Money Matters Episode 320- Gen X Guide to Early Retirement W/ Dalene Higgins

(95) Gen X Guide to Early Retirement: With Dalene Higgins - YouTube
https://www.youtube.com/watch?v=4TBH1tLvsI8

Transcript:
(00:01) so those two pieces but it wasn't until I had transferred from one agency to another that I realized I had my aha moment I was about 35 and I was like oh I only I can retire in 13 years if I have all of my ducks in a row so even though having a pension and all that I still needed to be ready for an immediate 40% cut in pay you know having that happen on that day not being old enough to um you know get into the 401s IRAs anything like that I needed to be ready for that so that was my M my motivator I realized it could happen as
(00:40) early as age 48 so that is what I planned for welcome to today's episode of Money Matters we have a truly inspiring guest joining us today danen Higgins the founder of elevate finances and the host of wealthy after 40 podcast denen is a dedicated Financial coach who specializes in helping JY xers navigate their financial Journeys especially women over 40 facing Financial challenges her mission is to empower her clients to create successful money routines and plan for a secure financial future in this episode we'll dive into
(01:16) dalen's personal journey of retiring at 50 the unique strategies she shares with her clients and her insights on overcoming Financial hurdles such as debt and budgeting we'll also explore her valuable advice on preparing for retirement both financially and emotionally make sure to stay tuned until the end of the episode where denen will reveal some practical tips and actionable steps that can help you Achieve Financial Freedom and stability no matter where you are on your financial Journey so let's get started
(01:47) dlen thank you so much for joining us today thank you for having me Chris I'm excited to chat absolutely well let let's dive right into it so um can you share a little bit about your personal journey to financial Independence and what M motivated you to really uniquely a lot of people haven't hit that Milestone by the age of 50 what motivated you to retire at the age of 50 um so I was one of the fortunate that actually has a pension and when I started my career in government I was 18 so those two pieces but it wasn't until
(02:26) I had transferred from one agency to another that I realized I had my aha moment I was about 35 and I was like oh I only I can retire in 13 years if I have all of my ducks in a row so even though having a pension and all that I still needed to be ready for an immediate 40% cut and pay you know having that happen on that day not being old enough to um you know get into the 401s IRAs anything like that I needed to be ready for that so that was my my motivator I realized it could happen as early as age 48 so that is what I
(03:05) planned for and then I just kind of went off there as if I was ready if I wanted to I you know all my working years I was not going to be that individual that stayed in that position too long and became the you know the anchor the weight that people are like oh I wish this person would just leave and um so I didn't want to go out that I feel like I was able to for myself go out on a High um I also have been reflecting it's been two years this month that I actually retired and I realized that I I left
(03:38) mainly because I was no longer challenged in my position and you know there was no other way to move in the career in that choices right immediately and so I think that was my overarching I said to my husband I'm ready to do it he said okay when and that is a question that I don't think any of us realize we always think about oh in 5 years or oh in year 2026 or something like that but when it comes down to the actual month and day you know it's it's got there's a whole lot of feelings with that originally I was
(04:16) going to go in October and then I'm like why am I waiting that long I don't need to be that long so I was going to go um in you know kind of recognition to my mother I was going to go on her birthday which was also her death day and that's August 1 so I'm like oh I'll do that that will be great and then I'm like why am I waiting till the end of summer how many years have we worked after we you know you get out of school you have no more Summers you're working so I left uh June 1 and I had that was my first
(04:46) summer of 2022 2022 June 1 wow so a lot of stuff that you just shared with me thank you for sharing that by the way uh is is kind of hitting home for me here because uh I work with That's my kind of my Niche or my specialty as a financial advisor is I work with people who have a pension they're state employees they're five to 10 years away from employment or or from retirement really so that you know not everybody can say they have a pension and it's one of these things that it it I've seen people retire
(05:19) earlier than they thought um and it can even be forgiving for people who come back to work at a later life and haven't done a lot of savings pension is really it's a really unique thing we don't see it as much um and a really really good thing so uh sorry I got on so box there for a second you're fine you're fine some of the other things that you shared with me that I would say are really unique it's just the age 50 is really considered early retirement for most most people don't look to retire until
