In this week’s episode, Big Al Klopp and I broke down exactly what it takes to get there and stay there. It’s not just about saving more; it’s about thinking differently about money, time, and the future.

What Financial Freedom Really Means

According to recent data, 54% of people define financial freedom as being debt-free, and 50% say it’s about living comfortably. Only 13% equate it with being rich.

For us, financial freedom means your passive income matches or exceeds your expenses. That’s the point where you get to choose how you spend your time.

But here’s the catch: freedom comes from cash flow, not just net worth. If you have millions in assets but no income from them, you’re still on the clock.

The Roadblocks That Get in the Way

Most people don’t get stuck because they’re lazy. They get stuck because of:

• Not saving enough
• Carrying too much debt
• Living paycheck to paycheck
• Emergencies that wipe out savings

Take credit card debt as an example. The average balance is $8,600, and if you pay just $272 per month, you’ll be at it for 53 months and spend $5,600 in interest.

If you want freedom, the first step is cutting the chains and for many, that starts with credit cards.

3 Steps to Financial Freedom

Big Al and I recommend this simple process:

1. Inventory – Know your numbers: assets, liabilities, net worth
2. Invest – Grow your money through smart allocation
3. Sustain – Build systems to maintain freedom over time

Calculating your net worth is key. Add up what you own (bank accounts, retirement plans, real estate, etc.) and subtract what you owe (mortgages, loans, credit card balances). That’s your starting point.

And remember: always pay yourself first. Before you spend on wants, contribute to your 401(k), IRA, or savings account.

Taxes: The Sneaky Expense That Eats Your Freedom

Taxes are one of the biggest threats to financial independence. In California, a single filer earning $100,000 nets just $72,000 after taxes.

Want to fight back? Use:

• 401(k) and IRA contributions to lower taxable income
• Roth accounts for tax-free growth
• Capital gains strategies married couples can pay 0% on gains if income is under $94,000

And don’t forget: IRA and 401(k) withdrawals in retirement are taxed like ordinary income. Plan ahead, or risk surprise tax bills later.

Retirement Savings: It’s Never Too Early (But Don’t Wait)

The math is simple. If you start saving $700/month at age 30, you could hit $1 million by 65. Wait until 50, and you’ll need $3,500/month to get there.

That’s the power of compound interest time is your biggest ally.

If you’re self-employed, look into:

• Solo 401(k)s
• SEP IRAs
• SIMPLE plans

And if your employer offers a match? Don’t leave free money on the table.

Build an Emergency Fund (Before You Need It)

Before you start investing aggressively, make sure you’ve got 3–6 months of expenses saved in a high-yield savings account. This keeps you from falling back on high-interest credit cards during emergencies.

Also:

• Set up automatic bill payments
• Monitor your accounts
• Improve your credit score by paying on time and keeping usage low

Passive Income: The Secret Sauce to Sustainable Freedom

Want freedom? You need income streams that don’t depend on you clocking in.

Some options include:

• Rental properties
• REITs
• Dividend-paying stocks
• Social Security

If you wait until age 70 to claim Social Security, you’ll get 124% more than if you claim early. That’s a massive difference.

Plus, don’t underestimate side hustles like freelancing, consulting, or tutoring especially in the early stages of retirement.

Keep Adjusting Because Life Will

Markets change. Taxes change. Health changes. You need a plan that can adapt.

That’s why we talk about the 4% rule a guideline, not gospel. Some years, you may need to pull back to preserve your portfolio. That’s called managing sequence of returns risk retiring into a bad market could force you to sell investments at a loss.

Check in on your plan regularly and pivot when needed. Flexibility is freedom.

Final Thoughts

Financial freedom isn’t about getting rich. It’s about getting clear. Clear on your income, your expenses, your values, and your goals. It’s about using your money to support the life you want—not the other way around.

Whether you’re just getting started or refining your strategy, remember this: it’s possible. You can have a plan that works, a life that feels right, and a future you’re excited about.

You just have to start.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post How to Actually Reach Financial Freedom: The Strategy That Works appeared first on ROI TV.

1. Assess Your Starting Point If you’re in your 50s or early 60s, the clock may be ticking, but the game isn’t over. Many people nearing retirement believe they need $1.6 million, yet the average retirement savings for those aged 55-64 is around $400,000. That’s a big gap, but Joe and Big Al show that with the right strategy, you can still create a workable plan.

2. Spending Adjustments Make a Big Difference In a case study of a couple in their mid-50s, reducing annual spending from $100,000 to $90,000 extended their retirement savings by six years. This single tweak made their money last until age 84 instead of 78. It turns out, cutting back a little on travel, dining out, or unnecessary subscriptions could make a big long-term difference.

