Could you retire at 38?

It sure was! For a couple of reasons:

1) Our annual expenses stayed low. We didn't need to upgrade house, etc. We were able to save a great deal (although retirement really was facilitate through stock options - but still we had limited expenses going forward).

and

2) If we had had kids in school when I was able to retire, I'm not sure I we would have, because my main motivation for retiring was so we could travel a lot, and I think I would have wanted to wait until the kids were college age.

I'd add (3) -- we didn't have to pay a lot more for our house just to get into the "right" school district. In some areas just being in the right school district can add $100K or more to the price of an otherwise identical home.
 
I'd add (3) -- we didn't have to pay a lot more for our house just to get into the "right" school district. In some areas just being in the right school district can add $100K or more to the price of an otherwise identical home.

...but at least Johnny can read. :D
 
I think the firm rule in these kinds of threads should be that you guys who answer 'yes' need to reveal your occupations. For me the answer is 'no'; for the record, I am a government schmoe. But maybe if I moonlight...:blink:

Well, just like Audrey, no kids + stock options helps a lot. Our occupations are fairly mundane (science-related). But, even if we live in a low cost of living area, our salaries are indexed on salaries paid in an area with a much higher cost of living which makes our current employment situation a very sweet deal indeed.
 
But we live in a low cost of living area, yet our salaries are indexed on salaries paid in an area with a much higher cost of living which makes our current employment situation a very sweet deal indeed.
Same here, which is what keeps the FIRE dream alive. My current gig with Megacorp2 began in Silicon Valley, but I was able to get a lateral transfer, move to the boonies and telecommute in a low-cost area off of a Silicon Valley engineer's pay scale. So I'm quite blessed in that sense, though I'm determined to save and invest as much of it as possible because if this gig dries up, there's almost nothing around here as an alternative.

My wife may be entering the ministry soon, and as long as I can hold on to this gig long enough for that to happen (assuming it does), we'll be in good shape and I'd be in position to "semi-retire" sooner rather than later. For sure I'd feel the "golden handcuffs" loosening their grip.
 
I think the firm rule in these kinds of threads should be that you guys who answer 'yes' need to reveal your occupations. For me the answer is 'no'; for the record, I am a government schmoe. But maybe if I moonlight...:blink:

I'm in one of the lower paid engineering professions. Nothing techie. But in the private side, not government work. DW started entry level at an investment bank 4.5 years ago, and has worked her way up a few notches, but still not making a ton. She does back office stuff away from the traders, not the $500,000 a year jobs that "investment bank" connotes. Our total salaries (not counting fringe benefits) just barely pushes our earned income into six figures (and that first happened in 2008 IIRC).

We are both law school grads, and have the full student loans from that as well. Neither of us receives an income from practicing law, and it has helped very little in terms of compensation at either of our jobs. So factor in that we have a bunch of student loan debt, and "wasted" three years not working, and not getting experience in our current careers.

But we have been focused on wealth building all along. We bought a small (by today's standards) 4 bedroom house in a working class/gentrifying neighborhood that will meet our family raising needs. We drive 10 year old well maintained cars. We make some sacrifices here and there, but nothing that really matters much to us. We could always buy a nicer house in a better neighborhood, and nicer cars, and more/nicer things for our kids. But we chose not to since what we have is "good enough".

Our net worth has grown due to keeping costs of living contained and saving about 1/2 our income (and saving big time on taxes as a result). Overall, I think the kid expenses are almost a wash. Not to understate the expenses involved with kids (which may be higher in the future), but our spending is different now, not necessarily just higher. Through 2010, we saved a bunch on taxes, and 2011 forward we will continue to do so, to a lesser extent.

Edit to add: we are in a low cost of living area also (as far as urban areas in the US go).
 
... I'm determined to save and invest as much of it as possible because if this gig dries up, there's almost nothing around here as an alternative.

Same here. If this gig lasts another 3 years, we'll be in the clear... Fingers crossed.
 
At age 38 I had just realized that if I wanted to retire in 20 years I'd better get my act together.

We also had 2 kids aged 11 and 12 so even if, at age 22, I'd wanted to RE at 38 I would never have made it. However, no regrets, we did lots of fantastic "adventuring" during that period :)
 
I have read about the Kalderlis before and they are inspiring. I really like the way they have been able to explore other countries without it costing a fortune.
 
