Early retirement does not to stop working
By scheng1
@scheng1 (24649)
Singapore
September 6, 2016 7:53am CST
This is the latest concept I learnt today.
I happen to chance upon Mr Money Mustache blog and I like it very much.
If I read correctly, both he and his wife retire in their 30s before they have children.
At this point, they have retired from full time employment for many years, and their money keeps on growing even when their expenses grow too.
The difference is that their money is growing much faster than their expenses.
It sure is a good way to live, plus they travel together as a family too.
The fact is that early retirement means to retire from full time employment, but that does not mean to stop working.
There are many work to do even when not holding full time job.
I have met many retirees in my country who are much busier after retirement. It is strange but true. They are so full of life.
http://www.mrmoneymustache.com
7 people like this
7 responses
@BenRyanLee (224)
•
6 Sep 16
I wish I could retire so that I could travel the cosmos I mean the world.
2 people like this
@BenRyanLee (224)
•
6 Sep 16
@scheng1 sadly I don't have a salary. It goes straight to my living expenses. I have a wife and daughter to support
1 person likes this
@scheng1 (24649)
• Singapore
7 Sep 16
I think you will love it very much.
I get addicted to it after just two days of reading!
One reason is that many people shared their experience, and he mentioned about the success of others too. His blog post can have 500 comments!
Imagine that!
1 person likes this
@scheng1 (24649)
• Singapore
7 Sep 16
Their investment grows.
One of the investments that they mention is the Vanguard Index Fund.
According to the website, if anyone has invested in the fund from 2006 to now, that means investing just before the crash to now, $10000 has grown to $23400 now.
The example given in the blog mentions that when a fund grows at an average of 10% per year, and you take out just 4% a year for living expenses, the money will still grow at 6% per year.
That is how they can afford to retire for good once they have paid off the house.
1 person likes this
@scheng1 (24649)
• Singapore
8 Sep 16
@LadyDuck That is not a problem at all.
Since they have surplus from other years, and they do not need to sell everything in 2008 to 2011, their portfolio would have increased.
Vanguard is one of the investments.
For other investments that are very stable, and are good cash cows, they would still have very comfortable dividend to live on.
Just take a look at Nestle which is listed in your country.
Nestle keeps on increasing dividends, even in 2008.
These are the companies that can withstand any crisis, and still pay the shareholders very well.
1 person likes this
@LadyDuck (470823)
• Switzerland
7 Sep 16
@scheng1 I will not go into details. My husband manages money since 1970, there are plenty of people who declare they made money writing about how much they made, AFTER they were able to show the graphs. The Vanguard Index went from 127 to 200 from 2006 up to day, but it took a dive in 2008, going down to 67.99 and it stayed down until 2011, so they did not make money from 2006 up to 2011, how did they live in those years?
1 person likes this
@Shiva49 (26644)
• Singapore
7 Sep 16
Mostly working for others is drudgery and not appreciated, so better to retire asap and do something else for even less returns.
However, most are dependent on monthly salary and they have little leeway due to family commitments.
I think everyone is looking for a way out from working all our lives - siva
1 person likes this
@scheng1 (24649)
• Singapore
7 Sep 16
I think you will agree with many things written in his blogs.
Some of his blog posts have more than 500 comments. There are a few guest posts too, and he refers to other successful persons who can retire very young.
Today I read about one of the blog posts, and the blog mentions one of the silliness.
When the blogger had a mortgage exceeding $250,000 and he had a few thousand dollars in bonus, instead of using the money to pay off mortgage, he used the money to get a big TV.
That sounds silly and yet that is something that nearly everyone is doing.
1 person likes this
@scheng1 (24649)
• Singapore
8 Sep 16
@Shiva49 I think the schools do not want to teach this.
If not, everyone will be financially free before they reach 40 years old, and who will do the dirty work?
The retail industry is already not making a lot of money despite people spending freely.
if they teach frugality and investments in schools, and encourage everyone to aim to retire early, who will buy all those unnecessary things?
@Shiva49 (26644)
• Singapore
7 Sep 16
@scheng1 Actually this should be taught in high school or even earlier.
I have worked for forty years and I might have saved almost every year despite spending for all our needs and even more.
We should limit our expenses within our earnings and then we are well on our way to earlier retirement - that is working for others.
I recall one colleague telling me that she had planned in such a way that her insurance policies matured every few years after 50 years and she was quire safe that way.
Thanks for sharing this excellent site - siva
1 person likes this
@rina110383 (24492)
•
7 Sep 16
My mom retired early this year at the age of 65. Since then, she's been busy with her business.
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@scheng1 (24649)
• Singapore
8 Sep 16
I sure will wake up later and later if I do not have to go to work all day.
I will be very happy if I can retire for good now. I can spend my time in the library, going for long walk, and going for vacation, as well as taking part in charity fundraising.
1 person likes this
@scheng1 (24649)
• Singapore
9 Sep 16
@miniam I do not use the official age as a guide.
i use my dividend income as a guide.
If I need $1500 a month to survive, and that means $18,000 a year, and when my dividend from investment is more than that, I can retire.
Now I am still less than halfway there.
I still have to build up the stock portfolio.
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