When you’re an entertainment professional, you may reach that exciting moment where your earnings are high and you’re suddenly feeling pretty darn rich. But as my writer-friend Dave says, you’re not rich in Hollywood until you can live off your investments.
Barrett's 2 Cents
I am a CERTIFIED FINANCIAL PLANNER™ professional. I write personal financial advice for baby boomers without kids. Some people say I help simplify their finances. Other people say I help them enjoy more life experiences. Read on and decide for yourself.
Jennifer, a recently retired executive, is a chronic under-spender. She’s been saving diligently for decades and now that she’s financially independent, she’s only skimming the surface of her nest egg. Two years later, she told me why.
Sarah takes very little money out of her nest egg, so I’m concerned that her financial plan is at risk of failing. Wait, what, you ask? How can a plan be unsuccessful because a person is spending too little? Once a person has achieved financial freedom, it’s common. Here’s how.
I am 45 now, and I love what I do, where I work, and the city I live in. Yet, I still want to know when I’ll have the freedom to stop working. However, the nest egg target that I keep in my head isn’t synced up to that point in time. It’s my WOFI number, and it arrives much sooner. Here’s what it is and why it relaxes me a lot more than knowing how much I need to save in order to retire.
You love your tenants. They always pay their rent on time, rarely complain, and they are super nice. Now for the bad news – that’s probably why you’re undercharging.
In the spirit of disclosure, I own no rental properties so I can’t speak from personal experiences, only those of my clients who rent out single family homes. The common theme – none of them have a system for raising rents based on inflation or comparable listings (comps). When I ask why, they usually share that they’d feel bad doing so because the tenants are so nice.
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