Patrick’s FU Story

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Achieving the state of having “FU money” is one of the most powerful goals you can accomplish. It is not about a particular net worth figure, but rather being in control because you are no longer beholden to a particular job. You can say no to a toxic work environment or boss.

Even if you enjoy your job, you can weather any day-to-day stresses much easier knowing that you can walk away at any point. Having FU money gives you an additional sense of security beyond an emergency fund; you know that if you lost your job for some unforeseen reason—COVID-19 did that to many folks!—you would still be relatively stress-free.

After a few years as a trial attorney for the Department of Justice Tax Division (“DOJ-Tax”) handling tax disputes in federal court throughout the country, I never imagined I would use my FU money. I found the work I did each day interesting, challenging, and fulfilling. When it came time to stay or jump ship last year, though, I am grateful I had that option.

Amassing our FU money

We were able to save FU money through a combination of aggressive savings, prudent investing, smart career decisions, luck, and silver linings in the face of tragedy.

Even before Xa first found the FIRE (financial independent, retire early) community, we were both aggressive savers. We saved or invested over half of our after-tax income by maxing out our IRAs, workplace retirement plans, and a family-coverage health savings account; investing in low-cost personal brokerage accounts; setting aside emergency savings and happiness savings goals in high-yield savings accounts; and avoiding debt. We already were largely living a FIRE lifestyle, but finding the community made us even more focused!

One year ago, I was a GS-15 trial attorney at DOJ-Tax and Xa was a high-earning government consultant at her current firm with excellent benefits. Prior to joining DOJ-Tax, I had maintained side hustles while simultaneously working full-time and pursuing advanced degrees, but had never struck out on my own as a full-time entrepreneur.

Restrictive employer requirements

In the latter half of 2021, as COVID-19 vaccines became widely available and treatment options increased, businesses and government agencies began contemplating what a "post-pandemic" workplace would look like. I had been teleworking full-time since March 16, 2020, only going to the office or another location a handful of times for court appearances or depositions (most of them were handled remotely), and once to actually pack up my office when we moved to a new location. Eventually, in early 2022 DOJ-Tax announced that it would require its employees to come to the office an average of twice a week—more than the federal government’s minimum average of once weekly for non-remote employees—starting in late April 2022.

Xa and I had been taking a wait-and-see approach prior to this announcement of the DOJ-Tax “Workplace 2.0” structure. We noticed a number of employers approaching the decision as if any future teleworking was generous, i.e., as if employees’ reference point was February 2020. This flawed approach failed to recognize that people generally use their current situation as the reference point going forward, as outlined by Daniel Kahneman in Thinking Fast and Slow. With our current realities as the reference point, humans experience loss aversion to any negative changes. Since I had been teleworking for two years at this point, I perceived any in-office requirement as a loss.

Ultimately, we decided that this is why we had FU money. We did not have to simply accept unrealistic employer requirements when we were doing our jobs well, had the financial stability, and had other exciting opportunities.

Trying to find a solution

We knew that the new model was not going to work, but we hoped there would be some flexibility. Xa and I are both fans of the idea that everything is figureoutable.* I approached this situation hoping to find a solution that both accommodated me and would allow me to continue enforcing federal tax law by holding wealthy individuals and corporations accountable, rooting out unscrupulous practices, and ensuring that those without resources were treated fairly. I wanted to stay with DOJ-Tax until (early!) retirement.

Rather than simply stating which three days per week I would like to telework, I wrote a detailed memo explaining that I wanted to convert my position to remote work (i.e., 100% telework). I clarified that doing so would actually save the government money, noted that I would remain in DC and thus be available for in-person events as necessary, emphasized that I was much more productive in a telework scenario, and explained that regular in-person work was detrimental to my physical and mental health.

My request was immediately rejected. I was told there was “no provision” for having a trial attorney work remotely, but if I had health concerns I could submit a reasonable accommodation request under the Americans with Disabilities Act (“ADA”) accompanied by appropriate medical documentation.

