Show notes
Today on episode 29 I want to welcome back to Clipping Chains writer, climber, father of five, and fellow personal finance geek, The Frugal Professor.We cover it all on this one, from how the Frugal Professor was able to save nearly $2 million dollars with a family of seven, to how my wife and I are continuing to navigate a post-Financial Independence life. Topics Discussed with the Frugal ProfessorHow FP became what I call “the Hustler of Personal Finance,” where he regularly gives us the full frontal of personal finance transparency.How FP was able to build a net worth of nearly $2 million with a family of seven by age 40Saving tips for a large familyA deep dive on the importance of understanding taxesWays to minimize our lifetime tax burden while avoiding high healthcare costsHow my wife and I funded our life in 2021 with near-zero incomeHow much we paid in taxes in 2021Why one should be careful with the type of investments you place in a taxable brokerage accountEarly retirees and Medicaid. Is this legit?Musings on the “correct” portfolio withdrawal rate and not falling victim to “one more year syndrome”My thoughts on living in St. George, UTAdvice to college students or recent grads Support this project: Buy Me a CoffeeSubscribe to the website: SUBSCRIBE ME! Frugal Professor LinksOriginal Written InterviewFP interviews Chad AndrewsDraft of “Book”Frugal Professor Site MapFrugal Professor Monthly Financial UpdatesFinancial Statement Template2021 Tax CalculatorHierarchy of SavingsHierarchy of DissavingsRoth vs TradCash Back on Credit CardsWhy to Shop at CostcoHow to Pay ~$0 for Cell Phones Clipping Chains LinksEP 5: Diana Crabtree Green: Pay Yourself FirstEP 26: How to Spend Retirement Money Early (Roth Conversion Ladder)How to Have Negative Health Insurance Costs External ResourcesHealth Insurance Marketplace CalculatorRetirement Savings for the Self-Employed: Solo 401(k)Early Retirement Now Safe Withdrawal Rate Series BooksThe Richest Man in Babylon (George S Clason)A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Burton G. Malkiel)Common Sense on Mutual Funds (John Bogle) Time Stamps0:2:47: Interview begins0:6:27: How FP became “the Hustler of Personal Finance” and the origins of his blog120:12:57: The importance of visuals and tracking0:17:25: FP’s career and education pathway that led to a net worth of nearly $2 million by age 400:25:54: An outsider’s view of a simple life and the misperceptions on what wealth looks like0:26:38: The security of financial independence0:27:43: The timeline and expectations for the financial independence life for FP and his family0:31:07: Why understanding taxes is so important0:36:27: Structuring the CC Family taxes in a life of “early retirement.”0:37:22: How we funded our life in 20210:41:00: What we paid in 2021 federal taxes and how/why we arrived at our level of investment income0:47:25: More details on balancing healthcare costs and minimizing tax burden0:54:16: Summary of the CC family income and tax situation in 20210:55:14: How much money can someone withdraw and pay $0 in federal taxes?0:56:27: Takeaway points for saving effectively and minimizing tax obligation0:58:15: Why one should be careful with the investments you place in a taxable brokerage account1:02: 15: Which accounts to place “play money” stock picks.1:05:07: Early retirees and Medicaid1:07:22: The CC family healthcare insurance philosophy1:09:56: Saving, healthcare, and tax considerations for contractors1:15:17: Did we over-save and fall victim to “one more year syndrome?”1:17:37: Discussion on appropriate safe withdrawal rates for a portfolio in retirement1:23:37: Thoughts on life in St. George, UT1:29:30: Saving tips for a large family1:35:57: Personal finance advice to students or recent college grads1:43:09: Recommended books and podcasts