(05:48) much later so um I'm definitely goingon to ask you um and why don't I go ahead and do this instead I'm G to ask you about some of the roadblocks that you might have not known about but came online by ring retiring a little bit earlier than what people normally see as a a traditional retirement date well I was fortunate my dad uh he had a I want to say forced early retirement but it wasn't necessarily forced it was an opportunity for his pension to be greater than if he you know would have worked so he left immediate so he
(06:22) retired at the age 57 so I was grateful to have that role model and seing what he kind of did however I don't think I was old enough I wasn't I was still in high school when he retired to actually ask him those pinpointed questions so as I began my journey um which is going to segue into one of your other questions I know as I was like okay I'm ready to my husband had retired he retired three years before I did and he's one that just always wanted to work so he takes the passion of I'm working part-time
(06:54) wherever you know making a wage doing what I want and so he just kind of flits around from almost part-time to part-time seasonal to seasonal he loves that so as I'm coming up on it I'm like what am I going to do 50 is still young uh not going to sit in the recliner all day and you know and you Netflix and all of that so I started thinking about what is it I want to do what is it I like to do how do I want retirement to actually be for me how do I want it to feel and I'll tell you immediately I was like I
(07:26) am not going to be on somebody else's timeline that just just struck with me because one of my ideas I'm an avid fiction reader I love to read I love when people love to read I love when kids learn to read so I was thinking okay I'll just go help at the schools and you know do be a reading tutor support them volunteer all of that and then I realized I would be on somebody's timeline and I'm like I don't want to do that you know and so through that process I discovered Financial coaching
(07:55) and it just really hit with me because I had reached my ultimate Financial dream and I that feeling of accomplishment of such a large goal Financial goal you know it's kind of kind of same as you know buying your first home but not in the same sense because it's not a completion being able to move into a home and buy a home is one thing but it's a completion when you pay it off it's a completion when you retire and so getting there so I just really wanted to share that excitement with others in
(08:25) whatever it is their ultimate dream is I love that I love that because it's a unique experience what you've had of being able to retire earlier than kind of everybody else there and this sounds like it inspired you to to really found your what what became Elevate finances um tell us a little bit about what Elevate finances is and U how it's really evolved since the beginning yes so like I said I I discovered Financial coaching um you know got some training I say that lightly but learned exactly what that was how to support that I had
(09:03) my own journey I did my own thing I believe I'm just want to throw this in here I believe budgets are very powerful I am definitely one that is a proponent for that I would not have been able to retire had I not had a budget to be able to get it so focused on my two you know there was two goals a shortterm and a long term um and so I started my business with really no experience as an entrepreneur I was working for law enforcement I was a support personnel and we didn't do marketing so that's been my biggest you know hurdle
(09:36) challenge is the marketing but um I have loved it and initially I wasn't sure who I wanted to serve you know kind of thinking around all of the things and it finally I would say about about a year ago I was like it's gen xers I want to help those people of my generation in this in this area that they don't believe enough in themselves to be able to take that next step retiring is scary I will admit that um but it is so freeing and I think more people could do it if they just trusted in themselves I love it I love it also a
(10:14) gen xer just turned 50 in April so yes the the latchkey kids of Our Generation may be a little bit skeptical when it comes to oh can we do this is this something that we can you know do um so I I love that I love that you know you shared with us quite a few uh uh bits of powerful information there so when you retired a lot of times people will go back and they'll do a a a business that they had kind of in the back of their head or something that that is it could be a hobby but also is a money-making Revenue stream in retirement right so
(10:50) anything that you do and when I say hobby the only reason I'm saying that is because um it's not something you did full-time for a gig as a paycheck before right uh you you know and you shared that with us which is important because for people who take this second step of Entrepreneurship in after they've retired one of the things you shared with us was marketing right so so so even you know we we might you might be the best financial coach in the world out there uh but if the marketing thing doesn't work that that's a skill set
