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Retired in their early 30's and now travelling the world

Discussion in 'Other Asset Classes' started by Tim & Chrissy, 27th Feb, 2016.

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  1. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Last edited: 27th Feb, 2016
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  2. radson

    radson Well-Known Member

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  3. Marg4000

    Marg4000 Well-Known Member

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    Good on them.
    Marg
     
  4. Magnet

    Magnet Well-Known Member

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    Wish we had done this in our 20's! Exciting for them to now be enjoying the rewards of their early sacrifice
     
  5. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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  6. Colpio79

    Colpio79 Member

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    Thats awesome. Hope it will be me one day.
     
  7. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Great way to invest, you couldn't spread the risk much more than indexed funds and like this couple showed it's more about sacrificing and saving as opposed to speculating on rises and falls with specific shares.
     
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  8. House

    House Well-Known Member Premium Member

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    I've started to look into Index Funds after reading Pete Wargents book Get A Financial Grip (very good read) as he advocates IF's alongside property investing given its simplicity. Set amount of $'s straight from his wage every month into it and forgets about it.

    Anyone else do something similar?
     
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  9. Colpio79

    Colpio79 Member

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    Yes and it might me my next move as I have some marks on my credit file from last investment which went belly up.
     
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  10. radson

    radson Well-Known Member

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    There is a bit of confusion here.

    WIth ETFs or Index funds, one has to make the conscious effort to buy them on the sharemarket.

    Managed funds on the other hand can be set up automatically to invest on a monthly basis but will incur slightly higher fees.

    I have both but every month i have a set amount of money automatically go into managed funds to prevent me from spending. In my mind its like a mortgage payment. I pay that first along with rent before I pay myself.

    Check out @austing and @The Falcon in Other Asset threads for some advice from some very astute investors.

    Managed Funds vs. ETFs vs. SMAs
     
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  11. Hodor

    Hodor Well-Known Member

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    It says they saved 70% of income. That's over $1m dollars invested, if they used DRPs throughout that period I'm surprised their income isn't even higher than the 4k a month.

    Very solid way to get out of the rat race and good on them for staying the course and getting it done.
     
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  12. twobobsworth

    twobobsworth Well-Known Member

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    I think they show you don't need a huge sum to "retire", depending on how you want to live. They are receiving about $66,000 in dividend income. So portfolio may only be in the 1-2 million range. Not a huge amount compared to what many on here aspire to.

    Good luck to them.
     
  13. twobobsworth

    twobobsworth Well-Known Member

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    Interesting during 2013 their daily expenses averaged $92 which covered everything, food, travel, accomodation, with most of their time spent in Mexico.
     
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  14. Tyler Durden

    Tyler Durden Well-Known Member

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    I did a similar thing, every continent over a few years after slaving/saving away. I imagine I travel in a similar fashion to the couple in the article; slowly and frugally. I try to learn languages, spend time with locals and do my best to see as much I can "behind the scenes", there are so many accessible experiences out there that no high-priced package or tour could ever come close to...

    I kept a journal and a record of all expenses (I'm a travel nerd), spent an average of $33.33 per day which included short stints in NY, London, Amsterdam but mostly involved Eastern Europe, the Middle East, SE Asia, India, China, Sri Lanka, Central and South America . I was lucky because during most of that time the AUD was either at parity with the USD or very close to it...the month in Sri Lanka was $350 AUD and that included a flight to Chennai :p

    I couldn't retire to that lifestyle (out of choice) but still can't wait to escape again. :D
     
  15. Lacrim

    Lacrim Well-Known Member

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    Not to take away from their achievement but when/where its gonna get tricky is when they have more kids or want to return to Oz for kids education etc.

    Lets say they have 60k div income by then in todays dollars. After rent and groceries there'll be nothing left over..in fact it'll probably be negative.
     
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  16. moyjos

    moyjos Well-Known Member

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  17. Tyler Durden

    Tyler Durden Well-Known Member

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    Good point but it depends on the people involved I think. I've met quite a few that never return, some of the most amazing people with knowledgeable, happy children (home/distance educated, bilingual and very worldly) that own Guesthouses (even whole islands!), Restaurants, Properties, Bars, Surf Camps....

    Some are cut out for it, some aren't.
     
    Last edited: 27th Feb, 2016
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  18. moyjos

    moyjos Well-Known Member

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  19. albanga

    albanga Well-Known Member

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    Wow that was a really well written blog article and definitely gets you thinking.

    Like any argument a rebuttle on all points can ofcourse be made. I personally believe the biggest fall down on the argument is around the children. They mentioned they have a 1year old so obviously at that point picking them up and moving them is no issue.
    Renting becomes a problem when you have 1-3 children all going to school with friends. Moving even 5 minutes down the road can severely distribute a child. They require stability, there is simply no way I would be the person I am today if my mum just moved around renting.
    My close friends and there parents helped shape me along with my mother.

    My work colleague and I had this exact conversation the other day. He opened up to me and said because his parents moved around so much he basically gave up trying to make new friends and was bullied really bad at school in the end. He said at his first school he was very popular and knew a bunch of people he grew up with.

    Now ofcourse this could be no issue if you move down the road but that may not always be a possibility.
     
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  20. S.T

    S.T Well-Known Member

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    I'm not selling anything
    You can always sign a long term lease if you're worried about keeping the location for your kids schooling.