How To Retire In Your 30s (MY PLAN!)
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- čas přidán 7. 09. 2024
- The 3-step process to run the numbers for early retirement. Your time = Your life. So why should 67 be the official retirement age? Why not 50, 40, or even 30? It's all possible, and I talk about my own early retirement plan in this video
**ATTENTION: I have a new Instagram and TikTok handle @itsrosehan **
That's my official account, and I will NEVER message you about investment schemes, so please be careful and block & report any scammers posing as me.
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**THINGS MENTIONED IN THIS VIDEO! 👀**
💫Investment Calculator
www.calculator...
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***FREE DOWNLOAD: The Ultimate Guide to Investment Accounts
Everything you need to know about IRAs, 401(k)s, HSAs, and taxable brokerage accounts. What they are, which ones you need, and where to open them!
www.rosehan.co...
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**BOOKS I RECOMMEND 📚**
I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)
amzn.to/2VbJ1Pt
The Little Book of Common Sense Investing (Jack Bogle's classic advice on index funds)
amzn.to/32ewzjj
InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)
amzn.to/2SLTYpn
Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)
amzn.to/2SKyklt
Rich Dad Poor Dad (#1 selling personal finance book of all time... need I say more?)
amzn.to/2SJ6vtx
Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)
amzn.to/37N2adc
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**MY FAVORITE MONEY TOOLS 🖤**
YNAB (I literally can't live without this budgeting app, so obsessed)
www.youneedabu...
Wise (like Venmo but for international currencies - I use this app a LOT for my life in Mexico)
wise.prf.hn/l/...
Ledger Nano S (crypto storage hardware wallet, because "Not Your Keys, Not Your Crypto"!):
amzn.to/3Ne37jy
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DISCLAIMERS & DISCLOSURES ❤
This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Investing With Rose is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Thank you for your support!
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Im an immigrant and and got financially stable late in life like my 40s… now 46 would need to know how to earn more for this to apply to me
Starting late, but better to start now than never! Imma shoot for 50 and call it a success!
@Investing With Rose Sounds shady...count me in!
@@aeid99 it is. No one legit posts their number in CZcams comments report them
@Meet Kevin 🤡🤡🤡
I was able to retire at 38 and My wife at 32. Lucky we did not quit our jobs as COVID hit and our travel plans would have been ruined. Most people have the opportunity to retire early if they are born in a developed country. Work hard and don't waste money. You can have a lot more fun if you do not waste money. I have spent about 2 years travelling in the last 15 years to avoid burning out. Work can be repetitive and boring.
@@WISERandHAPPIER wow, I thought retiring at 30 was impressive, 3 is another level!
The goal IMO is not to do nothing from the age of 30 and onwards. The goal is to leave your 9-5 job. I don't mind working, but I don't want to work on someone else's schedule, and on someone else's terms. I don't want to be told where to work, when to work.
you are such bad boy! you must learn to obey!
@@stefaniaschweizer9748 bro what
I like the idea of part-time retirement. You don’t get bored, get some supplementary income without much work pressure.
Being able to work because you WANT to, and not because you HAVE makes all the difference!
@Frances Thomas
well you didnt have to be mean about it. It is a good time to buy in on stock, so just buy in on stocks.
@Frances Thomas
As a beginner, I took a more practical step to learn to invest, I began through the guidance of a financial consultant and within 2 years, I have owned 2homes in the United states and car dealership all with the an investment capital of $150,000 so it is best to invest with the help of a professional.
I love the FIRE movement too. A million should obviously work, but I'd still feel nervous, like it wouldn't be enough and I'd screw myself over in old age. I'm going hard now with no major goal in mind. I celebrate small milestones and hope to get to a place where I'd feel comfortable cutting back, but I know that wouldn't come for at least another decade, maybe two. When I do get there, it'll feel so sweet to look at all my hard work and all that I've accomplished.
Joined the Navy at 18 with 7k in the bank. I smoked a lot of pot in high school. Left the Navy after months with 32k in the bank. Invested 29k in the S&P in late 90. Started working at UPS, Exide Battery and did concrete on Saturdays. Invested 1k a month every month into it, Cashed out 250k from the S&P and invested with my Financial advisor Lucy Maria Koss. Cashed out and Semi retired at 31. Took a year off. Traveled. Came home and started working part time for the insurance, entertainment and pocket change. Work isn't work when you don't have to work. Becoming wealthy can be done in few years. It feels like 60hr work weeks. Feel the pain of discipline early or feel the pain of regret later. I wish everyone well!
very inspiring, Go girl!
Great work, i like your consistency and how courageous you were, that's really all you need to survive in this business. Congrats on your success!!
@@tonimhamilton2072 Thank you so much Mister
Love this!! ♥️
you need 1 million in your bank to retire.... now its 2 million..llearned that in university
Most people just log on to CZcams to get info on the stocks to pick, without basic understanding on portfolio selection and risk tolerance.
"There is nothing wrong with a 'know nothing' investor who realizes it. The problem is when you are a 'know nothing' investor but you think you know something" - Warren Buffett
I advice Investors especially beginners to get an expertise guide from a financial advisor and work on your investing tolerance and risks, with time you'd learn to navigate the market all by yourself.
It is uncertain when we'd all recover from the economic meltdown the pandemic dragged us into, so I'm tryna improvise by focusing on investing, an investor I saw on business insider spoke about making over $450,000 in 3 months and as a beginner I would really appreciate any tips or guidelines on how to become a successful trader
I resorted to investing after been laid off early this year, investing is way better than 9-5
and it can be quite complicated for a beginner, so its best you reach out to an investment adviser for assistance.
@@gregalbert1588 I will share my experience with you, I started investing about 3 years ago, but last year I began investing with the guidance of an investment adviser and within a year I have made about $720,000 in profit from an investment of $150,000 so you will make better profit when you have an expert supervising your investments decision.
@@alvarovelazquez989 That’s impressive ! amazing profits. please how can i reach out to this Investment advisor ?
@@daanbeekhof6008 I invest with Sandra Deborah Willis, came across her on a CNBC business news so i looked her up, You can connect with her directly on TeIegram @Sandra_Willis
Retirement planning at any age can be challenging untilI was convinced by my late husband 2 years ago to seek a financial expert which I did, just recently acquired a 3 bedroom apt in Toronto for $650,460
sorry for your lost, if you don't mind can you tell me the name of your financial advisor and how does he help you earn money
@@hilarybrian8106 I'm good ok, my financial expert's name is Robert Johnson, he's a life saver, I was at a point not losing my mind because of the depression of owing alot debt, but then I did as he ask and now I'm making $8000 on average a week.
He's a finance philanthropist trader because he helps people trade and earn more not to make money but to better lives.
@@wilsonanna4951 I think I'm grabbing this, can I get your financial expert on my whats✔️app??