3. Working Longer or Delaying Retirement If you can work an extra two years, you gain twice: more money saved and fewer years drawing from your savings. In the case study, working until 66 (instead of 64) had almost the same positive impact as cutting expenses by 10%.

4. Roth Conversions and Tax Strategies Taxes don’t retire when you do. Joe and Big Al recommend using Roth conversions to shift money from traditional accounts to Roth IRAs while you’re still earning. Doing so can lower your future tax burden and give you tax-free income in retirement. Just make sure you use non-retirement assets to pay the tax bill, or you’ll lose the compounding advantage.

5. Sequence of Return Risk Is Real The early years of retirement are vulnerable to market downturns. If your portfolio drops and you’re withdrawing funds at the same time, it can cripple your future. Maintaining a balanced allocation and keeping your withdrawal rate low can protect your savings during rough markets.

6. The Triple Lindy Strategy Joe and Big Al combine four power moves: save more, spend less, delay Social Security, and work longer. They call this the “Triple Lindy,” and it could extend your savings lifespan to age 94. These adjustments may seem small individually, but together they have a massive impact.

7. Take Advantage of Catch-Up Contributions Starting in 2025, Americans aged 60–63 can contribute 150% of the standard catch-up limit. That’s $11,250 in additional contributions annually. Someone starting from $0 at age 59 could still end up with $340,000 by age 67 with diligent saving and a 6% return.

8. Plan for Health and Long-Term Care Long-term care costs can derail even the best retirement plan. With assisted living averaging $65,000 per year and skilled nursing at $100,000, make sure to include healthcare planning in your retirement strategy.

9. Understand Your Spending Patterns While many advisors say you’ll spend 80% of your pre-retirement income in retirement, Joe and Big Al warn this varies widely. Some retirees spend more early on during the “go-go” years and later face higher healthcare costs. Plan for flexible spending.

10. Use a Realistic Rate of Return Expecting a 6% return on your 401(k) is a conservative and practical benchmark for planning. Stick to a 60/40 stock-to-bond allocation and avoid emotional reactions that lead to buying high and selling low.

Final Thoughts It’s never too late to stage a retirement comeback. With the right mix of spending adjustments, tax planning, catch-up contributions, and strategic timing, you can extend your savings well into your 90s. And who knows? You might end up better off than if you’d started early but planned poorly.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post How to Stage a Retirement Comeback: Smart Strategies for Financial Freedom appeared first on ROI TV.

Let’s start with the numbers. The median 401(k) balances in America tell an interesting story. Under 25? You’re looking at a $3,000 median balance. Ages 25–34? About $15,000. By the time people hit 55–64, that median rises to $88,000. But keep in mind: median means middle-of-the-pack—not average. A few outliers with millions can skew averages, so the median gives a better picture of where most folks really are.

Now, I don’t share these numbers to make anyone feel behind. Quite the opposite. I want you to see these as reference points, not goals. Because your retirement plan needs to fit your life, your income, and your dreams—not someone else’s.

My Go-To Strategies for Growing Retirement Savings

Here’s what I recommend: Start as early as you can, stay consistent, and let time and compound interest do the heavy lifting. Use tax-advantaged accounts like 401(k)s, traditional or Roth depending on your situation, and never leave an employer match on the table. That’s free money—take it!

One small change I love? Increase your contribution rate by just 1% each year. Over time, that can push you closer to the ideal target of saving 15–20% of your income for retirement.

Saving Benchmarks to Guide You

There are some general benchmarks I keep in mind to check my progress:

• By age 30: 1x your income saved
• By 40: 3x
• By 50: 6x
• By retirement: 8–10x

But again, these aren’t one-size-fits-all. If you’re planning to retire early, or your income jumps dramatically later in life, your path might look different. And that’s perfectly okay.

What the Generations Are Saving

I found it fascinating that Gen Z is saving about 7.2% of their income, Millennials about 8.6%, Gen X 10.2%, and Boomers 11.8%. And when you factor in employer contributions, many are hitting that 10–15% sweet spot recommended by financial planners. That’s good news—it means we’re moving in the right direction.

Don’t Make These Common 401(k) Mistakes

One of the biggest mistakes I see is people cashing out their 401(k)s when they change jobs. Nearly 41% of employees do this, and 85% of them take the entire balance. That’s a huge hit—not just in penalties and taxes, but in long-term growth.

If you’re changing jobs, consider rolling your 401(k) into your new employer’s plan or into an IRA. And whatever you do, don’t time the market or jump in and out based on headlines. Stay invested. Stay the course.

Max Out Your Contributions (If You Can)

If you’ve got the budget for it, 2025 contribution limits are generous: $23,500 for most people, and $34,250 for those aged 60–63. If you’re over 50, you also qualify for catch-up contributions. Every dollar counts, especially if you’ve got some ground to make up.

