America at 250: What Financial Independence Means Today

Written by Jen Eathorne

250 years ago, the Declaration of Independence was signed in the US. Americans formally announced that they were severing political ties with Great Britain, citing years of oppression from the British monarchy. Until 1776, financial independence was shaped by external control – British trade restrictions limited economic freedom, while barriers to westward expansion constrained opportunity. This document, which outlined and declared the colonies’ independence from Britain, was seen as a crucial step for survival. Independence was a necessity.

Flash forward 250 years, and financial independence today looks very different. When speaking with our clients about what financial independence means to them, the focus has shifted; now, more often, it means flexibility, options, freedom of choice, and legacy planning for the next generation. For our clients, a freedom beyond borders. Now clients are shining a spotlight on their lifestyle and how and where they want to spend their day-to-day, whilst still having a plan for the future. Over the past quarter millennium, the risks potentially impacting that freedom of choice have evolved, including greater longevity, inflation, and greater career unpredictability. As these risks have changed, so has the meaning of independence for many, and financial planning has adapted to better meet clients’ needs while helping them prepare for the future.

Over the past 100 years, we have seen a surge in market participation. This surge came earlier in the US than in the UK, as people could no longer rely on guarantees from pensions and social security, with a shift towards defined contribution schemes placing the burden of investing on the individual. Previously, financial independence was simpler, with the focus for many being on accumulating savings and buying property, something that many could do without professional financial expertise.

Nowadays, financial independence is not accidental; it’s engineered over several years through continuous planning. Financial independence can rarely be achieved from a one-time decision. Financial advice today has had to rise to the challenge and involves holistic planning year-in-year-out, ensuring that a strategy and structure are put in place to meet clients’ needs. Holistic planning encompasses a broad range of areas, including risk management, investment expertise, cash flow modelling, intergenerational wealth, behavioural coaching, and tax efficiency. Areas that the ‘Founding Fathers’ were unlikely to have been thinking of whilst they were signing for America’s independence.

Today, we have seen the rise of financial independence beyond borders. Sitting at our unique vantage point, we have seen the continuous rise in clients incorporating the flexibility of where they would like to call home into their financial plans. Americans living abroad usually maintain obligations to the US financial system, and with that comes the complexity of planning across multiple jurisdictions, which, if not planned for correctly, could limit the ability to become financially independent. Independence for many requires coordination across countries and systems, especially given the continued growth in the number of Americans applying for UK citizenship.

As clients’ needs become more global, the advisory landscape is evolving alongside them, and this trend is already reshaping our industry. MASECO joining the Creative Planning family shows the growing demand for bridging the gap between US scale and specialist expertise in advising US citizens abroad. With this, firms are able to combine knowledge and best-in-class practices across jurisdictions, learning from each other’s experience to deliver more cohesive, planning-led advice to globally mobile citizens.

At 250 years on, financial independence is no longer confined to one country or one plan, it is built through global coordination, shared expertise, and the flexibility to live life on your own terms.

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