@@schuylerphilips3226 yeah
*+1 (3 4 7)- 6 7 6 2 9 6 5.*
I retired at 56 years old. Better late than never.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
Retired at 39...and now I'm 62. It's so fun! Bored? No way...I am as busy as I want to be...or as lazy as I want to be...anywhere in the world! It's awesome, it's real, and obtainable. Start early, take Rose's advise...she's awesome beyond!! Freedom was my passion, and I just kept my eyes on the prize....you can too!
Have you written about your story anywhere? I'd be interested to know how you did it and how you've managed your portfolio to STAY "retired"! Did you get a part-time job? What was your FI number? Did you stay in the US or use geoarbitrage?
Congrats on the success!
Can you give people a few tips on how you retired early? Everyone takes different approaches!
@@CalmerThanYouAre1 Maybe I should have been more clear. I didn't retire because of the stock market, I was able to do it by creating niche' markets...getting exclusive rights from manufactures...building a profitable business and then selling them off. Unfortunately you can't do it that way today...too much dog-eat-dog, and factories have zero loyalty. I came to Rose to learn about utilizing and leveraging my money in the stock market. Always had interest, never learned. If you're younger, heed her advise. She has extensive knowledge AND experience to boot. Her videos are one of the best resource libraries around...and for FREE! Take her Masterclass if it's still available...
@@dspychalski That is a weird response. Creating a business is the right idea and really the best idea if one wanted to achieve early retirement. Even though your exact businesses might not be viable in 2020, creating businesses in other areas is still doable. Odd you would recommend people against what made you successful and recommend someone to only invest. Most people in their 20s do not even bring in $6K per month after taxes.
@@Penelope416 If you have to work full time, squeezing out time is always the hardest, especially if you have kids. But...there are many ways to get ahead. Most important is budgeting and learning what you can live without if money is tight. If you can't save money, you need to find a way to do so. It does take money to make money...that will never change. Then invest in yourself in some way to that allows you to move forward. The good news is that it doesn't take a lot to start making an impact. Rose has that covered big time in her videos. Most important is find out what you are passionate about and give your life to it. Mine was 'absolute freedom from concern'. I think it's really important to find out what makes you tick...hope that helps.
I told my parents that I'm going to retire in 10 years and they laughed at me. You've helped me reinvigorate my faith in doing this. Thanks.😊
One thing I can tell you , never save on your food. I am not saying u need to eat in the restaurant. But buy quality food And cook yourself. But never buy cheap and not nutritional food. You gonna fu#k up your health. Your health is the most important thing in your life. Not your wife, not your car,not your house but Your Health😉
If you’re reading this, you have the potential to create great things. Yes. YOU.
Agreed. I went from $0 at 43 to $1.13 million now at 58. Never thought it was possible, but, yes, it was, and here I am, glad I didn't just give up back then.
@john doe Boglehead style. Just plain old low cost index funds.
@@timelston4260 Excellent! how did you do it?
@@MegaAchei I went to night school, starting at age 44, and got my first job as a software engineer at age 46. I rented places as cheaply as I could, didn't spend much, stayed away from new cars, payed my credit cads off every month, and maxed out all my retirement vehicles, everything in low-cost Vanguard index funds. I kept investing on a regular basis, especially through the 2008 crash, and I rebalanced my allocations at least yearly, and especially during crashes. I worked hard and kept learning, so my salary kept growing. I took my first job in a remote area (SE Alaska), where I didn't want to live, so I wouldn't get out-competed as an old guy just starting out as a programmer in the Chicago area, and after five years I then moved to a market where I could demand a higher salary (Portland, OR). Basically, it came down to taking risk, working hard, keeping control of feelings of discouragement as I learned my trade, being disciplined, and taking advantage of the breaks that came along. And right now I am taking an intensive Spanish language course so I will be ready to move to Latin America when I retire, so those dollars stretch further and I can leave an inheritance to my nieces and nephews and charitable organizations when I take my final rest. While I'm in Latin America I plan on getting a degree in Spanish literature, to keep myself intellectually active. Degrees in Mexico are very inexpensive. So, it's a lot about strategy, in the long run.
😊
I was interested in retiring early as well. Debt free except with my mortgage. Master’s degree in business and I have a Roth 401k and Roth IRA. Then, I witness people who retired early (around in their 50s so not ideal like the goal of retiring at 30), and they always say that they feel bored. Sure, they have the freedom to try something new, but more feels like they have to just to kill time.
Currently, I have a great job where I work from home for about six months each year, and I travel internationally at least twice each year with my wife, not including travels within states. I’ve always been a hustler and a go getter, so I realized that maybe retiring very early is not ideal for me, at least not in my 30s. Maybe in my early 50s. Whenever I have a day off where I do completely nothing, I feel unproductive and it bugs me. So I would imagine if that’s how it would be to retire early, then I am just fine with continue working while still enjoying my travels.
I don’t mean to bash on this video nor on other people’s dream, if you want to retire early in your 30s then hell yeah go for it! Watching people hustle and grind for their dreams motivates me! I’m all about watching people pursue their goals. To me, I think it’s just personal preference, and I decided to continue my current lifestyle. I’m a fan of Rose so this video showed up on my feed.
Wish y’all the best!!
you are a really naughty and lazy boy! your girl friend will leave you soon unless you change your bad character
I totally agree with you! I even seen more people retired early and becomes more depressed because there purpose in life in missing. I also love to travel twice a year and working from home is a great set up and gives you the flexibility. I never dream of retiring early why can’t you work and have fun at the same time. If you feel burn out then take a vacation and travel, I like to call it work hard and play hard! both win win situation for me and hubby.
The goal is to have enough money from investments to cover your living expenses and have the OPTION to retire early if you choose too. If you love what you do it's totaly fine to keep working AND have enough money to retire.
I am in the same boat, except trying to retire mid 40s. Ive been investing since my 20s and now in my early 30s. Lucky for me, I have very high income but I save 70% of my paycheck and I throw 5,000 at whatever stocks have great fundamentals for the long run, for instance, NVDA and SQ. they might return 300% this time of frame in the next 10 years or maybe not, but likelihood is they might. that is how I paid off my mortgage, through stocks. Now I am starting over again, so whatever "mortgage money" I used to have, is going straight to the stock market now. Now I have a possible airBnB for a passive income and now aiming to re-invest again so I can combine all of them to retire in my late 40s.
But here is the catch, reason I might be able to is because I plan on living off an RV and traveling while using the mortgage as passive, plus w/e I have in my investments again. But here is something a lot of people dont tell you and even the millionaire next door book tells you, having a spouse with the same mindset makes it 30000x easier, which if it wasnt for my wife, I wouldnt be able to do this. but VERY doable and possible to retire in your 30s if you start early enough. My advice, forget the nice cars and big house. use all that extra money to send it to the stock market and expect all stocks will not do well. lucky for me almost all of my stocks did very well, maybe 1 or 2 gave me 1 or 2% return and some -
I think now being considered rich is having a net worth of around 3 million. After 2020 in the next few years due to money printing, being rich could reach 5 million. So it's a never ending battle between how much you need to earn and future society demand. The chances are we'll need to keep growing out assets to stay above the water...
