How to retire early

[Part-Time Chad]

How did you run it up if you dont mind me asking?

I worked in a civil service job for over 15 years and invested aggressively (about 70% of my income) in my 401(k) and 457(b) deferred compensation plans. Compound interest did the rest.

 

[LilJojo]

The average person only needs one million dollars to retire.

How?

a) Pay off a mortgage in full (200-400k)
b) Invest the remainder in stock index funds that average a return of 10%, but only utilize 3-4% of the returns annually to pay off your living expenses. Remember, a mortgage is the biggest expense for most people, which you have now paid off, so your living expenses will have drastically been reduced.
c) Further reduce your spending habits during years of downturn where the stock market is underperforming. Also maintain a cash reserve in a high-yield savings account or short term bonds to buffer such times
d) Now you're retired, you don't have to work. Utilize your free time to do what you enjoy, and potentially profit off of it. Doesn't hurt to earn extra cash while also being able to enjoy the process

So what's to learn from all of this?

- Get yourself a high paying job or skills to acquire wealth early in life
- Invest early, once you surpass $100,000 your wealth increases drastically thanks to compounding interest
- Don't get yourself into situations you don't need, i.e. don't have kids if you don't want them

Realistically, this is possible for most people by the age of 30, but most people are:
- Lazy
- Low iq - but not in the sense that this limits your ability to make money. But in the sense that they have poor spending habits or get themselves into situations like having kids when you shouldn't. My dad is a low iq blue collar worker but easily makes 6 figures - jfl at not being able to make money on the internet in 2024 alone

Why did I make this post?
Mostly to remind myself of my own goals and that this is possible. But also to remind the neets on this forum that once their cash reserves run out (parents kick them out, parents die, etc.) they are fucked, and how if they had followed a plan like this they wouldn't be so fucked and likely have to rope. Do you really want to end up like those tragedies?

inb4:
- water (yet most people don't actually take any action to implement this)
- no retirement for your face (just hardmaxx faggot)
- but how will i fund my surgeries!!!! (retirement delayed by 1-5 years)
- life ends at 20 i'll just rope by then! (and then u wake up at 60 realizing u never had the balls to rope because ur natural instinct is to survive and u should have just done the bare minimum instead)
- making money is impossible (countered already)
- working is slavery!!!! (so is being broke and dependent on others to survive - that is not freedom)

Yearly returns of diversified stocks never surpass 8% and 2% goes away due to inflation. If you want to grow the 100K then you need to put another 3% atleast away so you’ll need to live on 3% each year.
You know nothing

 

[Kiril Velev]

nice thread

 

[User28823]

Yearly returns of diversified stocks never surpass 8%

I never said they did, I said they average a return of 10%, which they do, over the long term - which is the whole point of this thread if you hadn't noticed .......

and 2% goes away due to inflation.

Hence why you utilize 3-4%....... and beat inflation...... and combine a multitude of other risk preventative measures .........................

If you want to grow the 100K then you need to put another 3% atleast away so you’ll need to live on 3% each year.
You know nothing

When did I say I was going to withdraw anything with only 100k?

I recommend this book for you, it will teach you the basics to get you started bud

 

[PrinceofDarkness]

too bad I picked medicine as a career in the USA. Will pay well but have to wait years. I just can't see myself slaving away in other fields as I'm already in too deep; finishing my masters to boost my gpa.

 

[LilJojo]

I never said they did, I said they average a return of 10%, which they do, over the long term - which is the whole point of this thread if you hadn't noticed .......

Hence why you utilize 3-4%....... and beat inflation...... and combine a multitude of other risk preventative measures .........................

When did I say I was going to withdraw anything with only 100k?

I recommend this book for you, it will teach you the basics to get you started bud
View attachment 3307142

Explain how you’ll live with 3 grand a year retard.

 

[Richard Cheese]

what's the appeal of retiring early?

 

[User28823]

what's the appeal of retiring early?

freedom to do wtf i want when i want

 

[User28823]

Explain how you’ll live with 3 grand a year retard.

So... let's break this down for you since this seems to be a bit of an advanced topic for you

$700k in the stock market averaging a 10% yield long term = $70k per year, on average

Lose 2% due to inflation now you're at $56k per year, on average

Withdraw 3% to cover your expenses, I'm living on $21k per year, beating inflation, paid off house, reinvesting and growing my portfolio each year

 

[LilJojo]

So... let's break this down for you since this seems to be a bit of an advanced topic for you

$700k in the stock market averaging a 10% yield long term = $70k per year, on average

Lose 2% due to inflation now you're at $56k per year, on average

Withdraw 3% to cover your expenses, I'm living on $21k per year, beating inflation, paid off house, reinvesting and growing my portfolio each year

You said 100K not 700K.