressure their wives to work, or those who claim FIRE and still earn supplemental income, like me. You need a greater cushion if you want to feel comfortable, something closer to 35X annual expenses or more.

Before you retire early, do the following:

1. Estimate your total household income post-retirement.
2. Compare it against the 400% FPL threshold to determine if you qualify for ACA subsidies.
3. Input a realistic annual healthcare cost into your retirement budget and multiply it by 25X to 50X to ensure you have enough in investments.
4. Go on a health kick during your last working year—get in the best shape of your life to minimize future medical expenses.

2. Child Tax Credit Increased

• The credit increases to $2,200 per child (up from $2,000), adjusted for inflation.
• Phases out starting at $400,000 (MFJ) or $200,000 (others).
• Valid Social Security numbers are still required.

As a parent of two young children, achieving FIRE without kids is far easier than doing so with them. Maintaining FIRE is also more challenging once you have children, as your biggest expenses—housing, healthcare, and education—are the ones most impacted by inflation.

This gives parents a little more breathing room while raising kids, especially in high-cost areas. A $200,000 to $400,000 income phaseout is still quite generous, even for those living in high-cost areas.

3. 529 Plan Expansion

• Now allows tax-free distributions for private and religious K–12 schooling.
• Also covers postsecondary credentialing expenses, aligning with the Lifetime Learning Credit.

This may not feel entirely new, since we already know that up to $10,000 a year from a 529 plan can be used for private K–12 education. However, the OBBBA now firmly cements this flexibility into law.

For FIRE-minded parents, try to contribute enough to match the current 4-year cost of your target college. If you can get there, the growth of your 529 plan has a decent chance of keeping up with tuition inflation. Just keep in mind for those looking to gain free money for college: a large 529 balance will likely reduce eligibility for need-based financial aid, though it won’t affect merit-based aid.

4. SALT Deduction Cap Raised

• Increases the SALT cap to $40,000 from $10,000, rising 1% annually through 2029.
• Reverts back to $10,000 in 2030.
• Begins phasing down for incomes over $500,000.

If you live in a high-tax state, this provides meaningful short-term relief. Raising the SALT (State and Local Tax) deduction cap should also provide a valuation boost to real estate in high cost of living cities.

As someone who has lived in New York City and San Francisco since 1999, raising the SALT deduction cap is beneficial to my family. The next city we’re seriously considering is Honolulu, which also has higher-than-average income taxes. Although Hawaii does have the lowest property tax rate in the nation.

5. AMT Relief Made Permanent

• AMT exemptions are now permanently indexed to inflation.
• 2025 figures:
  • $88,100 (single), phased out at $626,350
  • $137,000 (MFJ), phased out at $1,252,700

This protects more upper-middle-class families from surprise tax bills as incomes rise. The income figures for AMT exemptions look to be quite generous.

6. New “Trump Accounts” for Kids

• Tax-advantaged accounts for children under 8.
• Contribute up to $5,000/year, grows tax-deferred until age 18, however, the contribution isn’t a tax deduction
• Can be used for college, first home, or starting a business.
• Qualified withdrawals will be treated as capital gains and taxed at the applicable long-term capital gains rate.
• A $1,000 government seed contribution (free money) for qualifying kids born between 2024–2029.

These accounts promote long-term saving and investing from an early age—a core value of the FIRE movement. I’m just not sure how the proposed $1,000 contribution per child born during this period will be funded. However, any initiative that encourages people to have more children and invest in their future is a step in the right direction.

I recommend that every FIRE parent open both a custodial investment account and a custodial Roth IRA for their children as early as possible. The earlier you start contributing—and encouraging your children to earn income—the stronger their financial habits and the greater their potential to build lasting wealth.

Custodial accounts also make it easier to buy the dip. Even if you’re hesitant to invest for yourself, it’s often easier to stay brave when you’re investing for your children’s future. So in total, we can invest in a 529 plan, custodial investment account, custodial Roth IRA, and “Trump Account” for each child. Time to get going!

7. Temporary Tip Income Deduction

• Up to $25,000 in tips deductible from 2025–2028.
• Applies to non-itemizers in tipped industries.
• Still reportable for payroll taxes and state/local taxes.

If you’re side hustling or in service work while building up savings, this is a nice perk. Although, I’m not sure most people who earn tips pay taxes on those tips in the first place.

