When to Retire? How About 40?

April 25, 2013

I recently saw this clip of the Today Show that discussed one man’s goal of retiring before 40, a topic I’ve written about before. He’s 30 years old, earns $50k a year, and has accumulated $100k of savings over the last 3 years. His goal is to save 60-70% of his net income to retire at age 35 with a $400k nest egg to cover his $15k of annual expenses. To do that, he’s moved to Florida to avoid state income taxes and be able to live without a car (he points out that waiting for the bus is much easier in warmer weather) and has decided not to have children. Is his plan feasible? Continue reading “When to Retire? How About 40?”

5 More Ways to Boost Your Retirement Savings and Retire Early

November 12, 2012

It’s not so much how much you make; it’s what you do with what you make that can help you create wealth. Case in point, a friend of mine just retired at age 53.  In today’s economy, retiring early is tough to do – virtually impossible—yet she did it and her husband has never had a “regular job.”  She worked as an administrative assistant at the University of California in Davis, California.  Without a college degree, she never earned six figures but what she did earn, she and her husband saved.  They were very frugal and what they saved they invested in rental property, which he managed, as well as in her 401(k).  I love reading her recent Facebook posts sharing things like “It’s a rainy day and I don’t have to go into work!”  She and her husband achieved financial freedom and so can you. Continue reading “5 More Ways to Boost Your Retirement Savings and Retire Early”

Should You “Ditch Your Retirement Plan?”

July 19, 2012

I’ve written before about the Early Retirement Extreme concept, in which people save as much as 75% of their after-tax income in order to become financially independent in as little as 5 years. I recently came across a post in Forbes called Why You Need to Ditch Your Retirement Plan that was surprisingly written by another financial planner who argues essentially the opposite: that people should stop worrying about saving for retirement and enjoy life now. That could mean taking a lower paying job that you like more or working fewer hours, even if it means saving less and retiring later. He points out that working longer wouldn’t be so bad if you love what you’re doing. Continue reading “Should You “Ditch Your Retirement Plan?””

Powerball: How to Cash in When You Don’t Win

April 09, 2012

My son reminded me that if you don’t buy a ticket, the odds of winning the Powerball lottery were zero.  He also said, “Someone has to win you know.”  He does have a point and that line of thinking is shared by many people who are in a frenzy buying lottery tickets even though the odds of winning a mega-jackpot are 175.7 million to one. I didn’t play the Powerball but I have to admit that I did buy into the California lottery pool with a bunch of my co-workers only because if they DID win, I wouldn’t want to be left behind. Continue reading “Powerball: How to Cash in When You Don’t Win”

How to Be Financially Independent in 5 Years (No Matter What Age You Are)

August 04, 2011
Updated June 14, 2017

One of the things that makes the lives of financial planners so difficult is that we usually have to get people to do what they don’t want to do, so that they can get what they want. In other businesses and professions, you’re generally either providing a good or service that will provide some immediate pleasure or alleviate some immediate pain.

Financial planning is more like dieting and exercise. Almost all the pain (saving money, taking a little more investment risk, diversifying out of your favorite stock, or taking the time to draft boring estate planning documents) is upfront for a gain (being debt free, having enough money to retire, or making sure your family is taken care of in case something happens to you) that often seems distant and far away. Continue reading “How to Be Financially Independent in 5 Years (No Matter What Age You Are)”