How to Retire 35 Years Early

12 years ago

Wall Street Journal's Market Watch did a feature on Mr. Money Mustache, a man that retired when 30. It polarized and sparked some interesting comments from readers. He still works some but only on his terms.

http://www.marketwatch.com/story/how-to-retire-early-35-years-early-2014-01-17

He gets into more detail on his blog here http://www.mrmoneymustache.com/

I guess the main take away for me was you can pare your costs significantly once you differentiate between your "needs" and your "wants".

Featured Answer

grandmamaloy

12 years ago

I read some of this but think common sense...from a VERY young age is the difference maker! Start setting goals even before you go to work and live smart. YES, differentiating between your wants and needs is vital! And then making smart financial decisions, like saving, investing, taking out a 15 year mortgage as opposed to a 30 year, paying HUGE attention to your credit score and paying cash for everything that you possibly can. Life is definitely not getting any easier...the cost of living continues to rise and the temptation for non-stop spending can be hard to ignore. We are bombarded with WHY we need WHAT! I told my daughter once to curb her impulse buying...don't just put it in the cart. Walk around the store and distract yourself...if at the end of your shopping trip this is a must-have, then get it...otherwise you don't need it. It works even better if you can leave the store and plan to go back the next day. Makes you think before spending. You can apply this to a great many financial challenges!

And no....I'm not young nor ready to retire...because I did all of this wrong. This is advice I've learned, too late in life to capitalize on it, but before I'm forced to live on a fixed income. :) Good luck to all!

Sort by:Oldest

Comments (14)

joyfulguy
12 years ago
On "Canadian MoneySaver" magazine there's a frequent contributor who retired at 34 or 35 ... wrote a book on "How to Stop Working".

I don't know whether you might be able to catch some of his articles if you go to www.canadianmoneysaver.ca and search for "derek foster".

The mag isn't slick and glitzy, carries no ads, is mainly articles and at the end of many of them there's a contact message: if one writes a message that's not somewhat frivolous, often the writers will reply.

Entirely subscriber-driven, they asked what the subscribers wanted and have put on seminars with the authours in a number of locations, plus in about 45 locations in Canada there are regular meetings of the local subscribers: I've attended the one in London monthly for something over ten years.

