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Old 12-15-2018, 01:18 AM
 
11,679 posts, read 7,048,359 times
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Quote:
Originally Posted by Lowexpectations View Post
It’s not the 50k alone that’s in question but rather the funds to buy a house, car and fully fund retirement in your 20s. I’d have no desire to attempt to recreate what you’ve done. When you ask people who wants to join you and then fail to explain how something is a miss.
The $50k house IS important. Let’s say you purchase at 20 or 21. You then live rent free for the remainder of your 20s whereas most are paying $900-1500/month in rent. You also create the possibility of having a roommate (+$600/month) and/or sharing expenses with one’s SO. Theoretically, one lives nearly “free”. Just doing simple math, $500k/10 = $50k/year needed. With a decent return saving around $40k/year for a decade should do the trick.

I mentioned earlier a friend that made around $60-70k/year in his early 20s selling cars so it is possible without having any special powers. Come on folks...think.

Now imagine two like minded people making say $90k/year and living on $10k...let’s say two nurses getting night shift differentials (via community college one could be a nurse by 19 or 20). How much are they making by say age 27, 28, 29? What if they become nurses at age 19 and live with mom and dad for 3-4 years?
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Old 12-15-2018, 02:42 AM
 
71,584 posts, read 71,730,589 times
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Quote:
Originally Posted by Lowexpectations View Post
It’s not the 50k alone that’s in question but rather the funds to buy a house, car and fully fund retirement in your 20s. I’d have no desire to attempt to recreate what you’ve done. When you ask people who wants to join you and then fail to explain how something is a miss.
that was the part i saw as wrong to do .

he started that thread about who is joining him not working in their 30's . like it was something someone could just jump on the band wagon . then he refused to disclose how he was able to do it . it was a bizarre post and at that point i lost total interest in whatever eddie had to say or did.

i always thought you needed to at least work to "retire from a job "

Last edited by mathjak107; 12-15-2018 at 03:01 AM..
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Old 12-15-2018, 02:51 AM
 
13,912 posts, read 7,405,593 times
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Quote:
Originally Posted by eddiehaskell View Post
Just doing simple math, $500k/10 = $50k/year needed. With a decent return saving around $40k/year for a decade should do the trick.

So you're saying you can early retire in your 30s with $500K? Show me how that math works.
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Old 12-15-2018, 03:00 AM
 
71,584 posts, read 71,730,589 times
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sure ---have someone leave you a trust fund or inheritance . works every time ha ha ha ...
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Old 12-15-2018, 03:38 AM
 
71,584 posts, read 71,730,589 times
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Quote:
Originally Posted by GeoffD View Post
So you're saying you can early retire in your 30s with $500K? Show me how that math works.
use tax payer money where ever you can . medicaid health insurance can be worth a fortune . my sister in arizona is paying 1400 a month for herself with a 6k deductible .that is the cheapest market place plan they have . medicaid can be worth up to 20k alone .

Last edited by mathjak107; 12-15-2018 at 04:10 AM..
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Old 12-15-2018, 04:01 AM
 
11,679 posts, read 7,048,359 times
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Quote:
Originally Posted by GeoffD View Post
So you're saying you can early retire in your 30s with $500K? Show me how that math works.
I didn’t say anything - $500k is simply a number tossed around by others. I gave a few examples of how one can obtain that number. As for me, my living expenses are around $10k/year so yes, $500k at 4% would last me quite a while...likely the rest of my life. Cohabitating with GF, my expenses are even lower...ridiculously low.
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Old 12-15-2018, 05:00 AM
 
4,546 posts, read 4,729,540 times
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Quote:
Originally Posted by ohio_peasant View Post
In my area, a $50K house would probably be in an undesirable locale, and in need of renovation. But if we double that amount, to $100K, we arrive at an entirely reasonable suburban house... 3 bedrooms, 2-car garage, basement... not fancy, not updated, not the best school district, but entirely OK. Raise that to $150K, and now we're in an upper-market suburb, with good schools, and a 1600 ft^2 house. Go up to $200K, and we begin nipping at the lower-range for McMansions, or nicely-built older homes in the best school district.

Meanwhile, in many parts of the country, the above numbers would have to be tripled (or more)... and I don't mean San Francisco or Manhattan.



We've already learned in this thread, that eligibility for subsidized healthcare is orthogonal to wealth. It is neither the poor nor the rich who scam the system, nor the poor nor the rich who get fleeced by it! Rather, it's a matter of clever decisions, foresight and planning, how one happens to invest, where one lives and so forth.