To my dismay CFB retired at 38, beating me by a year. :(
 
Guess I'll answer, because I [-]really hope[/-] should be able to fully retire by 38. While my saving/investing habits are really good, that still assumes I am fairly successful in my career, 38 is 12 years away for me, I do not have a crystal ball, but I do have the right type of background and experience for it (EE patent law). EE patent law is very technically complex, but it it starts in the low six figures. I have moderate student loans, especially for going to law school at full price. I do not plan on having children. I am very healthy, mostly maintain a low stress level, and I am extremely careful about my health. When I say I am frugal, as some know from my other posts, I am extreme, I can comfortably live on $10k/year (e.g. my food budget is $100/month). I started making frugal decisions early, I have been a saver before I was even 18. I have moved about...25 times in the last 6 years, and I plan on making an out-of-state move when I do patent law full time. I will have to rent until I am near my mid 30s, when I will buy a smallish house and stay there for many years. Most of my hobbies are free, only a couple of my hobbies are in the $100-500/yr range. I hate traveling (yet I am always moving for work). I buy a car in good shape and drive it into the ground, my current car had 110k miles on it 7 years ago and I still am using it.

All these decisions add up, most of them have allowed me to have a lot more career and financial flexibility than most. Some of them, particularly my hobbies, are mostly a matter of luck, what you enjoy is what you enjoy.
 
At 38 I just embarked ion a second career in the head office of a technology company, after a career in technology, sales and sales management. I would never had the enjoyment I got from influencing corporate direction.

At 49 I was given a golden handshake and immediate reduced pension. Ten years and an extra wife later, I finally retired.

I think the Kalderlis are a model for people who will take drastic action in order to reduce the risk of early retirement. They write books to sell them so, in a sense they just traded a 9 to 5 job for freelancing (granted for much less $). The nice thing is that they have gained some real experience that can help all those who follow.
 
Ten years and an extra wife later, I finally retired.
.
Can you tell us more about the extra wife? This might be an approach to ER that seems less self-denying.

Ha
 
Can you tell us more about the extra wife? This might be an approach to ER that seems less self-denying.

Ha

:LOL:

I bought into (mentally, not monetarily) the idea of sticking with my State job to get the pension when I was 43 when I was 23. I already had five years in and was going to school at night to be an Engineer. I also started the in-house engineer program at my job and like the saying goes, "Back then I couldn't even spell engineer and now I are one".

My point is that you can retire at 43, 38 or even 28, if that is your goal. It didn't take long for me to forget the idea of quitting my job, spending untold thousands on an education, go into the job market, work 45 years of 60 hour weeks and then dropping dead with a gazillion dollars in the bank and begin planning and dreaming about not working. Not that I didn't climb the ladder and work hard and give my all for King and country, but I never took it too seriously and never feel to deeply into the trap of keeping up with the Joneses. A really committed person could keep out of debt, save like crazy and do it. Unfortunately, most of us don't find ER religion until later and 38 is out of reach.

I could have done it if I would have joined the Highway Patrol academy or become a fire fighter. Hindsight!:rolleyes:
 
At 38 I had just met my second husband . I had been a single Mom for six years and had gotten my savings act together .More for my children's college than my retirement . My net worth was probably about $88,000 at that point . I remarried and also got a higher paying position so during those years we were making $160,000 combined and saving a lot of it . Unfortunately he died suddenly when I was 51 but at that point I could have retired because I was FI due to all the saving we had done but I choose not too and instead retired at 59.
 
Me, able to retire at 38? :LOL::ROFLMAO:

Let's see. At 38, I was well ahead of my peers.

I had:

  • a salary of $50K
  • a paid for house (it cost $60K in 78), worth maybe $90K
  • a couple of paid for (but worthless) cars
  • maybe $50 in retirement accounts (edit to add: I was far enough from FI that I have no clue here, it might have been $100K)
  • a stay-at-home DW
  • kids aged 6 and 8

I did not have:

  • debt of any kind
  • stock options

I would not be retired today if I hadn't hit the stock option gravy train. While we could live frugally on 4% of our RRSP (Canadian IRA) 75% of our NW comes from getting lucky in the stock option lottery. Without it, I'd be too big a chicken to take the plunge, and we prefer to live below our means but not frugally.
 
I retired at 31+ (after my second child). We are 38 right now and hoping for my Hubby to be free by 42-43. We already have funded education for kids and 2 houses are funded (1 for rental income).
Mostly it is LBYM and solid savings (50% of net income). LBYM is hard many times like in India I cook myself instead of hiring cook for $50 a month or use public transport instead of hiring $150 pm driver.
 
