BiggerPockets Money Podcast Summary
Episode: When You Should (and Shouldn’t) Hire a Financial Advisor | Life After FIRE
Release Date: March 26, 2025
Host: Mindy Jensen
Guest: Amy
Transcript Duration: [00:00] – [45:25]
Introduction to Life After FIRE
In this episode of the BiggerPockets Money Podcast, Mindy Jensen introduces a new YouTube series titled Life After FIRE, focusing on individuals who have achieved financial independence and are navigating life beyond FIRE (Financial Independence, Retire Early). Mindy welcomes her friend Amy, who shares her personal journey towards financial independence and her experiences post-FIRE, particularly as a single woman managing her finances after a significant life event.
Amy’s Journey to Financial Independence
Amy recounts her path to financial independence, beginning in 2015 when she discovered the Mr. Money Mustache blog, likely through Get Rich Slowly. Inspired by the blog's pivotal article, "The Shockingly Simple Math Behind Early Retirement," Amy became intrigued by the concept of saving 25 times her annual expenses to retire early.
Amy [00:56]: "If you can save 25 times your expenses, then guess what, you can retire. And I remember just being like, kind of skeptical but very, very intrigued by this."
Initially skeptical, Amy shared her findings with her then-husband, Phil, who was dismissive at first. However, as they delved deeper into the math and potential, both became excited and committed to the FIRE journey. By 2016, they officially set their financial independence timeline, initially expecting to reach their goals in eight years, though they achieved it significantly sooner.
Adjusting Spending and Savings Strategies
Once committed to FIRE, Amy and Phil made strategic adjustments to their financial habits. Although they were already proficient savers—maxing out their 401(k)s and IRAs—they chose to scale back on discretionary spending to accelerate their savings.
Amy [03:31]: "We stopped going out to eat. We stopped traveling for the most part, except for very minimalist road trips. We did start sourcing things from Craigslist and the Habitat Restore."
This period involved what Amy describes as "experimental deprivation," where they rigorously evaluated every expense, questioning the necessity of even minor purchases like a 99-cent chapstick.
The Challenge of Experimental Deprivation
Amy reflects on the first year of intensified saving, acknowledging the mental strain it placed on her and Phil. While monthly financial check-ins were initially motivating—turning savings progress into a game—the relentless denial of discretionary spending led to fatigue.
Amy [05:56]: "It was not very fun. It turns out mentally it's kind of hard to like see your balances go up and up and up and still be telling yourself no all the time."
By the end of the first year, both partners recognized the need to balance their strict saving habits with some discretionary spending to enhance their quality of life without derailing their financial goals.
The Importance of Monthly Check-Ins
Regular financial check-ins played a crucial role in maintaining their FIRE trajectory. These meetings were both analytical and celebratory, allowing Amy and Phil to track their progress and adjust their strategies as needed.
Amy [07:23]: "Those meetings were super fun because it was like, look at the progress we made. Look how much money we saved this month."
However, despite the initial excitement, the monotony of constant savings led to a desire for more financial freedom, prompting them to gradually allow more flexibility in their spending habits in subsequent years.
Life Changes and Hiring a Financial Advisor
Amy’s journey took an unexpected turn following the tragic death of her husband, Phil, due to a biking accident in September 2020. Suddenly faced with managing their finances alone, Amy realized the need for professional assistance.
Amy [15:01]: "I knew very quickly that I was going to need help managing the money aspects... I started trying to figure out, okay, how am I going to do this?"
Through a connection with Charles Schwab, Amy was referred to a financial advisement firm. This partnership became pivotal in helping her navigate the complexities of financial management during a profoundly challenging personal time.
Breaking Stereotypes in the FIRE Community
Amy addresses the often-taboo topic of hiring financial advisors within the FIRE community, where there exists a stigma that outsourcing financial management is a sign of weakness or incompetence.
Amy [20:26]: "Financial advisors at all are kind of controversial. If you have one, it's often kind of frowned upon."
Contrary to these prevailing attitudes, Amy emphasizes that her choice to work with an assets under management (AUM) financial advisor has been instrumental in maintaining her financial stability and peace of mind post-FIRE.
Benefits of Having a Financial Advisor
Amy details the multifaceted benefits her financial advisor provides, extending beyond mere investment management. The advisor assists with comprehensive financial planning, including insurance audits, estate planning, and tax optimization.
Amy [21:43]: "They allow me to sleep at night. I'm not worried that I'm going to make a wrong move... My financial advisor makes me feel safe."
This holistic approach has enabled Amy to feel secure and confident in her financial decisions, especially critical after the loss of her husband.
Choosing the Right Financial Advisor
Mindy Jensen and Amy discuss the importance of selecting a financial advisor who aligns with one's personal and financial needs. Amy distinguishes between fee-only advisors and those charging based on assets under management, advocating for the latter in her specific situation due to the depth and ongoing support they provide.
Amy [40:52]: "I really have no plans to change at this point. I'm not going to say never, but it is not in my immediate field of vision as, like, oh, I want to cut costs, and this is where I'm going to do it."
Mindy reinforces the idea that listeners should evaluate their financial needs and choose advisors who offer the services and support that best fit their circumstances.
Conclusion and Final Thoughts
In wrapping up, Mindy and Amy affirm the value of hiring a financial advisor, especially in complex or transitional life stages. They advocate for personalized financial management solutions, emphasizing that utilizing professional advice is a smart and valid choice.
Mindy Jensen [44:27]: "If you like this person, if you're comfortable, like, understand the fee structure. But if you're comfortable with the fee structure, then you're just paying for a service that you value. And anybody who tells you that you're wrong, they're wrong."
Amy concurs, highlighting the continued benefits she receives from her advisor and expressing confidence in her decision.
Amy [44:45]: "My money, my choice."
Mindy concludes the episode by encouraging listeners to make informed and personal decisions regarding their financial management, regardless of external opinions.
Key Takeaways:
- Personalized Financial Management: Hiring a financial advisor can provide tailored support, especially during significant life changes or when managing finances alone.
- Breaking Community Stigmas: The FIRE community's skepticism towards financial advisors is challenged by personal success stories like Amy's.
- Comprehensive Support: Beyond investment management, financial advisors can assist with insurance, estate planning, and tax optimization, offering holistic financial security.
- Peace of Mind: Professional financial management can alleviate stress and provide confidence in financial decisions, particularly in times of personal upheaval.
- Choice and Empowerment: Ultimately, decisions about financial management should align with individual needs and comfort levels, regardless of community norms.
Notable Quotes:
- Amy [00:56]: "If you can save 25 times your expenses, then guess what, you can retire."
- Amy [05:56]: "It was not very fun. It turns out mentally it's kind of hard to like see your balances go up and up and up and still be telling yourself no all the time."
- Amy [21:43]: "They allow me to sleep at night. I'm not worried that I'm going to make a wrong move."
- Mindy Jensen [44:27]: "If you like this person, if you're comfortable, like, understand the fee structure...you're just paying for a service that you value."
- Amy [44:45]: "My money, my choice."
This episode serves as a valuable resource for individuals considering the integration of a financial advisor into their financial independence journey, providing personal insights and challenging prevailing stigmas within the FIRE community.