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.

 

[User28823]

You said 100K not 700K.

you have a serious difficulty with reading comprehension

 

[LilJojo]

you have a serious difficulty with reading comprehension

Do you think the average male has 700K ready to invest before the age of 40?

 

[User28823]

Do you think the average male has 700K ready to invest before the age of 40?

wow... I don't think I've seen someone completely miss the mark like you have

 

[LilJojo]

wow... I don't think I've seen someone completely miss the mark like you have

Explain then. You literally said above in your reply how to live on 700K invested

 

[User28823]

Explain then. You literally said above in your reply how to live on 700K invested

Let's break it down for you

I make a post about how most people need 1 million dollars to retire early, you proceed to yap about me claiming I will live off of only 100k invested - no where did I say this

Then you say OH well uh uh the avg person doesnt have 1 mill by age 40 !!!!!

Yeah... the avg person is a dumb nigger who didn't follow my advice, not my problem is it?

- 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

 

[LilJojo]

Let's break it down for you

I make a post about how most people need 1 million dollars to retire early, you proceed to yap about me claiming I will live off of only 100k invested - no where did I say this

Then you say OH well uh uh the avg person doesnt have 1 mill by age 40 !!!!!

Yeah... the avg person is a dumb nigger who didn't follow my advice, not my problem is it?

Explain how by investing 10% of the average wage a month you will have 100K before 35.

 

[User28823]

Explain how by investing 10% of the average wage a month you will have 100K before 35.

Let's assume you start investing at age 22 - which is considered far later than ideal but more realistic for most people as they've likely just graduated and began working.

The US Bureau of Labor Statistics shows that the median monthly wage of full-time wage and salary workers is $4,660 a month.

Median usual weekly earnings of full-time wage and salary workers by sex

www.bls.gov

Knowing that, let's invest 10% of that each month into the stock market averaging 10% over the long term, but then reduce that to 7% to adjust for inflation.

That results in 35 - 22 = 13 years of compounding a wage / gross income of $466 per month

So let's calculate how much you will have by age 35 before adjusting for annual yearly contribution increases.

$98,000

Now notice, this calculation ASSUMES your salary remains stagnant and you don't EVER receive a raise and NEVER increase your monthly contributions.

But in the real world, the average person will get a raise over time, so let's factor in the the average salary raise of even the low end 3% which will obviously increase your yearly contributions over time.

WOW! Would you look at that, > 100k by age 35!

Okay, so I've dismantled your argument there, but let's keep going shall we?

Let's assume you've pay off your mortgage after 30 years and are sitting here

But now that you've paid off your mortgage, you use that extra income you have available to more aggressively invest for a couple more years, let's assume you bump your contributions up by an extra $1,200 based on average mortgage payments in the latter years. With your adjusted annual contributions and that increase in investment using what would be your mortgage payments, it will take just 2 more years of investing to get to 700k, ASSUMING you even need that much to live your remaining days on, retiring early at the age of 54.

Of course... if you wanted to retire earlier you'd take a more aggressive investing approach, drastically increase your income, or both.

Now that ladies and gentlemen, is what I call absolute dismantlement.

 

[Sociobiology]

The average person only needs one million dollars to retire.

Doesn't account for inflation.

 

[User28823]

Doesn't account for inflation.

Let's assume you start investing at age 22 - which is considered far later than ideal but more realistic for most people as they've likely just graduated and began working.

The US Bureau of Labor Statistics shows that the median monthly wage of full-time wage and salary workers is $4,660 a month.

Median usual weekly earnings of full-time wage and salary workers by sex

www.bls.gov

Knowing that, let's invest 10% of that each month into the stock market averaging 10% over the long term, but then reduce that to 7% to adjust for inflation.

That results in 35 - 22 = 13 years of compounding a wage / gross income of $466 per month

So let's calculate how much you will have by age 35 before adjusting for annual yearly contribution increases.

View attachment 3311287

$98,000

Now notice, this calculation ASSUMES your salary remains stagnant and you don't EVER receive a raise and NEVER increase your monthly contributions.

But in the real world, the average person will get a raise over time, so let's factor in the the average salary raise of even the low end 3% which will obviously increase your yearly contributions over time.

View attachment 3311305

View attachment 3311306

WOW! Would you look at that, > 100k by age 35!

Okay, so I've dismantled your argument there, but let's keep going shall we?

Let's assume you've pay off your mortgage after 30 years and are sitting here

View attachment 3311324

But now that you've paid off your mortgage, you use that extra income you have available to more aggressively invest for a couple more years, let's assume you bump your contributions up by an extra $1,200 based on average mortgage payments in the latter years. With your adjusted annual contributions and that increase in investment using what would be your mortgage payments, it will take just 2 more years of investing to get to 700k, ASSUMING you even need that much to live your remaining days on, retiring early at the age of 54.

View attachment 3311344

Of course... if you wanted to retire earlier you'd take a more aggressive investing approach, drastically increase your income, or both.

Now that ladies and gentlemen, is what I call absolute dismantlement.

 

[LilJojo]

Let's assume you start investing at age 22 - which is considered far later than ideal but more realistic for most people as they've likely just graduated and began working.

The US Bureau of Labor Statistics shows that the median monthly wage of full-time wage and salary workers is $4,660 a month.

Median usual weekly earnings of full-time wage and salary workers by sex

www.bls.gov

Knowing that, let's invest 10% of that each month into the stock market averaging 10% over the long term, but then reduce that to 7% to adjust for inflation.

