THE EARLY RETIREMENT CLUB: strategies

[A_OK]

Who else shares the long-term goal of early retirement? I myself am working towards the particular goal of retiring by 40 and giving myself a comfortable pension to support me and my future family for the rest of my life (i.e. 90 yrs old).

I have started working on some strategies towards this.. care to share yours?

[mac_bolan00]

retire at 40? you'll still be at your physical prime and only starting to peak mentally by then!

[A_OK]

Originally posted by mac_bolan00
retire at 40? you'll still be at your physical prime and only starting to peak mentally by then!
Exactly. At 40 I can stop thinking about how I'm going to make money and focus on the things that really matter, like raising my kids (if I have them) and pursuing my hobbies.

What do you think?

[ozmen]

what i'm thinking of is early retirement from the corporate life..... and working on your own. in my case, as an artist or writer.

that would be kewl.

*okay*

[kamehameha]

My husband and I (ages 27 and 28) want to "retire" by age 50. For us, retirement means coming back to the Philippines and pursue those professions that we would like to do without having to worry much about financial matters. Strategies?
* I guess being penny pinchers helps. :)
* We're maximizing our contribution to 401K. Our respective contributions are always near the annual maximum limit ($11,000 for this year). We also started last year putting money in Roth IRA accounts.
* We invest in diversified mutual funds.
* Instead of wasting money living in apartments, we bought a house (this builds equity) as soon as we got married. We already did no-cost refinancing thrice in just one year of being homeowners to drive down our mortgage interest rates. From a 30-yr loan, we got a 15-yr loan without a very significant increase in our monthly mortgage payment. Once we get our green cards, we will be more aggressive in paying the mortgage and hopefully be able to pay off the loan in less than 10 years.
* We take advantage of "0% APR for x months" credit cards.
* We don't have debts except for the mortgage.
* We do overtime work as much as possible (we don't have kids yet). For me, this is sort of having a second job (There are weeks where our combined OT hours are almost 40.).
* We try to live simply. I hardly splurge even if we can afford to do so [Wow Jaguar :drool2: ...hmmm, forget it :nope:] because I just don't feel right living luxuriously knowing that a lot of people in the Philippines and in other third world countries are in so much hardship.

[pinaysrdbest]

I already did, a few months before I turned 40, last April 2001.
I have no regrets, though. What do you think? Single at 40? I have a small business, yet manages to get up from bed whenever I want to. No boss, no bundy clocks, shop till you drop, visit friends, etc. Well, it's because I'm leaving, and took the opportunity instead of resigning.
:bounce2::bounce2::bounce2:


Originally posted by A_OK
Who else shares the long-term goal of early retirement? I myself am working towards the particular goal of retiring by 40 and giving myself a comfortable pension to support me and my future family for the rest of my life (i.e. 90 yrs old).

I have started working on some strategies towards this.. care to share yours?

[A_OK]

Originally posted by kamehameha
My husband and I (ages 27 and 28) want to "retire" by age 50. For us, retirement means coming back to the Philippines and pursue those professions that we would like to do without having to worry much about financial matters. Strategies?
* I guess being penny pinchers helps. :)
* We're maximizing our contribution to 401K. Our respective contributions are always near the annual maximum limit ($11,000 for this year). We also started last year putting money in Roth IRA accounts.
* We invest in diversified mutual funds.
* Instead of wasting money living in apartments, we bought a house (this builds equity) as soon as we got married. We already did no-cost refinancing thrice in just one year of being homeowners to drive down our mortgage interest rates. From a 30-yr loan, we got a 15-yr loan without a very significant increase in our monthly mortgage payment. Once we get our green cards, we will be more aggressive in paying the mortgage and hopefully be able to pay off the loan in less than 10 years.
* We take advantage of "0% APR for x months" credit cards.
* We don't have debts except for the mortgage.
* We do overtime work as much as possible (we don't have kids yet). For me, this is sort of having a second job (There are weeks where our combined OT hours are almost 40.).
* We try to live simply. I hardly splurge even if we can afford to do so [Wow Jaguar :drool2: ...hmmm, forget it :nope:] because I just don't feel right living luxuriously knowing that a lot of people in the Philippines and in other third world countries are in so much hardship.
Im going on generally the same route! I've maxed out my 401k na, tapos planning to get myself a house in the next couple of months (builds equity as well as tax shelter benefits), payable in 7 yrs instead of 15 or 30, para hindi matalo sa interest..

Most importantly though, im directly investing my extra income on businesses, kasi mas malaki ang return noon kesa sa stock market..

Sana by 40 maka-retire na ako sa 'pinas..

[bbb_168]

me, me, me!!!!! i also want early retirement! i want to retire by age 35! by that time, i should be able to do whatever i want, and like A_OK, concentrate on the things that really matter.

strategies? you really just gotta have your own business. isn't it better to make sacrifices for your own benefit than to make sacrifices just to make someone else rich?

and of course, save and invest. really had some problems with this one, specially when i started working. but with some help, i'm correcting it.

[nix]

Live simply.

Work 4x harder (and if possibly, smarter) than everyone else.

[sal45evan]

So, is $2K amonth good enough to retire in P.I for couple in 40's.

[visionary1]

Read Retire Young, Retire Rich by Robert Kiyosaki :) Haven't read it yet, but the title seems to answer the question at hand. I've read his "Rich Dad, Poor Dad" -- after that i was hooked.

