REWahoo
Give me a museum and I'll fill it. (Picasso) Give
I agree. That's why I suggested setting your target at 35 if you hope to retire by 40...I think even shooting for 35 when you are 20 is mighty aggressive.
I agree. That's why I suggested setting your target at 35 if you hope to retire by 40...I think even shooting for 35 when you are 20 is mighty aggressive.
I think even shooting for 35 when you are 20 is mighty aggressive. Not saying it can't be done, but that's college years and "Jimmy's first job" years. Not usually a lot of money going into the bank unless you are in a highly sought after position with an abnormally high salary.
My DW has had a Roth since 18 and 35 is nowhere near a possibility, we're still shooting for around 45.
Well, you can start even earlier than 20 really, in the right environment. If someone starts when they are 15, takes 40-50 credits worth of community college classes in high school, they can then transfer these to a college and graduate by 20. Admittedly this wouldn't work for a hard science/engineering path quite as well, perhaps 20-30 could be transferred, but still, that's an extra year or two early even for that.
My high school had that option, but I chose the route where I would have almost no classes my last year of high school, wasn't really thinking of FI at all at that point. I know one girl from my high school did this though, and finished college at 19 (psychology degree took all the community college credits), then finished law school by 22. Didn't need to be a prodigy, just really good planning and a lot of maturity, community college classes are really easy.
Well, you can start even earlier than 20 really, in the right environment. If someone starts when they are 15, takes 40-50 credits worth of community college classes in high school, they can then transfer these to a college and graduate by 20. Admittedly this wouldn't work for a hard science/engineering path quite as well, perhaps 20-30 could be transferred, but still, that's an extra year or two early even for that.
My high school had that option, but I chose the route where I would have almost no classes my last year of high school, wasn't really thinking of FI at all at that point. I know one girl from my high school did this though, and finished college at 19 (psychology degree took all the community college credits), then finished law school by 22. Didn't need to be a prodigy, just really good planning and a lot of maturity, community college classes are really easy.
That certainly makes sense, if one believes that the purpose of post-secondary education is to obtain 'qualifications' (in the shortest time and with the least amount of thought possible) rather than a bona fide education. Sadly, many (most?) universities currently appear to cater to that notion.I know one girl from my high school did this though, and finished college at 19 (psychology degree took all the community college credits), then finished law school by 22. Didn't need to be a prodigy, just really good planning and a lot of maturity, community college classes are really easy.
That certainly makes sense, if one believes that the purpose of post-secondary education is to obtain 'qualifications' (in the shortest time and with the least amount of thought possible) rather than a bona fide education. Sadly, many (most?) universities currently appear to cater to that notion.
One big financial help was going to state schools that ranged from $3000 a year (beginning of undergrad circa 1998) to $12000 a year (final year of law school). Before grants and scholarships which I received to some extent every year. We definitely would not be where we are today if we had paid $20-40k a year for a combined 13 years of schooling between DW and I.
Your list on this thread is excellent. The above items are the only items that we didn't follow. We have an almost 3-year old kid now and my parents do help, but he's way too active for them to watch full-time so we day care it. It's an excellent and expensive one at about $800/month, but we figure its temporary and taking advantage of the tax break brings down the cost to less than $600/month.2. If you have kids, make sure you have a mother or mother in law that can babysit your kids for free or cheap. Daycare is a no-go for FIREing by 40.
3. Buy a house that is 50-60% of the area's median housing price.
This is a *big* deal and true for me as well. I went to cheap state schools which were easy on the budget (less than 5K/year for my BSEE). I also got my MSEE at the same school which was mostly paid for by my employer. Cheap degree + well-paying job + not having a lot of student loans to pay is a very good combination.
Your list on this thread is excellent. The above items are the only items that we didn't follow. We have an almost 3-year old kid now and my parents do help, but he's way too active for them to watch full-time so we day care it. It's an excellent and expensive one at about $800/month, but we figure its temporary and taking advantage of the tax break brings down the cost to less than $600/month.
Our house was not too far from the median, but it was a smaller house, not a big McMansion and despite the housing crash, it has still doubled from when we bought it 10 years ago so we got lucky. The key for me was putting 20% down, not using it as an ATM machine and not restarting the term during a refi.
If you want income it should (normally) be possible to convert your assets to bonds, dividend-paying common stock, etc. Are your assets unusually illiquid?The real challenge we face is trying to generate INCOME from our assets. Not easily done in our situation.
Sure, it's possible. This is just a terrible time to convert assets to yield or to annuitize, unless you believe inflation will remain near zero (or negative) for decades to come.If you want income it should (normally) be possible to convert your assets to bonds, dividend-paying common stock, etc. Are your assets unusually illiquid?
Thanks for the compliment! I hope to write a book on my strategy one day, but I'm not sure how well a half page of text will sell...
Geez, I know CA is expensive, but how are you getting day care for 100/month? Even if its parttime, that seems very low. Do you have some dirt on the preschool owner?!We just signed up the youngest for some part time pre-school just so she can socialize more and be exposed to other kids. But not a budget buster at $100/month for 2 months.
It really means you'll be able to retire by the time he is 40. I feel your pain. Ours are finally ending daycare this monthTo bring this back on-topic, we hope putting him in daycare will enable him to retire by the time he is 40.
With my endorsement on the jacket cover, I can't see how it won't be a best seller!
Pre school is only 2 days a week from 10 am -12:30 pm. Something like $5 an hour. And I forgot, it is actually $87.50 a month - they made a mistake when they quoted me the price. It's a city parks and rec pre school, hence government subsidized to some extent (by me as a taxpayer).Geez, I know CA is expensive, but how are you getting day care for 100/month? Even if its parttime, that seems very low. Do you have some dirt on the preschool owner?!
My coworker puts his kids in a somewhat shady unlicensed Vietnamese daycare where everything is done under the table. I'm sure its fine, but I wouldn't feel comfortable putting my kid there. He pays about $800/month for two kids and that's about the cheapest I've heard.
To bring this back on-topic, we hope putting him in daycare will enable him to retire by the time he is 40.
When out two kids went to school, our day care payments went from a mortgage payment to a car payment...........
Ahh OK, I think ours works out to be about $7-8/hr. Our friends pay a similar rate.Pre school is only 2 days a week from 10 am -12:30 pm. Something like $5 an hour.
FD, thanks a lot, I hadn't even thought about that! Our recently refi'd 100K mortgage has a monthly payment of $491 (5/5 ARM). We pay $800 for child care. If we have another kid, we probably should just buy a 100K house and lock both kids in there with food and water. What could go wrong?!
Ahh OK, I think ours works out to be about $7-8/hr. Our friends pay a similar rate.
If you want income it should (normally) be possible to convert your assets to bonds, dividend-paying common stock, etc. Are your assets unusually illiquid?
Well it's only $2/sq.ft., so it should be easy to sell if you need to.As you can see, nice net worth... but the majority being non-income producing real estate. The island property is 5 acres and I could rent out a cabin or two on it... if they existed. The land is gorgeous, but devoid of even the slightest sign of human enterprise.
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.