When I say I am frugal, as some know from my other posts, I am extreme, I can comfortably live on $10k/year (e.g. my food budget is $100/month). I started making frugal decisions early, I have been a saver before I was even 18.

Wow Plex. I could use a play out of your book. Care to elaborate at all on your $100/ mo food budget. Particularly since you seem to emphasize health. I would think $100/ mo only gets you some ramen noodles and an odd can of beans...Please share to the extent you care to. Thanks!
 
Wow Plex. I could use a play out of your book. Care to elaborate at all on your $100/ mo food budget. Particularly since you seem to emphasize health. I would think $100/ mo only gets you some ramen noodles and an odd can of beans...Please share to the extent you care to. Thanks!
Beans and rice, rice and beans.... :)
 
Wow Plex. I could use a play out of your book. Care to elaborate at all on your $100/ mo food budget. Particularly since you seem to emphasize health. I would think $100/ mo only gets you some ramen noodles and an odd can of beans...Please share to the extent you care to. Thanks!

This is a re-post of my 2nd post on the forum, which directly answers your question, since I was asked this before. This is from almost exactly 2 years ago.


"Yes, I spend 100/month of groceries. As mentioned, I never eat out, except maybe once a month, and put that under Misc. I only eat out for purely social reasons, it is almost physically painful for me to be spending 3-4 times as much on food than I normally would. I live in the Midwest and buy my food at Meijer. 90% of what I buy is on sale, 8% is low cost staple items and 2% are "splurges." usually just one or two items.

I do not drink, smoke, or drink pop. Yes, it is only called pop in my state. I eat some sort of frozen vegetable, pasta, orange juice, milk and tea every day, I may mix it up a bit for the other items. I eat 1/3 of the frozen beans, which costs 35 cents a serving, the pasta costs about 40 cents a serving, including the no-fat/no-cholesterol squeeze "butter" I put on it, the orange juice is about 50 cents a glass, the milk is about 30 cents, the tea ranges from low quality to high, so can range from 20 cents to 50 cents (since I drink multiple servings of it). I also usually eat a bag of pretzels as a snack throughout the day which is 1 dollar. This adds up to...about 2.75 on a normal day. The other .66 a day goes to my splurge item (fresh asparagus/cherry strudel) and household items (toilet paper/paper toweling/one other household item).

Oh yea, my credit card discounts 2% off all my groceries as well. 5% on gas (but it is still 150 even after that :(). Obviously, I don't pay a fee for the credit card and the amount is automatically deducted from my bill each month.

One year in undergrad, I was on a ramen noodles diet for a bit when I was stuck in a dorm without a stove, that got old very fast, I have a much more balanced diet now, thanks to having access to a stove and some experience buying groceries. My salt intake is a bit high still, but not too bad, I only sometimes go over the daily recommended amount. There is way to much salt for my liking in a lot of foods. Mac/cheese, ramen, boxed rice are pretty nasty in regular quantities. I would like to get a rice cooker though at some point, as I like white fluffy rice, especially with some sort of sweet or salty sauce, but the packaged stuff has a gigantic amount of overkill on butter and salt.

If I am working, I bring a low cost microwave meal, something in the $1-$1.50 range (often healthy choice on sale). Also go through 75 cents in snacks. However, my work provides some fairly decent green tea for free, which offsets the extra cost of the convenience meal, I usually go through 8-10 cups."


As an update: My budget is still the same, there hasn't been too much inflation in food prices due to the recent deflation that occurred in 2009, but I did change some of the things I am regularly buying now. One change has been to buy a 8 lb bag of russet potatoes for $2.50 (about 30 cents a serving), cut the potato into slices, put a bit of melted butter on it, and bake it, then sprinkle garlic powder on it (NOT salt), it tastes great and is pretty healthy. I also buy a 32 oz large tub of strawberry yogurt now for $1.60. I have also been trying oatmeal, which is actually pretty good, which is about $0.25 a serving. I am also buying fresh chicken at .99/lb, I usually eat 12 oz in one serving. I also now buy either 2 lbs of romaine hearts or spinach, whichever one is one sale, for $3, this is about 6-8 servings for me, I put a small amount of mozzarella cheese and a tablespoon of Caesar dressing on each serving. I have not been eating much pasta, the price inflated ridiculously to up to $2/serving and has only recently started coming back down to normal. Instead, I got a $20 rice cooker, and have been making brown rice, and I am putting either soy or home-made orange sauce on it (about $0.10/serving for rice+sauce, rice is really cheap, but I only eat this maybe once or twice a week). I can also make pretty good soup now, though I am still trying to figure out exactly how to make a good healthy thick soup.

