How to retire in your 30s

[Rich_by_the_Bay]

Amusing little Wiki here.

Be forewarned: one of the necessary steps suggested is "make alot of money." Another is to stay single.

Gosh... if only I had known... 

 

[brewer12345]

Actually, the little article does a reasonably good job of describing (in brief) one path to FIRE. I would say that this describes intercst, of REHP fame, although I believe that he made less crazy money and simply lived very simply (and still appears to do so).

I'm not sure I would want to live such a life, though.

 

[Dawg52]

Amusing little Wiki here.

Be forewarned: one of the necessary steps suggested is "make alot of money." Another is to stay single.

Gosh... if only I had known... 

Well I stayed single but I still couldn't retire in my 30's.

 

[Rich_by_the_Bay]

Well I stayed single but I still couldn't retire in my 30's.

Oh... I forgot to add: marry someone rich.

 

[Sarah in SC]

Nice article was linked to the original story-
http://philip.greenspun.com/materialism/early-retirement/
Sarah

 

[justin]

In a nutshell - great article. It lays out a basic framework to acheive very early ER. I'm planning to ER in my 30's, and it really isn't that much more difficult than they have laid out (make a lot of money and save/invest most of it).

Two average college grads, age 22, got married. They graduated with engineering degrees (or something) from the local state U with little debt since they worked summers and part time during the semester. Each started earning $45k/yr at their ~40 hr/wk jobs, investing approximately 50% of their income in 401ks, IRA's and taxable accounts. Each year they get a modest raise and save most of it, but also spend a little more each year. Shouldn't be that hard to retire in their 30's with at 18 years of earning and saving/investing.

 

[Rich_by_the_Bay]

..it really isn't that much more difficult than they have laid out (make a lot of money and save/invest most of it).

Two average college grads, age 22, got married....Shouldn't be that hard to retire in their 30's with at 18 years of earning and saving/investing.

I know that it really does seem pretty simple. If you stay the course and do the math, it works.

Real life? Not always quite so simple. Lots can happen over 10-20 years, some good and some not. But at least with a plan in place you up the odds of getting there, even if compromises are needed along the way.

Great to hear from 20-somethings already savvy about long term financial planning.

 

[justin]

Real life? Not always quite so simple. Lots can happen over 10-20 years, some good and some not. But at least with a plan in place you up the odds of getting there, even if compromises are needed along the way.

True enough. Every day is another roll of the dice. But this is at least a game where the house doesn't have the advantage.

 

[azanon]

Sounds like it would probably work. Sounded pretty miserable too.

 

[haha]

I agree. One would need great mental health, or at least great behavioral stability to carry out this plan. Most people need a little more support from their life while it is going on than the hypothetical guy or gal in this sketch. Also, no matter how you slice it, you are essentially middle-aged when you reach the nirvana of retirement.

I am not sure that it would be worth it. For me, I couldn't have done it anyway. Sounds like a 440 that goes on for 20 years or so.

Ha

 

[Jay_Gatsby]

Nice article was linked to the original story-
http://philip.greenspun.com/materialism/early-retirement/
Sarah

You gotta like that Phil guy. Seems pretty down to earth with a wry sense of humor...

 

[trixs]

Very East Route:

1.  Join the military at 17.
2.  Attend "FREE" college while saving most of your paycheck.
3.  Around age 26 apply for OTS.
4.  Do 10 more years in the military.

You can now retire at age 37 with a full 40k+ pension, cheap cheap medical care, and all that extra money you saved!

Have a nice day.

 

[justin]

I agree. One would need great mental health, or at least great behavioral stability to carry out this plan. Most people need a little more support from their life while it is going on than the hypothetical guy or gal in this sketch.

One thing I disagree with in this article is the "no marriage" and "no kids" thing. I think both can be had without a huge impact on ER plans.

 

[brewer12345]

Very East Route:

1.  Join the military at 17.
2.  Attend "FREE" college while saving most of your paycheck.
3.  Around age 26 apply for OTS.
4.  Do 10 more years in the military.

You can now retire at age 37 with a full 40k+ pension, cheap cheap medical care, and all that extra money you saved!

Have a nice day.

You forgot a step: try not to get anything shot/blown off.

 

[maddythebeagle]

One thing I disagree with in this article is the "no marriage" and "no kids" thing.  I think both can be had without a huge impact on ER plans.

I was thinking the same thing...at least on the marriage...if you got 2 people on the same page, the "incremental costs" are lower with more people in a house or apt. Pay utilities and mortgage/rent once and one thing we noticed when my sister was staying here...food costs are not much more...since less leftovers are wasted. On the kids thing, I dont know if they save money

 

[justin]

Re: the military path - great moneywise, but in terms of "quality of life", being shipped of to "exotic locales" every few years (Greenland, Guam, etc.) with family in tow (if you're lucky), let alone deployments to combat zones, might get old. To each their own I guess. Maybe "police officer" could get you to ER in your 30's with a pension while still living in one place (if you choose).

