Tag Archives: early-retirement

Is the Chase Sapphire Reserve Worth It?

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One of the more interesting rabbit holes in the financial independence world is travel rewards. Some people treat points and miles like a hobby. Others treat them like a second job. I probably fall somewhere in the middle. I enjoy optimizing travel spending, but I also don’t want my entire life revolving around spreadsheets and airline transfer charts and have backed off to probably 3-4 cards a year.

Over the years, I’ve experimented with a variety of travel cards and point systems, but I keep coming back to Chase Ultimate Rewards as my favorite transferable currency.  Recently, I decided to get the Chase Sapphire Reserve (CSR), and while it is definitely not a card for everyone, I can already see why so many travel people swear by it.

The Big Catch: The Annual Fee

Let’s address the obvious issue first. The Chase Sapphire Reserve now carries a massive $795 annual fee.

That alone scares off a lot of people, and it probably should. Premium travel cards only make sense if you actually travel enough to use the benefits. Otherwise, you’re just paying a bank a lot of money to carry a shiny piece of metal around 🙂

There is also a pretty significant spending requirement attached to the signup bonus. When I got it earlier this year it was $15,000 in three months, but right now, Chase is offering 150,000 Ultimate Rewards points after spending $6,000 in the first three months. That sounds amazing, and it is, but it can also be dangerous if someone starts spending money they otherwise wouldn’t spend just to chase points. That is NEVER worth it.

Still, if your normal spending patterns already line up with the requirements, the numbers become pretty interesting. Depending on how you redeem them, those 150,000 points can easily be worth $2,000–$4,000+ in travel and there are some other factors that make the annual fee not quite as scary as it seems at first.

The Immediate Travel Credit

The easiest part of the calculation for me was the annual travel credit.  The CSR automatically reimburses $300 per year in travel purchases. Flights, hotels, parking, tolls, ride shares, trains, etc. Chase defines “travel” broadly enough that most people will naturally use it.  Since we are currently living a slomadic lifestyle, travel spending is happening anyway so that immediately reduces the “real” annual fee from $795 to about $495.

The Earnings Multiplier

Another feature that really appeals to me is the earning structure.

The Sapphire Reserve earns:
• 4x points on flights and hotels booked directly
• 2x points on dining
• 1x on most other purchases

That adds up quickly when travel is already a large part of your normal spending. For example, on our recent five-night Marriott road trip, I earned roughly 2,700 Chase points just from paying for the relatively cheap hotels. That’s on top of the Marriott points themselves.

This is where transferable points become really powerful. You are essentially double dipping:
• Hotel loyalty points from Marriott
• Transferable Chase points from the credit card

And unlike brand specific hotel points, Ultimate Rewards can later be transferred wherever they create the most value.

The Coupon Book Problem

This is where premium cards start to get complicated and where I start to get annoyed.  Modern premium credit cards have increasingly turned into what many people call “coupon books.” Instead of straightforward rewards, they offer a giant collection of statement credits and perks that only matter if you actually use them.

The CSR is definitely moving in this direction.

Some of the newer benefits include:
• Up to $300 annually for Sapphire dining experiences
• Up to $300 annually for StubHub and viagogo purchases
• Up to $250 annually for Apple Music and Apple TV+
• Up to $120 annually for Peloton memberships
• DoorDash and Lyft benefits
• Various hotel credits and travel offers

Now, in theory, you can easily offset the annual fee if you use these benefits naturally.

But that’s the key word: naturally.

I don’t want to fundamentally change my behavior just to justify a credit card fee and most of these don’t really interest me.  If I’m buying things I wouldn’t otherwise buy just because “the card gives me a credit,” then I’m not really saving money.

That said, some of these perks align pretty well with our current lifestyle and have some real value:
• We already travel a lot
• We already use streaming services
• We use Lyft occasionally so getting a $10 credit each month is nice.

The Ancillary Benefits

Where the CSR sells itself as genuinely premium is in the actual travel experience. Airport lounge access is probably the biggest example. Between Priority Pass lounges and Sapphire Lounges, the card can dramatically improve long travel days.

Now, to be fair, airport lounge quality varies wildly.

Some are amazing and some are mediocre.

Some are calm and quiet and some are overcrowded and noisier than the actual concourse.

Some provide hot food and some provide free pretzels and tiny cans of Diet Coke and call it luxury 🙂

Still, even mediocre lounges can be valuable during delays or long layovers. A quieter space, cleaner bathrooms, Wi-Fi, and free snacks can make travel significantly less stressful.

The travel protections are another underrated feature:
• Primary rental car coverage
• Trip delay reimbursement
• Lost luggage protection
• Trip cancellation insurance
• TSA PreCheck / Global Entry credit every four years

You hope you never need them, but when something goes wrong, those benefits can save a lot of money and frustration.

Why Chase Ultimate Rewards?

What really keeps me in the Chase ecosystem, though, is flexibility. Ultimate Rewards points transfer to a variety of airline and hotel partners, which gives you options instead of locking you into a single brand.

That matters because travel pricing changes constantly.

