Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
The Money Habit Blog
Old 12-30-2016, 10:52 PM   #1
Dryer sheet aficionado
 
Join Date: Jun 2014
Posts: 25
The Money Habit Blog

Hey all,

Has anyone seen the above blog? Not sure if we're allowed to post about other blogs on here without directly linking so apologize if so. I was curious if anyone had any thoughts on the blog.

The lady mentions she was able to retire at 28 with $2.25mm after about 7 years of work. She was working a high finance investment job in NYC but even so this seems to be a ton of money. Must be a really unusual case because I did some calculations based on SP500 returns and she would have had to been making an enormous amount when you take into account she was still spending ~24k a year and then NYC taxes.

She would have been making much more than your typical IBD analyst/associate so just wanted to hear you guys thoughts. Maybe she was a trader I suppose or started right off on the buyside at a hedge fund / private equity but maybe you guys can figure it out.

I asked her for a play by play but she said she is still contemplating if she'll do a post on it. I would think it is the only way to see how it was accomplished given such a large amount at a young age. Much more and younger than MMM for example who retired at 30 as many of you know. It just doesn't leave much time to compound by 28 which makes it so interesting and thus is probably a revenue story.
__________________

__________________
Trueace 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 12-31-2016, 09:31 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,232
IMHO, most young people are probably better off studying Jonathan Clements' new website Humbledollar.com .
__________________

__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is online now   Reply With Quote
Old 12-31-2016, 10:17 AM   #3
Dryer sheet aficionado
 
Join Date: Jun 2014
Posts: 25
That link doesn't seem to work.
__________________
Trueace is offline   Reply With Quote
Old 12-31-2016, 10:22 AM   #4
Recycles dryer sheets
 
Join Date: Apr 2013
Location: Vienna
Posts: 55
Perhaps the link should be HumbleDollar.com.
__________________
MildlyEccentric is offline   Reply With Quote
Old 12-31-2016, 10:31 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,313
Given the number of people that invest, surely somebody somewhere had picked the right combination of equities to hit it big. For example whoever bought a large number of shares of Microsoft or Apple at the right time would have seen his/her net worth bloom over a 7-year period.
__________________
GrayHare is online now   Reply With Quote
Old 12-31-2016, 10:50 AM   #6
Recycles dryer sheets
 
Join Date: Dec 2016
Location: Encinitas
Posts: 131
It doesn't seem very unusual for New York City. I don't know how you could permanently retire there at 28 on $2.25M but it wouldn't be hard to accumulate $2.25M working at a moderately high level on Wall Street in 7 years. The year-end bonuses they get are obscene and the real estate market in NYC has blown up like crazy in the last decade.

Edit: Here's the article. She made her money and she's done. Her husband still works though.... doesn't seem fair (or retired). She's really a stay-at-home wife whose investments 'cover their expenses'. How This 28-Year-Old Woman Retired with $2 Million Click bait.
__________________
Starsky is offline   Reply With Quote
Old 12-31-2016, 10:54 AM   #7
Recycles dryer sheets
 
Join Date: Mar 2013
Location: Coronado
Posts: 458
I wonder if she is the same person described in this thread: Forbes Article: 28-Year-Old Retires in NYC With $2 Million
__________________
cathy63 is online now   Reply With Quote
Old 12-31-2016, 11:01 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,962
Quote:
Originally Posted by Starsky View Post
It doesn't seem very unusual for New York city. I don't know how you could permanently retire there at 28 on $2.25M but it wouldn't be hard to accumulate $2.25M working at a moderately high level on Wall Street in 7 years. The year-end bonuses they get are obscene and the real estate market in NYC has blown up like crazy in the last decade.
$2.25M is a lot of money at any age. With a 2.5%WR she should have plenty of money to live anywhere if she stays childless and is willing to live in a cheaper apartment. Dividends alone should pay at least 2% so a 2.5%WR is conservative even at her age. She also has blog income not that she needs it.
__________________
aaronc879 is online now   Reply With Quote
Old 12-31-2016, 11:09 AM   #9
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,123
Thanks for the link to Jonathan Clements' site - I always enjoyed his WSJ columns and will send this on to our kids as a great resource.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 12-31-2016, 11:57 AM   #10
Recycles dryer sheets
 
Join Date: Dec 2016
Location: Encinitas
Posts: 131
Quote:
Originally Posted by aaronc879 View Post
$2.25M is a lot of money at any age. With a 2.5%WR she should have plenty of money to live anywhere if she stays childless and is willing to live in a cheaper apartment. Dividends alone should pay at least 2% so a 2.5%WR is conservative even at her age. She also has blog income not that she needs it.
$56,250 is not a lot of money in NYC, especially the way property values are shooting up. It sounds like she lives in the Bronx with the rent she's paying. I think they have a child - or a renter - the article talks about their tiny apartment holding three people. Today, the average cost of a two-bedroom apartment in Manhattan is $3,895, almost $47K per year. There is a whole lot of information left out of this story.

