brianmanahan
Lifer
- Sep 2, 2006
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brianmanhanhmnahn, why would you retire in October? Wouldn't it make more sense to retire on Jan 1st, so that you could at least finish maxing out your 401k/getting the potential employer match for that final year?
Already not sticking to the plan... wow that was easy!yeah you're right, i know some people who have done that. it gets them the extra 401k contributions+match plus vacation days.
so maybe i'll slack off for an extra couple months just to slide into 2029...
I could potentially see it although my guess is they are overselling the 'average' part of themselves. Sounds like they are in CA and the dude went to law school so I am guessing the average federal salary in CA of $85k would probably not be too far off the average between the two of them. Also sounds like they started doing real estate stuff in 2013. CA median prices increased 50% while some (Like SF) have like doubled since then from what a quick google search tells me. And the strong run of stocks has continued. So if they were in CA - invested half of one federal income starting in 2013 they could reach $383,000 in VTSAX today. They bought their first house for like $450k and supposedly put sweat equity into it so they could conceivably have a real estate value close to seven figures. From video titles it sounds like they are planning on peacing out to a cheaper COL country so they might be able to realize a good chunk of the salproperty if they choose. If you throw in investing the remaining half of one income plus another $10-15k\year in side hustles into VTSAX you're up to $850k without any RE value (overly simplified as it is just stocks and assuming $90k annual contributions from the start because I am lazy but $650-750k seems not unreasonable). Throwing that extra into RE investments could have done even better in some CA areas.
So a lot of work and focus on the goal but also a lot of luck too (but more achievable than guessing to invest in NTFLX in 2013 which would be $2.3M instead of $850k)
I'd call them financially independent, not retired, if they're still making money through some means of work. Did they sell all their furniture in order to "retire" early?
My goal is to "retire" at ~45, but in reality I would just be financially independent - I would probably have a part-time job and/or side hustle(s) due mainly to the uncertainly of healthcare costs in America, but I wouldn't be required to ever work 9-5 (actually 7-5) five days a week ever again or put up with anyone's bullshit.
I'll have to see where I am in my career at that point, though. I'm certainly staying put, and when I'm 45 I could very likely be in a position where I'm able to negotiate a three-day work week or stay on as more of a freelance consultant.
I'm planning on hitting my goal with $1MM stashed between my 401k and Roth IRA, not counting my separate taxable investments. I live in a relatively LCOL area (bordering on MCOL I guess), so conservatively drawing down 3% would certainly be enough for me as I plan on having my house paid off, and any money from the side hustles or part-time work will just be gravy.
brianmanhanhmnahn, why would you retire in October? Wouldn't it make more sense to retire on Jan 1st, so that you could at least finish maxing out your 401k/getting the potential employer match for that final year?
And uhhh... you think it's possible to retire at even $1m at the age of 39? Not a shot in hell. I don't care how cheap you go with cost of living - the price of goods are still the price of goods. You can move out to the country, the most that's going to do is get you a cheap home - price of goods are likely just as high because distributing goods to small rural communities isn't going to be cheap.
How about paying for kids college fund? Forgetting about that? Nah screw em lol.
I don't even get what people mean by "side hustle" and "part time work". I'd honestly rather fall over and die than work retail or something - so I don't know what dream fantasy folks here are living in where you think you're going to do some kind of entrepreneurial thing "on the side" - but I think that is just a farce.
When you're not working 40+ hours a week doing one thing, you can make a little side money here and there and it really can add up. Then there are the people who trade a career to become small business owners. You see this a lot in small coastal towns and other resort towns where seasonality kills the traditional business owner who doesn't have a huge nest egg to get them through the slow/dead seasons.The average person is really dumb and spends money like there's no tomorrow. Once you don't have to spend 50 hours a week in an office, you suddenly have the time to figure out how to exploit that...![]()
And uhhh... you think it's possible to retire at even $1m at the age of 39? Not a shot in hell. I don't care how cheap you go with cost of living - the price of goods are still the price of goods. You can move out to the country, the most that's going to do is get you a cheap home - price of goods are likely just as high because distributing goods to small rural communities isn't going to be cheap.
Already not sticking to the plan... wow that was easy!
