I am by no means at this stage yet (studying towards an MSc Finance), but I'm sure you all have some idea of a way by which you could retire early, maintain a comfortable lifestyle, and increase/maintain your net worth.
Just wanna hear your ideas for how you think you could make this happen. How much minimum capital do you think you'd need and roughly what would you expect to invest in? Yes, we all have different definitions of 'comfortable' lifestyle, so let's say it's the following: nice car, nice house, buying shit like household appliances isn't a strain, travelling a few times a year in reasonable comfort, let's call it top-decile middle class life.
You would need a few million in assets or an outsized pension. Which basically means 99% of people will not retire early or live very comfortably in retirement.
Real estate. Tax advantaged, leveraged and provide current income. You can tailor is to your involvement level also.
If I could pull a solid 70K in residual, that would be enough for me to become 'retired'.
So probably 1.5-2MM earning roughly 4-5% year over year.
However, retire for me, would mean becoming extremely interested in starting/growing startups or obtaining a PhD and becoming a professor/researcher. It wouldn't be sitting around twiddling my thumbs or playing golf.
I'm guessing you live in Europe. Invest in real estate (Eastern Europe looks promising), some low-tax investments and for the love of God, vote for conservative parties. You won't have a high net worth if the government in power is led by retards like Corbyn.
Invest all your savings in Bitcoin.
I remember when bitcoin first emerged and it was cheap as chips, and remember thinking it would never catch on. Even though I'm a slight tech geek I was too narrow-minded to consider the possibility it would blow up in the near future (in my defense I was 17 around then with no disposable income), although I guess it's common for any revolutionary idea, people tend to dismiss it as naive and silly. I envy the bitcoin millionaires, and especially that random guy in Norway who just bought some and completely forgot about it, only to wake up to about $850k value from a $27 investment.
Anyway, I appreciate your joke, and am still stunned that bitcoin managed to go over $1k, too bad it's been sitting at $210-240 for the last year.
I'd shoot for $90k residual before retiring. Most likely generated through real estate + $3m invested in pretty low risk areas since I would get my risk kick through real estate.
Where are you going to get $3M in post tax liquid cash? Good luck.
Easiest way to retire before age 50: - Pay off a property you want to live in the rest of your life - Save 30 times your annual expenses (factor in a 10-20% buffer here)
You need to be saving probably 1/3 of your income from when you start working, minimize your debt load, and don't buy too much house. It depends on where you live (cost of living) but you can live a very nice life on 60k a year plus a paid off residence. Better save up for that $2 million.
"It depends"
In short, the earlier you retire, the more you'll need to save. There are so many factors that come into play though...tax status of assets, investment accounts, insurance needs, education, kids education + extra curricular, and any debts.
To say "invest in X and retire early" or "save at least this much" is all dog shit. It's based on your wants, lifestyle needs, and income. Your retirement plan, is not someone else.
If i were you, right now focus on investing in yourself (be that your education) and set your self up so you can get the highest paying job that you can for your self. Save as much as you can to build up wealth and then devise a plan on how and where to allocate that capital.
Thanks for your input, PeeHoleFarts
Why anyone would want to retire at 50 is beyond be. In most careers that is the best time of your professional life. The experience and connections you have are amazing.
Save money, have income generating assets and do something you love and you'll be fine.
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