In the past I have gotten amazing value through Hyatt redemptions.  Sometimes airline transfers are better, especially for international travel. Sometimes if there is limited award availability or populkar routes it can even make more sense to simply redeem through the Chase portal.

Having choices makes the points more valuable. And unlike some reward systems, Chase points are relatively easy to understand and use. That may sound minor, but simplicity matters. A rewards system only has value if you are actually willing to use it.

The Bottom Line

At least for this year, the Chase Sapphire Reserve is absolutely worth it for us.

Between:
• A 150,000-point signup bonus
• The $300 annual travel credit
• 4x travel earnings
• Lounge access
• $120 in potential Lyft credits
• Transfer flexibility
• And the various ancillary perks

…we should come out far ahead of the annual fee.

The bigger question is whether it will still make sense long term. That will depend on:
• Lounge crowding and availability
• Whether we naturally use the coupon-style credits
• Future annual fee increases
• And how much we continue traveling over the next few years

That’s one thing the FI mindset has really taught me:

No financial product deserves permanent loyalty. The best option today may not be the best option tomorrow and we should constantly be evaluating the “rules of the game.” 

For now, though, the CSR fits our current lifestyle pretty well. And if it helps fund a few more adventures along the way, even better 🙂

Paying Off Your Home Isn’t the Windfall You Expect

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I was talking to a friend the other day who was excited about the rise in disposable income they expected when they were retired and “the house is paid off.”  If you also think your cost of housing will drop dramatically in retirement you may want to think again…

The Hidden Costs After Paying Off the Mortgage

Most of us assume that once the mortgage is gone, our monthly expenses will magically shrink. After all, housing is one of the biggest budget items, right?  But here’s the catch: even with a paid-off house, housing costs don’t disappear.  In fact, they continue to rise, and, recently, they have been rising fast.

Breaking Down Housing Costs

Here’s a rough breakdown of how the typical housing cost can be divided:

  • 1/3 Property taxes and insurance (variable)
  • 1/3 Principal and interest (fixed — if you have a mortgage)
  • 1/3 Utilities and maintenance (variable)

Once the principal and interest are gone, you’re still left with the other two-thirds — and unfortunately, they don’t stay steady just because the mortgage is gone.

Our Reality Check

When I was facing my early retirement date, we decided to pay off our mortgage a bit early rather than putting that money into the market.  There are good arguments for both sides, but for us the emotional impact of cash flow cushion was worth the impact on our investments and potential gains.  Mathematically it might not have been the right call, but for us it was.  Five years after paying off our mortgage, though, we assumed our cost of housing would have dropped significantly.  Instead, we have watched our housing expenses climb right back up to where they were before we were “debt-free.”

Here’s how it played out for us:

  • Our monthly housing cost (before mortgage payoff): $2,200
  • Five years after mortgage payoff, our monthly housing costs:
    • Property taxes: $600 (up from $400 just five years ago)
    • Insurance: $300 (used to be $150)
    • Utilities: $700 (energy, water, and other utility rates have all climbed significantly with inflation)
    • Maintenance/repairs: $600 (insurance deductible for replacing a roof, routine HVAC work, minor plumbing issues)
  • New monthly total: $2,200

That’s right — the same as before.  In only five years increasing costs have already eaten up the savings from no longer making principal and interest payments.  And the “cost to carry” is a number that will continue to go up (and up and up…).

Why Renting Might Make More Sense

This is why we can now rent a two-bedroom apartment in downtown Omaha for less than it costs to live in our fully paid-off house in suburban Dallas.  And this example doesn’t even get into the opportunity cost of having a big chunk of our net worth tied up in a home instead of being invested for growth! 

Here’s the mental shift:

Renting tells you the maximum you’ll have to pay. Owning tells you the minimum. The surprises? They’re on you.

And if you’re trying to control your retirement budget, predictability might be worth more than equity.

The Takeaway

Homeownership can be a path to wealth and stability.  But in retirement, your needs and priorities shift. Less maintenance, more flexibility, cost predictability, etc.

So before you assume that a paid-off house is your golden ticket to easy street, take a hard look at your actual expenses and think about how they will grow in the future.  It might be time to rethink what “home” means in the next phase of life.

Why Marriott?

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When I first started traveling for work, it was with a new company, and it took a while for us to figure out the best types of hotels for overnight trips. After a few “profit-maximizing” decisions led to some questionable stays, we started to develop a few basic rules:

  • No hotels with a number in the name
  • If the front desk clerk is behind bulletproof glass, move on
  • No chains with a misspelling in their title
  • No hotels where you have to park directly outside your room
  • Avoid places where the TV remote is bolted to the counter

These guidelines weren’t perfect, but they helped us avoid some… memorable experiences.

Beyond that, over time I started gravitating toward a single hotel brand for most of my travel. Brand loyalty makes a lot of sense when you’re on the road frequently. There is less friction when selecting and booking with brands you are familiar with.  Plus concentrating your stays allows you to build status and unlock perks that you simply won’t get if you spread your business around.

I experimented with Hilton for a while. It’s very easy to earn status, and their points accumulate quickly. The downside is that those points just aren’t worth that much, which makes redeeming them less appealing. It’s a large chain, but early on there were also a few key locations where Hilton didn’t have great options near my clients.

