That’s the Wall Street stereotype, right? Make the eight-fig nest egg and chill in the Bahamas golfing twice a day? But as you know, by the time you reach that point in this industry, the opportunity cost makes it very hard.
While she’s not golfing on the beach, this article talks about an ex-financier J.P. Livingston who made her nest egg at 28 after working in finance for a few years and walked away.
Sure, she had a few things going for her -- more than most: She managed to graduate from Harvard University in three years with no debt and some savings. She also landed a very high-paying job in finance that came with a six-figure income that increased exponentially over time. And she had a plan that made it possible for her to reach financial independence before she and her husband started a family and expenses inevitably grew. (A new project for her retirement: having a baby. She recently learned she's pregnant.)But her nest egg is self-made. Even though her husband still works, Livingston's own savings are enough to cover both their living expenses -- around $67,000 per year -- for the rest of their lives.
She was able to live on 25-30k a year, saving 70% of her income. This now has a name and is called FIRE: Financially independent, retire early. I like the idea of this, but not the application. My mentality is either retire at 40-50, or never retire. Either way, I don’t want such a restricted budget. What do you think of this story, and what is your retirement mentality?
Reads like another bullshit artist trying to monetize their personal finance blog. Based on current front office wages, it would be impossible to save $2mm+ in the supposed 7 years she worked.
I read about this a while ago and it's either BS or she got really lucky. By about 25-26 she was earning well into the mid six figures/year
Also I believe it failed to highlight that she is married and that the $2mm next egg she has is between her and her husband. I believe that her husband also still works so technically, she's a stay at home wife with a blog.
Just realized you wanted our opinions on this. I have no intention of retiring, especially not early, but do want to be financially independent somewhere between 30-40.
For me, financially independent would be owning enough RE and Stock to produce, in today's dollars, a good six figure income that I could live off of if need be. My idea of "retirement" would be somewhere in my 50s-60s moving from an office job in RE to just running my own micro RE investing company, financed by me.
This. This has always been my goal, more or less with stocks, because I only swing trade them for opportunity investing. But living based off of my RE, now that would be perfect.
I’m quitting my W-2 job within the next 3 months. My wife is on some change the world shit (education reform) and isn’t planning on retiring any time soon, but I think she’ll be ready to in 5-10 years. We’re going to have kids in the next 2 years and I want to raise them a very particular way (no daycare, possibly homeschooling, rigorous physical and mental activity, basically opposite of what society does to produce the current stock of grey poupon). So I’ll be working from home while growing and running my businesses and real estate investing ventures and raising our kid (2 max). I have a lot of interests I want to pursue. They all require time and some require money. I’d like to get to a place where I can do whatever I want, whenever I want, and go wherever we want with my family by my mid-30s. I also want to make sure my mom and my in-laws are provided for. I never see myself “retiring” because I’m very driven and a control freak. But I would like to be able to run my business shit while doing a lot of cool shit simultaneously. And run it remotely. And way longer-term and who the fuck knows, maybe I’m some Richard Brandon type character one day. I see it in myself, but I also probably have several ego disorders. But if I get to that level, I would love to contribute to STEM – particularly deep water and space exploration and medicine. I would have said “technology” broadly not long ago, but I’m a bit scared of AI after that FB shit…
I hope you raise your children in vigorous martial arts training like in the accountant.
I'm not joking.
That sounds pretty shitty. I'm sure people can do it and be happy with it - maybe if you spend most of your time hiking in the woods and whatnot - but $25k-$30K a year is poverty-level. Why not just work a little more?
I'd say girls could do it over guys.
I've met girls in the city that literally eat like a bunny in the daytime, have guys take them out for dinner and drinks nearly every night.
All they have to do is pay for rent and stuff.
All in the name of saving some extra $$ to retire a year or two early? That's pathetic. Not saying you don't think it is, but that's a sad life to live when you're getting by, by using guys for dinner.
There's a subreddit for FIRE and while I don't want to do what the woman did in the article or what they do on the subreddit, it is an interesting life choice. Ideally I will enjoy my work enough to do it until I die while still saving a sizable amount.
Semi retire @ 40
You think healthcare is expensive now? Just wait until you're eyeing 60 and have a projected 30+ more years to live, like the Japanese but without the social safety net. I wouldn't retire at 30 even with $10mm in the bank.
hustling backwards
Rerum inventore rerum magni voluptatem molestiae qui. Voluptates tempora deleniti quaerat. Possimus aperiam dolor illo molestias dolor. At assumenda voluptates consequuntur eos. Excepturi quis ut blanditiis non labore dolores et. Provident similique doloremque recusandae labore quia. Sit culpa recusandae dolorem at rem quae.
Consectetur voluptatem eius aut ratione nihil occaecati. Non aut possimus amet quas non dolorem. Aut nulla at nihil ex quia qui a. Et consequatur vel itaque minus.
Doloremque ut doloribus temporibus iusto voluptatibus. A necessitatibus laudantium eaque praesentium mollitia omnis et optio. Vero magnam id praesentium et autem maiores totam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...