Today’s Smart Money Question:
Soda taxes are causing folks in Seattle to rethink their purchases, and a new movement is helping millennials to retire early. Matt Explains.
(Click the featured times below to jump forward in the episode)
Here Are Just A Handful Of Things You’ll Learn:
6:55 – Soda Taxes.
- In the beginning of 2018, the city of Seattle decided to place a tax on Sodas, and it’s brought in about $10,000,000 so far. Soda taxes are meant to curb your buying habits, but there’s an argument to be made it doesn’t really work. There’s also an argument that soda taxes tend to limit the freedom you have over what goes into your body. Furthermore, you have to think whether the city of Seattle is capable of stewarding the money generated through soda taxes. Generally taxes on lifestyle choices are frowned upon and arguably cause more problems than they solve.
16:36 – Explaining The F.I.R.E. Movement.
- F.I.R.E stands for “Financial, Independent, Retire Early.” it’s a movement amongst millennials who want to retire in their 30s. Remember, retirement might look different to a millennial than it does to someone who is 65 years old. This movement seeks to enable young people to become financially independent and pursue jobs that follow their passions. The idea is to find fulfillment in work rather than struggling to get by. This movement also lends flexibility toward when and where you work.
19:33 – Does Retirement Require Sacrifice?
- It costs money to retire, and if you don’t have enough, you might have to sacrifice in other areas to bridge the gap. If you retire at 30, you might only be able to live on $35,000 or $40,000 a year. You have to decide whether you’re willing to live on that fixed income. Similarly, you’ll find there’s a difference in retiring at age 55 versus 65 or 70. Before you take the leap, make sure you have the resources to help you accomplish your goals in retirement.
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