The idea of financial independence and retiring early has motivated Americans for decades. However, the idea of what it means to be financially independent has shifted over time. For example, people might have assumed they were financially independent in the past because they had a high income. Unfortunately, that isn’t always true. People who achieve true financial independence know they must earn and invest surplus funds. They also understand the importance of meeting with a tax advisor to ensure the most advantageous tax situation for each of their investments.
Why High Income Doesn’t Always Equal Wealth
It’s a common misconception that the key to financial independence is to land a high-paying job. While a generous paycheck can certainly help you reach this goal faster, the true secret to a financially comfortable lifestyle is spending less than you earn. Therefore, it’s spending habits rather than income levels that can make or break your quest towards financial independence. The ability to develop a long-term planning strategy is another crucial element to financial success in the modern era.
People with a growth mindset possess the willingness to put in hard work and long hours when necessary to secure their financial stability later. This could mean attending medical school and working the hours no one else wants after graduation because those shifts pay more. It could also mean keeping skills relevant, getting on track for frequent promotions, and picking up one or more side gigs to ensure multiple sources of income. As soon as you have surplus cash set aside from these efforts, meeting with a financial planner opens the world of investments to potentially put you in an even better financial position.
Effective Financial Planning is Highly Personalized
The main question that people asked of financial planners in the past is whether they would have enough money to retire. While that remains a concern today, people also approach financial planners for assistance with planning their retirement years to ensure they can afford the things that take priority for them. That could be a trip around the world for some, helping grandchildren with college tuition for others, or just having enough funds to have access to quality medical care.
The priority isn’t as important as the realization that people are living longer than ever. They want to ensure comfort in the last decades of their lives as well as their working years. This is one reason why it’s so important to work with an advisor who provides personalized recommendations and a written plan to help keep you on track with your goals.
Seeking this type of assistance early is especially important if you own a business. At KGBV Advisors, we help you outline the steps for business growth that mesh with your long-term strategy of financial independence. When the time comes to sell your business, we ensure that you’re in a strategic position to receive the highest possible offer for the company you worked so hard to build for much of your adult life.
Are you ready to learn more about achieving financial independence, business valuation, and related topics? We invite you to schedule an appointment with KGBV Advisors today.