ole joyful ... who retired at about double that age: 67 or so - 17 years ago
Related Discussions
unexpected early retirement and Social Security
Q
Comments (6)
Abby1930, In some pension systems, your contribution toward your pension is a percentage of your annual income and your pension at retirement relates to the amount that all of those years' contributions totalled out to, plus the amount of growth that all of those invested dollars produced throughout the period. I hope that you can find some source of income which will be such that you can continue to enjoy your new home. Lay-offs have become an increasingly common problem in the economy these days, where many companies feel that employees are as disposable as the machines that they use. Should we call such an approach "Kleenex staffing"? They like loyalty on the part of staff - but if it isn't a two-way street, that rather traditional loyalty situation will be eroded. In fact - it is, these days. Few employees feel as loyal to their employer as was true a generation ago. Telecoms have certainly been volatile in recent years - and increasingly so? While talking to my recently laid-off daughter (who had for several years been a counsellor to people being laid-off), she said that she'd like to have two or even three streams of income - so that she wouldn't be up the creek without a paddle if she suffered lay-off, having depended totally on one income. She's a rather independent-minded person. Who was able to carry on her recent work wherever she happened to be - all that she needed was a higher-grade connection to the internet. She used so much bandwidth that one couldn't call her and have the call go through while she was using the line for corporate-related internet work, as one can do with most internet users using high speed connection. Good wishes to you as you work through your situation in the days ahead. joyful guy P.S. to others: If you should find yourself in this situation (say, next week?) - wouldn't it ease your concerns a great deal if you knew that you had enough assets rather easily available to enable you to survive without too much upset should you, having suffered the trauma of lay-off, find yourself unable to find other work for half of or even a whole year? Personal financial advisors for many years have been recommending 3 - 6 mos. emergency fund to enable minimum survival. Such a plan is much more necessary in the employment climate, these days. Don't you think? I remember a song that was popular when I was young, ... "Wishing, will make it so, just keep on wishing, and care will go." "Dreamers tell us dreams come true, it's no mistake and wishes are the dreams we dream while we're awake". Baloney. Visioning has its place. So do dreams - and wishes. The problem is that quite a number of us allow the dreams and wishes to take the place of reality, rather than encouraging and impelling us to implement them - to change them from a figment of our imagination into a real part of our lives. Dream the dream - then make it work. ...
...See More
10 years from retirement, hopefully
Q
Comments (11)
I appreciate the responses. Celtic Moon - I should be eligible for two very small annuities at 60, one from my main employer (the bulk of retirement is 401K) and from the Air National guard. I'm assuming I can start using the 401K at that point but am not sure I should. The ANG medical kicks in at 60, I think I have to pay in but it should be more reasonable than just being out on my own. Of course that's assuming that all the benefits dont' change and it wouldn't surprise me if they did. I don't think we have any idea yet how much the war has cost but I think its going to be a huge shock. I doubt if those will be enough to live on but am wondering if I can maybe pick up something part time. Either way I would not longer be saving any money. -The bad luck with my portfolio was NOT from chasing profits but just leaving everything where I iniitally put it which was not good despite what everyone says about good times. Apparently. -I'm not sure how you want me to ride the slump out by not selling my house since I'm relocating 4 states away. Rent it? -Hunkering down in retirement would most likely be in a smaller city somewhere else. The rust belt city is where I'm moving for employment. That's not where I want to retire. Steve-o, normally I'd say my line of work is recession proof. However the war in Iraq is costing DoD so big and I think many many checks have been written that have not been cashed and won't be till after this administration. They are downsizing the Air Force, military and civilians to try to pay some of the shortfalls now, I can only assume it will get worse. No, I don't know what else I would do though I wouldn't want to stay in that city if I lost my job. If large cuts were to happens, the housing market in this city where the DoD is the largest employer will go from one of the higher foreclosure rates in the country now to worse. So if I do buy a house I would have a tough time selling. I would like to think though that while we make take some hits it won't be too bad. Very hard to predict and one of the reasons I was thinking of buying some little piece of crap. For say 130,000 or so I can buy a little 3 bedroom, 1 bath, 1 garage 1950's ranch in a slightly run down but safe neighborhood with a decent commute. Certainly suitable to my needs even if living in the burbs chafes. Not sure where these neighborhoods will be headed in 10 years but shouldn't become unsafe even if they slide downhill in terms of maintenance and cost. For plus or minus 100,000 I can buy a little 900 sq' older 2 bed bungalow almost anywhere. The plus or minus is based on location. And they are all painted white - why is that?:) They would keep the rain off my head just fine probably. Its not that important to have the deed in my hand - just whatever works best financially. The alternative is I've been looking for something in the country with a little wildlife and privacy. That's what I like, what I want but am wondering if I should suck it up, live in the burbs and try to work whatever extra money I have harder. Finda place in the country I like has been more difficult than I thought too since a lot of the houses in the country are surrounded by crop land, so even if its on a couple of acres or more there aren't many trees and you are fairly exposed and there's not much for wildlife. The prices are 230 to 300. If my house sells at anything close to asking I could do that with a mortgage. But should I? Rent? Buy? Buy small and cheap? Buy small and sort of cheap? Buy what I want and throw caution to the winds? The real estate market and all that is certainly part of it but I'm trying to look at that as part of this bigger picture am I'm just feeling lost.
...See More
A simple path to financial freedom/early retirement
Q
Comments (2)
Hi Ole Joyful! I would love to get a copy of this book, or any help offered. I am in my mid 30s, husband late 40s. Hubby has been 100% disabled for years, therefore, I am the worker. We have a nice house, child, dogs, cars, and want to secure it all for the future. In my job field, there is no 401K, or anything offered, unless you work for a corporation. So, I have a money market savings acct that I add money every so often. I also have a policy, should anything happen to me. This way, I know the house will be paid for, plus extra cost of living. I would LOVE to spend one weekend with retired people who have made it, but only with the same conditions as I am in. I need to know if I'm doing everything right, to protect our future. I think we all need a mentor in our life.
...See More
Early medical retirement
Q
Comments (30)
I do have advice. Since your condition is on the CAL list, it should be easier for you to get SSD benefits than other people. Let me share with you some of the things which may be a bump in the road. think of your condition as disabling, a disability, and not a retirement. Sure there are tasks of your job that you perhaps can continue to do, such as sitting at a desk and checking the computer or making phone calls, but, I believe, you are unable to do the field work which may entail visiting other places, local travel, lots of walking and making decisions without a medicine clogged mind. The executive decision making and fact gathering, I'm guessing here, are the tasks affected. Sitting for short periods are ok bu not long? Dependent legs a problem? Anxiety about doing the job likely won't enter into the picture bc, as that is, it may be seen as a temporary condition but maybe not. Job anxiety may be seen as a contributing element if you are worried about your job. The fact that you are a long time employee counts.Of course, if you have debilitating anxiety in general, then that's a different thing. Moderate major depression can be disabling. SSA pays for total disability, not partial. Even tho, your first post, says that hr offered you a "very part time" position, perhaps, that may not be seen as a substitute for your challenging job, where you make decisions on facts and gather those facts. Neetsie did I describe the more executive aspects of your job? That matters. think about the tasks that you cannot or have difficulty doing. Mental disability and pain caused disability count but be honest. Think about why you were able to do your job for these many years but cannot now. What and how. What changed? A new boss does not count. A constellation of symptoms counts. The difficulty of clothing can be circumvented and shouldn't count. All that said, being on the cal list counts the most. That's the most persuasive element. does your doctor say you are totally disabled? Might you need to tell him why you cannot do your job, if he doesn't think so? the closer one gets to age 62, the ssa requirements loosen, especially for those in early 60's or late 50's. Since I canno easily talk to you I can only guess about certain things. I am a retired claim analyst/manager, having spent 25 years as a claim professional. The last nine years I was a claim litigation supervisor and paralegal for a multinational corporation working in the legal department. I retired in 94 but most disability issues have not substantively changed. Now there is a cal list but those conditions were previously quickly granted benefits, too. Just not formally listed. Hth
...See More
joyfulguy
12 years ago
About 15 members at the investment meeting last night (another similar meeting conflicted some) and when I announced that I had only about 4 hours left to enjoy being 84 ... they didn't even sing " Happy birthday ... ".