I just turned 26. I spent the last four years paying off debt, then saving and this year I finally began investing. Thanks to you and your videos I opened up a Roth IRA with Fidelity, along with a 529 for my daughter and even a brokerage account to invest with after I max my Roth every year! I am a graduate student and it felt amazing to reject my federal students loans, I am paying my tuition off monthly instead and have savings to cover the cost if need be but I have applied for 50+ scholarships and have received close to 10k so far. We live in California and plan to move out of the state to begin investing in real estate and will house hack a multi family unit property. Love your videos and all your content, it's inspired me to create content on Instagram to connect with others who share the same goals. Thank you Rose!!!!
Hi! Also from California and looking to move and eventually house hack as well! Currently, I am looking to enter grad school next year. Could you please share some resources regarding the scholarships that you applied to? Thanks!
@Investing With Rose are you serious or is it an ad?
@@rhajaawright6092 Yes we've looked into the market here and it's incredibly unreasonable for us to purchase in San Diego We were pre-approved for 600k but we couldn't find any SFH that were not run down or in less desirable areas. Congrats to graduate school! I recommend applying to all your schools own scholarships and grants, that's how I got a huge chunk of my tuition paid for. I also used Going Merry it's an amazing scholarship website. You can refine by state, age, degree concentration, situations, race or ethnicity, etc. They even group together scholarships with similar essay prompts so you can apply to 5+ at once. Highly recommend!
@@Liv8449 i think it's a fake account
Okay, you given me something to think about. One thing is accurate i WILL be using the fire movement to retire early. I am thinking 3-5mill, currently 26 yrs old! Side hustles coming soon
@Investing With Rose Yes I am!
What I expected when looking into the FIRE movement :: people discussing ideas for side hustles and investment tips
What I got when looking into the FIRE movement :: A bunch of penny pinchers bragging about saving a couple of bucks by refilling their ketchup bottle with free packets they grabbed from some fast food place
ALL A SMOKE SCREEN. Snake oil stuff in the movement.
LOL
Make more or spend less.
LOL.....ketchup?....try free sugar packets from cafes etc.
Years ago I totaled up my yearly outgoings and income on an Excell spreadsheet mainly to see how my finances would pan out by each year's end........this gave me an exact indication of what it takes to be in the black and not in the red without knowing it.
If you don't track your outgoings you WILL go broke and never know when it's going to happen until your bank account is empty.
I was on a weekly wage as a skilled tradesman with a mortgage, Wife and 2 kids and balancing the money became an art form thanks to my computer and Win Excell.......I knew exactly when my monthly bills would happen so that made predicting how much I needed to have in the bank for that month easy with the spreadsheet indicator.....some months, like Winter, bills were bigger than Summer etc, so having the overall total divided by the months as they varied is absolutely critical if you want to keep track of your money.
Investments?.........that is where you spend your money that will give you an eventual return like a house when you one day retire rent free......how many retirees have I seen on a state pension or small self funded pension who are struggling to make it work when they are still paying rent.........the only one who gets fat is the landlord.
In reality, owning a house no matter how humble is almost like getting A$500 a week from your investment when you retire, otherwise you are giving A$500 a week to someone who is sitting somewhere in the sun living it up on his/her rents....forever.
If you want to retire at any age, buy your house early, no matter how old or shabby, maintain it while you live on it and sell it on and buy better etc.....that is the first bit of advice my father gave me.
I live rent free on a State pension as I invested in the State all the years of my working life by way of my tax dollars......I'm also 82.
Aggressively saving money is my new favorite form of aggression
🤣
@@davidbernard6346 I feel like PayPal are going to disagree.
Naw you mean INVESTING IS NEW FORM OF AGGRESSION.
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Rose is a scam artist who is stealing people’s money through a fake website called www.FidelityOptiontrading.com BEWARE!!!!
Ive also been debt free by 30 and paid off all my student loans and investing a lot into index funds and stocks. I only follow a handful of finance youtubers! You have quality content that helps ppl of all finance levels. Keep up the great work!! Also I really like your dimple :)
As a new CZcamsr and Investor I appreciate this amazing financial advice!
I'll become a digital nomad or do working holidays in different countries after I "retire"! I totally agree with the geo arbitrage hack; I experience the same thing when I was traveling abroad! I'm 26 now and I also want to retire at 36! Let's do this :D
Questions:
1. If you re-locate for retirement, doesn't the savings get eaten up by the flights to visit friends and family? And assuming age is setting in, medical care?
2. A lot of companies are jumping on the bandwagon of adjusting your income based on where you live if you ask to work remotely. My coworker had this happen to him, and he was a former Director level. So let's say in SF I earn 100k. If I move to Idaho, my salary will be adjusted to 60k. That only gives me about an extra 10k/year of disposable income. I now also have to have paid movers, make new friends, and build a new support network. For an extra $833/month that I may end up spending to eat healthy and tasty, traveling to visit my family and friends, or otherwise entertain myself. See www.salary.com/tools/cost-of-living-calculator/compare/menlo-park-ca/idaho-city-id. How do you negotiate or position yourself with(in) your company to keep your current rate?
3. Barista FIRE. What is the hiring rate of older employees at these part-time positions? There are laws against ageism, but my coworker noticed he received 0 offers until he started to dye his hair. What gives you confidence that these largely retail, service-based positions would hire a semi-retired person with no experience in service? How do you prevent the "overqualified" stamp-out?
4. If you have to choose between going back for another degree or owning your home / condo / townhouse and early retirement, how do you decide?
5. Does that 4% count medical expenses?
This video was nice! I've been thinking in early retirement by living back in South America after 18 years of investing. The nicest thing that I love from South America is that the food is more freshy and natural.
Totally agree Rose! I love the FIRE movement. I retired from my 9-5 at 36 🎉🎉
FIRE 🔥 Such a great acronym! The key is aggressive saving and also living a rich life now. After 5 years of hardcore saving, we're getting closer! Some nice reassurance for those who are worried about failing after reaching FI - your worst case scenario is everyone else's everyday scenario.
You're not promised to be here tomorrow
Design the life you want now. Great video 🙌🙌🙌
Facts!
Translating what you said to something easier to understand.
It Means: Live Paycheck to Paycheck
Reason why majority of the population has no money.
Thanks for sharing.
I think it's not really about retiring which makes me happy but being wealthy enough to be able to retire anytime matters as I still love what I do.
I did work out the numers a few months back and your video is a good reminder. $10,000/momth in today's value will be $16,288.95/month in 10 years time based on 5% increasing costs of living.
If I own a bunch of stocks paying me 5% per annum that amounts to $16,288*12/0.05= $3,909mil.
Will work on it and visualize my financial goal everyday. Will come back in 10 years time to check if I achieved it.
Great video Rose as always! Just a word of caution! The 4% rule works well if you are in your late 60s. For people that want to retire in their 30s, you want to apply a 1-2% or lower withdrawal rate to make sure not to run out of money (especially since we are living longer now and have higher health care costs!)
