Quoted from Meri-cah:
Just retired January 28th. I’m 43. Happily married. Own 9 pins as of now. Trick is to live within your means and pay cash for cars and any toys you want. Never finance anything more than your house.
Congrats, but I don’t understand how paying cash for things gets you closer to retirement. I generally do pay cash and have no debt except a small mortgage, but I financed two new Honda pilots over three years and my interest expense was less than $1000 for both cars combined at 0.9%. The cash I didn’t put into the cars earned me more than the interest expense.
People must have very high income to retire so young, and no kids? Retiring in your 30s or 40s, they could have 40-50 years of life left. Let’s say you need $50000 a year to live, which seems kind of low, you’ll need at least $2 mil saved. To save $2mil by age 43 suggests you have very high income. Let’s say you started saving 20 years ago, you either saved roughly $100k a year, again requiring very high income, or you had very large gains on your investments (which suggests you took higher risk). At the same time, people have paid off mortgages?? no kids, college could set you back $200-$400k if you have 1 or 2. I wonder how many people had help from parents or were left inheritances.
I think people are making it sound too easy to retire in their 30s or 40s. Living within your means of course helps, but you need very high income or fabulous returns on investment (i.e. you took big risk) to do it.
I enjoyed reading this thread and admit I haven’t read the self help materials cited, but unless you have very high income, took big risk, or were gifted/inherited funds, the math doesn’t add up to me to retire so young.