Dude retired at 33.

Ryan_Futuristics

You'd have to work out whether renting or just downsizing and realising some of the capital makes more sense at that age

It's a tricky one - in the UK we're raised to think of our homes as the ultimate financial asset, but books like Rich Dad, Poor Dad make the distinction that an asset is something that pays the bills when you can't work ... So a house can behave more like a liability

I'd say if you can get a >5% rental yield where you are, the house may be a safer asset to keep hold of ... In London, rental yields are often down around 2% now, with prices slowing, so in that case I'd probably be selling and investing

gallygirl

Ryan_Futuristics wrote: »

It's a tricky one - in the UK we're raised to think of our homes as the ultimate financial asset, but books like Rich Dad, Poor Dad make the distinction that an asset is something that pays the bills when you can't work ... So a house can behave more like a liability

On the other hand you could see it as an asset in that it saves you xxxx amount a month in rent.

Still trying to get my children to accept the liability issue (though the work my DD is doing in her house is maybe starting to swing it :rotfl:).

Radiantsoul

gallygirl wrote: »

On the other hand you could see it as an asset in that it saves you xxxx amount a month in rent.

Exactly. An asset is anything owned by an individual from which future economic benefits are expected to flow. House for most people provide a stream of benefits - rent that is not paid, the ability to paint the walls or put up shelves, certainty the landlord will not turf you out.

Cash is only really valuable in that it can ultimately be used to fund present or future consumption.

davehills

Whilst theoretically possible, I personally think it's made up or at least exaggerated as many of these stories are.

IronWolf

bugbyte wrote: »

It is interesting reading this thread and others that for some the end game is to retire early, and there is a lot of truth that in this goal spending less and being less materialistic can make you happier. However there is a danger that obsessively living for the future is its own kind of materialism, missing out on the joys of the present. The other massive issue for me is that retirement and the subsequent inactivity can lead to mental health problems - there is little focus for life. People actually need a work structure and to be useful to be happy. I cannot think of anything worse than retiring at 33. That bloke has his whole life ahead of him to do something worthwhile - yes, looking after his family may take him up to his early 50's but what then?
For me happiness is in the following order: Loving and spending time with family, doing a job that is worth while, having enough savings to cover life disasters and making a difference to those around me.

I was just going to post exactly this! I am naturally super frugal, I hate to spend money on anything and it is only in the last couple of years I have let go and started to actually spend money on things that I enjoy, like going out to see musicals, buying nicer food etc.

I had 6 months off work due to sickness a couple of years ago and it really changed my perspective on retiring early, I would find it so boring and quickly lose my marbles I think.

My aim now is to have enough money to do a job I love, haven't figured out what that would be though..

115K

davehills wrote: »

Whilst theoretically possible, I personally think it's made up or at least exaggerated as many of these stories are.

I knew someone who retired when he was about 30 but he was in a very well paid job before that. I know other people who have "retired" at about 50 but then they usually choose do another less stressful job so they won't get bored.

blizeH

davehills wrote: »

Whilst theoretically possible, I personally think it's made up or at least exaggerated as many of these stories are.

It's surprisingly common now though. There are huge communities set up around it too like MMM, ERE and /r/financialindependence

Gadfium wrote: »

IMHO, boredom is nothing more than a lack of imagination. There's a bajillion things to do and see on this planet of ours without having to go to work every day to while away the hours. Learn a new language, teach yourself the guitar, train to be a private pilot, take up photography, to name a handful.

Nicely put. I find it almost a little depressing that the work life is so ingrained in people that they think they'd be bored without the monotony of a 9-5 job. But either way, the whole point of financial independence is that you can do what you like - if you genuinely enjoy your job then there's no reason to stop, you just have a fantastic safety net to fall back on if the circumstances change.

ozzage

This thread seems to have attracted people new to the idea of early retirement, and therefore seems like a good place to post these:

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

http://the-military-guide.com/2011/01/03/how-many-years-does-it-take-to-become-financially-independent-2/

Ignore the military bent to the second one, ti's valid information for anybody.

Gadfium

blizeH wrote: »

I find it almost a little depressing that the work life is so ingrained in people that they think they'd be bored without the monotony of a 9-5 job. But either way, the whole point of financial independence is that you can do what you like - if you genuinely enjoy your job then there's no reason to stop, you just have a fantastic safety net to fall back on if the circumstances change.

Absolutely!:T

I think that possibly the most depressing people on the planet are those that win millions on the Lottery and then appear on TV, in their boring little 3-bed semi-detached houses, smugly declaring that they will continue to work and the money won't change them.

Just think of the many beautiful places in the world that you can watch the sun set? Think of the memories that you can have after hearing some of the world's greatest musicians performing live? Think of the places that you can explore? The millions of little cafes that you can sit outside and watch the world go by.

bugbyte wrote: »

It is interesting reading this thread and others that for some the end game is to retire early, and there is a lot of truth that in this goal spending less and being less materialistic can make you happier. However there is a danger that obsessively living for the future is its own kind of materialism, missing out on the joys of the present. The other massive issue for me is that retirement and the subsequent inactivity can lead to mental health problems - there is little focus for life. People actually need a work structure and to be useful to be happy. I cannot think of anything worse than retiring at 33. That bloke has his whole life ahead of him to do something worthwhile - yes, looking after his family may take him up to his early 50's but what then?
For me happiness is in the following order: Loving and spending time with family, doing a job that is worth while, having enough savings to cover life disasters and making a difference to those around me.

Superb post. The goal shouldn't be to retire early and then stagnate. The goal has to be to retire early to allow you to do what you want in life. If that's a second career looking after your family and writing a finance blog, then so be it. But it should never be that you go crashing into retirement and then think "bugger me, what should I do now?"

Radiantsoul

davehills wrote: »

Whilst theoretically possible, I personally think it's made up or at least exaggerated as many of these stories are.

davehills wrote: »

Whilst theoretically possible, I personally think it's made up or at least exaggerated as many of these stories are.

Exactly.
The internet has rather fueled this "cult of the guru", which occurs in many areas. You have some many of these guys preaching to a band of followers. This might be "Rich Dad, Poor Dad" giving $50k seminars on how to get rich, Tim Robbins walking you over smoking coals, that strange "seduction master" who caused a big fuss here and in Australia, Tim Ferris "Four-hour"-whatever, NLP practionners and their funny anchors to achieve self=confidence, etc.

Often these people seem more successful in marketing their own products. Often more so in the skill they claim to have(many claim to teach "attitudes" rather than the specific skills necessary. If you fail then it is not the teacher, but your lack of badassity or whatever else they call it.