8. Temporary Overtime Pay Deduction

• Deduct up to $12,500 (or $25,000 MFJ) of overtime pay from 2025–2028.
• Phases out at $275,000 (single) or $550,000 (MFJ).

This is a great tax break for those putting in extra hours to escape the rat race faster. To this day, I don’t know anyone who works 40 hours a week or less and also wants to retire early. In fact, since the pandemic, more people are working multiple remote jobs to double or even triple their income.

The 40-hour workweek is an outdated construct. If you want to earn more than the average person, you’ll likely need to work more than the average person. And if overtime pays more and is now less taxed—great! Thanks to the OBBBA, there’s now even more incentive to put in extra hours and reach financial freedom sooner.

9. Car Loan Interest Deduction (Temporary)

• Deduct up to $10,000 in interest on U.S.-assembled vehicles (2025–2028).
• Phases out at $100,000 (single) or $200,000 (MFJ).
• RVs and campers excluded.

If you need a car but hate the idea of non-deductible debt, this provision takes a bit of the sting out. That said, hopefully everybody follows my 1/10th rule for car buying and doesn’t take out a loan to buy a depreciating asset. Owning too much car is a top wealth killer in America.

If you need to buy a car, be sure to follow my House-to-Car Ratio formula to stay on track for FIRE. Aim for a ratio of at least 20 if you don’t want to work forever. The average American has a ratio of between 8 – 10, and your goal is to try and thoroughly be above average.

10. Federal Estate Tax Exemption Made Permanent

• Exemption locked in at $15 million/person for 2026 and beyond, adjusted for inflation. This is up from $13.99 million/person in 2025.

Although the estate tax only affects about 1% of households, this is a nice win for those in the Fat FIRE camp who are seeking to create generational wealth. Shooting for a net worth equal to the federal estate tax exemption threshold is one net worth target to shoot for.

If the estate tax exemption amount wasn’t extended beyond 2025, it would have dropped in half starting in 2026 and beyond. If so, the “death tax” would have ensnared a lot more households, especially due to inflation and the rise of risk assets.

11. Social Security Tax Deduction (Good For Traditional Retirees)

One of the more popular provisions of the OBBBA is the $6,000 “senior deduction” for Americans aged 65 and older. While it doesn’t fully eliminate taxes on Social Security, it does help—by increasing the percentage of seniors who owe no taxes on their benefits from 64% to 88%, according to estimates by President Trump’s Council of Economic Advisers.

In other words, around 14 million more seniors are expected to see some relief from taxes on their Social Security income.

But as always, not everyone benefits. The full $6,000 deduction applies only to seniors making up to $75,000 as individuals or $150,000 for joint filers. The deduction then begins to phase out, disappearing entirely at $175,000 for singles and $250,000 for couples.

For context, the median income for seniors in 2022 was roughly $30,000. So while the senior deduction makes for great headlines, the truth is that most seniors already pay little to no taxes on their Social Security. As such, the actual benefit may be marginal for the typical retiree.

Given that Social Security is underfunded by about 25% and projected to run out of full benefits by 2034 if no changes are made to eligibility or payouts, expanding deductions now puts even more strain on the system. It’s great if you can collect the money today, but not so great for future generations.

Business Owner Wins That Support Financial Independence Seekers

One of the best ways to achieve financial independence is by starting a business and building equity. I dedicate a chapter to entrepreneurship in my USA TODAY bestseller, Millionaire Milestones: Simple Steps to Seven Figures. The crux of the chapter is how business equity can multiply as your revenue and profits grow—unlike a salaried job, where income is largely linear and tied to time.

1. 20% Pass-Through Deduction Made Permanent

• The Section 199A deduction lives on.
• Applies to income from LLCs, S corps, sole props.
• The proposed increase to 23% was cut, but 20% remains locked in.

This is a major win for entrepreneurs, freelancers, and side hustlers—all pillars of FIRE strategy. It is unwise to only rely on your day job to achieve financial independence. The more income streams you have, the better.

3. Section 1202 Stock Gains Exclusion

• Keeps the tiered QSBS rules:
  • 50% exclusion for 3+ years
  • 75% for 4+ years
  • 100% for 5+ years
• Increases gain exclusion cap to $15 million (from $10 million), inflation-adjusted.

