Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
a 29 year old retiree wow
Old 10-31-2008, 11:57 AM   #1
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 204
a 29 year old retiree wow

http://finance.yahoo.com/expert/arti...=6#dtk-cmtscnt

[moderator edit: copyright law prohibits pasting of entire articles without permission. Please use the link above.]
__________________

__________________
steve88 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-31-2008, 12:22 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
I had to laugh a bit as this article is ridiculous. Just more Yahoo Finance fluff to fill up the space between the ads. And over 1000 commenters on the story agree - giving it around 1 star on average (out of a possible 5 stars).

She is a stay at home mom that runs a little side business and takes a bit of money from her savings. The article says that her husband could quit work if he wanted to, but he gets health insurance from there and doesn't really mind working.

I think she would be shocked at the cost of private health insurance for a family of four (or more??) and it only gets more expensive every year (background inflation plus getting older every year and moving up an age bracket). The bottom line is that it is really easy to retire at 29 when you have a working spouse with family health insurance coverage! Where is John Galt when you need him?

I noticed the article was long on talk and short on statistics and numbers. Wonder why?

I guess if my wife quits working to be a stay at home mom, I can essentially claim that she retired at a similar age. We are probably similarly capitalized as the subject of the article, similar ages (I'm even younger!), and we might have less expenses than she does (maybe). So I'm just going to go out on a limb here and say that my wife and I are both ER'd in our 20's, except that we don't mind working a little longer - just to pad the portfolio a bit more, you know, and for that "free" health insurance.

I would say that my reaction makes me sound jealous, but there isn't a lot to be jealous of, because I would suggest that many fellow posters here in their 20's are probably closer to ER than the subject of the yahoo article. It'll be interesting to see if she shows up to "defend" herself. Sounds like she might fit in well here, but not sure she would want to hear that her ER plan just might be inadequately capitalized.
__________________

__________________
FUEGO is offline   Reply With Quote
Old 10-31-2008, 12:24 PM   #3
Recycles dryer sheets
 
Join Date: Aug 2003
Posts: 474
I'm happy that DuPaix enjoys her lifestyle without a 9-5 job, but since her husband still works and she has a small business it's quite a stretch to call her "retired".
__________________
bongo2 is offline   Reply With Quote
Old 10-31-2008, 12:44 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
I read her blog a bit, and she doesn't go into much detail in dollar terms on what they have. And Madison DuPaix is a pseudonym, not her real name. She does show a 1000% increase in net worth since 2003. But not the starting basis, besides disclosing it between $1 and $1 million. I'd say this 1000% is realistic, having experienced a similar "success" over the last 5 years or so. But starting with a small positive net worth and growing it 1000% in 5 years won't continue forever.

My take is that she is a rather savvy young lady, and smart. But I wonder if her goal is to make a living from selling her ER/investing/tax advice. Anyone smell a book deal coming up soon? Nothing wrong with it, but living off of book advances and website advertising still doesn't fit any definition of ER in my book. Maybe semi-retirement...

From the yahoo finance article, it says that "...two-thirds of her salary was going to daycare, taxes, and retirement savings. She now achieves the same annual cash flow [ie - 1/3 of her gross pay] by drawing down 2 percent of her savings."

So, if she was making $50,000 a year, her net was $16,667 which would mean her nest egg was $833,000 ($16,667/.02)? I find it hard to believe her personal savings had grown to this level in 6 years or so of full time post-college employment. Maybe there is some rounding errors, or errors in the article? Maybe her husband makes a half million a year and gives half of that to her to invest?
__________________
FUEGO is offline   Reply With Quote
Old 10-31-2008, 12:51 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by FUEGO View Post
I read her blog a bit, and she doesn't go into much detail in dollar terms on what they have. And Madison DuPaix is a pseudonym, not her real name. She does show a 1000% increase in net worth since 2003. But not the starting basis, besides disclosing it between $1 and $1 million. I'd say this 1000% is realistic, having experienced a similar "success" over the last 5 years or so. But starting with a small positive net worth and growing it 1000% in 5 years won't continue forever.

My take is that she is a rather savvy young lady, and smart. But I wonder if her goal is to make a living from selling her ER/investing/tax advice. Anyone smell a book deal coming up soon? Nothing wrong with it, but living off of book advances and website advertising still doesn't fit any definition of ER in my book. Maybe semi-retirement...

From the yahoo finance article, it says that "...two-thirds of her salary was going to daycare, taxes, and retirement savings. She now achieves the same annual cash flow [ie - 1/3 of her gross pay] by drawing down 2 percent of her savings."

