Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
5 Ways to Retire Before Age 40
Old 08-02-2010, 05:27 PM   #1
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,668
5 Ways to Retire Before Age 40

Here are five general principles from Yahoo Finance. They won't be new to most forum members here, but it never hurts to chant the mantra.

5-ways-to-retire-before-age-40: Personal Finance News from Yahoo! Finance

Quote:
Leaving the workforce behind before the age of forty is an extraordinary accomplishment and it requires dedication, intensity, and a willingness to live differently.
__________________

__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is online now   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 08-02-2010, 08:27 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Purron's Avatar
 
Join Date: Nov 2007
Posts: 5,584
I'd say many of us are not only willing to live differently, but insist on it!
__________________

__________________
I purr therefore I am.
Purron is offline   Reply With Quote
Old 08-02-2010, 09:08 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,294
Quote:
Originally Posted by Purron View Post
I'd say many of us are not only willing to live differently, but insist on it!
Well this is definitely thinking differently:
Quote:
Consider a new definition of retirement. You may still want to work in retirement to earn additional money, particularly if you can do work you enjoy. Consider a part-time job or even a full-time job with a non-profit organization aligned with your interests and values.
You can retire at 40, as long as you don't mind working full time?

-ERD50
__________________
ERD50 is online now   Reply With Quote
Old 08-02-2010, 09:57 PM   #4
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,668
Quote:
Originally Posted by ERD50 View Post
Consider a part-time job or even a full-time job with a non-profit organization aligned with your interests and values.
Agree it's a bit of a non sequitur. I guess the idea is that retirement allows you to do w*rk that's truly meaningful to you. I've heard so many horror stories about w*rking at nonprofits that I probably wouldn't go this route, though.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is online now   Reply With Quote
Old 08-02-2010, 11:35 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,577
Another shallow, incomplete and useless article:

Why is retiring before 40 extreme? It seems a sensible objective to me. I wish I'd managed to do it.

Why ignore what other people think? Which people are they talking about? If you want to retire early, listening to what other people who have retired early or who are planning to think seems sensible to me.

As to changing the definition of retirement? Big Brother would be proud of this one - being required to keep working to fund your retirement is totally inconsistent with the notion of being retired.
__________________
Budgeting is a skill practised by people who are bad at politics.
traineeinvestor is offline   Reply With Quote
Old 08-03-2010, 01:43 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,753
Here are my six ways to retire really early. I've watched a few people do it. In order:

1) Inherit a bunch of money really early. Works great if you can LWYM (live within your means).
2) Inherit a bunch of money late, as in your late 40's. See above.
3) Do something early to give you an income stream. Patenting (and licensing) some great invention works here.
4) Win a big lottery.
5) Get a job with mega-corp. Get stock options as part of pay package. Have them stagnate for years as you acquire more and more. Just as they are about to expire worthless have mega-corp stock sky-rocket up 6 -10, Exercise and tell everyone how smart you are.
6) LYBM, save and invest prudently.

Which one of these can you control? I ER'd on number 5, but it was blind luck. YMMV.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 08-03-2010, 07:42 AM   #7
Full time employment: Posting here.
ronocnikral's Avatar
 
Join Date: Apr 2010
Posts: 852
public service pensions. LBYM.
__________________
ronocnikral is offline   Reply With Quote
Old 08-03-2010, 08:41 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,528
Quote:
Originally Posted by kumquat View Post
5) Get a job with mega-corp. Get stock options as part of pay package. Have them stagnate for years as you acquire more and more. Just as they are about to expire worthless have mega-corp stock sky-rocket up 6 -10, Exercise and tell everyone how smart you are.
6) LYBM, save and invest prudently.

Which one of these can you control? I ER'd on number 5, but it was blind luck. YMMV.
Variation on 5: Be an early employee of a start-up company that eventually becomes much larger.

You still have to to 6, or else you stay a wage slave.

IMO it's pretty darn hard to retire before 40 without some type of serious windfall (including selling the business that you started).

Audrey
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 08-03-2010, 09:22 AM   #9
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by ronocnikral View Post
public service pensions. LBYM.
The only public pensioners I know who can receive checks before age 40 are military folks who joined out of high school and put in their 20, but I don't think many retired 39-year-old military folks can live off their military retirement alone, even with LBYM.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 08-03-2010, 11:06 AM   #10
Thinks s/he gets paid by the post
Keim's Avatar
 
Join Date: Feb 2007
Location: Moscow
Posts: 1,128
I agree it was a shallow article. But can't agree with some of your comments below.



Quote:
Originally Posted by traineeinvestor View Post
Why is retiring before 40 extreme? It seems a sensible objective to me. I wish I'd managed to do it.
Because it is extreme! Even amongst the folks on this board it is unusual. I'll bet fewer than 10% of the people on this extremely knowledgable board accomplished this. Think of retirement as a bell curve. Those retiring before 40 would be outliers on the far left. Not far up the slope at all. Those retiring in their 50s would be midway up the slope. 60s would be at the crest.

Quote:
Originally Posted by traineeinvestor View Post
Why ignore what other people think? Which people are they talking about? If you want to retire early, listening to what other people who have retired early or who are planning to think seems sensible to me.
Because most other people don't think about early retirement. To accomplish your goal you'll need either a very large income, accompanied by decent saving habits. Or a smaller income accompanied by increasingly good saving habits. Many other people simply don't think like this. More income simply means more toys. If you want to retire before 40 you'll need to hink differently.