My health care provider, who has been treating me for seven years, readily agreed that 100% telework was important for my physical and mental health and wrote a letter in support of my reasonable accommodation request. I submitted the request and was allowed an interim accommodation of 100% telework while it was being considered.

My request was denied in August 2022 because my health conditions “did not meet the legal definition of a disability” under the ADA, and my supervisor informed me that I needed to report to the office at least twice a week beginning after Labor Day. I suggested an alternative work schedule that would allow me to effectively work remotely while still technically adhering to the new telework policy as written, even offering to take a pay cut under a reduced schedule. That, too, was denied.

Making the FU money call

I knew that I did not have to accept the unacceptable. Xa and I had money saved up, and she had a good job that offered health benefits. (We had previously been on the health plan through my job.) Most significantly, I could revive Phippen Tax & Financial Services and make it my full-time focus under a revamped family-business model where Xa would also work part-time as content director.

Yes, there was some risk, but the potential upside was even greater than the GS-15 salary I would be leaving behind. Jumping into Phippen Tax & Financial Services full-time would also allow for greater flexibility in terms of scheduling and location. Worst case scenario, if it did not pan out, I could simply go back to work for another employer.

This is a similar analysis to why you should retire early. If you fail at early retirement, you simply go back to work, which is what you would otherwise be doing anyway!

I am grateful that I have such a supportive partner, and I am thankful that we both prepared for a moment when we needed FU money well before we encountered it.

Determining the end of my tenure

Several of my cases were at critical junctures, including two that were internally high-profile matters. I offered to take sick leave twice a week (for my supposed in-office days) for the remainder of the calendar year so I could wrap up my cases or get them to sensible “hand-off” points where they could be effortlessly, rather than abruptly, reassigned. My supervisor rejected my sick-leave request. It seemed to me that he thought I would cave—he did not count on the fact that I had FU money—because he expressed shock when I informed him that I would not return to the office for the sake of the policy but instead would be leaving government service.

He tried to hold my three-year commitment to DOJ-Tax over my head as a means to keep me on board. (New trial attorneys with DOJ-Tax must commit to serving at least three years, which is a sensible policy given the extensive training we receive; I started in October 2019.) I pointed out that even if my sick leave was denied, I had enough vacation leave to cover my supposed in-office days from Labor Day to beyond my three-year anniversary, so the only way I would be unable to fulfill my commitment would be if he did not allow me to use my unused vacation leave, which I would get paid out for anyway.

My supervisor called me back the following day after speaking with his supervisor. In short, I would be allowed to telework five days a week, without having to use vacation or sick time, through the end of the year so I could finish the two high-profile cases and prepare my remaining cases for reassignment.

Most employers assume they have the upperhand in these situations because so many people live paycheck-to-paycheck. The more financial stability you create, the less urgent your next paycheck becomes. My former supervisor did not even realize that I could fulfill my three-year commitment with vacation leave; perhaps he assumed I could be pushed into following a policy that was detrimental to my health due to financial necessity. Instead, I refused, with my FU money as my parachute.

My waning days as a government attorney

I finished both of those high-profile cases with time to spare, saving the government a few million dollars along the way. I closed some cases, and with one exception, I prepared my remaining cases for smooth transitions after performing additional work. As to that one exception, I obtained a multimillion-dollar negotiated settlement offer during my last two weeks, and submitted my formal memorandum regarding that offer on my last day.

Our FU money allowed me to reject the unacceptable at my former job. (To be clear, they did not violate the law in any way by denying my reasonable accommodation request; they merely made a poor management decision.) After this experience, we felt it was necessary to help others avoid similar unreasonable employer demands and build the financial safety nets to provide confidence when going into difficult employment discussions. It gave me purpose, and it made me realize that I can use the same skills I previously used to hold the wealthiest Americans accountable for their taxes to now guide small business owners and career professionals to grow their wealth through deliberate tax strategies. Now I get to focus on helping folks live less taxing lives and pursue their financial goals!

* Everything is Figureoutable by Marie Forleo is an excellent book that we both love. You should read it! We both read it over the summer 2022, and it was the type of motivational yet focused read we both needed at the time.