Loved this video! I’ve heard of geoarbitrage theory, but not an actual term. I am personally weary of it because a chunk of my income comes from real estate investing, and being so far from an income stream that needs an eye on it is nerve racking. Great stuff again!
I don't want to play Golf every day either! Good call.
22 yrs/old with no student debt, graduating next year. This video gives me hope that I can bring on the FIRE, thank you!!!
How is it going I am in the same position as you ??
I think mine is 6.5 years on the short end, 10 years on the longer end. Great video! Thank you!
Contributing 5k a month to reach that goal seems unachievable by most American standards. Most don't even make past 2k a month.
Start investing in achieving high value skills that can pay you more, grow yourself to become someone who can earn 5K + a month.
- connect with your most successful friend or try to meet someone that is creating this type of money.
- stop making excuses, you know deep down you can do all this.
- what would the best version of you do ?
Those that succeed in life realise that they never made sacrifices, they made choices.
Real estate profoilo!!!
I use to work as a metro cop making 60k base pay. I bought a house and house hacked it (rent out the rooms and lived on the couch). Saved my money and bought 7 more within a 5 yr time span. Took my passive income and dump all it in stocks. Even now I live very small 1000 sqft house
@kamionkami1 how you make 400k at 18?
Cryptocurrency is an escape for investors that doesn't want the crash to to affect them totally, this is why a selected few that understand the times are taking up the opportunity of investment in crypto mostly bitcoin, bitcoin price is $31k currently
Bitcoin is already on of the best performaning asset's of the year. It's the best financial decisions I've made this year.
I actually see Bitcoin crypto currency taking over the financial world! It's making waves. In few years to come people will be kicking themselves if they miss this opportunity of trading Bitcoin.
Most people remain poor because of friends and relatives discouraged and advised them against investing and trading crypto currency while the wise once keep investing and growing higher financially
we have the money 💰. We've just made various choices about how to spend it over the years. Lawmakers have restricted housing ad to the poor but expanded it to the affluent in the form of tax benefits for homeowners.
this is very true and as you can agree with me that there's universal housing programs which have been successful implemented all over the developed countries. In countries that has such program. everysingle with an income below a certain level certain who meets basic program requirements has a right to housing assistance
I officially became debt free 2 months ago. Now I’m in the exact same step as you. See you on the other side! Thank you for your advice :)
There's Good Debt, and Bad Debt.
You need Good Debt to earn more money, and speed up the process.
That is a form of Leverage.
Good job .
Saving capital to quit my 9-5 to trade for income doing the wheel strategy.
Great video and newly subbed! I am a F.I.R.E girl over here and it has totally shifted my focus on life. I cannot believe I used to think waiting until I am 65+ to retire was really even a viable option 😂
I know! It always seemed a bit ridiculous, work work work in order to only have a few years leftover to enjoy? No thank you! Although, I'm focused more on finding something I enjoy doing because I think retiring early only appeals to me because I can't imagine working for someone else that long. That brings up the question, is it really retirement if you choose to work? I want to be financially free, to have the choice to work or NOT.
@@StephanieZander Totally! I consider it retirement because I’m redefining retirement to mean having full freedom and choice to do whatever I want to do. So if that means still working in some capacity, then why not 😊
@@FinanceDee Exactly. Having the choice is really what's important here.
My main goal is to pay off my house. That will be a game changer in my ability to save and invest available money that normally would be going to the mortgage.
Freedom
I'm 54 and I love this woman too! I am not shooting for early retirement because of my age, occupation and income. I went to grad school late and will start paying the loans back in January '21. As a federal employee I can get loan forgiveness after 120 consecutive payments. I need 10 years to do this. Then I need an additional year to get an even 20 yrs with my agency. I just had my 9 year anniversary in Aug. In the meantime I now budget monthly and save as much as possible. After I pay back my TSP loan in 2 years I can invest more.
I estimate 900,000 and this does not include social security and pension. I'm 18 % there.
Instead of withdrawing 4% a year. Why not invest in dividend stocks and automatically get 4% a year in income and not deplete the savings. Dividends usually go up over time from profitable companies as the years roll on, and will increase dividend income.
That's one method. She's just giving a general example. You can also do real estate
Great video. Been reading nonstop about finance the past few months. Your videos have been amazing for making finance very digestible and informative. You don’t hold back on content. This video in particular helped me focus more with a measurable goal in mind. Looking forward to learning from your channel!
Totally agree with you, she's definitely a pro when it comes to these videos!
What I like about this video is that she discusses ways to make more money. Usually people in the FIRE movement only consider the saving's part of the equation. Sometimes striving to make more money might be more realistic than shaving an already thin budget. Getting a college degree might make a massive difference to your earnings potential. I was able to multiply my salary by almost 15 within 4 years of graduation. I would also add that moving from where you live might open a whole slew of opportunities (post-COVID). Being South American (Brazilian living in Peru), I see many talented people who do not even consider living away from their parents. I'm not even talking about moving to the US or Europe (which of course would be a possibility, if you have the required documents and language skills). Sometimes relocating to another state might allow you to make 30% more money.
Do you consider the debt due to college degree to be worth getting the college degree from us?
@@karlmarx7112 if you still wanna know, then your question itself is wrong. You should first consider which field you're interested in. If that field requires a college degree or gives a pretty high income after the degree, then yes it's worth it going to college. If that's not the case, then no point wasting time in college. Spend that time earning money. For an example, a doctor's degree is definitely worth it. But if you want to start a business in some field, then don't waste time in college. You can save 3-8 years worth of college and spend that time actually growing your business and earning money
@@noone-hd1ck haha thanks for the reply. I had forgotten about the comment but ever since I graduated high school this year(2021 Batch😩) I am now in a better understanding of whether pursuing college degree might be worth it or not.
Living homeless is another great way to retire early and comes with the added benefit that you don't often live for an extra 30 years.
I'm in
36 here... Sometimes wondering if it's all too late... Why don't we get this type of education in school???
It's never to late. Kernel Sanders (KFC) Didnt reap the benefits until he was 60 I believe...theres a book I believe called late bloomers. It's basically saying everyone progresses at different times in their life. Never give up and keep pushing forward.....ONWARD!
Never too late! Get started!
@@GregDaDefender thank you. You have no idea how much I needed a message like that today. Feeling really low, but that cheered me up. Thank you 🙏🏼
@@EvangelistRBColbert thank you for the support. God bless...
@@VeraCasaca your very welcome my dear..watch F.B.A book promo here on CZcams...k.j edwards..its my book, that u may need 2 read. It gives u the encouragement u may need.
lol. I'm already in my 30s and just finishing up a medical residency. I feel so behind everyone.
I’m guessing with your soon to be income, you’ll be flying past us quickly
ha ha. I earned my undergraduate degree at age 46. You are ahead not behind.
