Stories of TRULY YOUNG ERs Under 40s

[Canadian Girl]

Any under 40s that are ER and want to share how they did it? Particularly those that are living comfortably (more than 50K a year)? Given the parameters, there may be few on this forum. If there are limited replies, perhaps we can 'raise the bar' to the under 50s that are ER

 

[wabmester]

Are you looking for guidance?

I was FI at 37 when I sold my little software biz.   The idea to ER didn't really dawn on me till 40.

If you want to exit by 40 with a "comfortable" life, I don't think the traditional advice of saving and LBYM will do the trick.    You'll probably either need hypergrowth, lots of leverage, or a big inheritance.

 

[Gone4Good]

I haven't pulled the plug yet, but at 35 I could ER on more than $50K currently. Like wab said, I don't think you will find a whole lot of helpful advice on building a seven figure investment portfolio before the age of 40. I did it by lucking/working my way into a high paying Wall Street job and by avoiding most of the high spending habits of my colleagues.

 

[perinova]

wab, 3yrstogo:
The two of you could be ERed before 40! Isn't that a paradox that your are saying it is not possible? Very difficult? Other?

 

[Cut-Throat]

I think you've heard of Bill Gates? Tons of stories like that!

- For the average guy that wants to retire at a younger age you'll probably have to look at a little older. This is where the real 'Gems' are LBYM, saving, investing - The getting rich slowly plan!

 

[wabmester]

Isn't that a paradox that your are saying it is not possible?

Definitely possible.   Here's my 10-step program.

But if you want to take the traditional approach of saving your money, then you'll basically need to save $2M in under 18 years (assuming you went to college).   If you can sock away $40K each year and average 10% returns, then you can get there, but that's more than most people can save.

 

[Spanky]

wab, 3yrstogo:
The two of you could be ERed before 40! Isn't that a paradox that your are saying it is not possible? Very difficult? Other?

I think they are saying that not too many people can command high salary or profits from business venture under 40. For an ordinary folk like me would have to LBYM, save and work longer.

 

[maddythebeagle]

....or live on less than 50k, which a lot people can do and be quite happy.

 

[Gone4Good]

wab, 3yrstogo:
The two of you could be ERed before 40!    Isn't that a paradox that your are saying it is not possible? Very difficult? Other? 

It is obviously possible.  But I'd wager that our path is not likely replicable by most others reading these boards.  The choices I made that will allow me to retire before 40 started when I was 16 or 17 years old.  It's probably possible for someone in their late teens or very early twenties to follow my path but much older than that becomes very difficult.  

If you are of that age and are interested in pursuing a demanding, high stress career in the name of retiring before 40 (a paradox in its own right) you can follow my path.  

1) Move to NYC and get an undergraduate degree in finance
2) Internships followed by a real job in banking
3) MBA in accounting and finance from a top 10 business school (don't be fooled, a top 10 B school is very important)
4) Either get recruited directly into a front office "Wall Street" position or keep switching jobs until you can move into the front office
5) Work 80+ hour weeks for many years and avoid making enemies
6) Never, ever, spend your bonus
7) Retire by 40

(An aptitude for finance also helps.)

 

[justin]

But if you want to take the traditional approach of saving your money, then you'll basically need to save $2M in under 18 years (assuming you went to college). If you can sock away $40K each year and average 10% returns, then you can get there, but that's more than most people can save.

What Wab said. I plan to be able to ER by 35 or so based on our current investments and savings rates and using a reasonable growth rate (I think I guessed 7.x% for my own projections). Of course my wife works too. And we save close to 60% of gross compensation. And we have a combined low six figure income. All those help. It's hard but doable.

Even if the market tanks pretty bad (a la great depression), I'll be there by 40 no sweat.

I did make a couple of smart moves to get me to this point though.

 

[Spanky]

3) MBA in accounting and finance from a top 10 business school (don't be fooled, a top 10 B school is very important)

I carpool with a person who graduated with an MBA in finance from the University of Michigan. He said that his colleagues are making an average of $300K a year at Wall Street. Obviously, he is not since he is still carpooling with me.

 

[farmerEd]

Any under 40s that are ER and want to share how they did it?  Particularly those that are living comfortably (more than 50K a year)?  Given the parameters, there may be few on this forum.  If there are limited replies, perhaps we can 'raise the bar' to the under 50s that are ER

The best way to ER under 40 is to start a business and make it succesful, I started mine in '92 and ER'ed at 37 in 2002...in just about ten years. I don't think there is any other, quicker way to do it.

LBYM helps, making serious dough running a business helps more.

 

[audreyh1]

Yes - I bet most "self-made" folks who ER'd before 40 owned a piece of a business and were able to sell it.

Stock options.  ER'd at 39 after an 18 year career in high-tech land.  I helped build the business from the early days. Lucky for me it was successful.

Audrey

 

[retire@40]

Yes - I bet most "self-made" folks who ER'd before 40 owned a piece of a business and were able to sell it.

