I know Jackie Cummings Koski, CFP, AFC, MSPFP and financial educator, from a number of professional groups and for several years now. She’s one of those people I keep an eye on as being a few years ahead of me professionally, with (like me) a strong interest in sharing her knowledge and educating. I consider her one of my informal mentors. Therefore I was very pleased when she offered me an advanced copy of her new book to review. Of course!

What the book is not

It’s not a hard core pitch for something obtainable only by young white male engineers or computer scientists, who grasp the math immediately and start saving straight out of college, in high earning parts of the country, without kids. Jackie achieved financial independence and early retirement into her second act of spreading financial literacy, after not having encountered the concept until she was already in her 30’s, a single divorced mom, who wasn’t ever a high earner, she’s not white, and she came from poverty.

It’s not a book full of formulas. I wasn’t intentionally counting, since formulas don’t scare me, but when I finished I didn’t remember a single one. So I flipped back through, and I only spotted basic (+, -, x, /) formulas on pages 10, 31, 67-70. So if formulas scare you, don’t worry. Instead, when the impact of compounding needed to be explained and other similar situations, there were small, simple tables or diagrams.

And it’s not a book intended to intimidate. Jackie’s written communication is similar to her live communication – it’s a straight forward, conversational, supportive educational style. No shame or judgement here.

What the book is

The book fits well with the “for dummies” book line (many of which are available at the Rochester Public Library or a library near you). It’s of a similar substantial nature at 348 pages. It includes important sections such as why the concepts of FIRE are valuable to everyone, the psychology and mindset of improving your success with money, and how to customize your own FIRE journey. It has a detailed table of contents, glossary, index, and resources on where to learn more. There is an additional cheat sheet and calculator links mentioned in the book but not yet available, I assume those will come out after the book’s official release on April 30th.

Book highlights

Introduction

Some of the most important psychological and motivational pieces came in the introduction, so don’t skip ahead to the “good” stuff of the regular chapters. It introduces the importance of being able to do what’s best for you, whatever that is. It points out that pursuing this level of financial independence is quite different than what you probably encounter in the rest of your life, so find sources of support and encouragement, like this book and other calculators and community groups that Jackie helps the reader to connect to. It points out that everyone’s journey is unique, but that this financial power is possible for everyone. And it addresses that with more financial power comes more time freedom.

Part 1 – Getting Started with F.I.R.E.

My favorite piece was that Jackie included her at-the-time teenage daughter’s summary of changes in the workplace and its impact on the F.I.R.E. movement. When employers starting providing less to their employees and turning them out to fend for themselves, it should not be surprising that those employees found ways to make the situation work better for them, not for their employers.

This section also talks about reframing, an important aspect of so many of the steps to financial independence in a culture that isn’t set up that way.

The section on attraction to F.I.R.E. was one that resonated with me. A toxic job (something we’re each only one supervisor or one company policy change away from) that you need to escape from, or life demanding something different of you (caring for your aging parents, anyone?), or you want to spend more time with your children or grandchildren, they are motivators. But still, F.I.R.E. seems impossible when you first hear about it.

Unfortunately what didn’t resonate with me was Jackie’s experience as an employee. Don’t get me wrong, I’m glad some people have her experience of great benefits, a steady paycheck, and career growth, but if you don’t have one or worse more than one of those, then it may be easier to step on the gas towards F.I.R.E.

Something that I appreciate as a whitewater kayak instructor is the importance of your learning style – make my kinesthetic learners sit still in line while my watchers have to be the first to try a new move makes everyone unhappy! Jackie makes sure to address this as well, suggesting F.I.R.E. relevant learning tools that match each learning preference.

There’s also an intentionality about learning what makes sense for you to learn when you’re motivated to learn it. If being new to F.I.R.E. is enough of a hurdle for you, lean into your interests (which probably correspond to your strengths) or what is happening in your life that’s got you motivated, and tackle learning about those aspects first. One bite at a time, and it doesn’t matter which corner of the sandwich you bite on first, just start eating.

Jackie also makes a point of emphasizing recognizing your superpowers and weaknesses. She gave examples from her own life, obviously yours will be different, but leaning into those superpowers will supercharge your path to F.I.R.E.. Similarly, there’s value in measuring your own progress, your own milestones, and your own successes. Just like you wouldn’t plan a road trip with a potty training toddler to include adult level bathroom and meal break intervals, and you might put them in a backup diaper too, planning your F.I.R.E. journey should look unique.

Part 2 – Organizing Your Finances For F.I.R.E.

While it can be a hot topic Pepsi-vs-Coke level argument, I liked that Jackie quickly sent everyone to their corners in the “which savings rate formula should I use” debate by pointing out it doesn’t really matter. Just pick one, and stick with it, and don’t measure your own rate vs someone else’s because not only is their life different but they’re likely using a different formula anyway.

Side note – Jackie points out that keeping tabs on your credit report, for both identity theft implications and your credit scores, just got easier as of October 2023h. That’s when that “free annual credit report” became free weekly credit reports! No more wondering when it’s best to pull your reports, because you can’t access it again for a year, now you can get them essentially whenever you need them.

A number of savings rate related components are suggested. While some of the others may be more obvious whether or not they fit you, one that was suggested is harder to realize it doesn’t, so I want to pull this one forward: escalating your savings rate when your income goes up. If you work at a non-profit or any other employer where there are minimal opportunities for salary-impactful career progression, and raises are less than or at best equal to inflation, this strategy is not one that’s right for you. Don’t count that chick if your hen isn’t laying any eggs.

I loved that the framework for Chapter 7 on possessions, probate, and your estate plan was “dedicated to second-generation F.I.R.E.” I love to see intentionality about leaving our little corner of the world, whether that’s family, friends, community, or nature, a better place during and after your time here.

It did not surprise me to see that Jackie had great suggestions around estate planning intentionality and HSAs, given she’s got an extra credential in HSAs and is sometimes fondly referred to as the HSA queen. If you’ve got an HSA, Jackie’s got all sorts of tips for you throughout the book.

Part 3 – Increasing Income, Savings, and Investing

In another example of intentionality and generous education, Jackie gave an example of her “You’re My Millionaire” cards. While those receiving them for graduation now won’t have $1M as such a lofty number by the time they’re reaching their own retirements (courtesy of inflation), it’s a great example of a way to help those you love, I hope you take the time to read this little anecdote.

This section also includes the importance of normalizing conversations about money, and finding people to walk with on this journey.

Part 4 – Decreasing Debt, Expenses, and Taxes

This section is one that’s similar to many other personal finance books out there, a lot of useful nuts and bolts. If you haven’t read a lot of personal finance books (reasonable for anyone picking up a “for dummies” book), this will walk you through the basics well.

Part 5 – After F.I.R.E.ing: Things to Do after Retiring Early

It was great that Jackie wrapped in planning a graceful exit from your job, which included the count down planning timelines and departure timing strategies, along with suggestions on how to write your resignation letter (hers was frame-worthy!), and how to lift up the best of your colleagues. It also includes content on pre-Medicare health insurance, decumulation, and cash flow planning before age 59 1/2.

Future developments

In a “watch this space for future developments” type notification, coming up Jackie’s book will be part of my professional development book club, and like our Taking Stock discussion in March, we are once again anticipating the author there to discuss it with us! So hopefully there will be a part 2 to this story after that book club meeting.