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Nope. Just plain old living below one’s means since around 12-13 yrs old while making a few good investments (like paying cash for a home around the time the market was at its bottom...now worth 3x+ price paid).
Nope. Just plain old living below one’s means since around 12-13 yrs old while making a few good investments (like paying cash for a home around the time the market was at its bottom...now worth 3x+ price paid).
Some of that is luck and timing, and having the capital to deploy in the first place.
Some of that is luck and timing, and having the capital to deploy in the first place.
Nearly everything is "luck and timing"! Sloth, stupidity, obduracy or miscalculation can always ruin a good opportunity; not all lucky-people succeed. But no amount of good sense or good character will overcome outright lack of opportunity.
Let's hope that the same luck and timing that enable early-retirement, persist during retirement itself.
Possibly some luck, but mostly just embracing delayed gratification. Most teens or 20 somethings won’t have capital because they spend too much.
Or you can be high enough income with a spouse at the same income level that those years of maxed 401(k), payments on mortgage principal, and maxing out Social Security contributions gets the job done. That won’t get you early retired before 40 but you’ll be comfortable at 60.
Or you can be high enough income with a spouse at the same income level that those years of maxed 401(k), payments on mortgage principal, and maxing out Social Security contributions gets the job done. That won’t get you early retired before 40 but you’ll be comfortable at 60.
That works. Take two people living on $20k/year and making say $70k combined. If they bank/invest $50k/year for about 7-8 years while also having a huge chunk of equity in a home (buy a $150k home)...well, that will give them a HUGE head start in life. Being 30 years old with $300k and a home makes early retirement seem attainable. Being 30 with almost nothing or even a negative net worth makes it seem impossible. Throw children into the mix and the 30 yr old with nothing is surely toast as far as early retirement. In reality, that’s probably where most people start...late 20s, bad debt, high living expenses, little/no savings and small children. That’s a big hole to climb out of by even 60.
That works. Take two people living on $20k/year and making say $70k combined. If they bank/invest $50k/year for about 7-8 years while also having a huge chunk of equity in a home (buy a $150k home)...well, that will give them a HUGE head start in life. Being 30 years old with $300k and a home makes early retirement seem attainable. Being 30 with almost nothing or even a negative net worth makes it seem impossible. Throw children into the mix and the 30 yr old with nothing is surely toast as far as early retirement. In reality, that’s probably where most people start...late 20s, bad debt, high living expenses, little/no savings and small children. That’s a big hole to climb out of by even 60.
I have to quibble with your math. You still have to pay taxes on that $70K. You still have to pay for health/dental/vision and at that level of comp, it's unlikely your employer is going to pay 100%. That $150K house has home ownership costs where you can't "live on $20K".
I have to quibble with your math. You still have to pay taxes on that $70K. You still have to pay for health/dental/vision and at that level of comp, it's unlikely your employer is going to pay 100%. That $150K house has home ownership costs where you can't "live on $20K".
Yes, there’s taxes, but a couple who are both working could easily TAKE HOME $70k/year. I have a friend with no education that made $65k in his early 20s working as a car salesman. His wife made $30k working as a medical assistant. That’s $95k gross. No college. Around here within 25 miles of a major metro, one can easily buy a 1000 sq ft remodeled home for $130k. With $20k or so down we are talking a $500 house payment...maybe $700 including taxes/insurance. They could easily live on $20-25k/year including home, health insurance, food, etc. That leaves at least $50k/year left over to invest and/or pay off their home (maybe within 3-4 years). Maintain this lifestyle for 10 years and be set for life.
Yes, there’s taxes, but a couple who are both working could easily TAKE HOME $70k/year.
Sure, but you wrote that they make $70k. You'd need extreme frugality to accumulate enough wealth to retire early on that combined income.
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