Your Investment Road To FI

[BunsGettingFirm]

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Originally Posted by Kabekew I got to FI by not investing... I never contributed to 401K's because I wanted to stockpile cash to keep my options open. Then I saw an idea for a business, started it part-time, and after about 7 years it was doing well enough to get my first big contract, which I financed with my cash stockpile. Then I spent all the subsequent income on hiring people and was able to leverage my way up. It was all self-financed and credit-card financed except for a $20K loan from my father. Made several million.

You did invest. It was just in one stock in your company.

I'm trying to dabble a bit in that world. It's unreal how much due diligence is required. There are no analyst reports and certainly no CNBC (maybe that's a good thing), so I have do all of my own analysis. Thank goodness Dory showed me a few good tips and tricks.

[Zubini]

I've always been interested in real estate so bought the only foreclosed house in a very upscale neighborhood, remodeled it then sold it for almost triple in 5 years. Bought another house and did the same. Started with 7k and turned it into + $1mil. At the same time I put all available capital into my business and built it up slowly into a small but very successful company. Am now just starting to really invest in equities but that's been a little disappointing lately to say the least. Well thought-out calculated risks have always served me well. I live well below my means which suits me fine. I have no children so look forward to giving away a lot of money to my favorites causes.

[canadianteddy]

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Originally Posted by Zubini I have no children so look forward to giving away a lot of money to my favorites causes.

Can I be a favorite cause?

[Independent]

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Originally Posted by dex Work LBYM Save Preservation of capital ++++++ Understand: Maximizing income Minimizing expenses Budgeting Financial projections Cash Flow LBYM Preservation of capital Goal setting Opposing social pressures

This list works for me. (I'm assuming that "maiximizing income" refers to income from work, not from investments.)

Bogle says the biggest difference in retirement accounts comes from how much people save, not from how they invest.

I think one big variable is how you define "early". Some people think that means 59, others think it means 39. It seems to me that "39" requires that you go to some extremes on the list above, or win the lottery on some big investment.

If you have children and a mortgage, and think that "59" is a reasonable goal, remember that those expenses will (should) end some day. So you don't need to buy into the 80% rule.

[Alan]

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Originally Posted by Independent I think one big variable is how you define "early". Some people think that means 59, others think it means 39. It seems to me that "39" requires that you go to some extremes on the list above, or win the lottery on some big investment.

Unfortunately you won't know if you RE'ed early until after the fact. My Dad RE'ed at 60 and is still alive and mentally alert at 84 but my mother died at 62 so he wishes he could have RE'ed earlier (couldn't 'cos of defined Pension he needed). Similar story with DW's parents.

[jimnjana]

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Originally Posted by audreyh1 Another way to FI is to take outsized risk - put most of your eggs in one basket and hope it pays off. If you take these risks young enough, you have time to recover if it all blows up in your face as long as you don't take on debt. Audrey

I remember hearing about the guy who sold everything he had a bought several hundred thousand in lottery tickets. He contemplated suicide as he did not win millions... I'm not sure how close he came to breaking even.

Jim

[Koolau]

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Originally Posted by jimnjana I remember hearing about the guy who sold everything he had a bought several hundred thousand in lottery tickets. He contemplated suicide as he did not win millions... I'm not sure how close he came to breaking even. Jim

How utterly sad. My pea-sized brain would have thought more along the lines of: Sell everything, go out and spend it all having "fun", when it's all gone, THEN think about suicide!

[tuixiu]

That "same type spouse" one that someone brought up is huge. You're only as strong as your weakest link.

[BunsGettingFirm]

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Originally Posted by Koolau How utterly sad. My pea-sized brain would have thought more along the lines of: Sell everything, go out and spend it all having "fun", when it's all gone, THEN think about suicide!

Vegas, baby!