Ryan Gomez, CFP® Outlines Strategy for Early Retirement for Tech Workers

In a recent LinkedIn post, Ryan Gomez, CFP® discusses strategies for tech workers who feel “stuck at work” and are looking to retire as early as possible. He outlines a four-step plan designed to help individuals build wealth and achieve financial independence, emphasizing that early retirement is often a result of diligent planning rather than solely high earnings.

Understanding Your Retirement Number

The first crucial step, according to Gomez, CFP®, is to accurately determine one’s “retirement number.” This involves estimating the annual income needed in retirement and adjusting it for future inflation. He suggests a practical starting point for this calculation:

“A good place to start is to divide this number by 3%-5%”

Gomez, CFP® cautions that this is a simplified approach and highlights the importance of factoring in numerous variables such as the desired retirement age, potential real estate income, and company stock options. “Make sure you account for everything,” he advises.

Leveraging Retirement Accounts

The second pillar of Gomez’s strategy involves maximizing the use of various retirement accounts to minimize long-term tax liabilities. He specifically mentions:

• 401(k) with a contribution limit of $24,500 in 2026.
• Backdoor Roth IRA with a limit of $7,500 in 2026.
• Health Savings Account (HSA) if eligible, with a limit of $4,400 for single individuals in 2026.

These accounts, as Gomez, CFP® points out, are instrumental in tax-efficient wealth accumulation over an extended period.

Building Intermediate Wealth for Flexibility

For those aiming to retire before the age of 59.5, Gomez, CFP® introduces the concept of building “intermediate wealth.” This typically involves opening a taxable brokerage account.

The Role of Taxable Brokerage Accounts

This type of account serves as a bridge to access funds before traditional retirement age. Furthermore, Gomez, CFP® notes its utility for other significant life expenses, such as a down payment on a property. “Having a flexible investment account like this gives you optionality,” he states, underscoring the value of liquidity and adaptability in one’s financial plan.

Combating Lifestyle Creep

The final, yet critical, step in Gomez’s framework is to actively combat “lifestyle creep.” This refers to the tendency for spending to increase in proportion to income increases. He advocates for a disciplined approach where individuals live off their base salary and invest any additional earnings, such as commissions or bonuses.

“Build a life you love that doesn’t require $400k to sustain”

Gomez, CFP® stresses the importance of aligning one’s lifestyle expenses with their base income. “If your fixed expenses are higher than your base, fix that ASAP,” he urges. He concludes by reiterating that early retirees, particularly those in their 40s, are not necessarily the highest earners but are those who have meticulously crafted and adhered to a comprehensive financial plan. “You have the income… Now build the strategy to go with it,” he advises tech workers.