Quote:
Originally Posted by traineeinvestor View Post
As to changing the definition of retirement? Big Brother would be proud of this one - being required to keep working to fund your retirement is totally inconsistent with the notion of being retired.
We agree here. Being REQUIRED to keep working isn't early retirement. Early retirement means you can keep working, perhaps doing something you love, etc., but do not need to.
__________________
You can't enlighten the unconscious.
But you can hit'em upside the head a few times to make sure they are really out...
Keim is offline   Reply With Quote
Old 08-03-2010, 11:10 AM   #11
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,044
Quote:
Originally Posted by Keim View Post
Even amongst the folks on this board it is unusual. I'll bet fewer than 10% of the people on this extremely knowledgable board accomplished this. Think of retirement as a bell curve. Those retiring before 40 would be outliers on the far left. Not far up the slope at all. Those retiring in their 50s would be midway up the slope. 60s would be at the crest.
Here you go:

Age at retirement

Less than 5% of people on this board retired before 40.
__________________
FIREd is offline   Reply With Quote
Old 08-03-2010, 11:21 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
How to retire at 40?

1)Don't take on any DEBT, at all.....
2)Don't have kids
3)Save 35% of your take-home pay, or more.
4)Eat a lot of brown rice and fish you catch yourself.
5)Grow your own veggies
6)Work a side job, and save every penny from that

How hard was that?
__________________
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 08-03-2010, 11:52 AM   #13
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Join the military at 17 or 18, then retire at 37 or 38. Heck, you could even push it to 40.

But you would have to avoid debt and do some savings along the way. And avoid getting blown up overseas.
__________________
Bimmerbill is offline   Reply With Quote
Old 08-03-2010, 12:04 PM   #14
Thinks s/he gets paid by the post
Keim's Avatar
 
Join Date: Feb 2007
Location: Moscow
Posts: 1,128
Minor detail there...

Quote:
Originally Posted by Bimmerbill View Post
And avoid getting blown up overseas.
__________________
You can't enlighten the unconscious.
But you can hit'em upside the head a few times to make sure they are really out...
Keim is offline   Reply With Quote
Old 08-03-2010, 12:14 PM   #15
Full time employment: Posting here.
Calgary_Girl's Avatar
 
Join Date: Jun 2004
Location: Calgary
Posts: 775
Quote:
Originally Posted by ziggy29 View Post
The only public pensioners I know who can receive checks before age 40 are military folks who joined out of high school and put in their 20, but I don't think many retired 39-year-old military folks can live off their military retirement alone, even with LBYM.
Here's a family profile from a couple of years ago that Money magazine did. Both were in the military and retired at 44 and 40 (although the money is pretty tight IMO....)

Retired at 40 - February 1, 2008
__________________
I can only be nice to one person today! Today is not your day...tomorrow doesn't look good either.
Calgary_Girl is offline   Reply With Quote
Old 08-03-2010, 12:15 PM   #16
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,668
I think the way to retire at 40 is to set your sites on it when you're 20. The problem is that very few 20-yr-olds know or care about FIRE.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is online now   Reply With Quote
Old 08-03-2010, 02:07 PM   #17
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,142
Quote:
Originally Posted by Onward View Post
I think the way to retire at 40 is to set your sites on it when you're 20...
...and set your target for 35.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 08-03-2010, 02:44 PM   #18
Full time employment: Posting here.
 
Join Date: May 2008
Posts: 589
Quote:
Originally Posted by REWahoo View Post
...and set your target for 35.
That's my plan, at least in the near best case scenario. The planning definitely had to be well on its way by 20. If I had done amazing in law school, the best case scenario could have been 32.

Debt is actually OK, as long as it is mortgage/educational debt, the educational debt is lower than your first years pay, and you have the ability easily pay it off very quickly. Obviously you have to work a lot during school and/or the summers, and/or have a big scholarship. With how interest rates and house prices were last year, I could definitely see a small mortgage being very possible, if they absolutely knew where they would be working for awhile.

On the other hand, saving 35% isn't going to cut it, 50-60% is more likely necessary (unless the income is beyond even what most professionals make). At 35%, most people would not be able to retire until their late 40s, at the earliest, early 50s is much more likely.
__________________
plex is offline   Reply With Quote
Old 08-04-2010, 11:43 AM   #19
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Anyone catch the article on CNN about condos for less than the price of a new car? Many in FL, in nice areas, going for $15 to $25K. I would guess you could live pretty cheaply after buying one with cash ($200 a month maint fees). Course they were only 900sqft 1 bedroom examples.
__________________
Bimmerbill is offline   Reply With Quote
Old 08-04-2010, 11:48 AM   #20
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Quote:
Originally Posted by Onward View Post
I've heard so many horror stories about w*rking at nonprofits that I probably wouldn't go this route, though.
+1.

Occasional volunteer work is great, provided that it fits within your schedule and gives you a sense of fulfilment. But working for pay carries with it too many responsibilities and hassles, regardless of the nature of the employer.
__________________

__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton 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
Poll: At What Age Did You Retire tgotch Other topics 30 06-23-2009 04:11 AM
Hi... age 40, $3M, should I retire? Kabekew Hi, I am... 49 01-24-2009 07:09 PM
What age did you retire? wog777 Life after FIRE 60 02-11-2007 10:40 AM
Re: Retire before age 50? malakito Young Dreamers 1 03-06-2005 05:54 PM
The Optimum Age to Retire? RockMiner Other topics 19 12-11-2004 02:13 PM

 

 
All times are GMT -6. The time now is 03:50 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.