How do people retire young?
 

Assuming I can make 10% on my money, how the fuck do you store up ten times your yearly salary? Even if you bank 50% of your income it will take about 15 years with interest to store 10 times your yearly.

I make good money, and I always feel broke. I save a ton and invest in real estate. the returns are nice but I would to invest so damn much to make what I do now it is insane.

:error

Im working on a financial site about this right now.

your problem is your outlook on your situation because you feel broke. You have to find the right amount to make you feel good. no matter how much you have someone has more or less.

False hood #1 there is no such thing as retirement.

Well put your money into investement found where it can fertilize :)

I don't recommend fulltime retiring young or old.

The best thing to do, if you want to head that way, is to just allow your schedule to include more R&R time for things besides business.

I think it's much better for your health and stamina, and your business, to keep working until you no longer can physically. Working hard keeps you going and competitive. It's like being on a sports team and keeps the spirit energized.

From a money standpoint, retiring means you'll miss out on lots of new opportunities because your eye will no longer be on the ball.

Bless you Brother Initials. Well said.

You always have good stuff.

My goal is more to generate a passive income of the size that worrying about next month's good or bad moves would disappear.

I have noticed that with a larger income I have less drive. But I think if I freed up the time my drive would come back.

In just writing this, I see I might be focused on the wrong thing.

im too old already to retire young =]

still.. id like to retire in 10 years and spend the rest of my time doing something i love.... hopefully ill make a profit at it. if not i can only hope i dont live longer than the money i have saved lasts =]

id like to judge how old i could possibly live but its difficuly... on one side of the family my grandfather died at 84 and my grandmother is still alive and just turned 95.

the other side have all died by 70.

maybe i can get lucky and split the difference.

If I was you, I'd buy 1-3 great typein domains

ive also been trying to screw all the black women i meet over 6'5". id like to train up a couple kids that can play basketball!

i don't think i can ever retire....
i mean, that could be nice for a month or two, but after that...i'd go crazy...

If you wanna retire young you must be creative and work very hard

hardwork will payoff :)

At least you identified the problem: I suspect the majority around here don't even recognize there is one.

Unfortunately there are no easy options: if you try for a higher return, you increase your risk and make yourself more susceptible to inevitable market swings. Which is usually fine so long as you can leave the investment intact, but not so good when you actually retire and need to withdraw at a more or less constant rate.

The only real alternative to working those 15 years (and you will likely find it more like 20-30 in practise) depends entirely on your ability to make more serious money. I assume you are working for yourself, but your post suggests that you are approaching every aspect of your financial situation with the same limited ambitions as the average wage slave. Who knows, but if you could find a way to raise your horizons, that new perspective might allow you to come up with the idea which could make your fortune :)

People who retire young often have residual earning other than what they have in the bank, so they don't need to live off of just the interest.

I would love too. I thought they were going for one - two years income when it was three years so I missed everything. And now it is closer to ten years income. Or more.

Great post KRL :thumbsup

DH

I tried your method. I make very good money. It has gone up 100%'s in the last few years. I do not spend all that I make. I just really thought a person making what I do could be rich and retire young (I am not young now).

The math is still the same. If you make 10k, 100k or 1 mil, you need to get ten times that saved up to make your yearly income from investments. I suppose I can assess what my real needs are then add some for super great times and see if I could do with 5 times my current yearly.

That was actually my intent...

As much as I hate the constant drama and "see sig" folks. Gfy is really useful.

:thumbsup

Slapass do you have an expensive lifestyle and what country are you from?

Perhaps you could consider living in a different continent like Asian or South America as a means to achieve your goals faster? In most countries in these areas it's much cheaper to live than in developed countries.

So you could save/invest a larger percentage of your income, plus if you end up enjoying the country you move to then it could result in you needing much less money to retire than you would have needed in a developed country.

Perhaps it's worth considering :pimp

you retire when you make it like:

http://img70.imageshack.us/img70/8226/tommyspaceeu4.gif

Actually you should only need around 11 years if you save 50% of your income.

If you're saving it, you'll probably be getting the same 10% you expect to get after retirement, compound that and you'll have 10 times you annual salary in 11-12 years :winkwink:

Now the real problem with saving just 10 times your annual salray and retiring is that if you take into account inflation you'll probably need more than that (taxes should also be accounted for).

nm, my math was off, (good thing I caught it before I embarrassed myself)

If you are making 1 million a year and want to live off your investments/interest, then you are thinking about this wrong, It is not costing you 1 million a year to live comfortably. at 10%, that would give you 100k/year to live, so you need to figure out what you can live at comfortably and aim for that, not try to replicate your yearly income with investments.

If you sabe 10% each month you'll need about hundred years.

Because each year you'll only save 10% of you annual salary, after ten years you saved 1 salary and after a hundred years you saved your ten annual salaries

Of course with the returns you get on the money during that time it will take you need much less time.

filthy mothafuckin rich

1) find something u love to do and work ur ass off.
2) buy a cheap house
3) flip the house (pimp it out)
4) sell the house for a bigger profit
5) repeat
6) repeat for several houses
7) save up to buy a fucking bitchin house
8) Flip that one
9) buy a house in malibu with earnings...and stay there:)

Taxes are accounted for in this example as the income would be the same and my taxes should be ab out the same. And inflation was taken care of easily by the fact i am saving 50% after tax. So I have some room to give up.

I just moved to Brazil. The cost of living here is killer. If you want to live in a ditch and eat rice, it is real cheap. But if you want to live like an american, it is off the hook crazy expensive. I had no idea the developed world was cheaper to live in.

I always heard it was cheap to live like a king in brazil, so i am surprised at what you said. I also heard that if you are a white guy with money, you have about 2 months before you get killed or kidnapped.

There are cheaper and safer countries you could have chosen, lol.

my plan is twinking out and auctioning my sig :thumbsup

lotto!!!!!

I retired at 22, now I'm working again at 23!

If I could I would. Of course, "retiring" means different things to different people. I don't consider what many wealthy people do for a living "working" to begin with.

For example Real Estate would still be 'fun' to do because it's not like a 9-5 job.

haha thats funny

I'll retire when my eyes go dim and I can't see porn anymore. :)



Seriously, only time could tell when will be the best time for me to retire.

You will never retire if you like investing :D

Some stuff is super cheap but the stuff a guy really wants it spendy. All eletronics are double or more then the states. Cars are double or triple and being from somewhere else. It is not a good idea to have a flashy car.

But my 40 hour a week maid is $300/month or so. The absolute best apts in the country are about $500k.

Killed or kidnapped could happen at any time I suppose. I have alm ost never felt threatened here so ... who knows.

Why would you want to retire young, I plan to work to the day I die. You retire your brain starts to rot.