Retired at 26...

[RetiredHappy]

Regarding Social Security and Medicare requirements of 40 quarters, i.e. 10 years full time work, if you own a company still, make sure you set yourself up as an employee and contribute to the company, and get wages and as such, contribute to FICA. If not, you need to find a way to contribute to FICA for total of 40 quarters, maybe as an independent contractor to provide services to a company.

 

[nap470]

I'm 61 and retired 2 years ago and DW still thinks I did it too young. The other day she was filling out a form and asked if she should write in "retired or unemployed" for my occupation? I think it was a hint. She is 3 years younger and happy at what she does.

 

[aaronc879]

I don't get it, at 26 I was wanting to do MORE, I could never retire then as I was too motivated to WIN.

Someday, we will hear about the person that moves out of their parents house at 18 and retires.....

I would have retired at 18 if I could afford it. I can't imagine anyone not wanting to. I don't understand the idea of not retiring so you can win. Retiring IS winning IMO. Just shows that everybody is different so none of us can really say what OP should do, he has to figure that out for himself.

 

[Kork13]

Hello everyone. I realize this is probably unconventional for this page, but I am a recent retiree as of 2 months ago. I am 26 years old. No this is not a joke. No I am not scamming. I have multiple sources of passive income and I do not require much by way of monthly expenses. I am looking for meaning as most are after retirement. But, I am in a unique position of having a vast majority of my life still in front of me. Anyone else out there struggling with this?

I'm not quite in your position (well done, however you've gotten there! ), but I am looking at the likelihood of retiring very comfortably within the next 5-ish years (at age 41).... By that time, I'm anticipating 3+ debt-free rental properties, 2 COLA'd pensions, and probably $2.5M-$3M in various investment & other accounts.... Likely at least $120k/yr income doing nothing & not touching the investments. I could almost quit today & be just fine, but the 2nd pension requires the extra few years & will make everything easier. ::shrug::

The biggest thing to remember is that retiring at wildly young ages is not about never doing a lick of work again ... it's more about having the financial freedom to use your time in whatever manner is most enjoyable & fulfilling.

So that's the underlying tenet of my philosophy. What I'm working on figuring out is how to remain engaged and fulfilled with my time, and that's where I'd suggest you focus your introspection. What drives you & gives you meaning? What makes you feel connected to the people/community around you? Bottom line, how do you want to spend your time, money, and energy?

Those answers could include family, travel/exploration, charity/volunteer work, pursuit of multiple hobbies & interests, or any number of other options. It might even include running a business or working for a company/non-profit/mission that you deeply believe in -- my wife intends to still work as a physical therapist in some capacity, because she's a healer at heart. But what's important is knowing that it's all your choice, it all brings you deep meaning in life, and you always retain the freedom to change course at will.

 

[braumeister]

I would have retired at 18 if I could afford it. I can't imagine anyone not wanting to. I don't understand the idea of not retiring so you can win. Retiring IS winning IMO.

Nothing wrong with your thinking, but some of us were lucky enough to have enjoyable, fulfilling careers. I retired at what I considered early, but it was only when the minuses started to pile up to where the pluses were.

 

[stepford]

When I was in my 20s-30s a few of the gang I hung out with were TFBs (Trust Fund Babies). I'm not tarring the OP with this brush as it sounds like his fortune was self-made, but nevertheless I've seen how young folks with seemingly endless time and money live.

The short answer is find a hobby you love, do that a lot. Travel, pursue members of the appropriate gender, etc. It's a tough life, but somebody has to live it.

BTW, the TFBs I knew weren't particularly stuck up - just dudes who knew how to have fun. I've lost touch with them over the years, but well into their 50s-60s they seemed to be living happy, chill lives.

 

[scrabbler1]

Nothing wrong with your thinking, but some of us were lucky enough to have enjoyable, fulfilling careers. I retired at what I considered early, but it was only when the minuses started to pile up to where the pluses were.

I tend to agree. When the minuses of my commute began to rise, to the point where they overtook the pluses of working, and I had saved up enough money, I retired. I did make a small pit stop at working part-time for 7 years, reducing the minuses of the commute. But that was only a temporary, stopgap measure, giving me more time to build up my savings (and the exploding value of my company stock) until my eventual ER at age 45, 14 years ago.

 

[dingo]

Congratulations! You will figure it out. Stay active, stay in touch with friends, volunteer, develop interests, don’t take on any more vices etc. That is the American dream times 100.

 

[JDARNELL]

TBH not sure if I would have wanted to retire at 26. It was strange enough at 46 and the initial uncomfortable feeling of perceived societal norms. Perhaps the view of wealth at 26 would have been different for me that at 46 which could have either been really good or really bad. There are a lot of vices that could have potentially cut my life short at 26 as compared to 46. There is great wisdom to be gained along the journey.