That results in 35 - 22 = 13 years of compounding a wage / gross income of $466 per month

So let's calculate how much you will have by age 35 before adjusting for annual yearly contribution increases.

View attachment 3311287

$98,000

Now notice, this calculation ASSUMES your salary remains stagnant and you don't EVER receive a raise and NEVER increase your monthly contributions.

But in the real world, the average person will get a raise over time, so let's factor in the the average salary raise of even the low end 3% which will obviously increase your yearly contributions over time.

View attachment 3311305

View attachment 3311306

WOW! Would you look at that, > 100k by age 35!

Okay, so I've dismantled your argument there, but let's keep going shall we?

Let's assume you've pay off your mortgage after 30 years and are sitting here

View attachment 3311324

But now that you've paid off your mortgage, you use that extra income you have available to more aggressively invest for a couple more years, let's assume you bump your contributions up by an extra $1,200 based on average mortgage payments in the latter years. With your adjusted annual contributions and that increase in investment using what would be your mortgage payments, it will take just 2 more years of investing to get to 700k, ASSUMING you even need that much to live your remaining days on, retiring early at the age of 54.

View attachment 3311344

Of course... if you wanted to retire earlier you'd take a more aggressive investing approach, drastically increase your income, or both.

Now that ladies and gentlemen, is what I call absolute dismantlement.

-2% due to inflation. And explain how you’ll pay off your mortgage in 15 years.

 

[User28823]

-2% due to inflation. And explain how you’ll pay off your mortgage in 15 years.

At a certain point I thought you were trolling, but now I've come to the conclusion you may legitimately be lacking sufficient prefrontal cortex development.

Did you even read what I wrote? I clearly adjusted for inflation and stated 30 years to pay off your mortgage, literally wtf is this nigger yapping about?

 

[whichcrime]

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)

I hope this message finds you well. I am currently 17 years old and am looking to explore high-income job opportunities to start my career. Could you kindly provide me with some suggestions or ideas for lucrative job options that would be suitable for someone at my age and experience level?

 

[univer]

I hope this message finds you well. I am currently 17 years old and am looking to explore high-income job opportunities to start my career. Could you kindly provide me with some suggestions or ideas for lucrative job options that would be suitable for someone at my age and experience level?

Do well in high school, get a bunch of extracurriculars, and then get a scholarship to a good college. After college, start a real traditional commercial business using your university knowledge.

There are no shortcuts to life.

 

[whichcrime]

Do well in high school, get a bunch of extracurriculars, and then get a scholarship to a good college. After college, start a real traditional commercial business using your university knowledge.

There are no shortcuts to life.

i'm cooked then, i have a low iq and no talent

 

[Sociobiology]

you can't

 

[univer]

i'm cooked then, i have a low iq and no talent

Believe in yourself, you're only truly cooked when you give up. If you fail school you can always get lucky, just keep focusing on acquiring wisdom and knowledge and try to start up some business. Every time you fail, start again. Just sell random stuff, even if it's small in the beginning you're gaining experience. It's hard but that's probably what I would do. Good luck man

 

[PrinceofDarkness]

Now that ladies and gentlemen

There’s no ladies here boyo

 

[MrBeastSigma]

thanks dave ramsey.

 

[sanasa]

-

 

[sanasa]

-

 

[whichcrime]

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)

Theres on problem, this plan assumes significant market stability. Stock market volatility can make it challenging to rely solely on investments.

 

[traveler]

my plan is to get a degree in a career field that has high pay

 

[galoistheory]

Good thread but you should aim hire than 1M imo. 2.5M is usually the goal for most FIRE people.

 

[jgsav]

then ur parents are based

u should be studymaxxing to get a stem job if ur not high iq enough to make it on ur own

what is consider a decent iq ?

 

[User28823]

what is consider a decent iq ?

if u cant figure out how to make money without a 9-5 cucked job ur low iq

that is my metric

 

[jgsav]

if u cant figure out how to make money without a 9-5 cucked job ur low iq

that is my metric

i agree, btw is 115 to 120 iq good ? i think i fall in that range, im 16 rn and im looking for ways to make money, ill follow your advice

 

[Youㅤ]

i care less about retiring early and more about minimizing the years i spend working, which is obviously related. for example college would be bad for early retirement but could allow me to get away from working. also, homelessmaxxing is a last resort to avoid working.

 

[galoistheory]

i agree, btw is 115 to 120 iq good ? i think i fall in that range, im 16 rn and im looking for ways to make money, ill follow your advice

It's about deviation above the mean which just means you're above average but not anything special.

 

[Deleted member 83295]

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.

What’s the civil service like?Im thinking of dropping out of college and joining .

 

[Part-Time Chad]

What’s the civil service like?Im thinking of dropping out of college and joining .

It depends on what civil service title you're working. It varies a lot.

 

[Deleted member 83295]

It depends on what civil service title you're working. It varies a lot.

if i’m just a starter

 

[Part-Time Chad]

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

The conventional rule is 4%, but personally, I would feel safer withdrawing 3%-3.5% from my principal.

 

[Foreverbrad]

Too bad I picked a shit country to be born in and a shit career.
People in my field were getting paid £80k to do the job I get paid £40k for now when I started studies. Everything good quickly oversaturated and it’s a race to the bottom.

Stocks are insanely overpriced and anyone buying now is statistically likely to get fucked hard.

 

[User28823]

Just put all ur money into VTSAX theory

 

[Part-Time Chad]