Who is going to retire young

+1.

 

Yes mate........now I can run my newly acquired Datsun 200s and Toranas...into Druie homes when I am taking corners at speed...

Retired to means.....working on what I want...not trading time for money...

 

“Retired” - having left ones job and ceased to work

If you are still actively working then you arent retired. Very few people are actually retired. They just earn money from what they enjoy.

Every time i hear someone say they retired early i always ask “whats wrong with you” you then find out they arent retired at all. Just doing what they love.

 

What if you just manage your investments? Is that still work?

 

It sure is. Managing an investment portfolio requires analysis of risk, economic analysis, global risk review, portfolio weightings.

Quite a lot of work actually

 

I'm 31 and I will be financially free when I'm 45. I've made my start and am on my way to getting there.

Initially I just had a goal but did't know how to achieve it, then after learning and reading, I formed a vague strategy but still had no concrete plan with numbers and all.
Then I developed a plan to get there in 15 years but my plan still had gaps in terms of ''is it really doable'', what ifs etc.
Now I have an exact image of where I want to be, an execution plan of what I need to do right now, in 3 years, in 7 years etc to get there.

Nothing complicated, just save more than we earn, invest what we can afford, diversify between asset classes but keep it simple, upgrade professional skills, get relevant experience, improve soft skills, start own business, work on ramping up business and smash loans, pick up side hustles (hobbies that can be used to earn some income), cash out of big city and move to a small town, wind down business and run it remotely for 2 days a week (80/20 rule), use side hustles to make up the income difference as needed and also returns from investments.

A funny but cheesy thing.. when I think about my plans in detail and have a feeling of ''I'm going to get there'', it's exciting but the feeling is also accompanied by a ''so what now'' feeling.
It reminds me of the most important thing that we already have..LOVE and FAMILY to share all these things with.

 

Maybe the question should be when can you stop doing what you dont want to do to make money?

 

How are you so sure you will be financially free at 45? And not earlier or later?

 

Of course it could be a year or 2 earlier because nothing is certain but I have definitive steps to take at certain times that will keep me on track.
For instance, 2 years till completing qualification, 3 years experience before runnings my own business etc. Start working on my side hustle 1 day a week (already started this), so I can be certain that in 10 years I will be good enough to do it commercially. My profession can be run remotely and my partner can also find work anywhere.

 

@Invest_noob just make sure you are able to maintain a focused/resilient mindset throughout your journey. Many ppl like to bag the whole mindset thing but you'll find the majority of ppl who actually achieve anything great in life will never trivialize the importance mindset plays.

I personally believe it plays at least 70% weighting in whether or not we ultimately will achieve our goals.

 

I suppose I'm a bit different to most on this thread as I'm still a working bricklayer at the age of 66 and have no plans to retire although my body might have the final say on that.I'm just glad that I can still carry out hard manual work after 51 years of it,and still enjoy it without too many aches and pains.I'm fairly comfortable and have usually lived a bit below my means I suppose,and have gradually accumulated enough to keep us comfortable even if I had to give it away tomorrow.I was brought up in a time when you were judged by your working ability and usually started at the age of 14 to 15, and that has shaped the way I have lived my life for better or worse.

 

Yeah it works pretty well for us. Our investment income covers our living expenses so everything we earn is surplus. At this stage we deploy this surplus to share and etf investment, travel, as well as building our cash buffer. In 2-3 years I intend to sell 1-2 properties and re-invest in VAS which will provide us a fat fire passive income.

 

Your definition of FIRE is exactly what it is all about...it is not about money but about time back....

Most people forget making money is easy if you know how...but time cannot be made...

 

I reckon you are well under way...just looking at some of things you are looking at:

1. Side hustles

2. Savings

3. Diversification

4. Time frames

It looks like you have thought about....have you worked out what you will need income wise. At 45 you will need about 30 times the end income.....

 

Cool Thread.

Just turned 29, aiming for 40. Not retirement just the ability to use my own time for small developments/renovations - my basic needs paid for and then use the dev’s for cream to travel, cars etc.

Modelled the portfolio YOY factoring in Growth of 3%, 5%, & 7% over that 11yrs and also factored in no rent increases.

I hit my goal around 40 relying on less than 3% growth and that’s with doing absolutely nothing.. which is not going to happen so hoping I can bring that number forward with many more renovations & opportunities between now and then.

 

To me retirement is being in a position to say 'adios' to a workplace and boss without having to worry about the financial repercussion from leaving the employment. Also, being able to pay any bills, travel or other expenses without having second thoughts about how to fund it.

 

We retired nine years ago.

Started doing the travelling thing:- Canada (including Rockies), Alaska, England (including Wimbledon, Ashes Tests at Lords and Edgbaston), Ireland, Vietnam, Cambodia, Laos, ...).

One thing we never planned on was a major health issue, in fact the wife had two. Three years and $180,000 in medical bills (prior to refunds from Medicare and private health) later, we are now just re-starting our retirement plans.

Thank goodness we weren't working (I was doing volunteer work but I had to resign) as it allowed us to devote all of our time, all of our energy, ... into the wife's treatment and recovery.

Possible health issues (and their impact) are now built into our retirement plans. Hopefully, nothing more will ever happen (at least for a number of years) but, if they do, we are now far better prepared to handle them.

 

In my twenties I had a $ figure in mind that would allow me to be financially independent. I have since reached that number in my mid thirties but did not appreciate how much my expenses have blown out at the same time.

Two kids, future private school fees, home in nice area, wife is keen on more structural Reno’s, international family holidays, somewhere along the way I got myself handcuffed to the treadmill! If we were willing to simplify our lives I could step back dramatically.

But I am not complaining, I am happy with the balance, I have a ten minute commute to work, I don’t find my job too unpleasant, am growing the pie, assets and investment income are increasing in the background, when the kids have finished school I will be 50, in a really strong position able to decide how I spend my time.

 

Can you tutor the crap out of them now so they end up in a selective school?

 

Thanks for the tip. It's amazing how when you believe that something can be achieved, the brain finds a way to get there and you start working in a way that will lead you to the end goal. You look for solutions and not excuses.