 

[38Chevy454]

Welcome to the forum. Congrats on making your financial goals at a very young age. I don't think I would have had the financial discipline at 26 for my money to hold out for rest of my life. Not saying i wouldn't make it, but at that age I was not educated enough for financial success over the long term.

Back to your question, what do you like doing? Pursue more of that. Develop hobbies you have interests but not the time previously. Beauty is you don't have to be successful, switch to something else.

 

[stepford]

...don’t take on any more vices...

Oh, come on. The OP is 26. What's the use of being 26 without at least a few new vices?

 

[Phroig]

Find a nonprofit whose mission appeals to you? If you have STEM skills, teach disadvantaged kids?

 

[MarieIG]

So the OP posted twice, both early yesterday.

Here yesterday gone tomorrow?

He found meaning . . .

 

[daylatedollarshort]

I would have retired at 18 if I could afford it. I can't imagine anyone not wanting to. I don't understand the idea of not retiring so you can win. Retiring IS winning IMO. Just shows that everybody is different so none of us can really say what OP should do, he has to figure that out for himself.

I would have retired at 5 if I could have.

 

[soulsearching]

response

Hello Everyone! I apologize for not returning sooner to this post. I take often and frequent breaks from the internet to help myself stay sane and will sometimes go days or even weeks without checking in on most internet-related activities. I first want to thank everyone on this thread. The messages and responses have been incredibly insightful and I have gleaned a lot from poster responses by way of what I may do next. I love hearing what others are doing and passionate about.

To be honest I did not think this post would blow up the way it did so I am starting to sort through and respond to individual posts as best I can.

To answer a few questions that were asked multiple times: I don't currently have a Youtube account and don't do much consulting. I have done it for one client so far that was a biz similar to my own who paid for my time for a few days to help set them up structurally for growth like I experienced.

I have often thought about starting a Youtube channel. I do have my reservations about sharing anything personal online as many of you know, it's a scary place. However, it seems there has been some interest in how I accomplished retiring early. That may be a path worth investigating further... I greatly appreciate everyone's responses! thank you so much for the overwhelming kindness shown in your responses. I can tell this is a great community which cares deeply about it's posters/members.

 

[soulsearching]

So the OP posted twice, both early yesterday.

Here yesterday gone tomorrow?

I have responded in a longer post on this thread, but wanted to come back to this post and tell you that I often take long breaks off the internet to keep myself sane. I don't check any of my internet posts regularly (although admittedly I probably should given the amount of support I saw on this thread) but provide explanation for my absence.

Thanks!

 

[soulsearching]

If you have built these businesses, you have specific knowledge, you could help others that are struggling with their businesses. It would be very rewarding to help people get back on their feet.

This post has got me thinking a lot about how I can do that. Consulting is a fairly personalized way I could help others. Youtube channel perhaps could reach a larger audience? I don't want to be one of "those youtubers" who post about how they retired early and then sell a course. It's misleading and taking advantage of people who are just looking for guidance.

 

[soulsearching]

Start a YouTube channel on how you did it.

Great idea! I have thought about dipping my toes into online before but putting yourself in the public sphere is always a scary thing... people are crazy

I do think I could have some fun/interesting things to say on my journey and how I accomplished what I have so far. But what do I know. I'm just a kid still. will anyone take me seriously?

 

[soulsearching]

Welcome! Many folks think they can retire early, but don't have enough saved up. Passive income streams can dry up, or can have ups and downs. Are you diversified in your investments? Have you planned to pay for health care outside of the ACA (if it ends). Do you have an emergency fund?

Besides all those, you mentioned that you " do not require much by way of monthly expenses". If I had ER'd at 26, I'd require a heck of a lot more than 'not much' to fund a lifestyle that would keep me occupied, busy, and happy (to include $ for lots of travel, nice house, fun toys, etc.). Without deciding what you want to do in your 50+ year-long retirement, there's no way that you can know what type of budget you'll need. For a 50+ year long period, 40/60 is way too conservative, and unlikely to maintain its value due to SORR and inflation. Have you run FIRECALC or answered the questions on the Early Retirement FAQs page?

RESPONSE

I am about to check out the FIRECALC page, thanks for referencing it! As for the finances: you're absolutely right. my income streams could dry up tomorrow. I am in full recognition my current status is always on the cusp of collapse. I live hyper conservatively in a small apartment with multiple roommates. I do not have any dependents and have no plan to in the future. I'm checking in with my FA on the 40/60 allocation because you're right about inflation gobbling up any growth I could see. I should be more specific when discussing my port. That 40/60 split is only in some of my accounts. I have a ROTH, individual investment accounts, and keep a good chunk in cash along with my various businesses and real estate holdings. The 40/60 split factors in that I own a sizeable amount of BOND ETF's in one of my individual investment accounts that is supposed to "offset" some of my equity exposure in my other ports.

