I don't understand the people who slave away their youth and wait until they're 60+ to start enjoying life and going on cool vacations. I want to do all the awesome shit in the prime of my life, not as a senior citizen.
That's cool retiring with money and all but what, are you gonna travel the world and have fun at 70 years old?
I think part of the issue is that many slave away for material possessions that likely aren't bringing them that much happiness. "If I just buy this bigger house I'll be happy" "I need a new TV because my 2 year old TV is only 1080P" and on and on. Or they think they needs to spend tons of money to make sure their vacation is 'perfect'
I think part of the issue is that many slave away for material possessions that likely aren't bringing them that much happiness. "If I just buy this bigger house I'll be happy" "I need a new TV because my 2 year old TV is only 1080P" and on and on. Or they think they needs to spend tons of money to make sure their vacation is 'perfect'
Have you ever read the 4 hour workweek by Timothy Ferris?
In the book he describes the new rich (NR) as people who visit places like Thailand or Brazil for months on end. They leverage the strong US currency by visiting countries that are very inexpensive to live. $50k is going to go much further in Thailand then it is in states like CA for instance.
Wow. So they have $2m and they only plan to spend $60k a year? I make about that and I'm broker than broke. And I live in a cheap city.
What's the point in working so hard for so many years and just live a modest lifestyle?
If I had $2m, I'd buy a G-Wagon and mortgage a sweet crib, invest the nest egg in safe real estate and net $150k year and spend every penny of it yearly.
Save me the "they're cheap, that's why they're rich" nonsense. Cheap people don't get rich, they just get well off.
No you retire at 50. :biggrin:
Waiting till 70 is stupid.
I don't know. With life expectancies continuously rising, reaching $1 million at 50 might not be enough! D:
That's realistic for me. I don't think I could get to $2 million. Have to enjoy some of that money while I'm still young...
If you can live on 30k a year (most people can) and assuming a 4% SWR, you only need $750k.
http://money.cnn.com/2015/07/14/retirement/how-to-retire-early/
"He saved at least 25% of his income, putting away as much as $50,000 annually in a good year."
so he made $200k/yr.
The theories CNN gave for retiring early are sound:
1. Moved to a cheaper area
2. Saved. A lot.
3. Lived beneath their means.
4. Signed up for Obamacare.
but they could have used a better example than a 2%er to illustrate it.
I've seen retirement forum members NOW say that they wish they spent less on STUFF and more on experiences. Well I bet they were enjoying those material things when they bought them. Hindsight doesn't give the best outlook on things. Live in the moment. Being 80 doesn't make you smarter than when you were 40. If I bought my M5 right now I'd be in high heaven for many years. Having to "slave away" toward that goal would just add to the satisfaction.
As a dirt poor plebian all I can say is it's the daily habits e.g splurging on Starbucks which really ruins your wallet. Electronics are dirt cheap in comparison.
i save 50$k per year and i barely make 100$k. after tax its like %65 of my income.
i just live like i did when i was right out of college. cheap apartment, cheap food, cheap fun, cheap everything. and ATOT is free!
I'd rather have a mortgage on a condo than throw money away on a cheap apartment. Get a 30 yr mortgage on a condo and you could have a better quality home with nearly the same monthly payments. In the end you'll have something you own. You can even pay it off quicker or invest the rest of your income elsewhere.
We visited 4 cities in Thailand. It was humid as fvck with nothing to do but temples and spas. And I also got sick while on the trip from whatever was floating around in the air. No thank you.
As for retiring early, we want to stay in NY because of family and long-time friends, but when it costs $20k/year in taxes alone, it's a bit of an issue. Anywhere worth being here is going to cost.
I'd rather have a mortgage on a condo than throw money away on a cheap apartment. Get a 30 yr mortgage on a condo and you could have a better quality home with nearly the same monthly payments. In the end you'll have something you own. You can even pay it off quicker or invest the rest of your income elsewhere.
i live on 30$k but the %4 SWR is a little too low for my tastes - shooting for about %3. if dividend/interest rates go up one of these decades, a %3 SWR might mean being able to live solely off the interest and not even touching principal.
We have been investing 6 figures per year for the last couple. I would like the option of early retirement if desired, not sure I want to yet. I would like to hit 5M.
That's cool retiring with money and all but what, are you gonna travel the world and have fun at 70 years old?
The whole point is to retire early so that you still do things like travel. I get the point "dur hur do x while you're young!". But guess what ? You can do it when you're old as well. Unless your diet was McDonalds, you should have no problem walking around in foreign places.
4% has something like a 95%+ success rate over any 40 year period in history.
You need $200k/year in retirement? Damn.