I originally published my first six axioms as “Six Principes for Retirement”. The list was a result of spending several weeks refining and considering basic principles for achieving a tax-free retirement. Somewhere along the way I realized that these basic truths were true for anyone looking to develop healthy habits related to securing their financial future.

I’ve since renamed them as Tax Free Axioms as I’ve developed and refined these approaches over time.

Axiom 1 – Start now!  Procrastination is the silent killer of retirement dreams. Resolve to do something today, even if you don’t have a plan for tomorrow.  Breaking free and gaining some momentum today is better than stagnation tomorrow.   

Axiom 2 – Visualize your journey.  See it first, live it later.  Create a vision.  Know your purpose.  What are your goals?  What does success look like?   

Axiom 3 – Don’t wing it, strategize it.  Think strategically: This implies planning for the future and making decisions based on long-term goals.  Take the long view.  Don’t panic sell. Know your number (how much do you need to retire comfortably?) Divide up larger goals into smaller chunks (A to B to C). 

Axiom 4 – Focus on outcomes.  Don’t get overwhelmed with everything that must be done.  Results are what matters. The focus is on achieving the desired outcome, not just checking things off a list. This allows for flexibility in how you approach tasks.  Adaptability: If the initial approach isn’t working, you’re open to changing course to achieve the desired outcome. You cannot beat the market. Don’t time the market.  Use index funds. 

Axiom 5 – Create experiences not expenses. Live below your means.  Spend less than you make.  Financial responsibility: this emphasizes making wise financial decisions and avoiding unnecessary spending. Live well, spend less. 

Axiom 6 – Plan for sunshine but carry an umbrella.  Manage risk.  Don’t just “accept risk” by not doing anything.  You cannot fully and completely eliminate risk.  Review progress regularly.  Rebalance regularly. Build an emergency fund.  Be positive. 

Axiom 7 – Taxes will only increase.  Tax rates will only go up in the future.

Axiom 8 – Tax-free is better than tax-deferred.  In order to lose money by paying taxes earlier, the tax rate will need to go down over the lifetime of your retirement plan. Axiom 7 states this will not happen. If tax rates stay level, you will not lose money.