FI Books Available for Presale
Exciting news from some of our great friends of ChooseFI is that their books are available for presale now with publication dates in the next 2 weeks:
‘Retire Often: How anyone can take multiple career breaks to unlock adventure, advance their career, and find financial freedom’ by Jillian Johnsrud
‘Tax Planning To and Through Early Retirement‘ by Cody Garrett and Sean Mullaney
If you’re looking for more detail on these books, Ep 561 with Jillian is a great place to start and I have Ep 565 with Sean and Cody publishing on 9/22.
Negotiate Your Salary
One of the enduring lessons from our podcast is this:
“Everything is negotiable.”
I was reminded of this essential lesson by the Financial Mechanic when I went back and listened to Episode 454.
She gave us an update on her ‘7 Negotiation Tips and Scripts’ for salary negotiation and really dove into the lessons that she used to double her salary and negotiate an international work arrangement.
Here’s a synopsis of the ‘7 step negotiation toolkit’ from the show notes to Ep 454:
**The Seven-Step Negotiation Toolkit
**
**Step 1: Delay Salary Discussions
**
One of the most effective negotiation strategies is to postpone salary discussions until later in the process. When recruiters or employers ask your salary expectations too early, respond by expressing your need for additional information about the role and its responsibilities. You might say, “I’m confident we can work out something fair once I know more about the specifics of the position.”
**Step 2: Conduct Thorough Market Research
**
Knowledge is power. Equip yourself with up-to-date information about salary ranges and industry standards relevant to your role. Use platforms like Glassdoor or ask colleagues in similar positions about their salaries. Understanding what others in your field are earning will give you a benchmark and increase your bargaining power.
**Step 3: Know Your Worth
**
Document your achievements, skills, and the particular value you bring to an organization. This knowledge will boost your confidence when discussing salary. Remember, you’re not just asking for a number; you’re showcasing your worth based on your proven contributions.
**Step 4: Recognize the Employer’s Investment
**
Remember that the company has already invested time and resources in finding you. They have spent effort on screening, interviewing, and onboarding you. Understanding this helps you frame your negotiation as a collaborative effort towards a shared goal: fulfilling the role effectively while meeting your requirements.
**Step 5: Develop a Clear Negotiation Script
**
Before going into any negotiation, prepare a script. Start by indicating your enthusiasm for the role, then present your researched salary range based on market insights and personal expectations. Utilizing a structured approach will help you articulate your points clearly, making it easier to navigate the discussion.
**Step 6: Expect Discomfort
**
Negotiation can be a tense process, often accompanied by significant discomfort. Recognize that everyone involved may feel uneasy, but remember that enduring this discomfort can lead to substantial financial benefits later on. A small temporary unease can lead to significant long-term gains.
**Step 7: Consider More than Just Salary
**
Finally, don’t limit yourself to negotiating salary alone. Explore negotiation opportunities for bonuses, work arrangements, and other benefits. For example, you might request flexible working hours or additional vacation days which can improve your quality of life significantly.
Do You NEED a Large Taxable Brokerage Account?
I published Episode 562 last week where my co-host Ginger and I discussed her personal financial strategies and questions and I received this email from Cody Garrett that I thought was worthy of inclusion here in the newsletter.
From Cody:
“I enjoyed your ChooseFI episode with Ginger yesterday! Thank you for the shout-out and insightful conversation.
Here are my follow-ups:
Ginger’s quote was: “I need a taxable brokerage account. I get that the huge advantage is flexibility. I can pull that at any time. I definitely want to retire early, so I need to start thinking about that bucket.”
The decision between tax optimization and flexibility we discuss is primarily a pre-retirement decision, not an early retirement decision. For example, a newly-married couple saving for a home down payment in a few years, or a new worker building an emergency fund or saving for a car: they may choose flexibility (liquidity) over tax optimization by contributing to a taxable account rather than maximizing traditional retirement account contributions (perhaps only capturing the employer match).
In early retirement, as you mentioned, we have more flexibility than we assume regarding traditional retirement accounts. Whether it’s the Rule of 55, 72(t) plans, or even taking a distribution with the 10% additional tax (penalty), most early retirees still come out ahead because they can use the significant standard deduction and fill up the lower brackets bottom up.
