How early retirees are different from the rest of us

[FIREdToBeExpat]

Nothing new but an interesting read on cnbc
How early retirees are different from the rest of us

6 things early retirees do differently:

1. Have happy marriages
2. Appreciate what they have
3. Follow their parents' example
4. Teach their kids about money
5. Keep calm and carry on
6. Worry about an early death

[papadad111]

Read it too. Agree with it completely.

[ExFlyBoy5]

How ridiculous is this statistic...

-Teach their kids about money. Only 14 percent of people planning to retire early taught their children about money and finances, but that was well above the 6 percent of people not planning to retire who did so.


Seriously? No wonder consumerism is so freaking rampant in our country.

Sent from my mobile device so please excuse grammatical errors.

[OctopusPrime]

If I followed my parents' example, I would be dead broke, with no savings or retirement, after filing for my second bankruptcy. My parents taught me everything NOT to do with money, TBH.

[ivinsfan]

I love number 6, more people were worried about dying early then running out of money before death, so that means they were "worried" about dying.

Doesn't that really mean they saved and planned for a great retirement and aren't "worried" about money?

Who writes these articles?

[NW-Bound]

Well, having enough money lets you worry about other things, like possible early death.

"Success is having to worry about every damn thing in the world, except money." - Johnny Cash

“Money can't buy you happiness but it does bring you a more pleasant form of misery.” - Spike Milligan

[daylatedollarshort]

Instead of calling it worrying about dying young, I'd say the realization that life can be short. Enjoy it while you can.

We have had a number of friends pass away these last few years before or shortly after they retired.

[daylatedollarshort]

Quote:

Originally Posted by OctopusPrime If I followed my parents' example, I would be dead broke, with no savings or retirement, after filing for my second bankruptcy. My parents taught me everything NOT to do with money, TBH.

Maybe they were following the school of thinking that if you can't be a good example then at least be a horrible warning?

[Huston55]

This article is largely worthless, as it misses what is the primary factor in early retirement: LBYM.

The "behaviors" discussed in the article seem mostly derivative versus causative. And, even those that are partly causative (Happy Marriage [read "no divorce"], and Financial Hardship) don't indicate what I would call large differences in early retiree/non-early retiree behavior stats.

The closest the article comes to listing a useful "behavior" is at the beginning when it says that early retirees 'make it a priority' and 'make a plan.'

[daylatedollarshort]

Quote:

Originally Posted by Huston55 This article is largely worthless, as it misses what is the primary factor in early retirement: LBYM.

That seemed to be the #1 finding in the more research oriented book The Millionaire Next Door - LBYMs.

[Huston55]

Quote:

Originally Posted by daylatedollarshort That seemed to be the #1 finding in the more research oriented book The Millionaire Next Door - LBYMs.

I loved that book! Along with "Your Money or Your Life", it was one of the seminal financial books early in my career.

[ERhoosier]

Quote:

Originally Posted by FlyBoy5 How ridiculous is this statistic... -Teach their kids about money. Only 14 percent of people planning to retire early taught their children about money and finances, but that was well above the 6 percent of people not planning to retire who did so. Seriously? No wonder consumerism is so freaking rampant in our country.

That one struck me too. US is fast on our way to becoming the next financial basket case unless things turn around. It's WAY beyond not LBYM, but consistently LAYM. Too many truly EXPECT to reap an unending $$$ harvest from others (Gov't, 'rich' relatives, etc.) without planting their own seeds (saving) & nurturing the crops (investing).
As old saying goes- Money Don't Grow on Trees.

[MichaelB]

Quote:

Originally Posted by ERhoosier As old saying goes- Money Don't Grow on Trees.

US paper currency is made from cotton, which comes from cotton bushes or trees, so money doesn't grow on trees, it grows in them.

[brett]

Our currency is made from plastic!

This week I had coffee with two former colleagues in their early sixties. Both had retired early..with incentives.

The topic of life insurance came up. I said that I no longer had any. One person he still kept his life insurance in order to cover his debts. The other said he had debts but did not bother with life insurance.

[NW-Bound]

Paper or plastic? Too old fashioned!

Money nowadays is "in the cloud". It's just bits and bytes on banks' computers, and can be created, trillions of it, just by a few keystrokes. That saves trees and petroleum, hence is "greener".

[marko]

Quote:

Originally Posted by daylatedollarshort Instead of calling it worrying about dying young, I'd say the realization that life can be short.

Or....are people who RE already predisposed to worry about dying young, hence, retiring early as a result, and not the other way around? The result vs the cause.

A bit like the old "trailer parks attract tornadoes" axiom

[marko]

Quote:

Originally Posted by OctopusPrime If I followed my parents' example, I would be dead broke, with no savings or retirement, after filing for my second bankruptcy. My parents taught me everything NOT to do with money, TBH.

So...they taught you something...

[Which Roger]

Quote:

Originally Posted by daylatedollarshort That seemed to be the #1 finding in the more research oriented book The Millionaire Next Door - LBYMs.

Agreed, but that's almost by definition. If you LBYM, you save money and may be able to retire early. If you don't, you don't and you can't.

We have control over some of the things that help us LBYM (spend carefully, learn about investing, stay in school and work hard so you get a job that pays well).

But there's also a lot of luck involved in LBYM. Having the opportunity to get a good education, avoiding layoffs, avoiding serious illness, etc.