We define financial independence as having an asset base that creates a stable passive income equal to your current expenditure. Reaching financial independence is usually the result of hard work, smart investments and disciplined spending, so well done.
Now what options do you have?
A lot of people want to be free from their job financially but still enjoy work and having something to do each day. The most obvious answer is to keep working. This will allow you to keep building your asset base and developing what we call ‘non-core wealth’. Core wealth is the asset base required for your financial independence. Non-core wealth is everything above this that allows you to do things you may never have considered a possibility. Non-core wealth can be used for generous giving and philanthropy, charitable trusts, it can be used to start a business or investing in start up ventures, it can help your set your kids up in a home of their own. There’s plenty of options available to you.
Do something else
Your current job might be stressful, hard on your family, or you just don’t enjoy it. It’s now really easy to change job and look for something you truly enjoy. You don’t need to worry about the pay cheque, and the income you do earn gives you all the options above.
Depending on your circumstances you may choose to semi-retire, working part-time and pursuing hobbies, friendships and family or other activities.
For some of you it’s simply a case of retirement planning and structuring your assets as effectively as possible in retirement.
If you’ve already reached financial independence and want to speak to someone about the options that are available to you give Daniel a call on 9382 8201 or use the contact form below.