When people talk about retirement, most imagine some magical finish line between ages 62 and 67. The truth? Retirement isn’t really about a date—it’s about freedom. Not just freedom from work, but freedom to live how and where you want. That’s financial independence.
It’s the difference between having to work and choosing to work. Between clocking in and checking out—to hike the Olympics, sail the Sound, or chase passion projects with the energy you used to spend on Zoom calls.
Just yesterday, I met with a couple—both longtime schoolteachers—who wanted to know if they could retire in a year or two. They’d saved diligently, lived below their means, and built up a nest egg. But when we first ran the numbers, the answer was: maybe. Their retirement plan initially looked like a tightrope walk.
That is, until we added one critical layer—tax strategy.
See, for most of their working lives they’d been in the 12% tax bracket. But between pensions, Social Security, and Required Minimum Distributions (RMDs)on the tax deferred retirement savings, they would be forced into the 22% bracket or higher during retirement. In other words, the IRS had its own plan for their money—and it wasn’t great.
So, we built a smarter strategy. By managing when and how they paid taxes, they will likely remain in the 12% bracket or lower throughout retirement based on current tax laws, though tax laws may be subject to change in the future.
The impact? Their odds of covering their living and lifestyle expenses through their life expectancy jumped from 53% to 97%. No extra savings. No delayed retirement. Just smart, intentional planning.
This is what financial independence looks like—not just a bigger number, but a better strategy.
So what made the biggest difference?
Three things, and they’re the same for almost everyone:
Financial independence is about replacing earned income with reliable cash flow—from pensions, Social Security, rental income, annuities or withdrawals from your portfolio. The key is to ensure the money keeps flowing, even when you stop.
Investing isn’t about chasing returns; it’s about building a plan you can stick with. That usually means a formulaic approach that aims to reduce the impact of downturns without capping your upside. Especially in volatile markets, your investment strategy should be built to weather storms and capture growth.
This one doesn’t get the spotlight enough. But optimizing when you pay taxes—whether through Roth conversions, strategic withdrawals, or asset location—can have a massive impact. It’s not just about saving today. It’s about the compounding growth on money you didn’t hand over to the IRS. Be smart: pay the IRS what you owe—but not a penny more than necessary.
You don’t need to wait for Social Security eligibility or Medicare to begin thinking about independence. Financial freedom is about owning your time, not hitting a retirement milestone. That journey might start earlier than you think—if you plan smart. Because in the end, it’s not about retiring. It’s about living life on your own terms.
Kevin Campbell is an Investment Advisor Representative of, and advisory services are offered through USA Financial Securities, A Registered Investment Advisor located at 6020 E. Fulton St., Ada, MI 49301. Peaks Financial is not affiliated with USA Financial Securities. Investing carries an inherent element of risk and it is possible to lose money. Past performance does not guarantee future results.
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