Retire in ten years

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Neon
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Retire in ten years

Post by Neon »

Step 1: Earn $60k/yr. This should not be too hard if you're married. If not there are a couple entry level jobs that pay this much. Long distance trucking I think does. Better to go to college and get some cushy job though. If you have a good personality get a job bartending and meet people 'till you get offered one

Step 2: Save $50k/yr. The way I see it the max you should pay for rent at an apt. should be 3-4 hundred/month. That's about half. So you'll have plenty left over for food and even bullshit you don't need, as long as you're not expecting to stay at the Ritz

Step 3: Wait ten years. Then you'll be making 25-30k/yr off the interest on the $500k you've saved. Source. Bam, you never have to work again, although that is a bit tight. But it goes up exponentially after that. I mean, save the 30 large in addition to your yearly fifty and soon you'll have a million and be making $60k, as much as you are at your current job (see step 1).

Thoughts?

P.S. - I haven't even considered investments yet. There's gotta be a lot of long term, low risk type stuff you can do. Isn't that how bonds work? Buy some of those to increase your profits. Research this crap, I can't think out everything for you, you lazy shits.
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Lordstar
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Post by Lordstar »

you want to just loan me 25K for a while on no intrest then. since i cant save for shit.
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Post by GaijinPunch »

I don't see anything that could possibly go wrong with that plan!
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DEL
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Post by DEL »

Step 2: Save $50k/yr. The way I see it the max you should pay for rent at an apt. should be 3-4 hundred/month.
That may be possible in America, but over here in London if I wanted to rent the three bedroom flat that I live in, we're talking $2,400 a month! Not counting bills and a yearly estate maintenance charge of $6,000. Then there's car and food bills.
Plus there's the unforeseen costs that life throws at you from time to time :D .

I do agree with the "big money begets bigger money" theory though :)
Its just the getting off the savings starting line that's very hard here.

If you're not talking about renting, there's a nice beefy mortgage waiting for you (all part of the system designed to keep the average person down :D ).
To retire early is to really beat the odds.

EDIT: GaijinPunch's value of the Dollar is another concern!
Plus another couple of things:- What if you want that Supercar before you're grey haired? Then you're gonna blow the savings (after all, there's no point trying to look sexy in a Supercar when you're grey haired). Basically the plan you've outlined is a 'sacrifice ten years plan'.

Disclaimer:- i'm not saying that many people want a Supercar whilst they're young, but its an example of the saving dilemma that may come along with this ten year plan.
Last edited by DEL on Tue Nov 27, 2007 2:24 pm, edited 3 times in total.
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sven666
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Post by sven666 »

it is impossible to straight up save 83% of your wage man.

youll have a hard time doing it for 50%, especially concistently for 10 years.

sounds like youve theorised too much without any actual experience, i had a friend with a similar way of thinking that was gonna do a roadtrip to japan to save money.
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Post by hermosaguy »

The government takes alot out over in the states. Not only do you get taxed on what you make, but also on what you spend. If you live in a state like CA or NY, relocation would be the best bet for a cheaper cost of living, but just don't expect a job with a high salary either. (For the majority that is...)
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Post by Lordstar »

who would really want to save that much! I love my job atm. and working is really not a problem. I think the working as a barman thing is a bit BS I used to do a little bar work and the only jobs you get offred is more Barwork. I can hold a good conversation and my personality is pretty good too.

Edit: this system presumes that theres never a cloud in the sky and everyhting goes right. becuase there always something to have money thrown at it like a dishwasher breaking down or a car getting stolen. what if the wife or GF has a kid. please tell me your going to keep saving that 80%+ becuase i would really like you to try that. It would amuse me highly!

but for the most part it what im getting at is why not just enjoy life now.
alternativley you could write a book on how to retire early and retire early off the money you make from that. :lol:
Last edited by Lordstar on Tue Nov 27, 2007 2:31 pm, edited 1 time in total.
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The n00b
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Post by The n00b »

60k a year entry level job? Okay most college grads in a tech major start off at 43-45k. They can expect to be in their late 20's before they even start to touch 60k.
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Post by Frederik »

Lordstar wrote: alternativley you could write a book on how to retire early and retire early off the money you make from that. :lol:
That might be the best way to go.
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Post by Lordstar »

FrederikJurk wrote:
Lordstar wrote: alternativley you could write a book on how to retire early and retire early off the money you make from that. :lol:
That might be the best way to go.
i say we all get toghter and write a self help book and get it on opras book of the week and there would be plenty to go round. i mean its got the angle of being written by a few dozen people so you have a few different points of view as not everything work for everyone.
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Post by Frederik »

On topic: Who knows what will happen during those ten years, and more important if anybody really has the strenght to keep up with that plan for such a long time.