A friend asked a while ago whether my employer-related pension had some indexing, and I said that in about the most recent ten years, usually there's been some increase, usually from about a quarter of one per cent to, occasionally, something like three per cent.

Also some minor increases in the government-provided ones, the non-contributory one (there's length of residence requirement) and the required contributory one that started in 1966.

Being somewhat frugal, by choice rather than necessity, I live within my pensions ... the investment is more or less "play money" ... until I may need it for medical-related treatments above those covered by our single-payer universal health care service.

Some say that it's "free" ... but, as you all know, health care isn't "free" wherever one receives it: there are insurance fees, taxes, or whatever to pay the costs.

Or I may well need to enter a residential or nursing facility as I become more infirm.

Thankful that I have quite good health, now ... apart from not being able to remember stuff.

Hope you all have a great year.

ole joyful
jrb451
Original Author
12 years ago
Happy Birthday joyful!
joyfulguy
12 years ago
Thanks, jrb451.

When I first invited son and his partner to pizza and movie night at church (he's an atheist, of the rather militant variety), when he asked what the movie would be, I told him that they had three, and when everyone signed in (paying their $5.00), they got to pick their favourite ... and he rather bridled at not knowing ahead what he'd be seeing.

We had another last Saturday and he came (his second visit) and afterwards he, his partner and her mom, sat around a table and talked until they started turning out the lights. The movie was "I Walk the Line", about Johnny Cash.

ole joyfuelled ... with a bit o' help from pizza (plus salad and ice cream), that night
sherwoodva
12 years ago
Hey, Ole Joyful! Belated Happy Birthday! Sorry I missed it.

I think retiring early only works if you have things you want to do and the health to do them. I have depression if I stay home too much, so I've been working 20 hours/week for a former (wonderful) boss. It gets me out of the house and feeling like I am contributing something, but also gives me Mondays and Fridays to socialize or schedule appointments. So far, it is working. (My husband can't retire until 2020 if he wants a decent pension.)
concretenprimroses
12 years ago
I am figuring out how to work 32 hours per week now that I'm in my late 50s and have an elderly mother to help out. I have a husband with income too fortunately. I have to work at least that to get my health insurance paid for. I then pay for his out of pre tax dollars.
I am now working 36 hr and hope to go down to 32 this summer. I am also lucky that we have a business I can do some extra work in (for a higher hourly rate than my job) if I really need extra money. But yes, I will need to be very frugal to even pull that off. Especially since I pay for Mom's cell phone and her garbage removal and may need to do more as time passes.
Good luck all. I'm going to check out those articles.
Kathy
joyfulguy
12 years ago
Hi colorcrazy,

What is it about "freedom" that you find disconcerting?

Quite a few folks, having been retired for a while, say that they couldn't go to work - that they couldn't find the time to fit it into their busy schedule.

It's a big, old world out there - filled with a great variety of interesting things and projects, just waiting for you to get involved, along with lots of others.

ole joyful
joyfulguy
11 years ago
A young fellow wrote an article in "Canadian MoneySaver" magazine a little over ten years ago, telling of a book he'd written, "Stop working - here's how ... I retired at 34".

