As someone who writes about investing for a living, I can see the writing on the proverbial wall for my profession. I’ve seen firsthand the power of artificial intelligence and know that my current career won’t last forever. While AI could certainly open new career paths for me, my concern is that I could face a long transitional period without any income.
That’s driving me to focus on becoming financially independent as quickly as I can, with the ambitious aim of reaching that goal within five years. Here’s my three-part strategy to become financially free.
Image source: Getty Images.
Rapidly grow my passive income
For me, reaching financial independence won’t be about growing my net worth to a certain number. Instead, reaching financial freedom means I’m generating enough income outside my active work to cover my family’s financial needs. As a result, the first step in my strategy is to grow my passive income to the point where it can cover our basic living expenses.
I’m primarily doing that by investing in high-quality, high-yielding dividend stocks. I look for companies that can grow their dividends over the long term. For example, one of my top dividend stock holdings is Brookfield Renewable (BEPC 0.79%)(BEP 1.43%). The leading global renewable energy company generates stable and growing cash flow backed by long-term contracts that typically link power rates to inflation. Brookfield Renewable also invests capital to develop and acquire new renewable energy assets. Given the robust demand for power driven by AI, Brookfield expects to grow its cash flow per share by more than 10% annually over the next five years. That more than supports its plan to increase its dividend (which currently yields over 4%) at an annual rate of 5% to 9%. As a result, Brookfield will provide me with a steadily rising income stream.
Today’s Change
(-0.79%) $-0.29
Current Price
$36.46
Key Data Points
Market Cap
$6.7B
Day’s Range
$35.85 – $37.82
52wk Range
$32.65 – $45.18
Volume
65.1K
Avg Vol
1.5M
Gross Margin
25.25%
Dividend Yield
4.19%
Actively make more income by writing options
I want to complement my growing passive income from dividends and other sources, like real estate investments, with additional income from actively writing options. I already occasionally write options (covered calls and cash-secured puts) to generate additional income. However, I want to ramp up my options writing over the next five years.
My strategy is to leverage my options experience to capitalize on the volatility of companies focused on AI infrastructure by writing options on them to collect their high premiums. For example, shares of Bloom Energy (BE 6.47%) have soared by more than 200% this year, driven by its emergence as the go-to source for AI power solutions. The advanced fuel cell maker is growing rapidly (80% revenue growth expected in 2026) as more data center developers deploy its on-site power solutions. Given its rapid growth and stock price appreciation, writing short-term options on Bloom is very lucrative. I can use this income to further my financial independence strategy.
Today’s Change
(-6.47%) $-18.73
Current Price
$270.77
Key Data Points
Market Cap
$77B
Day’s Range
$257.57 – $307.58
52wk Range
$23.75 – $351.28
Volume
521.7K
Avg Vol
11.8M
Gross Margin
31.08%
Pay down my mortgage (and recast or refinance if possible)
My monthly mortgage payment is by far my family’s biggest expense. It’s currently about 30% of our monthly budget. While it’s a very comfortable payment at my current income level, it could become burdensome if I had to take an AI-driven pay cut.
That’s why I want to start reducing this burden by making extra principal payments while I have the income to do so. That will position me to eventually recast my mortgage payment to a lower level. Recasting would also reduce the passive income I’d need to generate to reach financial freedom, since it would lower my monthly expenses. I’d also love to refinance my mortgage when rates finally come down, which would also lower the monthly payment and my financial freedom income target.
A three-pronged strategy to AI-proof my family’s finances
I don’t want to struggle financially if AI disrupts my livelihood. That’s driving my desire to become financially independent within the next five years. I’m doing that by growing my passive income, ramping up my active income from options writing, and paying down my mortgage. This multi-faceted approach should work together, increasing the probability that I reach my goal on schedule.
Matt DiLallo has positions in Brookfield Renewable and Brookfield Renewable Partners and has the following options: short August 2026 $150 puts on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.