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| It’s not about the Money |
The desire to retire early is a common thread to almost all people who have worked, most for minimal rewards, often living paycheck to paycheck. This is not living by my estimation.
| Here is a Definition of Retirement that will help you see your goals clearly. |
To get to the goal line of early retirement, the objective is complicated by concerns such as not having health care coverage or possibly running out of cash before death. I don’t discount these risks, but I do say that the risks are equally great that you might end up working until the last day of your life with a huge 401k, a nearly paid mortgage, and a fat IRA that some heir will be happy to enjoy once they mourn your passing. The net result is that you served as an indentured servant for your whole life to save for a future retirement that may never happen.
Instead, you might take an alternate approach. Suppose you reduce your cost of living to the point that you can afford to live on half the income that you generate now. The way to reduce your cost of living the effectively is to remove the most expensive areas of your budget. Housing and transportation come to mind for most people. Instead of purchasing a new car every two years like many wage slaves, it has served me well in the past to purchase used cars for cash, whatever I could afford. At first I bought 10-15 year old vehicles, and as my assets and income increased due to my thriftiness, I started buying new vehicles for cash, but never with a car payment.
Why not buy a house the same way. You think this is impossible unless you consider alternatives to housing other than a McMansion, a tract home, or a townhouse (row-house) with no parking. If you are willing to relocate to an area where housing or land is still relatively cheap, and take your equity from your current home, it may be possible to live without a mortgage. What if this means living in a mobile home out in West Virginia or in the Arizona desert. Can your self-image take the hit? Here is another perspective. How is your self-image if you are some overstuffed bag of stress shuffling into work each day to drop a few pennies into your retirement kitty while the rest of your income goes to keep the bank from taking the home and car you rent from them, though you are told that you have purchased them. Try not paying and see who owns the house or car.
So, find a place to live where you can pay for your home outright if you already
have equity close to 100k in your current home. In addition, you will need to
create a business that will allow you to work the hours you want to work while
spending the majority of your time refining your retirement lifestyle. I have
been working on mine for for more than twenty years, and have yet to reach the
age of 50. I can tell you that any hour that you can devote to doing the things
you love to do rather than the things you must do is the way to live and the
way to retire. I will give you many business ideas to consider as the means
to give you the retirement lifestyle you want now rather than waiting until
you are well into your 60’s and too tired to enjoy it. The real estate
market is now taking
the hit that it was destined to take just as the tech sector in stocks did
in the late 90's. So here is your chance to find your low cost housing solution.
Rather than saving money in a depreciating asset such as the dollar or some dollar denominated security or investment, how about just living life with a little more freedom. Remember that we are all born as depreciating assets in the sense that our lifespan is not guaranteed, and neither is our health. Take your freedom now.
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All of us want an early retirement with an income that will provide a comfortable lifestyle.
Recommendations made here are based on getting you to your financial objectives in the fastest possible time.
Disclaimer: Please consult a financial professional for your specific retirement objectives. The ideas presented here are for informational purposes only and do not represent legal or professional advice. Make any financial decisions at your own risk.
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