While I already had fat/cholesterol/trans fats/salt under control, I have been taking special care lately to avoid high fructose corn syrup and sucrose, which are much worse than corn syrup/sugar. As I mentioned in the quote, I still buy nearly every item on sale, my "total saved" number on my receipt is usually larger than my "total spent". What I buy honestly evolves a lot, as the prices of items change, and as I widen the range of foods I can quickly make myself (I never make anything that requires more than 5 minutes of prep, too much work).
 
This is a re-post of my 2nd post on the forum, which directly answers your question, since I was asked this before. This is from almost exactly 2 years ago.


"Yes, I spend 100/month of groceries. As mentioned, I never eat out, except maybe once a month, and put that under Misc. I only eat out for purely social reasons, it is almost physically painful for me to be spending 3-4 times as much on food than I normally would. I live in the Midwest and buy my food at Meijer. 90% of what I buy is on sale, 8% is low cost staple items and 2% are "splurges." usually just one or two items.

I do not drink, smoke, or drink pop. Yes, it is only called pop in my state. I eat some sort of frozen vegetable, pasta, orange juice, milk and tea every day, I may mix it up a bit for the other items. I eat 1/3 of the frozen beans, which costs 35 cents a serving, the pasta costs about 40 cents a serving, including the no-fat/no-cholesterol squeeze "butter" I put on it, the orange juice is about 50 cents a glass, the milk is about 30 cents, the tea ranges from low quality to high, so can range from 20 cents to 50 cents (since I drink multiple servings of it). I also usually eat a bag of pretzels as a snack throughout the day which is 1 dollar. This adds up to...about 2.75 on a normal day. The other .66 a day goes to my splurge item (fresh asparagus/cherry strudel) and household items (toilet paper/paper toweling/one other household item).

Oh yea, my credit card discounts 2% off all my groceries as well. 5% on gas (but it is still 150 even after that :(). Obviously, I don't pay a fee for the credit card and the amount is automatically deducted from my bill each month.

One year in undergrad, I was on a ramen noodles diet for a bit when I was stuck in a dorm without a stove, that got old very fast, I have a much more balanced diet now, thanks to having access to a stove and some experience buying groceries. My salt intake is a bit high still, but not too bad, I only sometimes go over the daily recommended amount. There is way to much salt for my liking in a lot of foods. Mac/cheese, ramen, boxed rice are pretty nasty in regular quantities. I would like to get a rice cooker though at some point, as I like white fluffy rice, especially with some sort of sweet or salty sauce, but the packaged stuff has a gigantic amount of overkill on butter and salt.

If I am working, I bring a low cost microwave meal, something in the $1-$1.50 range (often healthy choice on sale). Also go through 75 cents in snacks. However, my work provides some fairly decent green tea for free, which offsets the extra cost of the convenience meal, I usually go through 8-10 cups."


As an update: My budget is still the same, there hasn't been too much inflation in food prices due to the recent deflation that occurred in 2009, but I did change some of the things I am regularly buying now. One change has been to buy a 8 lb bag of russet potatoes for $2.50 (about 30 cents a serving), cut the potato into slices, put a bit of melted butter on it, and bake it, it tastes great and is pretty healthy. I also buy a 32 oz large tub of strawberry yogurt now for $1.60. I have also been trying oatmeal, which is actually pretty good, which is about $0.25 a serving. I am also buying fresh chicken at .99/lb, I usually eat 12 oz in one serving. I also now buy either 2 lbs of romaine hearts or spinach, whichever one is one sale, for $3, this is about 6-8 servings for me, I put a small amount of mozzarella cheese and a tablespoon of Caesar dressing on each serving. I have not been eating much pasta, the price inflated ridiculously to up to $2/serving and has only recently started coming back down to normal. Instead, I got a $20 rice cooker, and have been making brown rice, and putting either soy or home-made orange sauce on it (about $0.10/serving, rice is really cheap, but I only eat this maybe once or twice a week). I can also make pretty good soup now, though I am still trying to figure out exactly how to make a good healthy thick soup.