Later he wrote another, called "The Idiot Millionare", and a couple of more, some of them making the Canadian best seller list.

He spoke at a recent investment forum in Toronto, making a report of his experience, ten years down the road. He's outgoing and vivacious, using body language, and looks at the audience while speaking.

He suggested that it's often a good idea to buy stock of companies dealing in consumer staples, as people buy toothpaste in good times and bad. He asked how many had brushed their teeth that morning ... and then how many hadn't. When only one hand went up (mine) he commented on that as being a bit unusual ... and I said "Not so surprising - no teeth"! And that brought forth a good laugh.

So ... don't worry too much if I threaten to bite you, O.K?

ole joyfuelled
joyfulguy
11 years ago
More on the matter of the guy who wrote the book, "Stop Working - here's how: I retired at 34!", which made the best seller list, as did another, "The Idiot Millionaire" and another of similar ilk, dealing with helping children learn how to manage money.

Recently I've thought that, when he asked at the seminar on investments how many hadn't brushed their teeth that morning, I should have put up my hand, and when he commented on it being unusual that there was only one, stood up, walked to the front of the room, and asked him how many people did he know that could touch their nose with their chin? Then showed him how it's done, saying that my last four teeth left work and took pension last year.

ole joyfuelled ... who must now cut his regular fuel into small pieces
Nicholas2014
11 years ago
I don't think as a Millionaire you should get retired that early, we have more fun to explore in our working life. I love to see my working colleagues everyday, it's part of my life.
joyfulguy
11 years ago
Hi Nicholas2014 ... and others ...

... but ... just think ...

... Suppose, that every hour ... of every working day... you didn't have someone telling you what to do ...

... but could do whatever you pleased???

What is it about freedom - that you find disconcerting?

ole joyfuelled
User
11 years ago
last modified: 11 years ago
I am a retired US Navy Submariner that served on active duty for 24 years. I retired from the Navy in 1984 at age 42. I then worked as a very well paid Defense Contractor supporting Submarine development for ten years - and then simply burned out!

I fully retired at age 52! After six months my wife told me to either get a hobby... or get a divorce. lol (I could not afford the divorce, so I turned my love for my (English) Bulldogs into an avocation.)

I started exhibiting Bulldogs and occasionally breeding them.

It is the best thing I ever did! My blood pressure went down, no stress nor bitterness about work, etc, etc.

I have been a quite successful investor all of my adult life, so money was not a consideration. Having the "perfect" wife was also nice. (A "perfect" wife is a wife that has a job AND enjoys it.)

Now twenty years later, my wife just retired and is at home with me. No more Bulldogs, however we recently adopted a 4-year old retired racing Greyhound from the track in Tampa FL, and we are considering adopting a second!

Life is good!!!!!!!
joyfulguy
11 years ago
last modified: 11 years ago
Hi, old navy dawg with the salty tongue,

How nice that you're both at home, following the good wife's retirement.

You'll find that the house isn't as much "yours" as you thought it was, when she left to go to work every day.

When you consider going to battle ... you'll be using "missives" instead of "missiles", no doubt.

I hope that you have many interesting and happy years to enjoy that retirement .... with the greyhounds.

__________________________________

I have referred several times here to the guy who wrote the book, "Stop Working: Here's how you can; I retired at 34" just over 10 years ago, and others, one being "The Idiot Millionaire" or something like that and including one on training kids how to use money well. Some have been on the Canadian best-seller lists.

I'd suggested that if people went to the www.canadianmoneysaver.ca magazine website, they might be able to read some of his articles, but doubt that to be possible, as I must use my subscriber codes to enter most of the site, including archives.

If some of you are interested, I could ask the magazine and him about copying one or some of his dozen or so articles, that go back to when he retired, something over 10 years ago, to send to you.

I've spoken approvingly of the magazine here on a number of occasions, so that might help me plead my case.

Or, I could send his contact address, and he'd likely share at least some of his ideas, likely could follow his blog.

Good wishes as you work toward more skillful use of money: learning how money works is an interesting hobby ... and it pays well! Taxes, too!

ole joyfuelled ... operating with more joy due to having no debt

How to Retire 35 Years Early

grandmamaloy

Comments (14)

joyfulguy

Related Discussions

joyfulguy

jrb451
Original Author

joyfulguy

sherwoodva

concretenprimroses

joyfulguy

joyfulguy

joyfulguy

Nicholas2014

joyfulguy

User

joyfulguy

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

How to Retire 35 Years Early

Comments (14)

Related Discussions

jrb451Original Author

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

jrb451
Original Author