We're missing the broader point here, from both sides. Suppose that Eddie or anyone else does amass $50K by his/her early 20s... whether by inheritance, hard-work, clever investment or whatever else. Fantastic! Now what?

In the real-world, after-tax and after-inflation, conventional investments return maybe 4%/year. That's a doubling every 18 years... nice, but hardly enough to go from a moderate nest-egg to serious riches. So, instead of berating one or another poster for a putatively sketchy story about how he/she attained some threshold of investment-holdings, we should instead be asking, "Is it enough"?

Let me rephrase: a frugal person doesn't need much. So, if we think of money as a took for doing the job of keeping us alive, then maybe we don't nee to acquire prodigiously much, and can withdraw from the conventional working-world having made modest achievements, and continuing with modest habits. But if we think of money as a score-card, as something to be accumulated and yet never touched, then the philosophy and psychology change entirely, as does our retirement-strategy.

The trouble with this whole FIRE movement is NOT that it's fanciful prevarications or outright unrealistic, but that it's predicated on a philosophy that rejects money as an end-in-itself.
The last part is entirely false. The FIRE movement does not reject money at all it simply says money is a means to an end. The things that truly make people happy are community and time, 2 things that are severely lacking in most peopleís lives and are surprisingly inexpensive. Instead most people go through life accumulating as many things as possible and wondering why they are struggling to make ends meet. If you strip down life and focus your spending on what truly makes you happy itís surprisingly inexpensive. Take me and my family of 4 for example. I havenít finished up our yearly expenses yet, but based off of what I know we are looking at just over $60k by a few hundred dollars with $20k of that being daycare for 2 kids under 3. We live a very upper middle class lifestyle and if my wife or I quit our jobs we could do that on $40-$45k/yr. I have friends that go out to eat 3-4x a week and spend over $1k a month shopping. There # in our situation would be $80-$90k to eat out more and buy clothes and furniture. Are they going to be dramatically happier than us? I know those things donít make me happy, but perhaps for some spending $10k/yr on clothes would.
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Old 12-15-2018, 06:13 AM
 
18,857 posts, read 13,611,388 times
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Quote:
Originally Posted by eddiehaskell View Post
The $50k house IS important. Letís say you purchase at 20 or 21. You then live rent free for the remainder of your 20s whereas most are paying $900-1500/month in rent. You also create the possibility of having a roommate (+$600/month) and/or sharing expenses with oneís SO. Theoretically, one lives nearly ďfreeĒ. Just doing simple math, $500k/10 = $50k/year needed. With a decent return saving around $40k/year for a decade should do the trick.

I mentioned earlier a friend that made around $60-70k/year in his early 20s selling cars so it is possible without having any special powers. Come on folks...think.

Now imagine two like minded people making say $90k/year and living on $10k...letís say two nurses getting night shift differentials (via community college one could be a nurse by 19 or 20). How much are they making by say age 27, 28, 29? What if they become nurses at age 19 and live with mom and dad for 3-4 years?
I donít need your help creating what if scenarios or with math. Iím more than capable of handling both on my own. Your response here is much like it always is, complete avoidance
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Old 12-15-2018, 06:56 AM
 
4,546 posts, read 4,729,540 times
Reputation: 3595
Quote:
Originally Posted by mathjak107 View Post
that was the part i saw as wrong to do .

he started that thread about who is joining him not working in their 30's . like it was something someone could just jump on the band wagon . then he refused to disclose how he was able to do it . it was a bizarre post and at that point i lost total interest in whatever eddie had to say or did.

i always thought you needed to at least work to "retire from a job "
I just started working full time 6 years ago and my wife has never earned more than $17/hr and we have a NW of $700k. It’s not as if it’s out of the realm of possibility to be finished working in your 30s for many people.
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Old 12-15-2018, 07:52 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
5,472 posts, read 4,094,118 times
Reputation: 7273
Personally I donít care how he got his base money. On his last thread I congratulated him for his lifestyle setup. But I can certainly see how others just struggling check to check are dying to know how he got there for their own guidance.
I think transparency was all that was asked for. The more people asked how he got started, the more he avoided it like he was embarrassed or that he thought he would be discredited for being given a big chunk. Had he just revealed it, it would have never come up again.
It would like me telling everyone I live off my rentals and someone asking how did you manage to buy your first one , get the down payment, and just avoid answering.
Like I said, what he does, I donít agree with 100% but it works for him . I donít want to not work and live that close to the edge myself, but others might.
So what was the purpose of telling everyone of his formula for early retirement if he wasnít doing it to share it so others could do it by telling the whole story, unless it either has holes in it or was simply to brag?
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