USA Today Article: retire before 40? some people say you can

[TOOLMAN]

ER in the news today.

http://www.usatoday.com/story/money/personalfinance/2013/03/26/extreme-early-retirement-30s/1997363/

 

[mountaintosea]

Retire with only 400K? This guy hasn't thought about health care costs. But usually when they are that young, they don't.

 

[FANOFJESUS]

Retire with only 400K? This guy hasn't thought about health care costs. But usually when they are that young, they don't.

Obamacare will take care of that.

 

[Ronnieboy]

I actually read the blog of the first guy they profiled from FL.

Dividend Mantra

It is pretty good, he is a dividend growth investor and saves sometimes around 70% of his income. Dedicated dude

 

[plex]

Mmmhmm, that's the group I'm in, most of the article sounds spot on, aiming for somewhere in the mid to late 36 range. Saving about 80% of net, or about 61% of gross, all raises+bonuses go to improving net worth. Though I obviously don't think 4% is a good idea over 60+ years, but, I don't think most extreme early retirees believe it is quite 4%, they have a minimum spending point which is a good bit lower than that, so that seems like a bit of a straw man. Mine will be in the low 3% range, and I won't even need the money to last longer than 30 years thanks to SS+small pension.

 

[pb4uski]

Spends $15k a year. Living large.

Not for me.

 

[timo2]

ER in the news today.

Retire before 40? Some folks say it can be done

Since I am a creature from the 1970's, these folks remind me quite a bit of what was called the 'whole earth movement' and/or 'counterculture communal movement'. Except less naive in that they don't eschew money.

 

[ejman]

This sounds like Dominguez' "your money or your life" approach of extreme LBYM except for investing @ equities instead of Government bonds as Dominguez suggested.

 

[comicbookgujy]

My retirement plan:

1.) Move back home and live with momma
2.) Try to get 5% return on my investment, that would net me $25k a year

Anyone else retirement plan includes moving back in with momma?

 

[WestLake]

Yes but I may be taking care of her - she's almost 84 with memory problems.

 

[okapi]

The last line of the article says something like the fellow argues with his co-workers about E.R. Their the work till 65,society standard.Whos.First live by my own standards not someone elses.Second,could"nt care less what any stranger or co-worker thought.Only concern is what people who love and care about me think.However the final choice rest with myself.Retire early or work till 100,whatever floats your boat.

 

[HawkeyeNFO]

A lot of haters in the comments from the article.

 

[pb4uski]

My retirement plan:

1.) Move back home and live with momma
2.) Try to get 5% return on my investment, that would net me $25k a year

Anyone else retirement plan includes moving back in with momma?

NFW, more grown ups here. Are you sure momma will take you back? Better check on that before you finalize your plan.

 

[Dawg52]

Sounds feasible if one is willing to work odd jobs. But one catastrophic event could take his plan down pretty fast.

 

[Live And Learn]

I think most of us on this forum are unwilling to take the risks this these ERE plans involve. I couldn't live on that amount of money anyway. I have 30k planned for healthcare alone (HI plus OOP). If I spend less then I reduce my level of risk (currently about 10 - 15%) of portfolio running dry. I couldn't live knowing that one bad year could send me spiraling down financially and force me to take a job that I wouldn't be happy at (shhhhhh - please, don't mention that I'm unhappy in my job today ---- I know it and I considering the price I'm paying for ER)

 

[aaronc879]

My retirement plan:

1.) Move back home and live with momma
2.) Try to get 5% return on my investment, that would net me $25k a year

Anyone else retirement plan includes moving back in with momma?

It's very likely that i'll move back with mom at some point. Givin their current ages and their respective family histories, my mom will likely live on 30+ years after my dad passes. My mom is partially physically disabled and will need help around the house. I'll likely move in and mow the lawn, shovel the driveway, help with laundry and groceries. In exchange she will pay most expenses. This is not a sure thing but seems to me to be inevitable.

 

[FIREd]

I find this article refreshing. I think these people are a different brand of retirees, much like the ER.org pioneers were. I'm not completely on board with their strategy, but I appreciate their gumption.

 

[haha]

It's very likely that i'll move back with mom at some point. Givin their current ages and their respective family histories, my mom will likely live on 30+ years after my dad passes. My mom is partially physically disabled and will need help around the house. I'll likely move in and mow the lawn, shovel the driveway, help with laundry and groceries. In exchange she will pay most expenses. This is not a sure thing but seems to me to be inevitable.

For 1000s of years people have done this or similar.

How do you feel about it?
Ha

 

[JoeWras]

It is interesting, and should give some young dreamers something to think about.

The one part that tickled me was about going back to "live like a student." Great idea, except I'm amazed at what many students spend these days! Single apartments, cars, eating out, computers, smart phones, internet cable, etc.

It wasn't too long ago that living like a student meant: no car, roommates, shared phone down the hall, cafeteria, university library computer.

 

[gerrym51]

right now he says he buys high deductible-low premium policies.

with obamacare they don't exist.

if it is a grandfathered plan it will dissappear in a few years because no new people on it-then what

 

[Running_Man]

Almost everyone interviewed is a blogger. I am starting to think these "early retirement articles" are really just a way of getting ad revenue from blogging, in the hopes of gaining followers, actual "retirement" seems quite a bit lower and cross polination of the same groups.

When Mr Money Mustache is running a " you can meet me in an Ecuador resort", these posts of you can retire early all seems more like a gimmick to make money by myself 'cause I can't really stand other people rather than a true early retirement plan. Not much different to me than the you too can make millions in real estate just take my course, and I'll be in your city soon and see how I have retired to the good life.

Nords left posting here to sell USAA and VISA products on his blog in the hopes his blogging will earn a minimum $125 an hour. Rather than being true advice it is a marketing campaign in the hopes of fame and fortune, a nice American goal, but not retirement and lots of clicks on the VISA credit card website.

“So Nords, why are you still blogging?”

The make a valid comment on other blogs in order to promote your website is a nice way to make bologna out of SPAM.

 

[comicbookgujy]

NFW, more grown ups here. Are you sure momma will take you back? Better check on that before you finalize your plan.

YES. Momma just asked me last night when I was going to move back.

Everytime I go back home, my parents ask me when I will move back home. In my culture, I am expected to move back home to take care of my elderly parents. I feel guilty that I'm not home taking care of my elderly parents.

 

[ziggy29]

A lot of haters in the comments from the article.

The comments always bring out all the haters, extremists and lunatics.

 

[pb4uski]

The comments always bring out all the haters, extremists and lunatics.

Huh, I thought that was just on Yahoo.

 

[hsv_climber]

That type of articles can be published only during bull markets....

$180,000 in savings invested in stocks, by withdrawing no more than 3% a year

All the guys in the article are either 100% in stocks or 85% (stocks) /15% (fixed income).