I have been working with my advisor to help tweak the holdings and is an ongoing effort, but thanks for pointing that out!

 

[soulsearching]

soulsearching, you are certainly welcome here and I personally would love to know the details of your retirement but at age 26 you will probably find more kindred souls and advice on the Mr Money Mustache Forum.

I am about to checkout that forum. Thank you for the comment!

 

[soulsearching]

Have you checked the minimum work requirements to get Medicare when you turn 65? Healthcare can bankrupt even well off people who don’t have good coverage. You have to be eligible for social security to receive Medicare benefits which is 40 quarters of employment paying into social security, or being a spouse of an eligible person. Have you met those requirements?

GREAT point! thank you so much for the comment. I am fallible just as anyone is. to answer your question: no I have not checked into this. I certainly will. You've given me homework for which I am grateful!

 

[soulsearching]

I'm not quite in your position (well done, however you've gotten there! ), but I am looking at the likelihood of retiring very comfortably within the next 5-ish years (at age 41).... By that time, I'm anticipating 3+ debt-free rental properties, 2 COLA'd pensions, and probably $2.5M-$3M in various investment & other accounts.... Likely at least $120k/yr income doing nothing & not touching the investments. I could almost quit today & be just fine, but the 2nd pension requires the extra few years & will make everything easier. ::shrug::

The biggest thing to remember is that retiring at wildly young ages is not about never doing a lick of work again ... it's more about having the financial freedom to use your time in whatever manner is most enjoyable & fulfilling.

So that's the underlying tenet of my philosophy. What I'm working on figuring out is how to remain engaged and fulfilled with my time, and that's where I'd suggest you focus your introspection. What drives you & gives you meaning? What makes you feel connected to the people/community around you? Bottom line, how do you want to spend your time, money, and energy?

Those answers could include family, travel/exploration, charity/volunteer work, pursuit of multiple hobbies & interests, or any number of other options. It might even include running a business or working for a company/non-profit/mission that you deeply believe in -- my wife intends to still work as a physical therapist in some capacity, because she's a healer at heart. But what's important is knowing that it's all your choice, it all brings you deep meaning in life, and you always retain the freedom to change course at will.

RESPONSE

Wow! congrats on the major accomplishments you have achieved and kudos to you for building what you have so far. That portfolio sounds like more than enough for someone to early retire. You are totally right in finding your passions. I am trying to find mine beyond my work.

 

[soulsearching]

When I was in my 20s-30s a few of the gang I hung out with were TFBs (Trust Fund Babies). I'm not tarring the OP with this brush as it sounds like his fortune was self-made, but nevertheless I've seen how young folks with seemingly endless time and money live.

The short answer is find a hobby you love, do that a lot. Travel, pursue members of the appropriate gender, etc. It's a tough life, but somebody has to live it.

BTW, the TFBs I knew weren't particularly stuck up - just dudes who knew how to have fun. I've lost touch with them over the years, but well into their 50s-60s they seemed to be living happy, chill lives.

RESPONSE

thank you for your comment! unforunately I wasn't lucky enough to have won the lottery, although there's something to be said about most lottery winners losing their fortunes in less than a few years.. Unforunately as well I did build my place predominantly on my own. I was extremely fortunate that my education was largely paid for by my family (although most came from life ins when my dad passed) but "self made" is a loose concept to me. I'm not one to say "I started with a small loan of a million dollars" but also recognize I was born into privileges most were not afforded.

I live extremely conservatively. I am not your typical 20 something. I don't drink, do drugs, party, or really much of anything socially. for the last 10 years (yes, 10, I like to think I started this journey still in high school) I have been working 60-100 hours a week to build to where I am at now. Now I have to retool that thinking and passion I put into building businesses and make something new.

Thanks for the response!

 

[marko]

When I was in my 20s-30s a few of the gang I hung out with were TFBs (Trust Fund Babies). I'm not tarring the OP with this brush as it sounds like his fortune was self-made, but nevertheless I've seen how young folks with seemingly endless time and money live.

I've mentioned a few times here how about half my high school class were trust fund kiddies.

A third ended up being doctors, lawyers, bankers or now running grampy's business. A few more of them are into social foundations, like clean oceans, helping African children and so on.

Another third are now dead (or should be) from drugs, drink and poor life choices.

Another third (back in 1970 we easily could've predicted who!) never really went to work (or any serious work) and are now living in Europe, sailing around the world on 'the boat' or generally living a good decent life; some in exotic locales, others still in their home-town.

OP: try not to be the middle group!

 

[JDARNELL]

RESPONSE

"I started with a small loan of a million dollars" but also recognize I was born into privileges most were not afforded.

Right play the hand that was dealt you. But don't ever apologize for your good fortune or for that matter what you did to get to your current place in life!