23, Young Dreamer, Seeking Retirement by 40

[miglas]

Hello, everybody. I have been lurking around the forum here for a few days and it seems like this is a pretty neat-o place to talk about early retirement. I just turned 23, have about 95K in assets (mostly due to an over-funded college account left to me by my parents, and inheritances from grandparents), and am determined to retire by 40. Or earlier. 35 would be nice.

I will be starting grad school in June to begin my MBA, which will cost about 25k. Should turn out to be a good investment when I'm able to boost my income after graduation, planned for December, 2015. Girlfriend and I will be married in a few years, too, so we will benefit from double income. Would like to have a few kids along the way as well.

Running, reading, grilling, being outdoors for any reason, and spending time with my girlfriend are some of my favorite things to do. I feel that my day job is a huge sinkhole of time which could be spent doing infinitely more awesome activities, which is why I'm here learning about ER.

I am looking forward to absorbing a lot of good information from this site. If anyone has any quick advice for someone like me, feel free to lay it on me. Thanks for reading.

 

[nash031]

Welcome!

Focus on your savings rate - this is most important for young people. Pick a sensible starting point (at 23, mine was 10% of gross) and grow it year by year as your income increases (now 36 with a much larger income, we save 40%+). Try not to ever reduce it until you pull the plug, unless the stuff really hits the fan. This will help you always LBYM.

Before you know it, you'll have a sizable nest egg (you already do for a 23-year-old!) and ER will be on the horizon.

Good luck!

 

[miglas]

Thanks, Nash. My savings rate is about 15% of gross income currently, and as you said, I would like to increase that to 50% or higher as my income increases. I think I have a pretty good plan, it's just the waiting part that's tough.

 

[CaliforniaMan]

Make sure that your GF is really on board with this. Actual perspectives can change a lot after you finish the educational phase of life, and begin the and asset accumulation phase. But the most important change comes after you have kids, especially for the mother. Perspectives can change dramatically. As others have pointed out "marrying well" is maybe the most important part of FI. Divorce (as unthinkable as it might seem now) can throw you back 20 years. It is not about whether your partner is good or bad, but just that desires and expectations often can get out of sync.

 

[miglas]

Thanks, Mr. Gates.

I am open to my perspective and goals changing. My main goal is for my family and I to be happy. Right now my plan is to retire early to achieve that, but I do realize that after getting married, having kids, etc., priorities may shift.

My GF is even more frugal than I am, and we have been dating for 5+ years, so I am very confident in that regard.

 

[heeyy_joe]

Age 23? Aggressive mutual funds on auto pilot savings. You got lots o livin' to do.

 

[miglas]

Age 23? Aggressive mutual funds on auto pilot savings. You got lots o livin' to do.

I agree, Joe. I am heavily invested in VTSMX and VBK (vanguard small cap growth).

 

[haha]

Age 23? Aggressive mutual funds on auto pilot savings. You got lots o livin' to do.

No way!
Skip life and just get busy with misering.

Ha