Many clients approach us with dreams of early retirement — saving aggressively now to live minimally later, free from the demands of work. But as an experienced advisor, I caution against this “lean FIRE” mindset.
The more strategic and sustainable path isn’t just about reaching “financial freedom,” it’s about building financial power — and the distinction is critical for long-term success and peace of mind.
Financial freedom typically means accumulating enough assets to passively generate income that covers your living expenses indefinitely. It sounds ideal, and in theory, it is. But when clients hyper-focus on hitting an arbitrary number — say, $1 million in assets to safely withdraw $40,000 per year using the 4% rule — they often underestimate the risks and overestimate the stability of life and markets. The 4% rule was designed for traditional retirees in their 60s, not individuals trying to stretch those funds over five or six decades. The math isn’t wrong, but it’s overly simplistic and dangerously optimistic when applied to early retirement.
What’s more, life rarely unfolds linearly. Investment returns fluctuate, inflation eats away at purchasing power, tax policy shifts, and personal goals evolve. Someone who thought they could live on $40,000 a year at 35 might feel very differently at 45, with a growing family, health concerns, or a desire to explore new passions. The rigidity of early retirement often leads to a sense of entrapment, not liberation.
As wealth advisors, we need to reframe the conversation. Encourage clients to focus on financial power instead of financial escape. Financial power isn’t about hitting a static number and walking away. It’s about creating optionality, increasing flexibility, and using money as a tool to support a meaningful, values-aligned life — both now and in the future.
Financial power comes from proactive wealth-building — optimizing income, leveraging smart investments, and being intentional with spending. It’s about maintaining the freedom to say yes to opportunities and no to obligations that don’t serve you. Clients don’t have to sacrifice everything today to secure an uncertain tomorrow. Instead, they can build a strategy that supports both present enjoyment and long-term security.
That means encouraging clients to grow their income — not just cut expenses. Suggest they pursue raises, promotions, or side ventures. Many of your high-achieving clients have untapped potential to expand their earning power, especially in today’s dynamic job market or entrepreneurial landscape. By earning more, they can invest more — while still enjoying some of their money today, rather than deferring all gratification for a hypothetical future.
Once additional cash flow is created, help them channel it into high-impact strategies: maxing out tax-advantaged accounts, building robust emergency reserves, and investing in diversified portfolios. For many clients, a combination of 401(k)s, Roth IRAs, HSAs, and taxable brokerage accounts is the backbone of financial power. Encourage a long-term investment plan that reflects their risk tolerance, time horizon, and personal goals — not just generic formulas.
Also, stress the importance of values-based spending. Guide clients in developing self-awareness around what truly brings them satisfaction and fulfillment. When clients understand their core values, they can redirect spending away from what’s meaningless and toward what adds real joy and purpose. That alone can increase their sense of abundance without needing to accumulate dramatically more wealth.
Ultimately, financial power is a mindset as much as it is a strategy. It rejects scarcity and rigidity and embraces adaptability and intention. Clients don’t have to choose between living now and being secure later — they can do both with the right plan in place. As a fiduciary, your job is to steer them toward a life of financial alignment, not just early exit.
So, rather than helping clients sprint toward early retirement, help them build the foundation for financial power. It’s a slower, more deliberate journey — but one that offers greater security, flexibility, and fulfillment in the long run.