While I already had fat/cholesterol/trans fats/salt under control, I have been taking special care lately to avoid high fructose corn syrup and sucrose, which are much worse than corn syrup/sugar. As I mentioned in the quote, I still buy nearly every item on sale, my "total saved" number on my receipt is usually larger than my "total spent".

very good info...thanks for the reply and I'm impressed. Now if I could only get my wife and 7 and 9 yr old to get on board...these $800/ month grocery bills are killin me...hahaha
 
This is a re-post of my 2nd post on the forum, which directly answers your question, since I was asked this before. This is from almost exactly 2 years ago.


"Yes, I spend 100/month of groceries. As mentioned, I never eat out, except maybe once a month, and put that under Misc. I only eat out for purely social reasons, it is almost physically painful for me to be spending 3-4 times as much on food than I normally would. I live in the Midwest and buy my food at Meijer. 90% of what I buy is on sale, 8% is low cost staple items and 2% are "splurges." usually just one or two items.

I do not drink, smoke, or drink pop. Yes, it is only called pop in my state. I eat some sort of frozen vegetable, pasta, orange juice, milk and tea every day, I may mix it up a bit for the other items. I eat 1/3 of the frozen beans, which costs 35 cents a serving, the pasta costs about 40 cents a serving, including the no-fat/no-cholesterol squeeze "butter" I put on it, the orange juice is about 50 cents a glass, the milk is about 30 cents, the tea ranges from low quality to high, so can range from 20 cents to 50 cents (since I drink multiple servings of it). I also usually eat a bag of pretzels as a snack throughout the day which is 1 dollar. This adds up to...about 2.75 on a normal day. The other .66 a day goes to my splurge item (fresh asparagus/cherry strudel) and household items (toilet paper/paper toweling/one other household item).

Oh yea, my credit card discounts 2% off all my groceries as well. 5% on gas (but it is still 150 even after that :(). Obviously, I don't pay a fee for the credit card and the amount is automatically deducted from my bill each month.

One year in undergrad, I was on a ramen noodles diet for a bit when I was stuck in a dorm without a stove, that got old very fast, I have a much more balanced diet now, thanks to having access to a stove and some experience buying groceries. My salt intake is a bit high still, but not too bad, I only sometimes go over the daily recommended amount. There is way to much salt for my liking in a lot of foods. Mac/cheese, ramen, boxed rice are pretty nasty in regular quantities. I would like to get a rice cooker though at some point, as I like white fluffy rice, especially with some sort of sweet or salty sauce, but the packaged stuff has a gigantic amount of overkill on butter and salt.

If I am working, I bring a low cost microwave meal, something in the $1-$1.50 range (often healthy choice on sale). Also go through 75 cents in snacks. However, my work provides some fairly decent green tea for free, which offsets the extra cost of the convenience meal, I usually go through 8-10 cups."


As an update: My budget is still the same, there hasn't been too much inflation in food prices due to the recent deflation that occurred in 2009, but I did change some of the things I am regularly buying now. One change has been to buy a 8 lb bag of russet potatoes for $2.50 (about 30 cents a serving), cut the potato into slices, put a bit of melted butter on it, and bake it, it tastes great and is pretty healthy. I also buy a 32 oz large tub of strawberry yogurt now for $1.60. I have also been trying oatmeal, which is actually pretty good, which is about $0.25 a serving. I am also buying fresh chicken at .99/lb, I usually eat 12 oz in one serving. I also now buy either 2 lbs of romaine hearts or spinach, whichever one is one sale, for $3, this is about 6-8 servings for me, I put a small amount of mozzarella cheese and a tablespoon of Caesar dressing on each serving. I have not been eating much pasta, the price inflated ridiculously to up to $2/serving and has only recently started coming back down to normal. Instead, I got a $20 rice cooker, and have been making brown rice, and putting either soy or home-made orange sauce on it (about $0.10/serving, rice is really cheap, but I only eat this maybe once or twice a week). I can also make pretty good soup now, though I am still trying to figure out exactly how to make a good healthy thick soup.

While I already had fat/cholesterol/trans fats/salt under control, I have been taking special care lately to avoid high fructose corn syrup and sucrose, which are much worse than corn syrup/sugar. As I mentioned in the quote, I still buy nearly every item on sale, my "total saved" number on my receipt is usually larger than my "total spent". What I buy honestly evolves a lot, as the prices of items change, and as I widen the range of foods I can quickly make myself (I never make anything that requires more than 5 minutes of prep, too much work).

I am impressed. Reminds me of the good old days when I was flat broke (shopping with coupons, looking for sales, etc...). Except that you eat way better than I did (I ate a lot of salty/fatty things)... I love how you track the cost per serving. It inspires me to add that information to the recipes in my cookbook.
 
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