So, if she was making $50,000 a year, her net was $16,667 which would mean her nest egg was $833,000 ($16,667/.02)? I find it hard to believe her personal savings had grown to this level in 6 years or so of full time post-college employment. Maybe there is some rounding errors, or errors in the article? Maybe her husband makes a half million a year and gives half of that to her to invest?
I smell BS...........but hey, doesn't yahoo also employ Kiyosaki??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-31-2008, 01:02 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
Quote:
Originally Posted by FinanceDude View Post
I smell BS...........but hey, doesn't yahoo also employ Kiyosaki??
It could be all true. But it could also be mostly false. "Journalism" can't get facts right 100% of the time.
__________________
FUEGO is offline   Reply With Quote
Old 10-31-2008, 01:34 PM   #7
Dryer sheet wannabe
 
Join Date: Feb 2008
Posts: 16
Hey guys, it's me!
__________________
Madison is offline   Reply With Quote
Old 10-31-2008, 01:34 PM   #8
Full time employment: Posting here.
 
Join Date: May 2008
Posts: 589
I think the numbers and percentages she gave could be believable, but the major problem is the way she, in her blog, and the article, are presenting the information. There is definitely a confusion of terms between a job change and retirement.

In many places in the blog, and in this article, it simply states, she "retired" at 29. This later one turns out to not be true at all, regardless of her financial numbers. She admits she is taking care of the kids AND working part-time, which is essentially a full-time job. Her husband still works. Even though she says "he doesn't need too," I believe he does, from the numbers, they dont appear to be anywhere near being able to buy private health insurance based on the numbers she provided, unless they don't have a mortgage at all.

Aside from this though, I certainly believe she has done a very good job so far working towards early retirement. I certainly hope to have reached the same level of achievement by 29 myself. Even by the more liberal terms of this forum though, I do not believe she has reached early retirement.

I would not be so harsh about this, if it weren't for the fact it was published, causing a great deal of confusion to those who don't really have the ability to evaluate whether she had actually succesfully reached retirement.
__________________
plex is offline   Reply With Quote
Old 10-31-2008, 01:44 PM   #9
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,372
Fake, fake, fake. Who knew Millionaire Mommy had a little sister?

I'm wondering why they pull ANY money from her savings if her husband is working full time--seems they should be able to live off one salary since they saved virtually all of hers while she was working?

Love the revolving credit card debt, too--she will probably get a bailout on that.
__________________
Bestwifeever is offline   Reply With Quote
Old 10-31-2008, 01:47 PM   #10
Dryer sheet wannabe
 
Join Date: Feb 2008
Posts: 16
Well, I didn't really have to show up to defend myself, since I've been a reader here for over 5 years. As a matter of fact, this is one of my favorite places to hang out! In the post where I left my job, I even linked to here as one of my favorite places to learn from the best.

Anyways, I've always been very honest on my site that I'm quitting my job to spend more time at home with my kids. But instead of becoming a one-income family and having my husband support us, I'm still bringing in my share of the income be withrdrawing from my retirement accounts.

I understand if you felt mislead by the title. I had no idea that's what it was going to say.

By the way... I could handle getting slammed in the comments at Yahoo.... since I figured most readers there don't understand the concept of FIRE. But to get it here was a bit of a shock.
__________________
Madison is offline   Reply With Quote
Old 10-31-2008, 01:50 PM   #11
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,031
I wonder what kind of lifestyle they have. If I didn't mind "living" like I did in my 20's, I'd be FIREd too!
__________________
FIREd is offline   Reply With Quote
Old 10-31-2008, 01:56 PM   #12
Full time employment: Posting here.
 
Join Date: May 2008
Posts: 589
Madison, I believe you are doing a good job, but as I said in my post, the misleading statement is not just in the yahoo article, it is the punchline in your "About Me" article, on your blog, which you make money from (not legal advice, but this creates a duty to be truthful).

I know it is certainly not unusual for some place like Yahoo news to spice up an article by using misleading phrases. The "About Me" section is the place most people will first go if they are interested in learning about you.

The response would have been very different if the blog didn't support the misleading statement of the yahoo article. The way it is presented now, for those who know something about finance, it is a big puzzle that needs to be deciphered, since actually managing to retire by 29 would be astounding. People would certainly want to know how it was done.

I have seen a similar blog by someone else who actually could have retired at 26, she created a small business that she sold for $1.1M dollars. She had no kids, and adding that on to the savings of her husband, it was definitely possible she could retire. But most importantly, her punchline reads, “I sold my business for $1M dollars and retired”. She also acknowledges the difference between retirement and non-retirement in her about me section. She actually states she came out of retirement a year later to begin working on another buisness, her numbers were also all presented in numbers, rather than mostly in percentages in a completely seperate post.
__________________
plex is offline   Reply With Quote
Old 10-31-2008, 01:56 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Madison View Post
Well, I didn't really have to show up to defend myself, since I've been a reader here for over 5 years. As a matter of fact, this is one of my favorite places to hang out! In the post where I left my job, I even linked to here as one of my favorite places to learn from the best.
Why did it take you until the yahoo article to post stuff here? :confused:

Quote:
Anyways, I've always been very honest on my site that I'm quitting my job to spend more time at home with my kids. But instead of becoming a one-income family and having my husband support us, I'm still bringing in my share of the income be withrdrawing from my retirement accounts.
Not a bad idea if you can swing it. I must assume you are using the 72T rule to do this??

