Wondering if there is anyone on here that has retired early (FIRE Movement)

[ianpadron]

It actually didnt get lost until you showed up. I scanned back through and unless I missed it, you were the one that brought up IRAs and other tax advantaged accounts. Before that, it was people saying dont retire early and people talking about multiple income streams.

The funny thing is that really, nobody in this thread disagree with you on creating wealth. Like I said earlier, all you did was shit on anyone that has a different strategy than you. The great thing is, we each get to choose our own way in this life.

Nah it was a positive response to a fella who saw the light and cashed out his retirement account to buy real estate.

I do find it curious that I've yet to meet a single investor who has gotten out of RE and into stocks, mutual funds, ETFs etc. but countless investors who have done the opposite.

You're right though, we get to choose our path.

For those curious about RE, tune into some Bigger Pockets podcast episodes and enjoy the journey. Knowledge is power.

I pray that everyone in this thread "retires" early and spends so much time hunting they get sick of it! That's certainly my goal.

 

[Crowmangler]

BTW, real estate is not easy or risk free. Just ask those commercial developers in 2008 that refinanced their income producing properties every 2 years using them like an ATM & added multiple layers of debt all while thinking the gravy train would never stop running.

 

[NRA4LIFE]

Real Estate is a good option, especially long term. We own properties in 4 different states (our home in WA being one of them) and all are worth many times what we paid for them and represent a small to moderate percentage of our portfolio. I look at them as a fall back plan for the future.

 

[displacedtexan]

What an absolutely pathetic and senseless existence some people must live when they have to have a job to give their life meaning.

Talk about having over-conformed and given up any sense of individual purpose and identity…. Sheesh.

If you need a job to not be bored, you are a pathetic excuse for a human being: have no sense of passion or creativity and just sleepwalked through your life. I reckon these must be the same people who apparently lack an inner dialogue.

I love what I do, and my customers.

I'm planning on being even more picky about what projects I take on by 50 (10 more years. I don't see an endpoint to it though. Ask again in 20 years.

My skills and creativity are very tied up with my love of woodworking and carpentry. So yeah, my business is a huge part of my identity.

I find it sad when people seem to hate what theta do.

 

[dreamingWest]

I don't plan to get to retire super early despite saving very aggressively. We simply spend too much enjoying life while we are young(ish). But I'm all about diversification so I'm genuinely intrigued by this overwhelming confidence in real estate. Question: What about for states like Texas with outrageous and suffocating property taxes?

 

[ianpadron]

I don't plan to get to retire super early despite saving very aggressively. We simply spend too much enjoying life while we are young(ish). But I'm all about diversification so I'm genuinely intrigued by this overwhelming confidence in real estate. Question: What about for states like Texas with outrageous and suffocating property taxes?

Invest in another state! Texas had a wild run-up during COVID and with the cost of conventional money, higher values, and property taxes...cap rates are hyper compressed.

Best bet for a mom n pop investor to get started in cash flow heavy vs appreciation focused markets.

We recently shifted our focus from NW MT to the upper Midwest for the reasons I just mentioned.

For the price of a down payment out West you can tie up 4 or 5 properties in Wisconsin, Minnesota, North Dakota etc.

 

[ianpadron]

BTW, real estate is not easy or risk free. Just ask those commercial developers in 2008 that refinanced their income producing properties every 2 years using them like an ATM & added multiple layers of debt all while thinking the gravy train would never stop running.

A financial audit of those portfolios in 2006/2007 would have told the true story.

Many investors who were not over-leveraged had their best years ever from 2008 to 2012.

Sadly I was 16 years old at the time and in the words of my father, didn't have a pot to piss in

 

[NRA4LIFE]

Yes, my 5 acres here in WA (land only not including house) is probably worth more than the 240 I am part owner of in Northern WI.

 

[ianpadron]

Real Estate is a good option, especially long term. We own properties in 4 different states (our home in WA being one of them) and all are worth many times what we paid for them and represent a small to moderate percentage of our portfolio. I look at them as a fall back plan for the future.

Common theme among owners of real estate is that the only regret they have is not buying more.

 

[CorbLand]

Common theme among owners of real estate is that the only regret they have is not buying more.

Thats generally a common theme among any investor that is making money...I say the same thing about my shares of Apple.

 

[JakeSCH]

For the last few years I have been following and reading and listening to podcasts on financial independence retire early (fire).

I have been living well under my income level for 5 years now and on course to semi retire
In 10 years. I will be 40 years old if all goes to plan…

So I am curious if any fellow rock sliders that share the same lifestyle have done this or currently making it happen? And if it’s just a pipe dream with how the cost of living is changing


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We have very different goals but likely same paths. We have a goal to be able to donate $1 mill a year in perpetuity. Even thought we have only been sitting at 100k giving the last couple of years...i love the game on constantly finding ways to increase.