I’ve always liked Hyatt. In many ways, it’s the best value for redeeming points, especially in premium locations (although this may be changing with recent devaluations and a move to a tiered redemption system). For years, it was often cheaper to stay at a Hyatt using points than to use points or pay cash with any other brand.  Add in no resort fees on point stays and strong customer service, and it’s a compelling option. The challenge is scale. Hyatt simply doesn’t have as many locations, especially at the lower-cost, business-travel end of the spectrum. And earning meaningful status with Hyatt can be more difficult.

That led me to Marriott.

The biggest factor is footprint. No matter where I go, there’s almost always a Marriott option (or multiple) nearby. That matters when your travel schedule isn’t just built around vacation destinations but around where the work is.

Second is reliability. You generally know what you’re going to get. When you’re bouncing from city to city, that consistency matters more than you might expect.  I know that when I stay at a Courtyard, for example, that they will have reliable free internet, a business center where I can print as much as I need, and a restaurant on property that has a burger I like and can get for free with my welcome gift.  Knowing things like that when I roll into a new city can relieve a lot of anxiety about work preparation.

A nice bonus is the range of price points. Marriott has everything from basic, budget and business options to family friendly choices up to full-service and luxury properties. That flexibility makes it easy to match the hotel to the purpose of the trip.

Last time I checked, my lifetime total at Marriott properties was over 1100 nights.  The bulk of those were work trips where I typically ended up staying in dozens of different Fairfields and Courtyards all over the country. Over time, that has added up to Lifetime Platinum status. That gets me welcome gifts, bonus points, late checkout, and the occasional room upgrade. None of those perks by themselves are life-changing, but together they make travel a little easier, a little cheaper, and a little more comfortable.

These days, even when I’m traveling for personal trips, Marriott is usually my starting point. I still shop around, but once you factor in status benefits, familiarity, and convenience, it’s often the best overall option.  There are things I like about other brands, and I still use them occasionally. But for me, Marriott has the best balance of location, availability, price range, and rewards. 

It’s not perfect, but it’s consistently good. When you travel a lot, that might be the most important thing.

How Can Public School Teachers Retire?

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Many of my peers in public education are financially, intellectually, and emotionally unprepared for retirement.  They are in their 40s, 50s, and even 60s, yet many have not built substantial independent retirement savings. Instead, they are relying almost entirely on their state pension systems to support them for the rest of their lives.

Personally, I will be grateful for my pension when I qualify, but I don’t fully trust state governments to protect my long-term financial future. In Texas, for example, teacher pensions have no automatic cost-of-living adjustment (COLA). That means inflation rapidly attacks the value of your pension every single year.  A pension that feels comfortable today may feel very different 15 or 20 years into retirement.  Just think about living, today, on a percentage of what you earned 20 years ago.  Yikes!

That’s why I believe teachers need to think beyond simply “earning a pension.” If you want options, flexibility, and the ability to live a rich and meaningful life later on, you need a strategy to take care of yourself independently.

One possible “catch-up” strategy is surprisingly simple:

Stop teaching in public schools.

No, seriously.

I understand the inertia. Staying in a system you know is emotionally comfortable. Many teachers also feel a deep sense of responsibility to public education and the students they serve. And honestly, our public schools desperately need experienced, high-quality educators.

But financially?

The math can become very compelling once you become pension eligible.

The Power of “Double Dipping”

Many public school teachers reach a point where they qualify for full retirement benefits under systems like Teacher Retirement System of Texas through the “Rule of 80”: where they are eligible to retire when their years of service and age add up to at least 80.

For example:

  • Age: 55
  • Years of service: 25
  • Salary: approximately $80,000

Under the Texas pension formula, the annual pension would be roughly:

P=0.023×(Years of Service)×(Average of Highest 5 Years)

In this example, that works out to approximately:

0.023×25×78,000≈44,850

or about $45,000 per year for life.

Now here’s where things get interesting.  Suppose that teacher retires immediately and takes a second full-time job at a private school, small college, educational company, or nonprofit making $60,000 per year.

Suddenly, their income becomes:

Income SourceApproximate Amount
Pension$45,000
Second Career$60,000
Total$105,000

Even assuming that the teacher takes a paycut to move into a different position, that teacher just increased their effective income from $80,000 to over $100,000 per year. 

Immediately.

“But Won’t My Pension Be Bigger If I Stay?”

Sure.  Every additional year worked increases the pension. In our example, staying one more year might increase the annual pension by roughly $2,000 per year for life.

At first glance, that sounds compelling.

But here’s the catch:

To earn that extra future pension income, the teacher gave up:

  • one full year of pension payments now (~$45,000)
  • plus the higher combined income available through a second career

In this example, staying another year in public education means choosing:

OptionAnnual Income
Continue teaching$80,000
Retire + second career$105,000

So the teacher effectively gives up about $25,000 today in exchange for increasing future pension income by about $2,000 per year later.

That creates roughly a 12-year payback period after retirement before the decision to stay actually “wins” financially.  That doesn’t make staying wrong. but it does mean the decision deserves deeper analysis than many teachers give it.

