[ABC] Financially independent by 35?

All Barnaby needed was a “rubber” for his “pencil” .

Not that expensive. Would have been a worthwhile investment, considering the flow-on costs .

 

I will be retired before I'm 40 definitely. I was aiming for 35 as well - which I probably could but it would not be a good thing for my mind and health.

 

Interesting follow up to the article the other day:

Retiring at 35 might be good for you, but it's bad for the rest of us

I think it's a bit unfair to say that once he retires early he will stop contributing to society. He will still need to buy groceries, pay GST etc etc on top of the invested capital that he aims to have (after all equities are really just a stake in a company or business right?).

 

I agree.

I mean if anyone can work and save enough to pay their own way for the rest of their life, I don't think they owe anybody (or society) a thing.

The vast majority of people do not become self sufficient and instead rely on the system later in life - which is fine, but it doesn't mean they're more valuable to society because they've (maybe) paid more tax, if they end up living off the taxpayer later.

 

Good luck to him.

He acknowledges he can’t live in Sydney on that income, and also says if necessary he will go back into paid employment.
Marg

 

Yeah, too low. I mean if they were mortgage/rent free and the ultimate, exemplary tight arses with no dependants, then possibly enough.

But throw a couple of kids into the mix and its bye bye retirement.

And he said he wants kids. Nah, not gonna happen.

 

Good on him, he has a plan
I believe it is totally viable
When factoring in the things he left out of the article
He will have the funds to live comfortably from 35 even with kids, he will eat into the capital for however long it takes for his/her oldies to leave them a house and investment portfolio
All the while sitting back watching his veggie garden

 

A **** poor article. By not working 'frank' is leaving space for others to work in his place.

 

Also it is very likely that most who claim 'financial independence' get bored doing nothing after a few months.

So they may do voluntary work (which people like the author say is undervalued in society) or go into business (working harder than they ever did as an employee). That business may even be something like dubious 'natural health' products, life coaching or financial advice ("Look at me - I'm so successful that I retired at 25 but I'm working out of choice to help others do what I did!").

It would be very interesting to look at the number of age 25 - 55 people who answered 'not in the labour force', reported a $0 wage income but have >$1m non PPOR personal wealth. I suspect it would be very small.

The tax system may well collapse if 'everybody did it'. But it's unlikely unless mass society reverses hundreds of years of gradually increasing consumerism where most prefer consumerism + working vs frugality + not working. It may be like property investment where there is a limit to the number of people who can become financially independent solely through domestic property (as financial independence requires ownership of multiple regular-valued properties).

Also it may be self-correcting. If the labour force shrinks there may be real wages growth. This plus inflation will eat at the assets of those only marginally financially independent who will be wooed back to working. Pressure will be placed on business profits and dividends could be lower, reducing returns for the marginally financially independent. And there could be policy responses like importing labour or taxing labour lighter than capital (the opposite to now) to encourage workforce participation.

Contrary to the teachings of 'abundance theory' taught by aforementioned spruikers it is likely that financial independence through investment will remain minority pursuits. High property prices and tight credit have made buying difficult for many. And we have seen with shares the proportion of adults owning shares is lower than it was 15 years ago and most peoples holdings are small.

 

Some interesting comments. Sometimes investors like to eat their young. Good luck to anyone who is able to achieve their goals in the timeframe they want . I never doubt anyone nor judge. Where is the benefit in that. I don't really care. Only thing important to me is that I hit my own goals. And this whole idea of 'getting bored' when 'retired'. Couldn't ever see it applying to us. There is so much to see and do in this world. No chance of getting bored. All it takes is moolah and good health.

 

s that why you haven’t had kids?

Having kids and eating them?

 

Agree, writer had tunnel vision. What about a hypothetical where one builds a business from nothing, employs, contributes, pays many times the average in taxes, company and personal, then retires early? Should one moan about others not chipping in, be quietly shamed for retiring early, or accept that in reality these things tend to even out...

 

Haven't had kids yet cos we knew we wouldn't be able to achieve our goals if we had kids earlier.

And I'm a vegetarian so future kids are safe

 

Yea I do feel that Geoff Collins seems to have a case of the old sour grapes judging from the tone of the article and some pretty unfounded assumptions.

 

People think financial independence means being retired and being retired means sitting on the lounge and waiting to die.

 

Yes I often question this narrow mindset too.... I call it Small Mind Syndrome.... acronymous metaphorical pun intended.

The scale (to me at least) is:

1. Financially Dependent
2. Financially Secure
3. Financially Independent
4. Semi-Retired
5. Retired

They are not mutually exclusive & can overlap up to 100% (ie. Financially Independent & Retired can be concurrent or not)

 

I retired 8 years ago at 43, passive income 50 000 a year. I moved to thailand became a non resident for tax purposes.i lived on $25000 a year for first 2 years, got married adjusted living to 30 000, had 2 kids spending became 40 000 ayear, which included private school fees, i do own my own home in thailand.Now have moved back to sustralia, own house here and burn up tbe 50000 every year.
I never get bored, in fact not enough time in the day to do what i want.the trick to retirement is to have plenty of activities, no matter how old you are.

 

What made you come back?

 

If i was a single man or married to expat woman with no young kids, i definitely would have stayed, you can live a very good western style life on about 30000 a year.
With kids, a western education can get to 15000 a year and up per child. Also i would like kids to be around their grandma.
Its also nice to be in your own country where you know the " local rules".
I think i can manage here on about 55000 a year, also wife will go to work here, so that will bring in additional income

 

Terry has nailed it!


Personally I don't 'work' to 'retire', I strive for betterment in fulfilling my life's purpose both for the benefit of others, and to allow me to engage more in the accomplishment of my dreams.