It all started over birthday pasta and Prosecco. My partner and I were tossing around dreams — some big, like a backyard for future dogs, and some small, like finally replacing our couch. But halfway through the entrée, we landed back on Earth. Our finances weren’t exactly laying the groundwork for early retirement. If we didn’t start planning now, would we ever be able to afford a life that didn’t revolve around a 9-to-5 grind?
Turns out, we’re not alone. More millennials and Gen Zers are looking beyond traditional retirement paths, seeking a personal “exit strategy” that doesn’t rely on becoming a unicorn startup founder or winning the lottery. And with a little planning, it’s more doable than you think.
What Is a Personal Exit Strategy?
For most of us, the phrase “exit strategy” brings to mind tech moguls selling their billion-dollar companies. But in this new era of accessible finance and transparent money talk, it’s become a goal within reach for many. A personal exit strategy is about taking control of your time and income — making work optional, not obligatory. Whether you want to leave the corporate world early or simply create more space for your passions, this is about freedom, not just fortune.
It’s Not One-Size-Fits-All
Maybe your goal is full-on early retirement. Maybe it’s downshifting to part-time consulting, launching a side business, or living off rental income. The point is: exit doesn’t have to mean escape — it can mean choice.
Step One: Take Stock of Where You Are
Using free tools like Personal Capital’s net worth calculator is a great way to start. Plug in your assets and debts to get a bird’s-eye view of your financial health — even if that view looks a little bleak at first. Then, begin crafting a plan that makes sense for your life and goals.
And while maxing out a 401(k) is solid advice, it’s not the only path forward — especially since it locks away your cash until you’re 59 ½. Flexibility is key if you’re planning an early exit.
Explore the FIRE Movement
One popular philosophy is FIRE — Financial Independence, Retire Early. It’s a lifestyle that emphasizes aggressive saving and investing, frugal living, and ultimately, freedom from financial obligations. While it’s not for everyone, understanding the pillars of FIRE can help you create your own hybrid version.
- Extreme Saving: Up to 70% of income saved toward retirement.
- Frugality: Cutting unnecessary expenses and living well below your means.
- Smart Investing: Using tax-advantaged accounts and low-cost investment strategies.
- Debt Payoff: Eliminating all debt to free up cash and reduce financial stress.
- Maximizing Income: Finding side hustles or passive income to accelerate savings.
You don’t have to adopt all five pillars to benefit from the mindset. Even small steps — like opening an IRA or cutting recurring subscriptions — can move the needle.
Real Inspiration: Coast FIRE and Living on Your Own Terms
Personal finance podcaster Andy Hill and his wife achieved what’s known as Coast FIRE — meaning they’ve saved enough for retirement that their investments can grow on their own, allowing them to scale back work today. They paid off $50,000 in student debt in one year and later eliminated a $500,000 mortgage. Now, they both work part-time and live fully.
“We’re not working full-time anymore — we’re just living full-time,” Hill says. Their journey proves that reaching financial independence doesn’t require millions. It requires clarity, discipline, and a vision for the kind of life you want.
So Where Should You Put Your Money?
I’m not here to give stock tips — the market moves faster than TikTok trends. But the basics hold up:
- Low-cost index funds and ETFs
- Roth and traditional IRAs
- REITs (Real Estate Investment Trusts)
- Investing in your own side hustle or creative project
- Even unconventional assets like art, vintage watches, or jewelry
Just remember to research, diversify, and invest based on your timeline and risk tolerance. A fiduciary financial advisor can also help build a plan tailored to your situation.
Final Thoughts: You Don’t Need to Wait Until 65
Your exit strategy doesn’t have to be dramatic or overnight. It just has to start. Set goals. Find tools and advisors that work for you. Learn from others. And always — always — talk money over drinks and dinner. The conversations are better that way.
Because in the end, the goal isn’t just early retirement. It’s building a life where you get to call the shots — whatever your net worth.
Personal Capital compensated the author for contributing this content. The article is for general informational purposes and not intended as financial advice.
