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Old 06-26-2019, 10:24 AM
 
Location: Forests of Maine
30,671 posts, read 49,423,020 times
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Quote:
Originally Posted by ohio_peasant View Post
... It pays more to finish late, than to start early. Folks who diddled-around in their 20s and 30s, then "woke up" and worked a 25-year stint from say age 45 to 70, would thereby be in better shape than the jackrabbits who started with a lucrative job at age 20, and retired at 45.
I disagree.

There is huge benefit to starting early, regardless of when you finally retire.

If you start planning and investing at 20, you should have a significant head start over anyone who starts planning and investing at 40.
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Old 06-26-2019, 10:32 AM
 
7,176 posts, read 8,625,644 times
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I recently read something that if a person started investing in the S&P, $250/month, would be a multi-millionaire in 40 years. Starting to invest as young as possible is the key with the magic of compounding and passage of time.
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Old 06-26-2019, 02:20 PM
 
1,973 posts, read 1,304,292 times
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Quote:
Originally Posted by adjusterjack View Post
Pay off your house.
Pay off your cars.
Pay off all your credit cards.
Keep zero debt forever.


Meantime, accumulate $1,000,000 in cash by the time you are 40 and you'll be able to retire.


That's the answer to any question about early retirement. Money. Lots of money in savings. Period.


Otherwise it doesn't happen.
Wow. A million at would be no where near enough for most people to retire at 40, even with no debt.
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Old 06-26-2019, 02:25 PM
 
1,973 posts, read 1,304,292 times
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Quote:
Originally Posted by Submariner View Post
I disagree.

There is huge benefit to starting early, regardless of when you finally retire.

If you start planning and investing at 20, you should have a significant head start over anyone who starts planning and investing at 40.
Right. I've always heard its just the opposite due to the compounding of interest. Simple math I guess, but I'm too lazy to do it right now..
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Old 06-26-2019, 02:36 PM
 
2,030 posts, read 857,321 times
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I don't know anyone who retired at 40 except those on disability or welfare. You can retire today but both of you can't without an income. I retired at 59, went back to work at 60 and retired for good at 62. As far as early retirement for me, I tracked all my expenses on a spreadsheet for a couple of years then increased my 401K contributions until my take home pay was about what my pension would be, and lived on that to be sure it was doable. Also paid off all the credit cards and cut them up and started using a debit card, and paid off the mortgage. Sold the house and downsized to a new smaller energy efficient house. Have good medical insurance, insurance on the water line, homeowners and liability insurance so I don't get hit with any catastrophic losses in retirement. Lease a car so no maintenance or repair costs. If you can do all that at 40 you would have to be rich already.
Quote:
Originally Posted by teaolive3 View Post
If you have been able to retire early what is the best advice you think someone would need? My husband and I would like to retire early and we know we need income each month coming since it will a while before we can claim social security or start cashing out our 401k’s with no penalty. I am 36 and my husband is in his early forties. I would like to completely retire by the time I’m 40. Thank you for any advice.
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Old 06-26-2019, 04:15 PM
 
2,442 posts, read 2,068,483 times
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Quote:
Originally Posted by bobspez View Post
I don't know anyone who retired at 40 except those on disability or welfare. You can retire today but both of you can't without an income. I retired at 59, went back to work at 60 and retired for good at 62. As far as early retirement for me, I tracked all my expenses on a spreadsheet for a couple of years then increased my 401K contributions until my take home pay was about what my pension would be, and lived on that to be sure it was doable. Also paid off all the credit cards and cut them up and started using a debit card, and paid off the mortgage. Sold the house and downsized to a new smaller energy efficient house. Have good medical insurance, insurance on the water line, homeowners and liability insurance so I don't get hit with any catastrophic losses in retirement. Lease a car so no maintenance or repair costs. If you can do all that at 40 you would have to be rich already.
I worked with a guy that was in his sixties and said he retired at 50. The kind of worker he was, my guess was he fired at 50 and took a year off and then had to go back to work until 65 and retire which he did.
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Old 06-26-2019, 04:24 PM
 
7,176 posts, read 8,625,644 times
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There are 2 components to early retirement:

1. Knowing when you are financially independent, what that means and how to calculate it.

2. Deciding what to do once you have reached financial independence.
There are many options and retiring to go sit on the couch, as many think of retirement, is but 1 option out of a wide variety. Most people upon hearing that someone "retired" think of the sitting around type of retirement or babysitting grandkids. The person could be starting a new career or pursuing an interest in a different field. They could be giving back in ways they didn't have time to do before (teaching, coaching, mentoring). They could be going to school or back to school to learn something new. People assume and oftentimes they assume incorrectly.
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Old 06-26-2019, 06:00 PM
 
2,030 posts, read 857,321 times
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Quote:
Originally Posted by jasperhobbs View Post
I worked with a guy that was in his sixties and said he retired at 50. The kind of worker he was, my guess was he fired at 50 and took a year off and then had to go back to work until 65 and retire which he did.
I retired at 59 with a full pension. Got bored and went back to work a year later from 60 to 62. With a full salary and a full pension I paid off the mortgage. At 62, I had no money worries, so saw no reason to keep working. It's funny how life works out. I was afraid to retire at 59 but did it anyway. My pension was a little less than half my salary. 14 years later my retirement income with the pension and our SS and my RMD from my IRA is higher than my last pay check before I retired at 59 the first time.
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Old 06-26-2019, 07:43 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,537 posts, read 39,914,033 times
Reputation: 23634
Quote:
[I]There is huge benefit to starting early, regardless of when you finally retire.[/i]
Quote:
Originally Posted by dbsteel View Post
Right. I've always heard its just the opposite due to the compounding of interest. Simple math I guess, but I'm too lazy to do it right now..

I was blessed with 'motivation'
(Got kicked out of the house pre-age 16).
  • Watched my very successful parents implode financially
  • Was used to 'deferred compensation'. . Got paid in calves (24 months to maturity, if they survived the winters)
  • Always worked 3 jobs,( free heat / utilities while you are at work!)
  • Diversified investments
  • Got lucky (good job with many stock splits)
  • Lived CHEAP
  • Was 'too responsible' to dink around (never drank / smoked / toked)
  • Became a 'caregiver' for disabled parent by the time I turned 18 (time to get serious about financial management (earning $1.50 / hr, needed to buy a house) )
Earn early
retire early

Tomorrow may be too late (for either).
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Old 07-02-2019, 04:45 PM
 
Location: San Diego
476 posts, read 509,506 times
Reputation: 879
My dad retired at 39 after paying off a few apartment complexes and his primary residence. He also was a police officer during his working years. He didn't date much or have kids until after retiring because he said he didn't want to spend money on that (had me at 44). So no debt and had a passive income. He worked on the complexes when there were vacancies if he wanted but didn't have to (would hire people as needed). I don't remember him being inti traveling though but would drive to Vegas or Palm Springs for weekend trips. He did like working though and cared for his complexes very well, never hired a management company. He passed at 61 so was fortunate to have good retirement years.
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