The higher QSBS exclusion cap of $15 million is ideal for FIRE folks investing in startups as angel investors. At the margin, this change should encourage more people to invest in early-stage companies, which is great for the startup ecosystem.

It’s similar to how homeowners can sell their primary residence and exclude up to $250,000 in gains tax-free as individuals, or $500,000 if married filing jointly. Knowing there’s a generous tax break on the back end makes investing in a nicer home—or a promising startup—all the more appealing.

The federal government continues to show strong support for startups and small-business owners. The 2012 JOBS Act was a major step forward, and this latest update builds on that momentum. As a result, investors should consider allocating more capital to private businesses—especially since startups are staying private longer.

Personally, I’m methodically building my position in private AI companies through Fundrise Venture, which owns stakes in OpenAI, Anthropic, Databricks, Anduril, and more. Fundrise is also a long-time sponsor of Financial Samurai, and our investment philosophies are closely aligned.

3. 100% Bonus Depreciation Made Permanent

• Businesses can write off asset purchases immediately.
• Section 179 expensing raised to $2.5 million, phase-out at $4 million.

This change is great for cash-flow-focused FIRE builders reinvesting in small businesses, as well as for CAPEX-heavy businesses that require costly equipment. Since the pandemic, there’s been a noticeable trend of private equity firms acquiring traditional small businesses—like dental practices, urgent care centers, physical therapy clinics, laundromats, construction firms, and fitness studios.

Since writing about FIRE in 2009, I consistently see people the FIRE community retire from their day jobs and start businesses to see what they’re capable of building on their own. There’s something deeply rewarding about creating something from nothing.

OBBBA Helps FIRE Seekers At The Margin

While it’s not a perfect bill—and critics rightly point out its impact on the deficit and cuts to social programs—OBBBA provides several meaningful wins for those on the path to financial independence:

• Lower taxes = more capital to invest to create more passive income
• Expanded deductions = increased flexibility
• New benefits for kids = multigenerational wealth building
• Business relief = stronger cash flow and reinvestment potential

The greatest advantage of the FIRE movement is the freedom of time and place. And with recent tax law changes offering a few more incentives to save and build, the road to early retirement just got a little smoother.

That said, don’t count on the OBBBA—or the federal government in general—to help you reach financial freedom. Regardless of the latest bill or who’s in office, the responsibility falls on you. Focus on what you can control: your work ethic, consistency, saving rate, investment strategy, and your appetite for risk.

Sometimes the government will be a headwind on your path to FI. But for now, due to the OBBBA, there’s a modest tailwind helping you move a little faster toward your goal.

Readers, what are your thoughts on the One Big Beautiful Bill Act? How does it impact your finances? Are there any provisions I didn’t mention that you think could help accelerate your path to financial freedom?

Free Financial Analysis Offer From Empower

If you have over $100,000 in investable assets—whether in savings, taxable accounts, 401(k)s, or IRAs—you can get a free financial check-up from an Empower financial professional by signing up here. It’s a no-obligation way to have a seasoned expert, who builds and analyzes portfolios for a living, review your finances. 

A fresh set of eyes could uncover hidden fees, inefficient allocations, or opportunities to optimize—giving you greater clarity and confidence in your financial plan.

The statement is provided to you by Financial Samurai (“Promoter”) who has entered into a written referral agreement with Empower Advisory Group, LLC (“EAG”). Click here to learn more.

Diversify Your Retirement Investments

Stocks and bonds are classic staples for retirement investing. However, I also suggest diversifying into real estate—an investment that combines the income stability of bonds with greater upside potential.

Consider Fundrise, a platform that allows you to 100% passively invest in residential and industrial real estate. With over $3 billion in private real estate assets under management, Fundrise focuses on properties in the Sunbelt region, where valuations are lower, and yields tend to be higher.

In addition, you can invest in Fundrise Venture if you want exposure to private AI companies like OpenAI, Anthropic, Anduril, and Databricks. AI is set to revolutionize the labor market, eliminate jobs, and significantly boost productivity. We’re still in the early stages of the AI revolution.

I’ve personally invested over $400,000 with Fundrise, and they’ve been a trusted partner and long-time sponsor of Financial Samurai. With a $10 investment minimum, diversifying your portfolio has never been easier.

Join 60,000+ readers and subscribe to my free Financial Samurai newsletter here. Financial Samurai began in 2009 and is the leading independently-owned personal finance site today. Everything is written based off firsthand experience.