Bruh you’re gonna have a huge income. Just pay off your debt in 3-4 years
I think people would be interested in a doc or (other medical professional) posting their FIRE goals and progress online. You do realize as long as you can increase your income over time you will have made lifetime money like people like "My Rich Journey." Your quote: (lol. I'm already in my 30s and just finishing up a medical residency. I feel so behind everyone.)
For average people, even retiring in their 60s is a dream come true, for doctors, retiring in early 40s is super easy since your income is so much. Especially when you're in America.
I'm pretty old. Of course, I am aggressively investing, and really enjoy the process and accumulating money, but don't be too myopic about what retirement can be versus what it traditionally was. I'm pretty sure I do not ever want to retire while I can still work. I get paid quite well and I love what I do (IT 'stuff') but most importantly, I can travel anywhere I want, any time I want for as long as I want, so long as I have internet. For 3-4 months every winter (I'm Canadian, so...), I go somewhere warmer and see what it is like to live there for 3-4 months. Each year, a real and new adventure, while getting a steady paycheck. That IS retirement for me. Enjoy your channel, young lady. Thanks for sharing!
What sector of IT are you in? What do you think are the best fields to get into for remote work and being able to travel the world with nothing but a laptop and an internet connection? If you were 25 and entering the IT work force this year, what certifications and jobs would you pursue? Any particular employers you think are great ones to target? Would love to hear your perspective! I'd like to encourage my kids to pursue careers in IT and E-Commerce.
@@CalmerThanYouAre1 I wrote a 'book' of an answer and just deleted it! Then I wrote another book of an answer. You asked a lot of questions! :) I am a full stack developer, a network admin of a couple dozen servers, an R&D guy, phone app developer, TV app developer, etc, etc. 'Old' guys did/do lots of things because it all was literally invented right in front of you. As a full stack developer who has successfully developed a lot of vertical market s/w before the internet and some ridiculously advanced intranets since, I believe I could have a great paying job within a few days of wanting one just about anywhere in the world. S/W development travels well and all you need is your laptop and an internet connection. You can meet with/manage a team remotely if you are the right person. As for employers, you will need to find the right one. I doubt it will be one of the giant tech companies as they like to have you on campus as much as possible, although, with the pandemic, those old ways are due to be tested. I would doubt many twenty-five (25) year-olds are ready for total autonomy when it comes to work. I was, but I had been on my own since I was 13. I was an odd duck... Generally young developers need to learn from someone with plain old experience. That is why traveling the world while you work at a very young age leaves blogging/vlogging as the go to 'profession'. If I was starting out, I'd probably try to get a job with a big bank or insurance company, maybe one of the giant accounting firms. Work really hard and learn and prove myself to my higher ups, move up the chain a little and eventually evolve into working remotely, maybe 5 years later. I went to uni to become a teacher, and that profession travels really well and allows traveling the world quite easily. If you can teach IT, well, you're laughing. So, learn how to program, get really good at it, earn your keep with your employer, then tell your boss you are moving away. If you are good enough, they will give you an internet phone and wish you a safe trip and ask you to check in. That is what happened to me, more or less, a dozen years ago or so. If you can get your kids to become truly interested in IT, they'll be fine, no matter how many jobs the robots take! :)
My Top 3 Things to Do:
1. Learn Piano (same as you)
2. Learn to Sing
3. Learn (and practice) languages using them travelling, ie Portuguese, German, Italian
Best wishes for your Barista FIRE!
This is awesome, we can’t live in fear . Fear and faith can’t coexist . Best of luck
Been living out of my tiny home in SF. Working as a chef for the past 5 years saving and investing. This is the most extreme but. Ow I’m 35 and basically retired. I do day trade mon-fri for extra income. Rose can you do an option trading video? That would be great.
I am going to go for the 40,000 a year 1 million mark. I already work a part time gig on top of my regular job and I'm so close to being debt free. Once I am I'm planning on investing hardcore and starting up passive income. I want my part time gig to be the only job I need. It's a local arthouse movie theater and I absolutely love working there and meeting other people from the local film scene. When they closed for Covid it broke my heart but now that they're back up and running I want to be able to spend more time there and not feel so much financial pressure. I'm excited. Thank you Rose your videos have been a huge help to me.
Took me 13 years to get to FIRE! Now 20 years later, it was so worth the delayed gratification! Money gives you options! Freedom is the Best Option ever!! It’s fabulous to work because you want to not because you have to!
Rose. Thank you. Seriously thank you. This video was a motivational therapy session to get me off my ass and out of my head.
Again Thank you
Some important points:
1) Move to a profession where REMOTE WORK is possible. Then you can have geographical freedom earlier. And save a LOT of wasted life by commuting everyday to a boring office cubicle.
2) Remember that this is for living in US! If you want to retire and live somewhere else, you can have even less (nomadlist.com/). Eg.: Bali - 500 usd/mo, Portugal 900 usd/mo, Buenos Aires (200 usd/mo) and so on.... This is called Geographical arbitrage. EDIT: nvm, you've mentioned it on the video! Keep up the good work, haha
3) Real remote works: IT (developers), social media management, marketing, etc, etc. Stay away from that easy scams related to remote work like (data entry - not all, but most of them, etc)
4) Learn about investing. This is one of the best skills for freedom.
5) Get another additional citizenship, if possible. This can give you some tax benefits and makes it possible to stay long term is some other countries you love but can't stay more than the tourist visa.
I work remotely full time now and could move back to my home state to be with my friends and family. Unfortunately i am divorced and share 50/50 custody with my son and my ex-wife doesn't share that luxory. both sets of grandparents are in same city back "home". and I can't take him with me or I would. If it wasn't immoral, I'd just leave and pay child support and buy a MUCH nicer house for the money and be by friends and famiy. *Sigh*
I have dual citizenship - Brazilian/American and want to move to Brazil where my parents own a house so our living expenses would be extremely low, but it seems difficult to find a job online for both myself and my husband. I don’t want to end up teaching English like most people. It’s tricky but I’m 28 and cannot picture working in corporate America until my 60s. I refuseeee
Yes! No excuses! I've been making youtube videos on my debt free journey, which is my current priority. But after I'm debt free? Time to hustle to get that early retirement! For me, it's more of the ability to have a choice. I don't think I want to not work, but rather spend time doing what I really enjoy and getting paid to do it. That's what "retirement" means for me.
I think I'd be bored out of my mind if I went into full retirement at 43-45 years old (my personal goal). I'd look into the part time option teaching/coaching sports or the barista option. Working with a financial advisor now and learning about how to leverage liquidity access lines and mega backdoor Roth conversions as other ways to invest/save up. Thanks for a fun video as always!
that's the beauty though. you don't have to say 'oh i'm retired now i'm just bored all day' it's more about the freedom to do what you want on your own terms.
Planning to do the barista FIRE. Doing part time or side gig im passionate about like teaching investing to youngters.
Im lucky that no student loan in my country.
Paid off our 2nd hand car loan this year. 4 years to go for our foreclosed house. No more consumers debt. Investing regularly 20% and more of our income.