Another major factor that has changed recently is the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). For decades, many public school educators were discouraged from pursuing Social Security-covered work because those rules could dramatically reduce or even eliminate the Social Security benefits they had earned through other employment. With those provisions now repealed, a teacher who retires from a public pension system and then works in a private school, college, nonprofit, or corporate setting may also significantly increase their future Social Security Administration Social Security benefits.

That doesn’t just offset potential pension increases.  It also creates an additional retirement income stream beyond the pension and personal investments. More importantly, unlike many teacher pensions, Social Security includes annual cost-of-living adjustments (COLAs), helping protect purchasing power against inflation over time. For many educators, this creates a much more diversified and resilient retirement strategy: pension income, Social Security income, and personal investments all working together instead of relying almost entirely on a single state pension system.

The Emotional Side of Retirement

For many educators, the biggest challenge is not math.

It’s identity.

Teaching becomes who we are. The routines, the calendar, the mission, the relationships, the feeling of being needed.  Those things can be hard to walk away from and many teachers subconsciously assume retirement means “stopping work entirely.” 

But for many educators, a better model may be to retire from the pension system, but continue meaningful work elsewhere to reduce stress, regain flexibility, and dramatically increase savings potential.  Some people even use geographic arbitrage by moving to another state, working long enough to vest in a second pension system, on top of double dipping.

The Real Opportunity

Of course, this strategy only really helps if the increased income is used intentionally.

If you simply inflate your lifestyle, buy more stuff, and spend every extra dollar, you may still end up financially stressed later on. The better option?

Use the increased income to rapidly build investments and make up for years of low retirement contributions. A teacher who suddenly increases their household income by at least $20,000–$30,000 per year and consistently invests the difference can radically transform their long-term financial picture.

The pension becomes a foundation rather than the entire plan. And that creates something many educators desperately need:

Options.

Smaller is Better Continued (State Parks)

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We recently spent a day at Huntington Beach State Park, and it reminded us of something we don’t think gets talked about enough. We have always loved national parks, and if a place earns that designation it is almost always worth visiting. But on this trip, we were reminded that state parks often offer many of the same benefits with fewer crowds, lower costs, and a more relaxed experience.

First Impressions

Huntington Beach sat just south of Myrtle Beach and felt like a completely different world almost as soon as we entered. There were no long lines or chaotic parking lots, just a simple gate and a modest entrance fee. It cost $8 per person to get in, which immediately felt like a bargain compared to most attractions in the area.

Variety in a Small Space

What stood out was how much variety the park packed into a relatively small space. In one visit, we walked along a wide, uncrowded beach, explored marsh boardwalks, and hiked through maritime forest. The transitions between these environments happened quickly, which made the experience feel dynamic without requiring multiple days of planning or driving.

Wildlife Highlights

The wildlife ended up being one of the biggest highlights. Huntington Beach is known for birding, but the most memorable encounters for us were the alligators. We saw dozens in the freshwater ponds and marsh areas, sometimes just off the trail. (We also learned that crouching down for pictures is not recommended.) Being that close to wildlife was both fascinating and a little humbling. Along the way we also saw herons, egrets, pelicans, and more turtles than we could count. By the end of the visit, it felt less like a park and more like a living ecosystem that we got to step into for the day.

Atalaya Castle

One of the more unexpected features of the park was Atalaya Castle. Built in the 1930s by Archer and Anna Hyatt Huntington, this Moorish-style winter home sat right in the middle of the preserve. For an additional $2 per person, we explored the grounds and walked through its open courtyards and rooms. It was not a polished, highly curated experience, but for us that was part of the appeal. It added a layer of history that complemented the natural surroundings and made the visit feel more complete.

State Parks vs National Parks

This trip helped clarify something we have been thinking about for a while. National parks tend to offer larger, more iconic landscapes along with more infrastructure and more crowds. State parks, on the other hand, are usually smaller, less expensive, and easier to navigate. They also tend to feel more accessible and less rushed. Another advantage became obvious as we traveled more. There are far more state parks than national parks, and in places like South Carolina, where Congaree is the only national park nearby, they provide more frequent opportunities to get outside and explore.

The Financial Angle

From a financial independence perspective, the value was hard to beat. Ten dollars per person covered entry and the castle and gave us a full day of beach, trails, wildlife, and history. We packed a picnic, so there were no expensive add-ons or pressure to spend more once we were there. The simplicity of the experience kept the cost low.

The Bigger Lesson

This fits a pattern we have been seeing throughout our travels. Smaller zoo experiences often felt more enjoyable than the biggest ones. Eating earlier often provided the same experience at a lower cost. Local recreation options often replaced more expensive memberships. Now we could add state parks to that list. We will continue to visit national parks because they offer something unique and memorable, but places like Huntington Beach reminded us that we did not always need the biggest or most famous destination to have a meaningful experience. Sometimes a quiet trail, a view of the water, some wildlife (and a healthy respect for alligators 🙂  is more than enough.

Your Turn

Have you found places where the simpler option turned out to be just as good or even better than the big-name destination?

