Unexpected Financial Independence for NYC Couple

Josette Chan and Alexander Nathanson seemed to be doing everything right with their finances. They were consistently maximizing their retirement contributions, saving diligently, and earning high incomes in their respective fields of finance and medicine. Yet, they lacked a solid financial plan.

“We were on autopilot,” Nathanson shared. “The internet advises maximizing your 401(k), and we certainly did that. But we didn’t think much further than that.”

After hiring a financial planner and reassessing their approach, the couple, living in New York City, found out they had already achieved financial independence. In 2024, Chan left her finance job, while Nathanson, a doctor specializing in obesity medicine, altered his working hours. Now, he works because he enjoys it, not out of necessity.

“We acknowledge our privilege,” Nathanson noted. “Despite our high salaries, we believe more people can achieve this than they might think.”

Here are three financial decisions they believe have set them up for early retirement.

1. Seek External Opinions

Neither Nathanson nor Chan were novices when it came to finance; Chan worked in the field and Nathanson had a habit of reading investment books.

“I thought I had a solid understanding,” Nathanson recalled. “But we discovered that consulting an expert can really change your outlook.”

Initially hesitant to hire someone, they eventually decided it was worth it. Like many high earners, they were doubtful about the usual assets-under-management model, where a financial advisor’s pay grows as a client’s portfolio increases.

The couple chose to work with Dr. Jay Zygmont, a flat-fee planner specializing in child-free clients. One of the first things he did was challenge their idea of financial independence.

“We believed early retirement meant accumulating many rental properties. We thought, ‘We need all these properties!’” Nathanson explained. But after working with Jay, they realized they didn’t want to be landlords. “He helped clarify what we genuinely wanted,” Nathanson added.

Advisors helped reshape not only their mindset but also how they viewed their financial structure. Understanding how much money is “enough” to leave or downscale one’s job isn’t straightforward; it requires considering various factors, such as potential income and long-term care.

“It’s a critical calculation—it’s not simple,” Nathanson said. “I doubt anyone can do it alone, but once completed, I believe many will find they can move forward.”

2. Invest Your Savings Wisely

Another significant shift was their approach to savings. Prior to hiring a planner, they had stashed a considerable amount into a high-yield savings account while deliberating on upgrading their home.

After settling on their current living situation, they realized that the cash in their investment accounts could be utilized more effectively.

The couple’s portfolio now revolves around three low-cost index funds: one for the entire U.S. stock market, one for the global stock market, and one for bonds.

“We prefer evidence-based strategies,” Chan mentioned, deliberately steering clear of high-risk options like individual stocks and cryptocurrencies.

3. Pay Off the Mortgage

This final move challenged conventional financial advice, which often suggests maintaining a low-interest mortgage while investing extra cash instead. After purchasing their New York City apartment in 2018, they financed half of it, initially at a rate of 3.75%, but later refinanced to about 3.1%.

“The conventional wisdom tells you to leave it, don’t touch it,” Nathanson observed.

However, they opted to pay off their mortgage entirely. Business records confirm they settled their mortgage in September 2024.

Nathanson highlighted not only the significant financial impact but also the emotional relief of eliminating that debt. With this major expense gone, his part-time salary now comfortably covers their living costs, reducing the need to dip into their investments.

For Chan and Nathanson, moving from a passive approach to a more deliberate one made a substantial difference.

“Don’t just follow the crowd,” Nathanson advises. “Make decisions that are right for you.”