Once we paid off our foreclosed house, planning to do mini retirement first travelling in our country and a lot of biking adventures.
Thanks Rose for the hacks and tips. Keep going!
Real retire by 40: Get high paying job, live at home, don't have kids, don't get divorced, drive old used cars. Retiring early is pretty easy, but that is a boring life, no kids, no fun spending. which is why i use a financial adviser who handles. my investment portfolio. That’s definitely the only other realistic way to retire early. Goodluck!
@@donaldlocher2537 well i have two advices1) Read The Millionaire Next Door byThomas J Stephen. 2) Use a professional investment strategist/ Financial adviser. you can use mine i found her on a webinar on the F.I.R.E movement, you can look her up, her name is Lucy Maria Koss
According to a 2017 report from the U.S. Department of Agriculture, the average cost of raising a child from birth through age 17 is $233,610.
Making some broad assumptions... $1.95M - 3.75M and here is how I get there:
- Retirement age of 30, lasting nearly to 100
- Desired monthly after tax income: $5k
- Tax rate 40% (likely to be higher than 20% + state in the future so padding it)
- Average inflation 5% (doesn't sound so crazy, doubt 2.9% will last)
- Average return 10% (active) that gets us $1.95M but...
Returns are lumpy and may be harder to get in the future, let's lower our expectations. Average business growth is roughly 6%, but we can beat that. Even at 7% returns I only need $3.75M to hit those targets, that provides some margin of safety and even more if the emergency fund is left out of that number.
Unfortunately I don't think there is dirt track racing abroad so I'll have to stick with my conventional portfolio arbitrage. Check out Haier Smart Home German listing 690D and compare it to the 06690.HK listing after account for currency differential and yeah you own the same thing check out the December filings, oh and it's not expensive on a relative basis either 😉 Disclosure long 690D
If only I could make 99.6% every year and the number would be much, much smaller. 2020 is unlikely to be repeated.
You must have hit your goal already just with the income from this channel. I'm happy my view contributed to your early retirement 🙂.
I never understand why people in the finance space don't admit that CZcams money is passive once they have done the work and it helps fund FIRE as well. She already has a regular job and likely is making ok money plus this channel (500K subs) should set her up to do well regardless as long as she keeps getting views. Your quote: (You must have hit your goal already just with the income from this channel. I'm happy my view contributed to your early retirement 🙂.)
Perfect vidéo thanks so much ! My number is 500 000 because i would go to live in Thaïlande and i will try to hit it in 10 /15 years. Cant be too frugal but need to find a big side hustle !
Well you and I both have that problem. I only have 39K after 12 years and if I get a real job the most I will have in 10 years is an additional 200K or so. Even under the best of conditions I can't end up rich unless I get lucky and add an additional 200K the last 10 years ending at 439K at 60. Girl I fell you!! But if we can both hit our numbers we have been lucky because I know multiple 60 year olds with only paid off houses and very little for retirement except pensions and social security!!! Your quote: (Perfect vidéo thanks so much ! My number is 500 000 because i would go to live in Thaïlande and i will try to hit it in 10 /15 years. Cant be too frugal but need to find a big side hustle !)
Great video Rose! I’ve been exploring the idea of “slow-travel” retirement during lockdown. The basic idea is to country hop instead of being tied down to one location. So you can go to Thailand for a few weeks/months and when you either wanna move on or your tourist visa expires, then you move on to Brazil, or wherever you want to go. It requires less money since the idea is to go to places where your money goes much further. I’m on a 10 year plan. Good luck!
That's my plan too! I think it's called Geo Arbitrage! =)
@@InvestedLifestyle oh I like that it has a fancy-sounding name! 🤣😂
Bless you laddie. I appreciate you sharing your goal. I made a promise to myself and currently aiming for 5 yrs. with a retirement saving of $1 million. Started in 2018 I have 3 more years left 🤞🏼 fingers crossed we both will hit our numbers.
Keep in mind, your target of $1M is also increasing throughout the years as the purchasing power of your dollars decreases. Assuming a 2% rate of inflation, your target of $1M will increase to $1.22M in 10 years, meaning you need to save/invest even more.
Also, depending on whether you're using some sort of tax sheltered investment accounts, or not, your withdrawals may be taxed. Meaning, you will be receiving less money. Meaning you need to save/invest even more.
This video is a good starting off point for planning retirement, but doesn't paint the whole picture.
great points nemanja. There are a lot of additional parts to certainly think about!!!
Yup...exactly my thoughts.
The trinity study does take inflation into account.
@@sionv2009 Thanks for the added information. I hadn't read about the Trinity study for like 20 years lol. Forgot it mentioned that. One thing I do remember that is a concern for the Trinity study and that a 3% withdrawal or overshooting the starting amount is unforeseen expenses. There could be events in ones life that requires additional revenue to cover. Whether it is health related, natural disaster related, anything. That is a real concern for someone looking to smoothly sail 30 years into the sunset with a Trinity study type of strategy
@@danielkim672 you should be taking thise kinds of unforeseen circumstances into account when you make a plan. There should be several years worth of living expenses set aside in cash if you were to go into actual retirement. Also if you end up retiring early, there's always an option to go back to work (even if you don't want to).
You are doing an exceptional Job with explaining things and giving insight so people know where to start at least to research what they are trying to do. For some things we needed to have learned at a very young age, we don't. Either those around us don't know or just didn't bother to teach the season. So, thank you for the videos. It's nice to have validation for yourself when you think you are doing something correctly, but are not sure. Financial Freedom isn't easy yet easy why you have the right mindset and tools.
i love ya. but 5k a month is not realistic for most// maybe make some vids on what to do if you make 20 30 40 50 k a year..
Another great video Rose. With more people working from home & relocating Geoarbitrage is becoming more common.
I love your video, since I learnt a bit of personal finance I have been saving and investing an huge part of my income into the market even after making profits I keep reinvesting to grow my portfolio. Hopefully my portfolio keeps growing so I don't have to look over my shoulder after retirement.
This a good idea, I have to stop saving and start looking at the possibility of investing.
@Amelia Becker what are you invested in?
@@annabelwillemse6997 own a well diversified stock portfolio which has been doing great over the past eighteen months courtesy of my wealth manager Jeff Dakin, with him there are numerous opportunities to diversify my Investments due to his high expertise of the market but with me there are limited knowledge I have of the market.
@@ameliabecker6050 interesting, I feel bad I haven't started investing not even a dollar to my name.
@@ameliabecker6050 I would love to own a portfolio similar to yours, if you can I would like you to share a means of contact I can use to reach out to your manager. I would like to share some thoughts with him.
I put $100k in QYLD (12% yld) and I receive $1,000/mo in dividends. I own 4 houses, no mortgage, I rent out 3 and live in 1. My net rental income is $3,000/mo. my total monthly passive income is $4,000/mo. I retired in the Pholippines. $2,000/mo in Philippines is living like a king.
I am 58, single, divorced, retired.
Cheers!