People who plan on getting their first million as fast as possible have a very strict plan - which sounds like way too much stress for the average person.

I think it would be much better for most people trying to earn money with what they love to do most instead of never having to work at all.
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Post by RGC »

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Re: Retire in ten years

Post by Gwyrgyn Blood »

Neon wrote:Step 1: Earn $60k/yr. This should not be too hard if you're married. If not there are a couple entry level jobs that pay this much. Long distance trucking I think does. Better to go to college and get some cushy job though. If you have a good personality get a job bartending and meet people 'till you get offered one
Long Distance trucking doesn't pay for shit, you basically have to live on the road (which is not cheap), and you'll very infrequently be actually at home (which I'm sure your wife will love). It's also a shit-hole job you won't enjoy doing. And you aren't typically just going to get job offers randomly just by bartending either. People aren't running around looking to hire nice people they meet at a bar to have a nice decent paying job.

Step 2: Save $50k/yr. The way I see it the max you should pay for rent at an apt. should be 3-4 hundred/month. That's about half. So you'll have plenty left over for food and even bullshit you don't need, as long as you're not expecting to stay at the Ritz
Except making 60k/yr, you'd only be pulling in at tops around 40k/yr after taxes and health care. Finding an apartment that cheap is not typical either, although it depends on where you live I guess. In a big city it probably won't happen at all. Around here (outside of Rockville), the only way you can get a place that cheap is if it's in a shithole area or if you are living with 3+ other people. Again I'm sure your wife will love that.

To give you a pretty decent idea, I make 55k/yr (which I went to college for 4 years for), which translates to about 35k/yr after taxes/health. I pay ONLY 150$ a month in rent because I'm staying with my fiancée's parents. I can STILL only afford to save about 15k/yr, and that's a fucking LOT compared to most people. That also doesn't include car and insurance payments which my fiancée uses more than half of her paycheck to take care of.
Step 3: Wait ten years. Then you'll be making 25-30k/yr off the interest on the $500k you've saved. Source. Bam, you never have to work again, although that is a bit tight. But it goes up exponentially after that. I mean, save the 30 large in addition to your yearly fifty and soon you'll have a million and be making $60k, as much as you are at your current job (see step 1).
That article is also talking to someone who is 57 years old. It also doesn't account for actually buying a place to live or anything else you might want to do with your life.
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Post by Neon »

Doing what you love is tough - most people don't have a dream job. Even if you have a dream job, it'd be nice to be making extra cash. I mean, investments require such little effort. You're not even fucking doing anything. Like bonds. Bonds, if my concept of them is correct, are a foolproof thing. Step one: give money, Step two: wait, Step three: get more money than what you put in. So I'm definitely gonna look into that shit.
GaijinPunch wrote:I don't see anything that could possibly go wrong with that plan!
http://finance.yahoo.com/q/bc?s=%5EDJI& ... z=m&q=l&c=
Dow Jones? I dun geddit
sounds like youve theorised too much without any actual experience
Yeah kinda, that's also why I insulted everyone sort of, I want to see any holes in the plan
how old are you?
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What if you want that Supercar before you're grey haired?
Hopefully I'll avoid owning a car too, real financial sinkholes even if you get a cheapie

The way I propose to save lots of money without giving out and blowing it on bullshit out of weakness is this:

Step one: Marry yr partner. Or a civil union or whatever you want, it's just the legal financial binding that's relevant to what we're discussing

Step two: Use the salary of one spouse for living expenses, save the entire other paycheque. Might be necessary to dip into the savings if you've got two cars and a house payment etc. but mostly try not to

Step three: Tie up the saved paycheque in bonds or whatever to increase profits and prevent you from spending it easily.

Step four: Paycheque is the best britishism. Cheque cheque cheque.

p.s. - divorce is another big expense, be careful with step one

p.p.s. - the bartender thing is based on my brother, but he's a minor genius and extremely personable so we can forget about that. His might not have been entry level either now that I think about it. The moral of the story is, having contacts is good
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Post by shinsage »

Living at what is considered poverty-level for an entire decade is really pushing it...if you think about it, let's say you'll live to 90, well that's 1/9 of your life already, wasted living a spartan life without ANY luxuries. I'm doing that right now and, while I have the tolerance for it, I can imagine people who spend hundreds of dollars on PCBs going crazy when they can't even include movie and a dinner in their budget.