Quote:
By the way... I could handle getting slammed in the comments at Yahoo.... since I figured most readers there don't understand the concept of FIRE. But to get it here was a bit of a shock.
It seems like a PR tool for your website, but I don't blame you for leveraging a columnist from YAHOO to help you. As long as you don't put your blogging website in your sig line or avatar, I think the mods will leave you alone..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-31-2008, 01:56 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
Don't be too offended. A lot of people, especially newer posters, get slapped around a bit at first if people think that anything is overstated in the introductory posts. I suspect if you had called yourself "semi-retired" instead no-one would mentioned anything. Others who said they were retired who were still working part-time or had a working spouse have recieved the same treatment.
__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Old 10-31-2008, 01:57 PM   #15
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,372
I like this one from the article's comments--seems to sum it up"

Quote:
This lady DuPaix is not "retired", she is a stay-at-home Mom with a side business-income, a working husband with insurance coverage.
I guess "stay-at-home mom" is too old-fashioned to describe herself, but FIRE? And why does anyone need to share their financial situation with their friends and family when they decide to stay home, even if they are?
__________________
Bestwifeever is offline   Reply With Quote
Old 10-31-2008, 01:59 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Bestwifeever View Post
I like this one from the article's comments--seems to sum it up"



I guess "stay-at-home mom" is too old-fashioned to describe herself, but FIRE? And why does anyone need to share their financial situation with their friends and family when they decide to stay home, even if they are?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-31-2008, 02:20 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
Madison,

Would you care to respond to the yahoo article here? Was it 100% factually correct? Are there any areas that are misleading or vague that you would like to clarify? Based on the article, there seem to be a number of astounding claims, that if true, would be really impressive. For example, if you previously made $50,000 per year, then based on the article, your portfolio would be around $833,000. Is this somewhat proportional to the ratio between your salary and your portfolio value?

Would you say that your husband and your two kids could comfortably retire on your current savings permanently at a reasonable withdrawal rate? What withdrawal rate would you use? Did you have any outside help in accumulating your net worth (large inheritances, gifts from family, etc)?

I'm interested, and many others here are as well I'm sure. I'm of a similar age, with two young preschool age kids. And I have similar goals to ER very early.

I know from personal experience that "the media" can excerpt your comments and statements, produce pithy sound bites, and generally misconstrue your interview to write the kind of article that sells advertising. Was that the case or is it all 100% factually correct? Inquiring minds want to know.
__________________
FUEGO is offline   Reply With Quote
Old 10-31-2008, 02:30 PM   #18
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,372
Deleted overly-inquiring post because of course Ha is right (and goshdang it why didn't my parents set me up with mutual funds I didn't know about Or maybe they did and forgot to tell me about it? I know they must be out there somewhere )
__________________
Bestwifeever is offline   Reply With Quote
Old 10-31-2008, 02:32 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Hey, she isn't the first person to gild the lily in order to sell something. Not even the first one who comes here from time to time.

I think The Mommy got run because she was so arrogant. Ms. Madison isn't arrogant; she is just a marketer. To many of us that is not a bad thing.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-31-2008, 02:57 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
I think we will see what Madison's intent is. If she explains everything satisfactorily and sticks around, we'll know she is at least partially legitimate.

If she ignores, sidesteps, or equivocates, then I'll let the reader draw their own conclusions. Madison has to pick a side - that of the self made, independently wealthy early retiree that she claims to be, or that of an entrepreneur choosing to manage her slick marketing image of being a 29 year old early retiree.

It seems like the blog is solid, well written, well researched and though out (in general). I can tell the overall tone is about 80-90% good info and 10-20% braggadocio. There are some errors or bad advice on there that I noticed in my brief review - for example in the article on calculating life insurance requirements, no mention was made of social security survivor's benefits (although it is mentioned elsewhere in the blog if you know what you are looking for). For many people, this will provide a major source of income that doesn't need to be replaced by life insurance. In my case, it makes life insurance (beyond the modest employer-provided amounts) superfluous.
__________________

__________________
FUEGO is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Interest payments *increase* year-to-year on a fixed loan?? CompoundInterestFan FIRE and Money 10 02-29-2008 12:05 PM
Wow thefed Other topics 5 01-23-2008 05:49 PM
Wow, thank you, etc, etc gray_jay Hi, I am... 1 07-12-2006 03:38 PM
44 year old woman takes advantage of 13 year old boy Dawg52 Other topics 37 05-25-2006 12:15 AM
Dow - Wow! BUM FIRE and Money 17 05-07-2006 02:17 PM

 

 
All times are GMT -6. The time now is 01:48 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.