June 12, 2018

FM 025: FIRE Case Study with Chris Mamula

1 hour

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I love sharing FIRE case studies to inspire you.

They prove the dream really is achievable for normal people with no extraordinary financial skills.

They also unmask the dream to show how the reality of financial independence and early retirement differ from your idealized vision.

The truth is everyone hits potholes, makes mistakes, and questions if it's worth all the hard work.

Our guest, Chris Mamula, is no different.

He candidly shares his FIRE story in this interview – warts, blemishes, and victories as well.

Related:

How to be a pro at growing your wealth

Despite several costly errors he managed to achieve financial freedom in just 5 years.

Chris paid excessive fees to a financial advisor

He bought a variable annuity within a 401(k)

He felt “less than” when comparing himself to other FIRE success stories

But he got several critical factors right like keeping expenses low and saving a high percentage of his income, and that proved to be good enough.

Financial freedom isn't about luck, brains, or a single great investment. It's about having a valid plan based on proven principles and taking sufficient action with enough persistence to reach the goal (exactly as taught in my Expectancy Wealth Planning course here).

Anyone can do it, and these case studies prove it.

I hope you enjoy the example Chris has shared.

And if you got great value from Chris's story then please check out the other FIRE success case studies on this podcast.

In this episode you'll discover:

What inspired Chris and his wife to become financially independent

Why Chris is so debt-adverse, and how it worked to his advantage

How Chris adopted the term “dirt bag millionaire”

The important role values play for achieving financial independence (they matter way more than you think)

Chris's personal definition of financial independence

How the 25x Rule, Rule of 300 and 400, and 4% Rule can give you a rough benchmark of how much money to aim for in retirement

The mistake that occurs when you get overly focused on retiring early

How to balance spending now versus saving for the future

What Chris did once he realized how unhappy he had become on this journey

How to avoid the insidious trap of “I'll be happy when I'm retired”

The benefits of continued work after financial independence

How to redefine what early retirement and financial independence mean, and why it matters

Abundance versus scarcity in early retirement

How Chris's plan reflects the “new retirement“

The surprising reason why most people pursuing financial independence will continue to work

Risk management for early retirement

The key to understanding mathematical expectancy

Why it's paramount to become your own financial expert, lest you get taken for a ride by your financial advisor

The danger of financial advisor fees. Chris was paying over $8,000 every year!

The tax consequences Chris and his wife faced for not doing their due diligence quickly enough

Why it might make sense to select a fee-only financial advisor instead of one paid via commissions

How the pursuit of financial independence changes your thinking at a fundamental level

Why learning to be happy and present is the key

The resources that were most helpful to Chris for investing without any prior knowledge

Other sources of income that Chris and his wife are looking into

Why Chris doesn't feel like he really paid a price to become financially free

How living in alignment with your values creates happiness

and much more….

Resources and Links Mentioned in this Session Include:

Step 3 – Wealth Planning Course

Can I Retire Yet? – Chris's blog

@caniretire_yet – Follow Chris on Twitter

Early Retirement Extreme

Into the Wild, by Jon Krakauer

Mr. Money Mustache // Early Retirement Police Article

The 4% Rule, by Todd Tresidder

Mad FIentist

Variable Annuity Pros & Cons, by Todd Tresidder

How Wall Street Can Legally Rip You Off – Article

The White Coat Investor // Investment Advisors Are Not Doctors Article

The Secret to Happiness and Why It Has Nothing to Do With Money – article

Stock Series from JL Collins

The Simple Path to Wealth, by Jim Collins

Intelligent Asset Allocator, by William Bernstein

All About Asset Allocation, by Rick Ferri

Recommended Reading – Beginner Investing

Coach Carson

(Please note: some of the links above are affiliate links so if you buy a course or book using these links I will receive a little compensation. Thank you for supporting this site!)

Get amazing insights on the journey to financial independence from @caniretire_yet on the @FinancialMentor Podcast!Click To Tweet

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Retire With Confidence

Anybody can learn to build a secure retirement -- and you don't need a financial advisor.

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