And then you have the 25-30k/year thing after you're retired -- if you apply yourself early, go to college whatever, you can be making double or triple that your entire life.

Quite honestly I can never see myself retiring, life would be far too boring -- especially when I'd have sixty years of life left in me.
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Post by Fighter17 »

shinsage wrote:Quite honestly I can never see myself retiring, life would be far too boring -- especially when I'd have sixty years of life left in me.
Amen.

I see more retirees becoming teachers/professors nowadays.

And it's for the same reason: Too boring.
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Post by PaCrappa »

So if my rent is $1400 a month how do I get rich? Where in Seattle do I have any kind of chance at living for the quoted rate of $3-400 a month. You realize that's just plain tomfoolery no? I could move to Kuna Idaho on a budget like that but do you think Billy Childish would play there?

Having a dream job beats being rich any day of the week. My work as a jiu jitsu teacher is the most fulfilling thing I've ever done. I can't wait for my professor to go out of town so that I get to teach more. It's the main thing I think about all day every day. It's limitlessly uplifting and makes me feel like I have a quality purpose in life. I get to help people build their health not only physically but far more important, mentally and emotionally. Given my background and upbringing I'd never have thought that I'd be any inspiration to anyone but now that I am I'd certainly not trade it for retirement in ten years. And I couldn't because I do it for free six days a week :)

I think the problem that alot of people have in life is that they're torn between what all the "common sense" hardliner assholes say about how you need a good job so you can have good money so that other assholes like them will think you're neato and productive and worth hiring for a lifetime of subservience or their heart that tells them to do something awesome and fuck all that make believe money based in-crowd bullshit. So they do half and half and shoot themselves in the foot. Had they concentrated on money like a proper vampire would they'd get rich. If they had the heart to keep it real and be true to themselves they'd be happy. But you can't be wishy washy and all adrift in the sea of greed, stupidity and the expectations of others out there or you'll never know what's what.

Anyway, Helio Gracie is 95 years old, has a dream job, dream money and can still whoop his sons' asses so who needs to retire?
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Post by Brian »

How in the world do you pay $300/mo for rent? I guess you could if you have mates in the house in Iowa. However, if you are living in NY or CA or pretty much any metroplex, no way.

Plus, you have utility bills, fuel cost for your car, etc...

Bottom line, in 2007 American is is pretty damn hard to save money. Especially if you come down ill and your health insurance sucks.
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Post by PaCrappa »

Brian wrote:
Plus, you have utility bills, fuel cost for your car, etc...
When you add that stuff plus food I'm to $2K a month. Even if I didn't have three dogs and could theoretically live in an apartment where would I crank up my LaFayette or blast EPMD at full volume around the clock?

Fortunately, friends I've made through jiu jitsu cover most of my medical needs so even though I don't have insurance I feel pretty safe that way. But most people either pay out the ass for insurance or are just plain medically fucked.
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Post by SAM »

I typed a long reply, but fate inference (power supply stop) and lost it. :lol:

I don't got time to retype it now, so just give an outline of what I want to say.

The yield of bond is too low, you won't have so large an income to save up a million with that in 10 years.

You need something something that have a larger yield (12 to 15% p.a.) and bit longer time (15 yrs).

My idea is to invest in blue chips stock that give very little dividend and have a large growth rate. e.g. AIG or Manulife or Berkshire Hathaway (B shares) This would save you money in dividend tax. (you need to reinvest the dividend anyway, so why don't choose a company which would simply retain it.)

When you save enough worth of asset i.e. a million, you simply switch to stock which is safe and pay more dividend (public service company, like power station, etc.) or bonds. You still need to pay capital gain tax, but at least you delay the payment to have grown more money.

I suggest you go to AIG / Manulife 's website take a look at their historical price (be careful with share splits) and earning. Then do some maths with Excel, and you would see what I am talking about.
Last edited by SAM on Tue Nov 27, 2007 5:36 pm, edited 1 time in total.
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Post by Brian »

One share of Berkshire would be more than he is spending on rent for the year.
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Post by Fighter17 »

Brian wrote:Bottom line, in 2007 American is is pretty damn hard to save money. Especially if you come down ill and your health insurance sucks.
This is a problem with the America Economy as well. We're spending too much and saving very little.
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Post by Neon »

I think the problem that alot of people have in life is that they're torn between what all the "common sense" hardliner assholes say about how you need a good job so you can have good money so that other assholes like them will think you're neato and productive and worth hiring for a lifetime of subservience or their heart that tells them to do something awesome and fuck all that make believe money based in-crowd bullshit. So they do half and half and shoot themselves in the foot. Had they concentrated on money like a proper vampire would they'd get rich. If they had the heart to keep it real and be true to themselves they'd be happy. But you can't be wishy washy and all adrift in the sea of greed, stupidity and the expectations of others out there or you'll never know what's what.
I think you misinterpret me my good man. My dream job is retirement. I want to have the freedom to work where or whenever I want. If I lived in England I guess I could 'go on the dole' or something, but in the USA, or at least in Virginia they won't let you get away with that for very long (unemployment benefits are ridiculously small and don't last more than a few months). So the only solution is to live off interest, assuming I don't get some incredible gig where I don't have to actually work at work.

