March 2, 2022

75. Financial Sustainability

75. Financial Sustainability

Myles Wakeham is an Australian who migrated to the US in 1989 and has since become a multi-millionaire who lives a 100% free and unconstrained life. He also hosts "The Unconstrained Podcast" where he teaches the art of Financial Sustainability to his...

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Financial Independence

Myles Wakeham is an Australian who migrated to the US in 1989 and has since become a multi-millionaire who lives a 100% free and unconstrained life. He also hosts "The Unconstrained Podcast" where he teaches the art of Financial Sustainability to his audience. On this episode of CFO at Home, Myles and Vince discuss the concept of Financial Sustainability, potential pitfalls in the traditional retirement model, and more.

Key Takeaways

  • Financial Sustainability:
    • You front-load work; purchase income producing assets when you’re young (Real Estate, etc)
    • Take proceeds from capital deployment to cover your expenses (financial “burn rate''). 
  • 78% of people in the US live paycheck to paycheck every month (Forbes magazine), making the prospect of a traditional retirement (saving throughout your working years, deferring spending until retirement) challenging
    • You can plan to just work longer, but advances like automation may make that more difficult
  • Life Expectancy is also not on your side when it comes to conventional retirement
    • From 2016 to 2021, life expectancy for the average US male/female declined by 5 years
    • Since 1980 the cost of healthcare in the US has increased 25X. The average US worker’s wage growth is 1.6X. 
  • The retirement question is not “how much money do I need to retire”, but rather “what level of return do I need to be able to draw off of my assets in order to fund my Burn Rate for the rest of my life, while factoring in inflation”. 

Resources

Ways to contact/follow:

Contact the Host - vince@thecfoathome.com