Tax Time!

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I appreciate the classic joke that always circulates this time of year…

Government: “You owe us money. It’s called taxes.”
Me: “Do you know how much I owe?”
Government: “Of course, but you have to figure it out for yourself”
Me: “I’ll just pay what I think is right?”
Government: “Yes, but guess wrong and go to jail.”

Despite the sentiment, I actually think tax season is a useful annual check-in on our finances and our planning.

I just finished filing our taxes for the year. I’m no expert, but I hired professionals for a few years and did our return alongside them. When we consistently came up with the same results, I figured I’d keep doing it myself.

A few takeaways from this year:

Our General Drawdown Strategy

Now that we are “retired,” our income doesn’t just show up on a W-2. We build it intentionally. Our general order:

  1. 1099 consulting income first

 Uncle Sam really does encourage small business. If we bring in, say, $30,000 in 1099 revenue, after legitimate business expenses (unreimbursed travel expenses, software subscriptions, home office, mileage, etc.), that might drop to $22,000–$24,000 of net income.

  1. Fill the rest of the 12% bracket with 457 distributions 

(from my University job.  One of the occasional perks of working in education is having access to the money I invested in this type of account penalty free before 59 1/2)

For 2025, married filing jointly:

  • Standard deduction ≈ $30,000
  • 12% bracket tops out around $94,000 taxable income
  • Which means gross income can be roughly ~$124,000 before hitting the 22% bracket

But we rarely go anywhere near that. This year we targeted closer to $70,000–$75,000 of total MAGI.

Example:

  • $30,000 net 1099 income
  • $40,000 from 457
    = $70,000 total income

After the ~$30,000 standard deduction, only ~$40,000 is taxable and it is almost entirely in the 10% and 12% brackets.  That’s intentional. We are using low brackets now before our pensions start in a few years..

457 vs. Long-Term Capital Gains

We could sell appreciated investments and realize long-term capital gains. This is a common recommendation for early retirees since, for married filing jointly, the 0% capital gains bracket runs up to roughly $94,000 taxable income. With the standard deduction, you can often realize almost $100 thousand in long-term capital gains and pay $0 federal tax.

That’s powerful.  It is also a great example of how the system is skewed towards wealthy stock owners rather than wage earners.  Even the next bracket for LTCG is only taxed at 15% 🙁   But here’s the wrinkle for us, and many others:

ACA subsidies create a “hidden tax bracket.”

ACA subsidies phase out based on Modified Adjusted Gross Income (MAGI) as a percentage of Federal Poverty Level (FPL).

For a household of 3, 2025 FPL is roughly $25,820.

  • 200% FPL ≈ $51,640
  • 250% FPL ≈ $64,550
  • 300% FPL ≈ $77,460

If we let MAGI creep from $64,000 to $78,000, we might:

  • Lose thousands of dollars in premium subsidies
  • Effectively face a marginal rate north of 20–30% when you combine taxes + lost subsidies

That’s the “hidden bracket.” So even though capital gains are taxed at 0%, they still raise MAGI — which can cost us real money.

ACA Subsidies: A Real Planning Tool

One of the most frequent questions we get about retirement is healthcare. We’re currently using the ACA. Even without subsidies, we’re getting a better plan for about the same price we paid as public school teachers in Texas (which tells you how bad public educator plans in Texas are).

This year we deliberately stayed just below a key subsidy threshold. Example:

If our MAGI had been:

  • $64,000 → strong subsidy
  • $72,000 → meaningfully reduced subsidy

That $8,000 difference in income might have cost us $2,000–$3,000 in lost premium assistance.

The biggest wildcard in our planning right now is the return of the ACA “subsidy cliff.” Democratic policies provided “enhancements” so that subsidies gradually phased out as income increased, and even households above 400% of the Federal Poverty Level (FPL) still received some help if premiums exceeded a set percentage of income. Despite the recent shutdown, the Republican party held firm on removing those enhancements so the old rule is back: cross 400% of FPL by even one dollar and subsidies drop to zero. For a household of three in 2025, that line is roughly $103,000 of MAGI. If your income is $102,900, you might receive thousands of dollars in premium assistance. If it’s $103,100, you get nothing and will owe the entire subsidy back at tax time. That creates an extreme marginal “tax” on just a few extra dollars of income, which is why we have to be careful about managing MAGI. It’s not just about income tax brackets anymore; it’s about avoiding a cliff that can turn a small planning mistake into a five-figure swing.

This year was good practice.  Not only was it the last year of enhancements before the cliff returns, but In a few years, when our household drops from 3 to 2 and my pension income starts, those margins will matter even more.

State Taxes: There’s No Free Lunch

At tax filing time, I do have a brief moment of gratitude that we are official residents of Texas and don’t pay a state income tax. When your federal return is finished and there’s no separate state return to file, it does  feel pretty good.  For a moment. Then I remind myself: Texas absolutely gets its revenue.

Even now, in a lower-income early retirement phase, we still pay:

  • Property taxes are often in the 1.8–2.5% range.  On a $300,000 home, that’s $5,400–$7,500 per year.
  • State + local sales tax of 8.25% in the Dallas area, which is among the highest combined sales tax rates in the country.

