1282: [Part 1] 3 Bad Financial Decisions That Helped Me Retire Sooner by Chris Mamula of Can I Retire Yet

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🗓️ 12 September 2020

⏱️ 8 minutes

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Summary

Chris Mamula of Can I Retire Yet shares three bad financial decisions he made that somehow managed to help him retire sooner. This is part 1 of 2. Episode 1282: [Part 1] 3 Bad Financial Decisions That Helped Me Retire Sooner by Chris Mamula of Can I Retire Yet Darrow Kirkpatrick is the founder of CanIRetireYet.com. He began serious investing in his mid-30s and retired at age 50. He's not a dot com millionaire and didn't become financially independent by flipping real estate or trading hot stocks. He did it the traditional way: hard work, frugality, prudent investing, and patience. When it comes to personal finance, his top priorities are simplicity, reliability, and safety. Now his mission is to help others become financially independent as he did. More recently, Chris Mamula has been managing the blog and he's a frequent writer on the site. Chris used principles of traditional retirement planning, combined with creative lifestyle design, to retire from a career as a physical therapist at age 41. After poor experiences with the financial industry early in his professional life, he educated himself on investing and tax planning. Now he draws on his experience to write about wealth building, DIY investing, financial planning, early retirement, and lifestyle design. The original post is located here: https://www.caniretireyet.com/3-bad-decisions-helped-retire-sooner/ Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

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0:00.0	This is optimal finance daily episode 1282, three bad financial decisions that helped me retire sooner, part one by Chris Mamula of Can I Retire yet.
0:11.0	And I'm Dan, I'm your host here on the podcast and this is where I read to you from some of the best blogs on personal finance every day including weekends and holidays.
0:19.0	And we've got five shows covering all different topics with the same format so you can search for optimal
0:24.7	living daily wherever you're hearing this to find all of our five podcasts.
0:29.1	But now let's get right to it and continue optimizing your life.
0:39.0	Three bad financial decisions that helped me retire sooner, part one by Chris Mamula of Can I Retire Yet.com.
0:44.0	We tend to judge our decisions by outcomes.
0:47.0	In her book Thinking in Betts, making smarter decisions when you don't have all the facts,
0:52.0	Annie Duke points out the faulty logic of thinking about that. smarter decisions nearly all decisions have to be made with imperfect information making outcomes
1:04.8	uncertain. Rarely does a single cause lead to a direct and predictable effect.
1:09.4	We can certainly make better decisions and we should try, but it's important to realize that luck and unforeseen consequences play a role in the outcome of those decisions.
1:20.0	Using this context, I'll explore three financial decisions that undoubtedly accelerated my path to early retirement,
1:26.4	but I'd be reluctant to recommend others to make these same decisions.
1:31.0	Mistake 1. We grossly underinsured.
1:34.0	Disability insurance.
1:36.0	For most working people, physical capital is their most valuable asset.
1:40.0	It therefore makes sense to insure this asset in the event you can't continue to work and earn income.
1:46.0	There are guidelines for how much disability insurance you should purchase.
1:49.0	My wife always had short-term disability insurance provided through her employers. I never did. We never
1:55.4	felt the need to buy short-term disability insurance for me. We quickly built up an emergency fund.
2:01.0	I was able to carry four weeks of banked vacation time, and we always lived on
2:05.1	only one income, so we were confident we'd be fine in the event of short-term disability.
	...

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