Small business acquisition, real estate, various funds, etc. Many ways to get there, but they are all about doing the work. Find something you enjoy and go after it. Fall in love with the process.

Key is to enjoy the entire process because you are spending time doing it!! Make a priority list and filter things through it. You only have one life and honestly years of work "could" be wiped away by something out of your control.

 

[MCS]

I've had the same thoughts and after doing both, I'll say the VTSAX route is much more passive approach. Dealing with tenants as well as the physical rental itself can be a pain. One could make the argument that you can hire a property manager but that eats into the 12%.

Do you think you may have a different approach if you started with VTSAX at 23 instead of 43? Compounding can be your best friend or your worst enemy.

If I was starting at 23 I'd still do rentals. Index funds take too much capital and too much time. If I had my shit together at 23 I would have been financially independant at 35.

I do work a lot on rentals right now but in 5 years when I will have enough properties I'll pass that work off. Index funds make since if a person has a very large income and not a lot of time. Realestate is not passive but it's the fastest way to financial independence.

 

[Dos Perros]

This guy gets it.

"Tax advantaged" retirement accounts exist solely to ensure the feds continue to get a piece once folks drop out of the work force, and offer basically non-existent velocity.

Owning real estate and other cash flowing assets and leveraging the equity you build to buy more is the quickest way off the hamster wheel for the avg. Joe who doesn't have a multimillion dollar business.

It's also really really easy to just let the 401k thing happen though.

It takes hustle to do the rental thing. It's not for me (I did it once, the risk reward ratio wasn't there for me).

 

[MCS]

Guys will defend Roth IRAs and 401ks til they are blue in the face.

Anything past company match (best money is free money) is simply putting money in jail.

Stuck in the exact matrix that built those "retirement" vehicles.

"Make sure you stay workin' hard til 59.5 so you can use all that tax-advantaged money boy, ya hear?!"- the gubernment

I'll be retired making more money then I make now by 50.

If I had stayed on the 401k path I'd die poor.

 

[Maverick1]

Lots of "you" on this thread. "You" sound tone deaf, argumentative, and quite unpleasant. Just stop, sounds silly.

 

[Mule3006Elk]

I guess I'm one of the pathetic souls that works. My job is not my identity but I don't mind working and it's overall fulfilling. I have no plan to retire but I would like to cut back hours. Maybe 24-26 hours a week. I've been in medicine for 22 years and I enjoy it. We need some pathetic souls to take care of the sick. I figure why not work p/t, keep the mind sharp, help others, and still have plenty of days off to do what I want. I already have a lot of time off so this could be why retirement isn't on my mind 24/7. Furthermore, I don't even know if I'll make it to 50. My days may be long or they may be short. Might as well enjoy the present.

 

[Dos Perros]

Plus you have to be 59 1/2 to use the money from your Roth

Well that's not true.

"Because you already paid taxes on the money you’ve contributed to a Roth IRA, you can withdraw your contributions any time, without penalty."

Roth IRA Withdrawal Rules - NerdWallet

In general, two criteria need to be met for penalty-free withdrawals of all funds from a Roth IRA: The account has been open for at least five years and the account owner is age 59 ½ or older.

www.nerdwallet.com

 

[Gutshot007]

Take it for what its worth . Most of the "fast/easy" buck guys i've met in life had such up and down financial slides it wasnt even funny . One second living pretty high on the hog knowing that little financial secret to cash in and then 2 years later liquidating their assets to stay alive and make it through the bankruptsy. Some of this talk sounds like an easy money infomercial . Hope theres a set of free steak knives in the end .

 

[timekiller13]

I’m not retiring early, but I’m cutting way back.

Been a slave to an admin nursing job for a while now and 70-80 hour weeks are not worth it. I’m walking away at the end of July and working two 12 hour shifts a week as a floor nurse. So going from 70 hours to 24 hours. Working 24 hours a week allows me to keep the HSA/high deductible plan at work for free. Plus my job gives me $500/yr in my HSA. I have enough in my HSA To cover my max out of pocket for my entire family.

I took advantage of the high wages they paid nurses during COVID and also sold my home for a huge profit during COVID. Was able to buy a family property at deep discount. Cars are paid for and still very new. Savings is strong. Investments are strong.

Based on the income I am making now and the income my wife makes. We could potentially call it quits completely in 10-12 years. That would put me at 50. My ultimate goal is 55.

 

[Elite]

My wife and I had one goal in mind. That was to live no different in retirement as when we were working. We paid off our house (critical for early retirement) when I was 45. We bought all our long term large ticket items while still working also. I've been out almost 7 years and my wife 9. We have barely even touched our savings. My wife's SS kicks in next week and mine in 2 years. Our nephews/nieces are going to be very wealthy when we croak.

That’s great to hear! Congrats. Are you just living off dividends/interest or how haven’t you touched your savings?


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