You can also build multiple income streams to reduce reliance on any one source. And don’t overlook the value of Roth accounts for tax-free withdrawals, or HSAs for future medical costs.

Play the Long Game

If there’s one thing I want you to take away, it’s this: consistency wins. Whether you’re 25 or 55, what matters most is making saving a habit and letting your money grow over time.

In your 40s and 50s, assess your progress. Adjust if needed. In your 50s and 60s, finalize your withdrawal strategy and tax plan. Don’t wait until retirement hits you—prepare for it on your terms.

Final Thoughts

Retirement isn’t just about stopping work—it’s about freedom. It’s about having choices. And I truly believe that with the right strategy, anyone can get there.

So start where you are. Save what you can. And increase it over time. I’d love to hear your thoughts—how are you preparing for retirement? Let’s keep the conversation going.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How to Build a Strong Retirement Plan at Any Age appeared first on ROI TV.

Many individuals overlook the full potential of available retirement accounts. Anderson and Clopine highlight the benefits of Traditional IRAs, Roth IRAs, 401(k)s, and 403(b)s. Notably, only 21% of the population has a Roth IRA, and 30% possess a Traditional IRA. Increasing retirement contributions by just 1% annually can lead to substantial growth over time.

2. Understanding Retirement Account Types and Contribution Limits

The discussion covers various retirement accounts, including 401(k)s, 403(b)s, Traditional IRAs, Roth IRAs, Self-Directed IRAs, and SIMPLE IRAs. For 2025, contribution limits are as follows:

• 401(k) and 403(b) Plans: The annual contribution limit is $23,500, with an additional $7,500 catch-up contribution for individuals aged 50 and over. irs.gov
• Traditional and Roth IRAs: The contribution limit remains at $7,000, with a $1,000 catch-up contribution for those aged 50 and over. irs.gov

Understanding eligibility and contribution rules for each account type is crucial, especially the tax-free growth benefits offered by Roth IRAs.

3. Asset Allocation and Asset Location Strategies

Anderson and Clopine explain the distinction between asset allocation (distribution among stocks, bonds, real estate, cash) and asset location (placement in tax-free, taxable, tax-deferred accounts). Strategically placing assets can optimize tax efficiency. For instance, allocating stocks in Roth IRAs and bonds in tax-deferred accounts can be beneficial. The flexibility of investing in IRAs and Roth IRAs allows for a wide range of options, including mutual funds, ETFs, and individual stocks.

4. Exploring Self-Directed IRAs and Real Estate Investments

Self-Directed IRAs permit investments in non-traditional assets like real estate, cryptocurrencies, and precious metals. While holding real estate in an IRA is possible, it’s important to note that gains are taxed as ordinary income upon withdrawal. Considering the potential benefits and risks of holding real estate in a Roth IRA versus a Traditional IRA is essential.

5. Crafting a Diversified Retirement Strategy

A diversified retirement strategy should consider factors such as desired retirement age, required rate of return, and risk tolerance. Having funds in different account types (tax-free, taxable, tax-deferred) can help manage tax exposure in retirement. Anderson and Clopine encourage individuals to think about their future selves and the long-term benefits of disciplined saving and investing.

6. Leveraging Spousal IRAs and Employer Matches

Spousal IRAs allow a non-working spouse to contribute to an IRA based on the working spouse’s income. Taking full advantage of employer matches in 401(k) and 403(b) plans is a strategic way to maximize retirement savings. Automating contributions and prioritizing retirement savings over other expenses are recommended strategies.

7. Utilizing Catch-Up Contributions and the Power of Compounding

For those over 50, catch-up contributions provide an opportunity to boost retirement savings. The power of compounding growth can lead to significant wealth accumulation over time with disciplined contributions. Starting to save early and consistently is key to achieving substantial growth in retirement accounts.

8. Navigating Inherited IRAs and Understanding Tax Implications

Beneficiaries of inherited IRAs must withdraw the funds within 10 years and pay taxes on the distributions. Understanding the new laws and planning accordingly can help manage the tax impact. Non-compliance with mandatory withdrawal rules can result in penalties.

9. Considering Roth IRAs as an Emergency Fund

Roth IRAs offer flexibility, allowing for tax-free withdrawal of contributions (but not earnings) at any time. While they can serve as an emergency fund, it’s advisable to keep them separate to allow for tax-free growth over time. Maintaining a dedicated emergency fund in addition to retirement savings is emphasized.

By understanding and utilizing various retirement accounts and implementing strategic tax planning, individuals can significantly enhance their retirement savings and achieve their financial goals.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post Maximizing Retirement Savings: Strategies with IRAs and Tax Planning appeared first on ROI TV.