I retired at 48 due to my broker, Lisa Jill Grenell's success with my investments and on my way to FINANCIAL FREEDOM.
Impressive! A colleague of mine from the track just put me on with this lady Lisa Jill Grenell after they met in a conference in California...he had a $40,000 investment to his portfolio with her and in 3 months he was able to net over $590,000 in profits amist the bear market.
I am just starting the steps hopefully I will be in the position seen
@@geillasley4117 I have made quite a stride investing on my own but I am aware of the benefits of consulting with a professional but haven't found one that knows what he is doing. how does she work?
@@dianajung6126 As an investor in her options, you typically access through other mutual funds to diversify your portfolios, potentially limit volatility during falling market environments or add an investment with the potential to generate positive returns in both rising and falling markets. I copy her trades on my own trading account and at the end of the month I give her a percentage as agreed upon while i get increased exposure on how she navigates the market
Can’t wait to be at this point 🙏🏻 I hired Ms Lisa about may 2020 and we’ve paid off about $140,000 since. We’ve only got my vehicle left and I’m aiming to pay it off by Dec. the latest. I’m so glad I found him and that my husband jumped on board. i didnt know people know her this much
@@geillasley4117
I just found her, she is truly popular.. She is actually not difficult to reach, i just searched her full name online, I'm definitely writing her an email now.
Thank you so much for sharing not only your knowledge but your hopes and dreams! When you've been listening to financial videos all day long, the personal part of finance is often lost. I'd love to teach a class at Electric Forest, I want to have a vacation home somewhere in Europe, and I'd love to have a successful mental health advocacy blog. Dream big!
I’m 24 and I already can’t do this shit. I need out by 35
I’ve been killing my self since 15 with 2-3 jobs I’m 19 with 3 jobs I don’t want to go to college cause I feel like it would be a waste of money to me so I plan on using the money I’ve been making ans wait till I hit 21 and get my own truck and start trucking and using my money to build my home in Africa ounce I got 200k I’m leaving the us and never looking back
@@raspy1135 I get where ur coming from but in this day and age I highly recommend getting degree.
@@raspy1135 becoming a trucker is a good idea. I’ll be retiring at age 33 after working just 10 years in the industry. You make 80k+ a year also you live in the truck so no expenses. I also have no kids and wife, so i put all my money in savings growing at 10-15%. Its a sacrifice, but a well worth sacrifice
I turned 30 this month. I'm tuned in!
I tapped out of my job 5 weeks ago, I'm 45. I didn't exactly plan it this way, it just happened
@@Christophernorbits I'm in Accounting, studying for my CPA. Once I earn this, I plan on looking elsewhere and starting a business as well. Looking at stats, switching roles/careers probably will lead to a bump in salary. Also, it's never too late to learn skills and go on new adventures
@@positive_vibes_2427 No, it's never too late, you have a great plan, best wishes!
@@Christophernorbits SAME!
@john doe SALUTE!
I love this video, Rose!!!! Thank you so much for making this information accesible. You're really helping me improve my relationship with money.
"I don't think anyone wants to just sit around and do nothing in retirement." Oh man, that's exactly my plan. I'm going to read books and nap for like ten years
sounds good in theory , you'll feel different if it actually happens.
Some make it so complicated, but it's really not! Thanks for the vid!
I feel like I am on Barista Fire now because I work 2 days a week only. Only debt is a mortgage. I have 15% going to 401k that I upped from 10% I had the last 10 years. Wished I knew sooner to put it at 15 or more %, but got to start somewhere.
The 4% rule, as you've explained it, leaves out the fact that your investment is going to continue growing during your retirement years. If one has 1 million saved in one's retirement fund by reaching one's mid thirties, and retires, if one say for instance invests in an index fund like the VOO, that has a really safe average 9.8% annual return, then that's gonna give him/her around 98k dividend each year, if one's annual expenses are 40k, and one reinvests the other 58k each year, given no disasters, one's fund should never run out, but continually grow.
I’ve learned so much watching your videos, thank you 🙏🏼
WHAT did you learn dude?
Great topic. I love it. Your game changer strategy. Very important.
Age 19 as of a few days ago... 1) TRAVEL, I want to be able to travel as much as I can before I have kids and even after. 2) Cat Cafe, yes, you heard that right. I want to open up my own cat cafe, so kinda like barista fire, only a bit more time consuming. I want to incorporate a theme around mental health and helping mentor [homeless] youth as part of it. 3) Retirement house, not sure yet where I want to have it, but I'd like to live frugal the majority of my life and then at the end get a house in a nice location - nothing big... As for the number, while I don't have it calculated since things have been so unstable as of late, I'm currently putting away 70% of what I make into a Roth IRA. I don't have a 401k, but I will somewhat have one due to Air Force, called TSP (thrift savings plan). Loving your videos, thanks for teaching what I wish they would in school!!!
Love this - especially the cat cafe part!!
@@itsrosehan Thank you so much for responding, made my night! Looking forward to your videos :)
I also want to have a cat cafe and love your idea of helping at-risk youth. Partner? 😂
@@learnwithme1041 Haha, maybe! 😁😋💕
I would travel around the US mountain biking, Finish my project truck and attend events like the HotRod Power Tour, also would do more woodworking and probably sell a lot of those things.
leaving your retirement up to paper assets is not a great plan. it's slow and it's risky. buy hard assets that produce passive income and have major tax advantages, like real estate. start your own side hustle(s) and grow it into a business. dumping money into stocks and bonds is an average move and will provide average results.
I've felt this way for as long as I can remember! I spent most of my 20s and 30s being a traveling athlete, while watching my 6 older siblings chase after that classic American "dream". I hated the thought of going into so much debt early on only to make barely enough to live. I'm now 37 and can say I've lived a lot of life! Only catch is that I have a small nest egg started, and I could've done WAY more with it. Now during pandemic I've gotten caught up in starting an exciting business and hoping everything turns around so I can make that dream happen. It's been 2 years in the making. If it doesn't pan out, I could loose A LOT of my money. But I'm really diving in on playing hardball with life to try to make this happen! These videos really keep me motivated. It makes me keep my eyes on the prize while still working my crappy side hustles! I just know it will be worth it. Thank you for all your amazing videos. I love listening to intelligent women kicking ass.
You're Channel is life save. NATIVE New Yorker !!!!
@Investing With Rose yes !
As a New Yorker the fact that she is from New York and mentions it on this channel quite frequently (like when she picked up a personal finance book at Barnes & Noble in Union Square) makes me all the more interested in watching her. Thank you 🌹
I'd never heard of partial retirement before, and its definitely a stage I want to include in my life now. Thank you, Rose!
Early retirement is not the plan. But my wife and I are working on our own hybrid model towards getting out of the proverbial rat race.
Step 1: Get out of debt. We have made great strides at that this year. If the 2nd stimulus check passes, then we will be debt free by the end of the year, otherwise we should have it all taken care of by summer 2021! Woo! Been a looooong 12 years of digging with a small shovel while life kept collapsing around us. Finally making headway.