(11:21) that we all have to learn so I know that uh as as a financial adviser whether you're a plumber whether you're a anybody who goes out puts a shingle up and starts a new bus line um what you shared with us about that marketing piece being something that you have to uh to really learn and learn fast so that's that's awesome thank you for sharing that for people who are on their second act uh who've retired and then decided hey I want to O open a business right so that's that's really important
(11:52) there I want to talk about your podcast because you're not only are you doing uh the Elevate finances which is aound sounds like a fulltime you know that that could take all your time up you also have the podcast here uh wealthy after 40 what are some of the most memorable episodes or impactful moments from your podcast yes so my they the memorable ones for myself were those coming on to share either they doing work within uh the divorce you know people who had experienced divorce what they were doing are those sharing their journey of
(12:27) divorce and how that related to money has been so uh memorable and helpful for me as I work with clients a majority of my clients have you been post divorce probably two to five years and I I agree that there's a lot of healing that has to happen and the money is kind of caught up in that for different reasons and so being able to learn from these guests that have come on the show shared you know specific personal experience or shared that one was a divorce coach and how she helps and how you know it is
(12:58) important to have your money in line and just talking about all that the most impactful episode I have had to date is the one that was focused on uh focus groups so I had made a connection on Instagram this young girl was a stay-at-home mom but wanted to work wanted to contribute and so her experience in these focus groups which is like a really um amped up survey situation and she's making money she's sharing that so I'm like hey will you come on you know I'm sure there's people looking for a side gig or a side hustle
(13:32) and she's like making I mean she's making about $1,500 a month on time in between raising a three-year-old and so um that has been the most impactful people people joining or listening or you know wanting more information on that that has been a big one I love that I love that so those are two really important issues and I know when it comes to wealth and finance like you literally there there's such a broad uh uh area that you could talk about a lot of different stuff but the divorce one specifically you you've had people come
(14:07) on for the coaching where these issues have come up so um I I know with me I kind of learn as I go over the podcast that I have you you have these topics on here and it kind of just makes it uh easier for you to to discuss these topics but divorce is one of those that is really really heavy um and then it sounds like you're dealing with people post divorce too so they've gotten past the div but they're still trying to get in you know control over their finances at that point and then you also shared
(14:36) the one with the focus groups that you've had people asking for so this makes me want to go back and listen to those episodes for people who want to and we'll have this at the end on the podcast notes but for people who want to find the podcast what's the best place for them to go um it's on every listening platform but you know Apple Spotify iHeart is a big one I know a lot of gen xers listen on iHeart it's there as well so so yep wealthy after 40 it'll pop right up and you have access to all
(15:03) of the episodes as of Tuesday's most recent one so awesome I encourage people to listen I'll go check it out because I'm a gen xer too so these are these are very uh you know in fact when we talk about uh the generational uh view of gen xers what are some of the most common Financial challenges that you see gen xer is facing today yeah so I I've kind of touched on it a little bit I believe and they may not see it as being a challenge is the belief in themselves and the understanding that Worth to really
(15:36) create that second phase of life I call retirement a second phase you know life is not over just because you're done working what you've done for many many years so I believe that is the overarching challenge but really specifically it's going to be they still have a mortgage they're trying to figure out how to pay that down um they're maybe in a spot of caring for aging parents how does that fit in and if parents haven't planned financially for that do they support them do they not and on the reverse side of that because
(16:07) we are a sad Wich generation at this point with our kids you know still supporting them to get them off to college or maybe they're still at home for different reasons the housing market is crazy right now so you know really trying to support um our children as well I was doing an interview it's been about a month ago and a lot of questions came through was more worried about their children than they are about themselves and it's like yes the landscape has changed but really the tactics have not it's just keep