Kiyosaki says all it takes in Financial Intelligence. What do you think?:D

[A_OK]

Originally posted by sal45evan
So, is $2K amonth good enough to retire in P.I for couple in 40's.
Depende, I think. Is it soley for maintenance? Like wala na bang bibilhin na major like a house? I think with P100k/month ($2k/month) eh pwede na yang comfortable living kung may bahay na.. what kind of lifestyle are you thinking about ba? Here are some items that I think will affect yung viability of $2k/month:

1) already own a house vs rent
2) regular vacations abroad vs local vacations
3) new car every 4 yrs vs every 8 yrs
4) number of kids
5) kids will study in exclusive schools vs public schools
6) plan to invest in business vs retire na talaga

As for myself, Ive already set a retirement figure, $50k/yr and an age, 40yrs old, pero hindi pa set yung lifestlye.. i need to make some calculations pa.

Can anyone recommend websites?

[A_OK]

Originally posted by visionary1
Read Retire Young, Retire Rich by Robert Kiyosaki :) Haven't read it yet, but the title seems to answer the question at hand. I've read his "Rich Dad, Poor Dad" -- after that i was hooked.

Kiyosaki says all it takes in Financial Intelligence. What do you think?:D
I ordered the book today!

[visionary1]

which one A_OK?

Would you want to play CASHFLOW 101? Were having regular games here in Ortigas! Apply RKs principles and see if you can get out of the Rat RAce ;) Great way to make business contacts too.;)

Get in touch through 0917-7958082 :cool:

[A_OK]

Originally posted by visionary1
which one A_OK?

Would you want to play CASHFLOW 101? Were having regular games here in Ortigas! Apply RKs principles and see if you can get out of the Rat RAce ;) Great way to make business contacts too.;)

Get in touch through 0917-7958082 :cool:

I ordered 3 of 'em, Rich Dad Poor Dad, Cashflow Quadrant, and Retire Young, Retire Rich. :D

Sorry, di ako makakasama.. Im in London now. Maybe sa April? Hehe.. sayang, I was in 'pinas nung October and December..

The first step I did in making my money work for me was to open up a laundry in Project 4 last december.. ROI in 1yr hopefully. Next step I think will be to buy a house in NY and rent it to my relatives.. pero Im not too sure about that. Property values in where Im thinking of getting a place appreciates at a historical average of 10%, about the same as US stocks. Plus theres the rent pa, which I think will give me another 6-12%, minus yung loan interest overall 10-14% return. Pero mababa yun if you compare it to restaurants and other businesses, na pwedeng 100%-400% return.

Maybe we can keep in touch using PEx? What have you guys been sinking your money into?

[A_OK]

Originally posted by sal45evan
So, is $2K amonth good enough to retire in P.I for couple in 40's.

Just comparing, if I retire at 40 with my current state of finances (401k contributions + maintian business in 'pinas), i can retire with a monthly income of $1,304 (P68k/mo)

If things go according to plan (i.e. maintain 401k + put more money in business) by this time next yr, if I retire at 40, my monthly income should be $1, 804 (P94k/mo)

My GOAL is to retire at 40 with a monthly income of $4833 (P251k/mo). If I'm really lucky, I should be in that position by 2010 (2yrs before I turn 40). This goal entails doubling my income from business every year for 8 years. Pipe dream? Maybe, pero worth dreaming!

Does anyone have good ideas?

[visionary1]

what are you doing in London?

Seems like it takes a lot to support that lifestyle ah! Sa bagay, it does take that much to live comfortable with a family.

My grandfather owns a financing firm that has been operating quite smoothly for the past 8 years or so. He's one of the most liquid people I know, and makes even more from his assets. He's very conservative in his investments, and makes sure he gets the most out of everything. In other words, the guy is as stable as anything.

For those people who have some extra cash lying around, but too scared to invest them in land or businesses, this might be something for you. My grandfather's company offers 2% interest A MONTH (24% PER ANNUM)for a placement of P100k. That's the highest a good lending firm can offer. Their clients include Doctors and Businesses. We're based in Ortigas, some people nearby may probably know it.;)

Again, for any inquiries contact 0917-7958082, will gladly introduce you to the management :)

[A_OK]

Originally posted by visionary1
what are you doing in London?

Working to make money that I hopefully will be able to parlay into something that will make money for me. Problem is, I come from a family of professionals. So wala akong training in business. Hanggang investor lang siguro ako.

Seems like it takes a lot to support that lifestyle ah! Sa bagay, it does take that much to live comfortable with a family.
Which lifestlye? The one I mentioned to sal45evan? Or the London/Pinas/NY thing? If its the latter, its part of the job. Mostly at no personal cost to me.

For those people who have some extra cash lying around, but too scared to invest them in land or businesses, this might be something for you. My grandfather's company offers 2% interest A MONTH (24% PER ANNUM)for a placement of P100k. That's the highest a good lending firm can offer. Their clients include Doctors and Businesses. We're based in Ortigas, some people nearby may probably know it.;)
Sorry, but this seems like some sort of lending scheme. 2% for me, then maybe 1% for you as commission? Yah. I pulled out from this sort of thing when I last was in Manila. Bad family experience. A couple of my relatives went bankrupt. One particularly rich relative, who used to own malls and cinemas and construction supply stores in one of the provinces, was "napaso" so bad that she lost everything and had to work abroad as a caregiver :(

Anyways, I think a direct investment in an enterprise cuts the middlemen out and gives you the best returns :)