Step 2: Save. To completely retire and only live on principal while accounting for inflation we would need somewhere between 1-1.5 million in savings. If social security is still a thing then it will be much closer to 1 million. I have already been contributing to a matching 401k so I have some bit of a start, but it isn't much. But redirecting our current debt payments towards savings we should be able to throw some $800/mo towards IRAs, HSAs, plus some form of more liquid rainy day savings. With any luck that number will grow over time, and as we are already pretty happy with our lifestyle I would not expect our lifestyle expenses to raise much going forward. We will not be able to retire in our 30s (lol, waaaay to late for that!), but we should have enough saved to quit our day jobs some time between 45 and 50.
That is not to say that we will have the full 1.5 million saved and ready to retire on at 45-50, just that we could potentially stop contributing, and it should be able to stew for an additional 15-20 years and get large enough by the time we are ready for full retirement.
Step 3: Psudo retirement.
So there is a decision to make. A) we keep working hard and saving like crazy until we can live off the 3% some time around the age of 55 and then fully retire. Or B) we take life a little easier and plan to work part time until we turn 65-67 (or until we simply cannot work), and then retire at that point. Likely we will do a hybrid. I have worked full time with few breaks (most jobs I have had did not offer vacation) since I was 18. The idea of being in my mid-to-late 40s and switching to part time work sounds pretty fantastic. My wife is a much more type-A personality, but has typically worked 20-30 hours a week, and as the kids grow up, she may actually want to work more rather than less if we need the money or not; but her business is fairly flexable, so she can gear things up or slow things down as she likes. The joys of private music lessons! But the point is, we should have options while many of our peers will not.
So what does one do in simi-retirement? Well, I have already started spinning up my own side-business... which if I am being real, is more a hobby. If the next few years of this hobby go well, then I quit my day-job early, and my side-business becomes my job, and once we have our nest-egg saved up then I have the option to be like my wife and put the business on simmer if I am feeling worn out, or keep it in overdrive if I continue enjoying it. If it never ends up being profitable, then I work part-time for a nonprofit, or in a teaching position, and my little floundering side-business becomes a glorified self-sustaining hobby. And honestly, either future sounds pretty great.
Step 4: Actual Retirement
If step 3 goes well, and nobody gets sick, or has major issues, then it will last a good 15-20 years, and then simply switch from my income coming from a part time job or business, to coming from my savings when I am eventually forced to take money out. If step 3 goes poorly, then I will really be stuck on step 2, and just keep working and saving as much as I can and phase 3 never really happens. But my family genes are pretty good, and we have a history of being physically healthy until very close to the end... but there is a very good chance that I go crazy in my mid 80s and that last 2-3 years could suck. But I have the good luck of few family members dying of heart attack, cancer, or stroke. So even if I do not get any real retirement until 65-67, I should still get a solid 20 years of retirement in good health before it all falls apart. But 20 years of growing up, 15 years of figuring out life and getting established, 15 years of productive work and saving, 15-20 years of simi-retirement, and 20 years of full retirement... that does not sound like a terrible life to me. Hopefully I will be able to support my kids in a way that they will be able to have the option to retire in their 30s.
You live your life to the fullest. Do what you can. Some of these rich ppls or FIRE ppls saved and invest hard without enjoying much and they pass away early in life and they don’t even get to spend or enjoy their money in retirement. Ppls are wealthy but not healthy. Too many ppls are after wealth and forgot about health. That’s where most live to 40s and 50s and life is over because of some bad disease etc. just like Kobe Bryant...millionaire and long life ahead but tragic struck and didn’t get to enjoy his retirement and later years. Enjoy life, stay healthy while saving and investing...also spend what you can and be happy 👍😉
Here is what no one talks about and why we may need to consider saving more and a higher amount if the withdrawal rate of $40,000 for example per year is taxed depending on your specific tax bracket take for example 25% taxed of that $40,000 withdrawal will leave you with $30,000/year net and is that enough or would you need to consider withdrawing using this example $50k-60$ so that you can have the net amount needed post tax. Just a thought of something to consider.
Exactly. That shows the importance of maxing out your Roth IRA and 401k to limit future taxes.
I really like all her videos. She speaks sense and truth about money. Go girl!
I worked hard and went on vacations and spent some and saved some of my money for future use. What i noticed is when I joined travel tours during my vacations, there's a lot of senior citizens. I later found out that for most people from the western world, they work all their lives (while young) and then travel when they retire. For me, I worked hard and saved money for vacations and went shopping as well. At the same time, I saved some for retirement. I want to enjoy life and see the world while keeping a full-time job. I may not be a multimillionaire when I retire but i'd say i have a happy life. After all, money is not everything. I have many years before my full retirement age but i planned to retire early and just enjoy the remaining portion of my life. My retirement savings and my money in my brokerage account should be enough to give me a comfortable life when i retire.
My magic number is also $1000,000. I really hope I can achieve it in my 30s through consistent investing. Thanks for the informative video, really enjoyed your content 😄 I am curious on how would you withdraw the 4% from your nest, do you prefer dividend income or capital gain?
I was anxiously awaiting you taking a drink of whatever was in that cup you were holding, but it never happened ;-). I watched one of your videos about 6 months ago about just getting into the market and not over thinking it. Thank you for that. I am up close to 30%. You're the woman.
Hmmmm 🤔. Maybe. Crypto scares me.
My girl Rose Back!!! Missed you. Love these videos.
We started the FIRE movement last year, and boy am I glad we did. After about 8 full spreadsheets, we cut our expenses to comfortably live off just my paycheck, and invested 90% of my wife’s paycheck. I planned for 3.5% withdrawal and a 7% return. The plan was to go to a Barista fire in 10 years, then by year 15, we can both fully retire with a comfortable margin. (I’ll only be in my early 40s!) Unfortunately my wife is currently looking for a new job, but due to our preparations last year, it’s not a dire situation. I still managed to drop a little into our index funds while the market was way down in March. That little contribution really helped keep us on track this year. It’s not easy but we’re still gunning for FIRE!
Hey Jon. Great stuff. I am just curious where in the US you both live and if is not too much prying, what the gross income is for you. I am assuming you both together are earning much higher than $100K gross
@@danielkim672 thanks! We live in Pennsylvania and grossed $130k before the pandemic. Now at $80k with just me.
@@Jon_Chan Thanks for sharing man. I wish your wife well during the job search. Hopefully things get better and continue to pick up. Good luck with the savings and keep it going!!!
I'll do all of this but not even retire. I don't think I'll ever want to fully retire. I need to do something ven if its PT - I get bored lol
Option trading ? Do a video. Are you on the buy side ? Or sell side ? My "side" business is option trading, selling 10/15 delta naked strangles and/or Iron Condors on index ETF's, selling cash secured puts on high IV stocks, selling covered calls on trades that go awry and lead to assignment. Of course, selling cash secured puts requires capital.
Congrats on paying down your student loans. Just found your channel, and never knew I was also in the FIRE Movement all along.