And unlike an income tax, these are regressive and don’t scale neatly with our earnings.

If our income drops from $120,000 to $60,000, the property tax bill doesn’t get cut in half. The county doesn’t care that I’m strategically harvesting long-term capital gains or staying under an ACA threshold. The appraisal district still wants its check.  And sales taxes? Those are inherently regressive. The family earning $60,000 and the family earning $600,000 both pay 8.25% at the register.

Texas makes a policy choice: tax consumption and property instead of income. That structure can be very attractive during high-earning years. If you’re making $250,000+, avoiding a 5–8% state income tax is meaningful. But in retirement, especially early retirement, the tradeoffs feel different.  There’s no such thing as a tax-free state, only different ways of collecting the bill.

Kids, Tax Credits, and Reality

I’ve been telling our youngest that he’s useless to me now that he has aged out of the Child Tax Credit (which ends at age 17).  Turns out that wasn’t entirely true.

The American Opportunity Tax Credit (AOTC) can be worth up to:

  • $2,500 per year
  • 100% of the first $2,000 in qualified expenses
  • 25% of the next $2,000

If you’re paying tuition, that’s meaningful. So as long as he stays in school and we’re within the income limits, I guess I’ll let him slide 🙂

The Bigger Picture

Unlike some people I talk to, I don’t actually mind taxes.  It’s like a subscription fee for living in a functioning society. Call me crazy, but I like things like roads,public schools, National Parks, libraries, basic social stability, and caring for my fellow man.

Do I think the system is perfect? No.
Do I think rates should probably be higher, especially at the top end of the wealth spectrum? Yes, absolutely.

But while the tax code exists in its current format, staying informed matters.

This year we:

  • Stayed in the 12% bracket
  • Managed ACA subsidies
  • Used business deductions appropriately
  • Leveraged education credits
  • Reduced future tax exposure by drawing down tax-deferred accounts before pension income begins

That’s not “beating the system.” It’s understanding the rules of the system you’re playing in. And when you treat tax season as a strategy session instead of a punishment, it becomes one of the most powerful financial planning tools your family can have.

Overemployed on Purpose

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I was at a conference recently where a speaker talked about being “overemployed.” In his case, he was holding two simultaneous full time W-2 jobs. Both were project-based and largely virtual, and his argument was that as long as he delivered what he was contractually obligated to deliver, the rest of his time was his own.

I don’t disagree. To me, the key distinction is output versus presence. If an employer is getting exactly what they paid for, then what someone does outside of that agreement isn’t really their concern. If work is being neglected, that’s a performance issue. But if expectations are being met, it’s harder to argue there’s something unethical happening.

Katie and I have had our own version of overemployment during our FI journey.

I’ve never held two full-time W-2 jobs at once, but I’ve often combined one full-time position with multiple 1099 roles—some of which approached full-time hours. Peak crazy was during COVID. At one point I was teaching a full-time university role (online), adjuncting at two other universities, and consulting with K-12 schools around the country on their transition to virtual learning. Meanwhile, Katie was working her W-2 job, teaching online, and doing the occasional tutoring gig.

Seven different jobs between the two of us.

It sounds intense (and it was) but it worked… for that season.

Why It Helped

Katie and I have always had a household budget based on our regular jobs, but made a deal early in our relationship that whoever brought in extra income could spend half of it however they wanted…with no questions, no recriminations.  For me that meant paying for graduate degrees and investing more.  For Katie it meant a couple of additional luxuries or bonus travel.  In the end, multiple income streams really accelerated our savings rate. There were years we exceeded 50%. That kind of margin dramatically changes the FI timeline.

Maybe even more importantly, it also made the transition to early retirement gradual instead of abrupt.

We didn’t jump from full speed to zero. We pruned.

  • The adjunct roles that weren’t leading anywhere..
  • The W-2 where you and the new boss didn’t see eye to eye
  • The projects that weren’t fulfilling.
  • The gigs that weren’t profitable enough to justify the effort.

It’s a lot easier to “retire” when you’re walking away from one of several income streams instead of cutting off your only paycheck (link to “Winding down to FIRE post).

There’s also a psychological shift that happens. When no single employer controls all of your income, you feel freer. You’re less afraid to say no. You’re less likely to tolerate work you don’t enjoy. That optionality is powerful.

Right now, I’m still holding onto one last 1099 gig. It’s flexible. It’s interesting and meaningful. It pays well. Maybe next year I’ll satisfy the Retirement Police and drop even that 🙂

But I don’t feel rushed.

A Word of Caution

This only works if it’s intentional. There’s a difference between strategic overemployment and burnout. We’ve had seasons where the calendar was too full. The key is knowing your “why.”

For us, the goal wasn’t to work more forever. It was to create flexibility. Overemployment wasn’t the destination. It was the bridge.  Sometimes the fastest way to freedom isn’t quitting. It’s stacking wisely… and pruning deliberately.

Have you ever held multiple roles at once? Did it feel empowering?  Or exhausting?

