Topic: Early Retirement Extreme - page 3. (Read 14405 times)

200,000 each YEAR? I can tell you a place where 200,000 ONCE will assure you for the rest of your life. And no, not living in huts. And a place with absolutely gorgeous women.

I think I said multiple times:

1. A secure home: having a nice not-too-big, not-too-small home, self-sufficient, at least 2 redundant water supplies, small garden, tools to work it (maybe some motorized cause if you spent your life as an adult in front of a laptop you won't have what it takes to work the land), some animals and of course, internet access, a nice archive with books (e-format also)

2. Some investments in precious metals and bitcoin (just because it's awesome). Anything else (like stocks) has 0 value over time. You need something proven over time.

3. Frugal life, with thing you need, not things you want. Nobody said to discard mobile phones and technology, just don't depend on it. AAA powered walkie-talkies are nice for example

4. An emergency fund, can be cash and bank account. Use this only for health, medical, financial issues. No fun, travelling etc

5. Work and enjoy life with loved ones.

So... what are your plans for retirement then since you seem to be high rolling SPENDING, not EARNING, but spending 200k every year... How much are you actually making per year?

Also you only need $5,000,000 if you actually need to withdraw $200,000 each year to spend.

Personally, i think you are screwed up somewhere if you are spending out of pocket $200k per year and not making atleast twice that in income... or you have a nice big trust fund or some other cushy situation that totally precludes you out of this topic...

Why are you reading this thread anyways?!?

You are right, $165k is my car fund, hardly enough for retirement, I figure if I wanted to "retire" now it would be $200k a year x 40 years, so I would need about $8million. That's just to have a comfortable life style so I could turn one of my businesses into enjoyable hobby, and didn't have to work 60 hours a week.

Art

Here in Bangkok you could rent a small (15 sqm) room with no A/C for about that ($55 per month = $2000 for 3 years).  I wouldn't be a nice room or in a good locations, but it wouldn't be a cardboard box either.

Yea I don't think I am down to live in whatever places allow you to live that cheap. My american standards start to kick in, even when I am in foreign countries. LOL

what the fuck!!!

really???

2K over 3 years did you live in a cardboard box?:?:?:?

Sunblaster, you could use reading Mr Money Moustache. $160k can be enough to not need a job ever again. The money you need to retire depends on your spending, and it is you who decides how much you spend. Not the Fed, not the corporations, only you.

Where are you guys getting these numbers... The ERE guy is like a hippie freak dude and lives out of an RV, right?

Screw him and get on board with Mr. Money Mustache! Thanks goes to calin

Here is how MMM lives retired for the last 6 years on less than $27k a year with him , his wife and 6 year old kid in their $400k house in Colorado: My Deprived Life: Raising a Family on Under $27,000 per Year

That link has photos of his house and toys.

Here is list and comparison of their expenses for 2012 vs 2010 and 2011.

I am now a self-proclaimed Mustachian! I will be debt free October this year and will then be able to stash about $30k for 2014 and $48k for 2015 and on... if I don't get anymore raises or other income (NOT!).

That will see me retired in 12 years from now at the age of 50. Not too bad. Even better if I get married and start living with 2 incomes in the household.

165k would do you just fine to retire on, assuming you also have a working time machine to retire sometime in the 1940s

40k for 5 years with 7k expenses, so he saved 165k I wouldnt call that retirement or financial independence more like a a 2 year off work vacation unless he used all $ to buy btc at $5 last year

Not too hard of a plan, in theory. There was a time in this country when that was possible for a middle class person. Jobs paid well enough to support a whole family, have a good savings and retirement benefits locked. If you spent less than you earned long term you have savings.

Generation Screwed, on the other hand cannot afford to save anything really. We all work menial joe jobs that barely get us by hunting for a better opportunity that never comes, as our negative feedback loop of crushing student debt and other loan debt that will never be repayed on top of it, our only "wealth" being debt. Everything is much more expensive than it used to be, and our money is worth less and less (94% devaluation over the last 95 years). I will never have a retirement package waiting for me later, no trust in that kind of promise from faceless amoral mega corporations. That security is gone, the only one who can look out for your ass in the future is you. For many like myself, Bitcoin is a chance at a new kind of business, and maybe a chance at a better future by investing in what could be the tip of a financial iceberg. The system abandoned me a long time ago, I only spend what I earn now, which is meager, and at this rate always will be as a wage slave. The old world has nothing left for me, so it is now my life's mission to make sure Bitcoin succeeds the way we all hope it does.

Even as a trained, experienced IT manager, I still cannot find any work in this town that pays much more than much easier ones. I essentially gave up my career at that point swearing never again. But the entrepeneur and techie in me has found a new love in Bitcoin 

Thank you all for making me aware of Mister Money Moustache.  I'm really enjoying his blog.

I would like to thank the OP for bringing this topic to my attention. If I haven't read but a tiny part of the ERE blog, it is because I immediately found the similar "Mister Money Moustache", which has shone a path of light towards my welfare.  I knew where I wanted to get, but with the assistance of mathematics the Financial Independence movement has exerted a great influence in my plan to a happy, carefree and healthy life.

Meanwhile, I'm just sitting at my computer all day, frowning and shouting "Damn you bitcoins, retire me already!".

I have no clue what your numbers are supposed to be about and your grammar doesn't help me understand what you are trying to explain.

BUT... it is working... because he is doing it. Also, I have looked in to living in Australia while considering a job offer so I am familiar with the fact that Australia is very expensive to live in compared to many US states.

It's all about how much you save vs how much you plan to spend in the future. There are a TON of statistics dating back almost 100 years that back up the percentages and numbers that MMM mentions so... not gonna try to convince you.

You can make a 100K a year and save every cent, and the house price increase will still out strip you by 50K a year....so that system does not work...

Understand that he lives in the USA. If you live in Australia and save 50-75% of what you make in AUD you will have a proportional amount. Now understand, he changed his way of life. The ERE guy is living out of an RV and does all kinds of homegrown/DIY things, but the Mr. Money Mustache guy is living alot nicer and has awesome pics of his house, cars and fun toys.

Still both of them have learned to live on less than what they made when working FT. Now that they are retired they live on an amount of money that is less than the interest that is made on their money.

POINT IS: They are both retired and not working and have automatic money coming in. They could still work if they wanted to... what are you doing that is assuring that at age 40? 50? 65? that you will be in their position?

not true he says he is worth 60 time what he spends annually = 60 x 7K = 420K

420K will buy you SFA anywhere you want to live, and leave you nothing to live on. In the next 10 years it will buy you even less  

eg in one month 1.5 % in Sydney alone on property and this is a bad time...that's 15000 on a $mil house which this guy claims to be buying. Nope he's not even coming close in 10 years time.

Untrue. The guy has done it, study the site and learn how.

The problem with this guys plan is that by the time you could spend his 1 mill, it would barely buy you a house/flat in (Sydney, City you want to live X) yet alone meet any living costs