(16:37) going and keep driving so you know there's a lot of that um but I really think it just ties back to the belief in themselves we've worked for years right gen xers we started working as early as I've heard some people say nine or 10 myself was probably 11 getting that babysitting job it's just what we've done and that I think there's the fear of where's the money going to come from and the belief in that you know there is enough or you know and that's definitely where they step into a role with you as
(17:05) a financial adviser what does it look like but I love my role as a financial coach for somebody headed into retirement you've got to have a budget what do you what do you want your life to be if you're going to travel every year what is that going to cost how does that fit in and then that way it gives a really good number for somebody like yourself to really help these people okay you can travel yep you've got more than enough you know and just supporting that so I love it I love it so a lot of
(17:34) things you just shared with us uh right there particular to gen xers you know you started with the belief in themselves the idea that there it's you know there is something at the end when we do all of this hard work that we've been doing and and and really getting ahead of it I know as as a you know somebody who's 50 been doing this for 20 years and I I am marketing and working with retirees right and so I was talking about the boomer generation somewhere along the lines what we call the sandwich generation we've now stepped
(18:08) into that role so 100% agree with that the idea that we're having to take care of our aging parents that we've got our own kids and you said sometimes we're worried more about our kids than ourselves at this point that we're trying to either get up to school or or take care of them prior to that and our goals get sandwiched right in the middle there and then really the idea that we we worked from the beginning you're right I kind of think 12 is when I started doing like odd jobs and stuff
(18:36) and and then you know working right in high school so that is something uh that our generation has there in common for sure um but but how do we wind down as we get closer to this retirement here and then I want to Pivot because this is something that you're a big advocate of and you already mentioned it quite a few times here budgeting um you have kind of a unique approach to budgeting where you talk about different phases um when it comes to budget budgeting can you elaborate a little bit more on the concept of five budgeting uh phases from
(19:11) shock to Second Nature yeah so you know I can show you how to budget but I as I was reflecting on my journey I realized that there's actually these phases and understanding each phase I think is more impactful for the individual on the journey so the very first phase is just new you you know and it doesn't matter if you're just starting again or if you've never done it before everybody's in a new phase um and so you start with the numbers you hope they're correct and as you start using that you move into
(19:43) the discovery phase so for example I've been working with a client and just this week she says okay I think that number is enough where I remember you know two months ago she says okay I don't know that that spending amount is enough and I said well you've got to use it you know it's a matter of using it and following it there's Clarity there's awareness and so you don't have that in the new phase but you start getting that in the discovery phase and then as you're getting you know as things are
(20:13) happening not you know there's that situation but there's always also oh I forgot about that bill oh I forgot I have that charge that happens quarterly or biannually or those are usually the ones that we don't remember and we don't budget for and they definitely should be in your budget every every single month even if you're not expected to pay for it you know six months for now you know 12 months for now and then from there you go into actually building of a budget so creating and building so as
(20:41) those things are arriving as those things are showing up and your Clarity is really heightened you build it and then you start refining it because now you have everything that's in there what you've been doing does it really tie into what you want and so as you recognize that with oh my goal is this or my goal is that how does this help this you know and so you go into refinement phase as you you know funnel through that refinement phase you're going to get to a phase of stability and so really this could be on
(21:14) a quick side you're probably looking at about three four years on a longer side it's going to be 10 years I mean money is a long journey whether you're talking day-to-day finances or saving for retirement it's a long game Journey but you'll reach stability where your budget does not need refining it doesn't need you know you don't your Clarity and awareness is already there you just it's second nature it becomes that second nature so like when I said shocked to Second Nature you people get frustrated
(21:44) they get overwhelmed they're like why isn't this working this is so wrong and then all of a sudden it just is what it is I love it I love it so couple things I hear there one I I hear a real system and a and a guidance rather than somebody just saying hey go do a budget uh you've got this process in place to help people what does that mean how do I do that and then there's this realistic expectation is this is not going to happen right away this is something that can take years to refine in fact as you