How Long Did It Take Two Teachers to Retire Early?

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If you’ve ever read the classic Mr. Money Mustache post, The Shockingly Simple Math Behind Early Retirement, you know that the key to retiring early isn’t about your job title or how many zeros are in your paycheck. It’s about how much you spend and how much you can save.  That idea, along with the principles I picked up from podcasts like ChooseFI,  was a game-changer for us.  Before joining the FI community we were saving without any real plan other than the vague concept of having options later in life.

As two public school educators with average salaries and more than a few life detours, we’re not exactly the prototype for early retirement. But here we are… Two teachers who reached financial independence in about 20 years.  Here’s how we did it (without turning our lives into a never-ending death march of deprivation).

It’s Not What You Earn — It’s What You Keep

When we first got serious about financial independence, we were both around 30, starting our second marriages and essentially starting over, financially speaking.

We were also raising two kids, paying for a house, buying reliable cars, earning advanced degrees, and yes — going on vacations. Our life didn’t look “lean” from the outside. But behind the scenes, we were saving 20–30% of our income in most years.  That savings rate, not our salaries, was the real magic.  We figured: if some of our friends were raising families on a single teacher income, surely we could live on 1.75 incomes and still stash some away. 

No Steady March to FI Here

Although I might have, personally, been willing to deprive myself to walk the path to financial independence faster, Katie balanced us out and made sure that we weren’t going to “grind it out” for 10-15 years just to have the vague hope of a better life at the end.  As always, listening to Katie makes things better (OK, I put that in just in case she reads this post).

We weren’t minimalist saints.  We had busy lives, two kids, big expenses (house, cars, advanced degrees, and vacations).  We were intentional, though, making choices (I don’t call them sacrifices) on things we just didn’t value that much.   Some of the things we willingly opted out of included:

  • A fancy home – we never upgraded from our initial “starter” home.  No long commute from the shiny new suburb with the huge houses.
  • Cars – we bought newer used cars and drove them until they died.  No point in having a nice car parked in a high school parking lot 🙂
  • Super expensive kids activities – No taxi parenting or  “travel ball” for us.  Each kid got one regular sport and one other activity at a time. 
  • No luxury vacations – we did road trips and stayed in budget hotels near our vacation spots (until we learned more about travel rewards)

We also took some intentional detours along the way. There were years where one or both of us stepped away from our W-2 jobs.  Sometimes this was for side opportunities, sometimes to escape a toxic campus situation, sometimes just for a break.  Those pauses refueled us, and only slowed the long-term plan slightly.

The Side Hustle Strategy

You don’t have to sell organs or become a TikTok influencer to boost your teacher salary. We took a more grounded approach:

  • On-campus work: summer school, picking up extra classes, coaching, refereeing basketball games, etc.
  • Off-campus work: proctoring SAT and teacher certification exams, tutoring, teaching online, consulting, etc.

Our general rule of thumb on side gigs was simple:

Half of the side income went into the “family pot” — for vacations, kid expenses, or special treats. The other half was ours to spend individually.

That’s how I cash-flowed a doctorate. It’s how Katie built a tutoring side business she genuinely enjoyed (most of the time).  And it’s how we stayed sane while still progressing toward our FI goals on educator salaries.  Not every side hustle paid well, but many brought benefits beyond money: travel opportunities, new friends, professional growth, etc.

What Teaching Gave Us (Besides a Paycheck)

Look, teaching isn’t a high-paying career. We knew that going in. But it gave us something else: schedule flexibility, a deep understanding of systems, and the ability to self-educate.

Those last two? They’re superpowers for anyone chasing financial independence. The problem is that far too many educators don’t use them when it comes to their own lives.  But if you can deconstruct standards, explain algebra to a room of teenagers, or differentiate instruction on the fly… you can understand your 403(b) and plan a savings strategy. And if you can manage a time schedule of teaching, grading, and lesson planning, then you can learn about personal finance and manage your budget too.

The Bottom Line

It took us 20 years, with a few setbacks, some big expenses, and plenty of real life in between but we made it. We hit financial independence as two average-paid teachers with kids, bills, and all the complexity life brings.

The secret? It wasn’t really a secret at all:

  • Learn as you go.  Personal finance is not magic
  • Keep your savings rate as high as you can
  • Spend intentionally on the things that matter to you.
  • Say yes to side income and no to lifestyle creep
  • And remember: early retirement isn’t a finish line.  It’s a launching pad!

Want to know what early retirement actually looks like for us after leaving education? Or why we chose to slow travel instead of putting down roots right away? Stay tuned — we’ve got more stories to share.

How Much Did the First 24 Hours in Omaha Cost?

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We’re one full day into our first “slomad” journey and are settling into our new home in Omaha, Nebraska. I get a lot of questions about costs, and, even though we’re renting furnished places, I’ve also been curious about what unexpected expenses might pop up during these moves. So here’s a breakdown of everything we spent in our first 24 hours in Omaha:

Lodging

We pulled into town around noon and moved into our place. It’s a fully furnished, utilities-included two-bedroom apartment right on the edge of the Old Market neighborhood in downtown Omaha. At $1,500 a month, that comes out to about $50 per day of lodging.