There are limits, I mean I wouldn't want to be Rush Limbaugh even if he does get paid millions to run his fat mouth for three hours a day. The restrictions on my thinking would be too great. That's the thing about teaching too. I'll get two months vacation (in France that'd be two months paid vacation, in any occupation to boot, but we're not that civilized yet) but most of the teachers I had in high school were people who I wouldn't want to turn out to be like.

So at this stage of my life, I'm just trying to figure out a way to not work, though I'm beginning to have my doubts about this plan with what everyone else is saying.

p.s. - I'm paying $350/month for rent, utils, and food for the kitten, sharing an apartment with the girlfriend, which is right next to campus. This is in Richmond, VA though. Population of only a million or so
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Post by Michaelm »

Neon wrote:Like bonds. Bonds, if my concept of them is correct, are a foolproof thing.
Most probably only when you already have loads of cash to sit the damn thing out.
But yes, money is far more productive then labour which is a very bad thing for most people and the planet.
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Post by PaCrappa »

Nah, that paragraph was just an observation. It wasn't directed toward any particular person.

I don't misunderstand your intentions I just don't think that you need to worry about all that retirement/financial planning bullshit. Last time I worked a job on anything other than my own terms was 1991. I'm not retired and I never will be yet I choose where, when and how I work.

I forget how bonds work but isn't that a government thing? If so do you really want to contribute to anything the federal govt does besides highways and schools? Will your investments be strictly limited to companies that are improving the planet or would you be willing to invest in the vampires so that you too can make a buck off their greed and do your part to perpetuate the problem?

It can become a mighty tangled web trying to dodge what you were put here to do in the first place: Work.
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Post by unsane »

Fighter17 wrote:
shinsage wrote:Quite honestly I can never see myself retiring, life would be far too boring -- especially when I'd have sixty years of life left in me.
Amen.

I see more retirees becoming teachers/professors nowadays.

And it's for the same reason: Too boring.


I disagree with both of you. I've averaged <10 hours work a week for 6 years, and i still have an unfathomable backlog of todo lists. Chronic boredom = dysfunctional imagination.


As for the OP, i'm doing something similar. Instead of working for 10 years and retiring, i'm semi-retired right off the bat. I spend 10k/yr, and could easily lower that to 7k/yr (but choose not to). If you are frugal, you can get away with very little work (or, save up a ton of $).

But most ppl are unwilling/incapable of living without their minor extravagances. Example of a big money sink: cars. I've never been happier since i stopped using one and didn't renew my license. Public transit + cycling ftw.
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Post by icycalm »

1. Go into the army.

2. Let them turn you into an icy calm killing machine.

3. Quit the army and go into the security business. Learn everything you can about it within a year or two.

3. Quit the security business and start robbing banks. You don't even have to rob that many.
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Post by Acid King »

sven666 wrote:Living at what is considered poverty-level for an entire decade is really pushing it...if you think about it, let's say you'll live to 90, well that's 1/9 of your life already, wasted living a spartan life without ANY luxuries. I'm doing that right now and, while I have the tolerance for it, I can imagine people who spend hundreds of dollars on PCBs going crazy when they can't even include movie and a dinner in their budget.
It just depends on where you live. Where I used to live in New York (Binghamton, NY) a one bedroom apartment with utilities included could be had for $450 a month, slightly more than one weeks pay at 10 an hour. Public transport makes owning a car unnecessary. I lived pretty well on slightly more than 10 grand a year.
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Post by Damocles »

This plan is, in theory, entirely possible if you work in live theatre. Most places provide housing, and the jobs that pay well are in places where public transportation is available.
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Post by CMoon »

-Taxes not accounted for
-realistic expenses not accounted for (insurance, utilities, gas, etc. etc.)
-college debt if applicable

and of course the big one:
-ever rising inflation exceeding interest from banks not accounted for

Sorry Neon, this one doesn't even look good on paper. This one only works if you don't live in the US and someone else pays for all your stuff.
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