I'm personally ok with slaving away at my comfy desk in an engineering consulting firm for the next decade or so.

 

[d]

it's one thing for those who have w*rked many years to look forward to retirement, but it seems terribly misplaced for someone just beginning their working life to target such an early retirement. they'll close many doors before they're even opened.

 

[justin]

I was thinking the same thing...at least on the marriage...if you got 2 people on the same page, the "incremental costs" are lower with more people in a house or apt. Pay utilities and mortgage/rent once and one thing we noticed when my sister was staying here...food costs are not much more...since less leftovers are wasted. On the kids thing, I dont know if they save money

Exactly. Economies of scale. Kids cost plenty, but there are plenty of tax benefits too. $1700 per head, minimum in most cases. And they help eat leftovers. A 3 bedroom house/condo doesn't cost 3x as much as a 1 BR house/condo. Sure, you might need a little larger car, but you have to have a car anyway. And you won't have time or energy to go on tons of exotic vacations with kids in tow.

Of course on the flip side, if you have a wife who spends 120% of everything you make, you're probably not going to be able to FIRE soon. Maybe that's ok.

 

[justin]

it's one thing for those who have w*rked many years to look forward to retirement, but it seems terribly misplaced for someone just beginning their working life to target such an early retirement. they'll close many doors before they're even opened.

To be "rich" and "financially independent" seem like worthy goals to me in our materialistic society. Some doors are better left unopened.

I'd say enjoy life while you're working to the extent possible. Spend money on stuff that adds value to your life. Save as much as you can otherwise. When you have "enough", do whatever you want to do. If it's pursuing that next promotion and the accompanying boost to ego and pay, then go for it.

Same for education. If you feel compelled to spend an extra few years or a decade in school to better yourself (and increase your earning potential), then do so.

 

[d]

To be "rich" and "financially independent" seem like worthy goals

... they are meaningless if that's all you've got ... but if you have all most other dimensions of your life in order, they undoubtedly add to one's enjoyment.

 

[justin]

... they are meaningless if that's all you've got ... but if you have all most other dimensions of your life in order, they undoubtedly add to one's enjoyment.

True enough. Being FI is simply a means to an end - it buys one freedom to do what one wants in life. If somebody would pay me for walking the streets or working out for 1-2 hours/day, watching tv for 1-2 hrs/day, playing computer games for 1-2 hrs/day, playing with my kids 2-4 hrs/day, and reading for 2-4 hrs/day, then I'd have no problems working forever.

In the meantime, being FI is an honest goal to have, but not to the neglect of other areas of one's life. As in everything, balance is key.

 

[trixs]

Re: the military path - great moneywise, but in terms of "quality of life", being shipped of to "exotic locales" every few years (Greenland, Guam, etc.) with family in tow (if you're lucky), let alone deployments to combat zones, might get old.  To each their own I guess.  Maybe "police officer" could get you to ER in your 30's with a pension while still living in one place (if you choose). 

I'm personally ok with slaving away at my comfy desk in an engineering consulting firm for the next decade or so. 

It would all depend on your job in the military!  Just like in the civilian world there are positions that dont move that often.  You could also always go AGR and stay in one spot your entire career.

I personally enjoy the travel. 

My job: Get up early and jump on a plane with some DV. Run the radios untill we land in some other country.  Travel to the local 5* hotel and stay a few nights while checking out the local area.  Rinse Repeat

 

[camberiu]

Very East Route:

1. Join the military at 17.
2. Attend "FREE" college while saving most of your paycheck.
3. Around age 26 apply for OTS.
4. Do 10 more years in the military.

You can now retire at age 37 with a full 40k+ pension, cheap cheap medical care, and all that extra money you saved!



Have a nice day.

Step 1.5: try not getting killed by an IED, suicide bomber, friendly fire, angry mob of "liberated" locals or similar while "serving the country" in Iraq, Somalia, Afghanistan or similar resorts.

But other than that, it is indeed a great idea. One must wonder why the Army cannot reach its recruiting quota.

 

[Rich_by_the_Bay]

It would all depend on your job in the military! Just like in the civilian world there are positions that dont move that often. You could also always go AGR and stay in one spot your entire career. ...
My job: Get up early and jump on a plane with some DV. Run the radios untill we land in some other country. Travel to the local 5* hotel and stay a few nights while checking out the local area. Rinse Repeat

What's a "DV?" What's an AGR? Sorry - ignorant about this -- good draft lottery number in 1969.

 

[Nords]

But other than that, it is indeed a great idea. One must wonder why the Army cannot reach its recruiting quota.

The way Trixs describes the USAF lifestyle, no one will ever want to join the Army!

What's a "DV?" What's an AGR? Sorry - ignorant about this -- good draft lottery number in 1969.

I speak a little joint pidgin-- Distinguished Visitor and Air/Guard/Reserve-- Air Guard, National Guard, or the national service's Reserve forces.