Exercise

A couple of blocks away, we checked out the neighborhood YMCA. Our building has a decent workout room, but Katie and I swim a lot and we wanted access to a pool, plus classes and the chance to be social. I bargained away the joining fee by agreeing to pay the first month up front. For both of us, with full access to every YMCA in the region, it’s $75/month—or $2.50 for the first day.

Library

On the way back, we ducked into Omaha’s downtown public library. It was spacious, modern, and definitely a place we’ll return to when we want a work spot outside the apartment. We signed up for cards for $0 and now have access to meeting rooms, printers, copiers, and, of course, endless digital and physical media.

Household Goods & Groceries

Our next trip was to grab some household essentials and groceries. Honestly, I was worried we’d need a lot, but the apartment was remarkably well equipped.  They even gave us starter sets of consumables like paper towels, soap, and laundry detergent. That said, we still picked up a Brita filter, a laundry basket, a drying rack, and a few other upgrades, most of which will stay behind when we move out.

  • Groceries: $52
  • Household odds and ends: $121 → amortized over our stay: $1.15 for day one

Dinner Out

By the time we finished shopping (and skipped lunch), we were starving. Friends had suggested Pizza Ranch, a buffet I was skeptical of until we tried it. Yes, it’s family-friendly, but the food was solid: salad bar, pizza, fried chicken, dessert, the works. Maybe more than we should have eaten, but worth it 🙂  $37 for the two of us.

Free Fun

The next morning, I used the new gym membership, then Katie and I took a long walk around downtown, hung out at a park, and even tried out the public hammocks. Cost? $0

Day One Total: $152.15

So, what did we learn?

  • Furnished rentals can save big money. Filling a place from scratch adds up fast; Furnished Finder has already proven cheaper and easier.
  • Hidden costs still pop up. Even with a well-stocked apartment, there are always “little” things you want—like a water filter or a laundry basket—that need to be budgeted for.
  • Entertainment doesn’t have to cost much. Libraries, parks, and neighborhood walks are free, and they’re going to be a bigger part of our lifestyle as we check out different locations.
  • Life has a baseline cost. A chunk of this spending—food, exercise, even some household items—would have happened whether we were home or traveling.  Too often we look at all travel expenses as additional money out of pocket, but if I am buying groceries here, I am not buying them in Texas.  Even the monthly YMCA expense just replaces a gym membership that we cancelled last week.

When you look at it that way, traveling isn’t necessarily more expensive than staying put. In fact, with the right planning, it can be cheaper and a lot more fun.

Of course this was just day one in Omaha. We’re curious to see how the averages shake out as the days and weeks go on, but so far, the experiment looks promising 🙂

Zero-Based Thinking: What’s Right for Today?

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I was recently listening to a ChooseFI podcast where Alan and Katie Donnegan talk about a concept they call zero-based thinking—the idea of asking yourself:  “Knowing what I know now, would I make the same decision today?”  It’s a powerful way to fight the sunk cost fallacy—the tendency to hold on to something just because of the time, money, or energy you’ve already put into it. Instead, zero-based thinking challenges us to re-evaluate our choices based on current circumstances, not past ones.  It got me thinking about how Katie and I have tried to transition our mindset in this way as we move into our “slomad” stage of life.

Not long ago, Katie was really surprised when I mentioned trading in the Camry she thought I “loved.” And to be fair, when I bought it, it was the perfect fit for me: reliable, fuel-efficient, comfortable, and spacious enough for long solo commutes through downtown Dallas.  Same for her minivan.  A van with third row seating, leather seats and built in DVD player?  Perfect for young kids and road trips… ten years ago.  But today? Our lifestyle has changed. What once felt essential now feels excessive. Zero-based thinking forced me to ask: If I didn’t already own these cars, would I buy them today? The answer was no, so we made changes.

Our house is another example of this principle. When we purchased it, we had young kids and jobs in the local schools. The location was perfect—between the elementary and junior high, right next to the neighborhood pool, and just a few miles from work. The four bedrooms and converted playroom suited our family perfectly.  Fast forward to today, and our needs aren’t the same. The house still holds memories, but practically speaking, it’s way larger than we need and tied to a location and a lifestyle that no longer reflects who we are.  Zero-based thinking asks: If we were house shopping today, would this be the right fit for us?

This mindset also applies to finances. The way we invested during the accumulation phase of life was appropriate at the time—maximizing growth, taking on risk, and planning for the long haul. But as we enter the drawdown phase, the question changes. If I had our net worth in cash right now, would I buy the same investments? Probably not. My risk tolerance and goals have shifted and my investments should follow.

Zero-based thinking doesn’t mean abandoning every past decision. It just means holding your choices up to the light of your current reality. The car, the house, the investments—they all made sense once, but the people we were then aren’t the people we are today (and definitely not the people we’ll be tomorrow).

Maybe the best philosophy is this:  Strong convictions, loosely held. Believe deeply in your choices when you make them, but be willing to release them when you have new data or they no longer serve you in other ways.

So what about you—what’s one area of your life that could use some zero-based thinking?