What if you want to retire early, but you don't make $250,000 a year?
What then? π
++THREAD++
What then? π
++THREAD++
I get it.
You read stories about people retiring early. In their 40s. Maybe even 30s.
Then, you find out how much money they made during their careers.
Well fuck, it's easy to "retire early" when you're racking in $250K a year.
What about the rest of us?
You read stories about people retiring early. In their 40s. Maybe even 30s.
Then, you find out how much money they made during their careers.
Well fuck, it's easy to "retire early" when you're racking in $250K a year.
What about the rest of us?
Early retirement basics:
To retire early, you need enough wealth to last another 40 to 50 years.
β« Some of us spend $100,000 a year
β« Others, maybe just $50,000 a year
β« I know people who spend $12,000 a year
What does this tell us?
To retire early, you need enough wealth to last another 40 to 50 years.
β« Some of us spend $100,000 a year
β« Others, maybe just $50,000 a year
β« I know people who spend $12,000 a year
What does this tell us?
The more expensive our lifestyle, the more money we will need before calling it quits.
π I don't care how much money you make. This rule applies to everyone.
You want to retire early but you don't make a couple hundred Gs every year.
Where do you start?
π I don't care how much money you make. This rule applies to everyone.
You want to retire early but you don't make a couple hundred Gs every year.
Where do you start?
Start by knowing your magic number.
Estimate how much you'll need in retirement to maintain your lifestyle.
Everything stems from this number.
This step CANNOT BE SKIPPED.
Estimate how much you'll need in retirement to maintain your lifestyle.
Everything stems from this number.
This step CANNOT BE SKIPPED.
Next, work backward from there.
Let's say you want to spend $80,000 a year in retirement.
Using the 4% guideline, you'll need about $2,000,000 in assets if you want to spend $80K a year.
The math: 80,000 x 25 = 2,000,000.
We need to build wealth. π
Let's say you want to spend $80,000 a year in retirement.
Using the 4% guideline, you'll need about $2,000,000 in assets if you want to spend $80K a year.
The math: 80,000 x 25 = 2,000,000.
We need to build wealth. π
Wealth is built like this:
Income -> Savings
Income -> Investments
Income is the starting point. The bigger the better.
Your income is important, but *what you do with it* is more important.
Priority #1: Build a 6-month emergency fund.
Here's how.
Income -> Savings
Income -> Investments
Income is the starting point. The bigger the better.
Your income is important, but *what you do with it* is more important.
Priority #1: Build a 6-month emergency fund.
Here's how.
Step 1: Open up a savings or money market account.
Step 2: Log into your bank and set up an automatic transfer from your checking account into this savings account. Transfer as much as you can each month.
Can only afford $50 a month? Start there. Increase as you can.
Step 2: Log into your bank and set up an automatic transfer from your checking account into this savings account. Transfer as much as you can each month.
Can only afford $50 a month? Start there. Increase as you can.
Step 3: Watch your emergency fund build over time, automatically.
Never touch this money unless you have a true emergency.
Like what?
β« Roof springs a leak
β« Car accident
β« Job loss
True emergencies only.
Now, the next priority. π
Never touch this money unless you have a true emergency.
Like what?
β« Roof springs a leak
β« Car accident
β« Job loss
True emergencies only.
Now, the next priority. π
Priority #2: Invest as much as you can.
With our e-fund growing, the next step is to invest.
Make it easy.
β« Company-sponsored 401(k)
β« Roth IRA
β« Brokerage account
Don't like to pick and choose stocks? Me either.
Here's what you do. π
With our e-fund growing, the next step is to invest.
Make it easy.
β« Company-sponsored 401(k)
β« Roth IRA
β« Brokerage account
Don't like to pick and choose stocks? Me either.
Here's what you do. π
Open up a Vanguard targeted retirement account.
These accounts are automatically diversified.
Initially, you'll invest in stocks. As you get older, Vanguard will automatically switch you to less risky bonds.
Investments without you lifting a finger.
Contribute every month.
These accounts are automatically diversified.
Initially, you'll invest in stocks. As you get older, Vanguard will automatically switch you to less risky bonds.
Investments without you lifting a finger.
Contribute every month.
Other investment options exist, too.
These include:
β« Real estate
β« Cryptocurrencies
β« Your friend's business
β« Precious metals (gold, etc)
Note: All investments contain risk. That can't be avoided.
But, investments are how wealth is built.
These include:
β« Real estate
β« Cryptocurrencies
β« Your friend's business
β« Precious metals (gold, etc)
Note: All investments contain risk. That can't be avoided.
But, investments are how wealth is built.
Join thousands of people in my 5-week Bootcamp that will teach you everything school *should have taught* about money and success.
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