Ginger is rightfully excited by the idea of tax gain harvesting (0% for LTCG), but it’s worth noting that a separate 0% tax rate applies to ordinary income (such as traditional retirement account distributions) up to the standard/itemized deductions. In 2025, that’s $15,750 for single filers and $31,500 for married filing jointly under age 65. Receiving a tax deduction at 22%, 24%, 32%+ while working, and then zero tax on the distribution in early retirement? That’s a win! Sean Mullaney calls this the “Hidden Roth IRA.”
Here’s an example: If you’re in the 22% marginal tax bracket while working, a $1,000 contribution to a traditional retirement account requires income of $1,000. But contributing $1,000 to a taxable brokerage account requires income of $1,282 ($1,000 ÷ 78%). That extra $282, created by the deduction, is also available to invest. Every dollar contributed to a Roth 401(k) or taxable account is a dollar you can’t contribute to a traditional 401(k), which means sacrificing the upfront tax deduction, which is especially valuable for those planning to retire early.”
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[&>li]:text-sm leading-snug not-italic”>I had my three-year anniversary of when I started working last week. Thanks to FI principles, I was able to pay off my student loans and save over $150,000! I’m past Coast FI, and my wife and I are talking about about the possibility of me taking a step back for work so I can spend more time with my one-year-old daughter.
The craziest thing about this, to me, is that I’m not a “natural” saver. When I was younger, I spent any money I got as soon as I got the chance. It was almost physically painful for me to deny myself something that I wanted to buy, because I didn’t see the point. Now, though, I’m excited to be saving money, because I understand what it means: buying back my time, so I can spend it with the people I care about.
— Isaac
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[&>li]:text-sm leading-snug not-italic”>My 1% this month is opening my own consulting LLC. I am a member of a national organization and volunteer for them. This month, I was asked if I would be interested in consulting on different topics I teach in my spare time (like Billing and Coding for Health Care Professionals). The work involves reviewing ICD-10 codes for specialties and editing a one-page document. I agreed and thought about all I have learned since starting this FI journey in 2020. I opened up an LLC and took the consulting offer. My next step is consulting with my CPA on the best strategy to invest that income without increasing my tax responsibilities. I am researching SEP IRA, Solo 401(k), and Traditional IRA.
Since starting this journey, we broke up with our “advisor” who charged an AUM fee, maxed out our 401 & TSP, stored up our accelerated savings account, travel with points (and pay off our card every month), and continue to look at life through that 1% lens. Thank you for the education and dialogue along the way.
— Michelle
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[&>li]:text-sm leading-snug not-italic”>Everyone told us we’d have to offer full asking—or more—to land a home in this market. But because we’re financially independent, we weren’t in a rush. We’d already lost out on lesser homes and knew we could wait for the right one. When our dream home in a dream location came up, we offered over 5% below asking—and still ended up being the strongest, most secure offer thanks to our solid financials. After quick negotiation, we closed with a discount worth about 1% of our net worth.
This win wasn’t just financial. It was emotional, strategic, and deeply affirming. FI gave us the confidence and clarity to walk away when things didn’t feel right—and the staying power to win big when it really mattered.
— J
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[&>li]:text-sm leading-snug not-italic”>Some friends and I have started- a shared Google sheet with categories of items we each own that others can borrow. For example, I rarely used my food processor and it just took up space, but my neighbor needed one and uses it frequently. So I gave it to her, with the understanding that I can borrow it anytime. It goes on the spreadsheet.
My best friend has every possible serving item you can imagine, like ice buckets and charcuterie boards. Those go on the spreadsheet, and if one of us needs that random thing at some point, we borrow it. It works for lawn equipment, kitchen appliances, etc. Communal sharing of infrequently used items, vs. all of us buying and storing these things in our own homes!
— Debbi
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[&>li]:text-sm leading-snug not-italic”>My 1% win this week was switching savings accounts to get a better savings rate from 2.5% to 3.05% without any fees or lockins on my emergency fund. Will then shift any monthly surplus over to my investment account.
— Liz
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[&>li]:text-sm leading-snug not-italic”>My 1% better is we just booked a trip to DC, across the country for us, for very little. We’re house swapping through HomeExchange.com so our housing is free. We’re swapping cars as well so no rental car. We used credit card points to pay for all but $207 of the flights for our family of 6. We’ll be eating out minimally and using the grocery store and kitchen at their house. So this entire vacation will be minimal cost and we get to do a big bucket list trip for our family this way.
— K