Taken as a whole, the synopsis would be: High-power Harvard grad decides to 'retire' at age 28 to live like an urban monk in NYC with $2.25M in hard-won savings from a brief, but lucrative, Wall Street career [and a working husband].

What's not to love about that? It happens every day in Forbes' America. Get busy you lazy millennials!
__________________
Starsky is offline   Reply With Quote
Old 12-31-2016, 12:05 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,530
So I read the Forbes article and the previous one by the same journalist on "JP" and looked at the blog. People are not reading these articles with an understanding of what's going on. Here are the facts:

JP invested in index funds that past few years and got the returns of the index funds just like we all did. Nothing special here.

JP has a husband who works. Her previous job at JPMorgan paid well. She still receives deferred compensation from JPMorgan. I don't know the income of her spouse, but let's just say that since she is not living off her portfolio she can afford to be 100% equities if she wants to.

So there is not much to see here. There is nothing wrong with making a lot of money and then investing it in index funds.

I'll throw in another data point about millennials: My niece graduated from an Ivy League university, then went to grad school, but dropped out to hang out with her significant other who is employee number X where X is less than 10 of a well-known Silicon Valley firm. She is essentially retired with no portfolio.
__________________
LOL! is offline   Reply With Quote
Old 12-31-2016, 01:30 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,232
Quote:
Originally Posted by MildlyEccentric View Post
Perhaps the link should be HumbleDollar.com.

Thanks. It is HumbleDollar.com

I've correct my post.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is online now   Reply With Quote
Old 12-31-2016, 07:36 PM   #13
Dryer sheet aficionado
 
Join Date: Jun 2014
Posts: 25
Quote:
Originally Posted by LOL! View Post
So I read the Forbes article and the previous one by the same journalist on "JP" and looked at the blog. People are not reading these articles with an understanding of what's going on. Here are the facts:

JP invested in index funds that past few years and got the returns of the index funds just like we all did. Nothing special here.

JP has a husband who works. Her previous job at JPMorgan paid well. She still receives deferred compensation from JPMorgan. I don't know the income of her spouse, but let's just say that since she is not living off her portfolio she can afford to be 100% equities if she wants to.

So there is not much to see here. There is nothing wrong with making a lot of money and then investing it in index funds.

I'll throw in another data point about millennials: My niece graduated from an Ivy League university, then went to grad school, but dropped out to hang out with her significant other who is employee number X where X is less than 10 of a well-known Silicon Valley firm. She is essentially retired with no portfolio.
The main point is, $2.25mm at 28 is a lot more than your typical banker is able to save / index fund invest so young. So maybe she was a trader or early promotions I suppose but am not sure? It doesn't not leave much time to compound and coming out of school yes you can make a ton of money in NYC but this is still very atypical when you take into account she was still spending ~24k a year then NYC taxes which take a massive chunk. Normally you don't start earning a lot (meaning earning to save the amount she was based on SP500 returns from say 2009-2015) until at the point which she was retiring so that's why I was curious for the play by play or if anyone had any thoughts. If there was some gifting etc because she said she started investing at age 19 then it would make more sense. Hopefully she'll post the details like other blogs though MMM etc. Congrats to her though.
__________________
Trueace is offline   Reply With Quote
Old 01-03-2017, 09:41 AM   #14
Full time employment: Posting here.
exnavynuke's Avatar
 
Join Date: Sep 2016
Location: Acworth
Posts: 849
She said in one of the articles posted before that she was saving/investing something around $190k/year. Anyone making enough to save that much per year, with the recent market performance, shouldn't have had a hard time growing a significant nest egg.

Now, since 99% of households in the US only earn about 1/4 of what she could afford to save, I don't think her situation has broad appeal or applicability. There are people who could do the same, and there are the Paris Hilton's of the world who can generate such a nest egg by asking daddy for it, but that doesn't mean there's a big secret to be learned from their situations/actions that could help most people. Sure, I like the "LBYM" tilt to the article, but the fact that she's got such a nest egg AND residual income AND her husband is STILL working all tend to imply that their actual lifestyle/spending is NOT what she represents in these publicity pieces for her blog.
__________________

__________________
exnavynuke 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
A Bad Habit "How to" imoldernu Other topics 6 11-25-2013 08:27 AM
Chimp Charlie dies at 52 despite smoking habit MasterBlaster Other topics 1 10-06-2010 01:38 PM
Shopping Habit Change crazy connie FIRE and Money 11 02-19-2009 01:42 PM
Kick that habit - especially you young dreamers donheff Health and Early Retirement 29 01-24-2007 04:51 PM
Breaking the Thrift Habit?? SteveL Other topics 45 08-10-2005 06:19 AM

 

 
All times are GMT -6. The time now is 05:19 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.