(22:14) were describing it the idea of these these bills coming in some being annually some being quarterly we still are doing this right this is an ongoing process so so this is this is everybody doesn't matter um what uh economic uh situation you're in the idea that having a system in place for a budget is is a really really good thing we only have about five minutes before the end of the show and I definitely want to talk a little bit about debt management uh because that's one of the areas that you help people with as well uh tell us a
(22:47) little bit about um some of the experiences you've had with debt management maybe working with clients strategies for the listeners yes so my most recent that was her complaint when she came to work with me she's like I don't know why but my debt just keeps climbing so as we worked together um I explained to her how she needed to plan for what we talked about in that Discovery phase of those expenses that are you know oneof they're you know two months out they're four months out and she's like oh yeah I
(23:23) think that is where I've been turning to this instead of planning for it um and I just get caught in a rut and I have to use my credit card and so with her we were able to get her on track with all of those expenses and how to you know with the system that I have which is called the plan ahead method and just start working through with that to plan for those unexpected expenses they're not truly unexpected they're just not regular expenses so you know getting that system into place and it was within
(23:55) that third week she's like okay I'm ready how can I tackle my debt and so with her we set up you know do you want to do the snowball or the Avalanche and I'm sure a lot of people have heard this you know it really comes down to your desire what do you need as a reward if you're somebody that needs to be rewarded immediately you're going to lean more more towards the snowball if you're somebody that's like I I just want to get it paid off the quick or not the quickest but the most cheapest way
(24:22) then obviously that you're going to go with the Avalanche so those are those two differences but then I also discuss with them is there a debt that you truly have other emotions outside of you know maybe something happened for example you're paying off divorce fees or you made a horrible purchase investment or something and you're just still trying to pay that off if there's anything that's got additional emotion I really tried to lend them there because once that's gone the emotions that reliving
(24:52) that moment that experience will go away as well so they can actually heal as an individual besides paying down their debt so we just kind of structure it through that and then I love to explore with them if there's any windfalls extra money talking know like overtime or a tax return and we set a plan in place before this actually happens what do you want it to be do you want to use all of it do you want to use some of it um is there you know how does this work in line with your goals that we've talked
(25:23) about what are you wanting to do futurewise and so really guiding them to not fill like they are giving up what they're currently doing or wanting to do or desire but also being able to pay down debt in the amount of time that they're like okay that's not too bad I can do that I love it I love it so danene I can hear your passion uh about what you're doing here and I'm thinking so you came from a law enforcement background uh and this is kind of a second thing for you but this is so cool because I can really
(25:54) hear this is something that that you like doing um and the the things that you just shared with us um you talked about some of the emotion behind the dollar signs as well this is interesting we just had Chris Wong on yesterday who was a therapist and we talked about couples counseling with finances and money and so he touched on the idea of emotion as well and so it's kind of neat to see those reoccurring themes there um it does happen it runs you know we run into it uh the example that you gave with divorce that's going to be one of
(26:24) them right where there's this this emotional uh anchor there right um we are right here at the end of the of the episode I I we could sit here and talk about this stuff all day that was a fast 30 minutes there uh denen for listeners who would like to get to know you a little bit better what is the best website for them to find you on yeah www. Elevate finances.
(26:48)  us um everything's on there about me about what I do about my programs and yeah how you can connect with me otherwise I love it I love it and uh what have I forgot to ask you that you'd like to share with listeners today I want to just share that you really need to lean into budgeting if what you have tried in the past doesn't work there is another way there's not just one way to budgeting we can make it easy we can make it simple but the longer you put it off the further away your goals will be what a great thought
(27:20) to leave the show with today denen thank you so much for being on the show have a good rest of the day dear thank you