I wouldn't have been able to semi-retire in my mid 30s without having my own small business, unless I got lucky with stock options at the right time or had investment real estate at the right time. There was no luck or timing issue with my business, just a lot of hours of dedication and persistence.

 

[preben]

FIREd at age 36 about a year ago. Expat life and LBYM combined with investing did it for me. Oh, single/no kids probably also added to the equation, but was not a concious decision as such.
Living in Asia currently I would find it hard (read; would not add to my happiness) to spend $50k/year but could if I wanted to. Cheers!

 

[Maximillion]

My Brother's only child, a girl, 29, he just set aside a million for her.(there are time lines and conditions).

He worked 7 days a week as a self employed Trades Guy, really frugal, some may say tight wad, ER now at 60, he crunched the numbers and decided to do things now.

I wonder how many other millionaires got there/will get there , by their parent's largesse, and I expect in the next few years we will see one of the greatest intergenerational transfers of wealth in History.

 

[lazygood4nothinbum]

I wonder how many other millionaires got there/will get there , by their parent's largesse, and I expect in the next few years we will see one of the greatest intergenerational transfers of wealth in History.

i've read it is not just the greatest intergenerational transfers, but the greatest wealth transfer of any kind in history.

i'm beneficiary of that phenomenon. though i probably could have retired by 55-60 on my own, not making much money but lbym & investing well. the transfer gets me there 5-10 years early. frankly, i would rather have kept working and kept my mom as well.

vanity license plate seen on a brand new porsche: momiou1

 

[justin]

vanity license plate seen on a brand new porsche: momiou1

I'd roll in my grave/urn if I found out my children had wasted their inheritance on a porsche. I may even come back to haunt them.

 

[cute fuzzy bunny]

Unless it was a nice back porche attached to a nice housche with good appreciation value.

Whats that old saying? You inherit it, steal it or win it? With few exception, I'd say most under 50 (forget 40) ER's got there that way, or maybe LBYM'ing it in their 50's. I think if you LBYM yourself into an ER in your 30's or even your 40's you arent enjoying much of a life.

Me? I won it partially and stole it partially, with plenty of luck. But then again, hundreds of thousands of other people were presented with the same opportunities and didnt take advantage of it.

 

[SteveR]

I'd roll in my grave/urn if I found out my children had wasted their inheritance on a porsche.     I may even come back to haunt them. 

Me too.  That is why my goal is to spend every dime before I die so they won't be
"burdened" with all that money to screw up their lives.  

Seriously, my brother and I won't get much in the way of an inheritance...mom needs every dime she has to pay for her Assisted Living expenses for the next several years.  She could out live us both.  Luckily neither of us need it or want it so if there is anything left it will go to our kids.  

 

[lazygood4nothinbum]

um, it was a porsche 911 carrera convertible and i'm pretty sure it came with a yacht. what, you think mom doesn't want us to have fun?

yes, you can lbym and enjoy the good life. you just have to know a bunch of people with a bunch of boats.

and that was most of my odd life. one of my high school suppliers friends had a charter company so we used to have fun on a few 100+ footers. a board member of a cousin's company had a 90-footer and used to take us out on weekends with his captain and crew. my best buddy and i both had parents with boats and, it seemed to us, a never ending fuel supply.

to make up for our good fortune we used to pick up hitchhikers sitting on the seawalls watching the boats go by and show them a good time. other people living on other people's other people's money. see, i told you i was a socialist.

 

[Andre1969]

Heck, to some people, settling for a Porshe just MIGHT be LBYM, if they could just as easily afford a Lambo, Aston Martin, Ferrari, etc.

 

[Canadian Girl]

Figured that one had to be entrepeneurial and/or lucky to make it under 40. Wanted proof that it is definitely not the norm. LBYM can work but not quite as much fun. So the goal for me is to ER under 50.

Isn't the goal to ER AND live really comfortably? What's the fun ERing but needing to 'scrimp' and watch your pennies. I have always believed that when one ERs that you are doing the same or better in your lifestyle than when you were working. True, your lifestyle is great because you're not working, but I am referring to one's overall lifestyle. The same theory goes when when goes on vacation. I personally don't believe that one takes a vacation below the lifestyle that one lives at home. If you live in 4 or 5 star surroundings, you should be able to vacation that way. Same as ERing. Not much reason to ER if you go down a notch or two in lifestyle.

 

[Andre1969]

My goal is to retire by the time I'm 45. I figure by then I'll have at least $1M saved up and a free-and-clear house. I think that would be enough for me to live comfortably, as I'm just not that extravagant of a person.

 

[shiny]

Canadian Girl, Lots of people probably think the way you do and most end up not being able to retire early. I think many people on this board have assessed their lives and have figured out that 5 star accomodations that they leave every day to go to work do not make them as happy as 3 star accomodations that they see all day long.

As far as travelling on the high end, I've done it both ways and have found that you do not see as much of the true nature of the place you are visiting when you insulate yourself in a posh hotel.

I quit work in my mid 30s - luck, skill and not going along with what this materialistic society expects of me enabled it. DH will quit early next year.