So, I would like to retire by age 35-45 (currently I'm 26). Never mind this may not be possible. For the purposes of this forum, I would like to discuss different investment options.

I have been reading much lately on 401k's and Roth IRA's etc. It appears to me (although I may be mistaken) that many of the typical "retirement plans" lose their benefit when you are attempting to retire before age 59.5. That sucks. Is there anything out there for people who wish to retire while they are still young enough to enjoy their wealth? Thanks for any advice in advance.

10/24/2007 8:08:08 AM

10/24/2007 8:19:51 AM

good luck

10/24/2007 8:23:24 AM

[Edited on October 24, 2007 at 8:26 AM. Reason : d]

10/24/2007 8:25:45 AM

Oh, you can retire.... as long as you live on like $500 per year

10/24/2007 8:26:33 AM

Ok, so thus far...what I am taking home from this is:

- Holy crap, how does that picture still exist?
- Win the lottery.
- And don't eat.

Well as for the picture, I have always thought it to be rather flattering. I don't play the lottery because as Ben can tell you, the expected value is almost certainly very negative. And I'm Italian, so that pretty much rules out not eating (although I AM a cheap bastard, so that should help).

Point is: It's not how much I save that I need advice on. It is where to save that I want guidance with.

10/24/2007 8:30:53 AM

-opt for a higher-salaried job in a high cost-of-living area (more money for your 401K)
-find a job with a low service requirement for retirement (e.g. civil service) to supplement your income for when you really get old
-pull out the equity in your house and invest it in an index fund (a lot better odds than the lottery)
-find someone to help pay off your student loans
-plan to retire to somewhere with a lower cost-of-living (and maybe a national health plan)

[Edited on October 24, 2007 at 9:04 AM. Reason : &]

10/24/2007 8:49:38 AM

What is your required post-retirement income and what are your current sources of income? How much do you already have saved? What are your current assets? What are your current liabilities?

10/24/2007 8:49:45 AM

what is it exactly that you do for a living?

10/24/2007 8:59:55 AM

I think before you do anything else you need to cash a reality check.

This thread reeks of a 7 year old girl stating her career goal as "princess"

10/24/2007 9:07:42 AM

ps. if you figure out a succesful way of doing this, let the rest of us know as well.

10/24/2007 9:08:48 AM

or you could join the army and retire at 46

[Edited on October 24, 2007 at 9:11 AM. Reason : assuming you don't die of course]

10/24/2007 9:10:26 AM

Actually, given this guy's disconnect with reality, he should look into Quixtar.

10/24/2007 9:14:33 AM

yeah quixtar is the way to go. Not only could you retire at like 40, but until then you could make hundreds of thousands of dollars a year just sitting at home.

Seriously you can't beat that. I did it and last month I made 20K working part time from my home!

10/24/2007 9:30:19 AM

^^dude, you can make a lot of money off of that! I've put in like $500 into membership, recruiting, and buying products, but I've gotten over 300 bucks out of it so far!

[Edited on October 24, 2007 at 9:31 AM. Reason : ]

10/24/2007 9:31:32 AM

Quote :

"This thread reeks of a 7 year old girl stating her career goal as "princess""

I'm eating lunch @ work, and this made me spit tea on my desk

10/24/2007 12:42:46 PM

He could try one of those commercials on TV that is the same commercial but different websites. "I made over $8000 last week! Working part time! From home!"

10/24/2007 12:52:21 PM

I don't think this is impossible... but you should work on living on a shoestring budget for the rest of your life / cutting down on your life expectancy

[Edited on October 24, 2007 at 1:15 PM. Reason : .]

10/24/2007 1:15:16 PM

Yeah, definitely not possible. You might be able to do it a few years early, but if you really don't want to work that much just get yourself setup somewhere that doesn't cost you much to live if you don't have any decent income. Get a small house that has a lot of wood you can burn in a fireplace for heat and that is shaded for the summertime, small square footage and durable materials (repair what's broken now with the good stuff so it'll last well into your old age/inevitable death). Try to grow your own victory garden and recycle the seeds each year.

Realize that you will be cutting most everything that a lot of people consider fun/entertaining out of their lives like television, the internet, driving, and electricity. You'll be living kind of like a hermit but i bet you could wing it.

Oh, don't forget that you won't be able to avoid health insurance, which will suck when you get cancer (as I'm sure 90% of people are going to these days).

So, it's possible, but you probably won't really REALLY want to do it unless you get super mega rich in the next 20 years.

10/24/2007 1:19:54 PM

i honestly think the only way to retire by 35 (why would you want to do that anyway? what the hell else are you going to do with your life?) is to be an entrepreneur and make it big with your own company. You have to start a company, or get in on the ground floor with a company, then wait till it goes public or gets bought, and cash out.
Given that 80-90% of new companies fail within a couple years, this is not a good plan to rely on. Not to mention, if you were smart or creative enough to be such an entrepreneur, you would likely already have started some companies or at least have some million-dollar ideas rolling around in your head.

the bottom line is this. People who will be capable of retiring by age 40 already have a plan and are likely well on their way by the age of 26. If you just got out of school or whatever, and you're still at the point of trying to find other "investment opportunities" besides 401k and IRA's, you're seriously SOL. Just work for a living, put some money away for the future, and contribute to society, like the rest of us.


Like ^ said, you don't retire when you're less than 50, 55, 60 just by doing normal work and investments. If you are able to retire young (<40 or 45), that means you've struck it rich somehow, and you're able to live comfortably off of your saved money + interest.

[Edited on October 24, 2007 at 1:29 PM. Reason : .]

10/24/2007 1:26:27 PM

travel back in time 5 years and invent facebook

Quote :

"Is there anything out there for people who wish to retire while they are still young enough to enjoy their wealth?"

is 25 or 30 years not enough time to enjoy your wealth if you retire at 59.5?

10/24/2007 10:06:32 PM

Take it easy on the guy. I'd love to retire tomorrow. I am dead set on not working a day past 50 if at all possible. I loathe working. What would I do if I didn't work? I'm sure I could manage not being forced to wake up at the same time every day, for starters.

But yeah, bottom line is you can't retire in 11-21 years without coming into some SERIOUS money, investments be darned. Unless you are frugal beyond imagination you won't even come close, and then you'll waste the next part of your life.

And to ^, be real. I could do a lot more with the ten years between 25 and 35 than the 10 years between 60-70 (or beyond). Unless you're some athletic freak you won't be rock climbing or hitting up level 5 rapids when you're 70, so even though you've got the cash you'll likely be paying for doctor's vists and spoiling your grandkids. It'd be most excellent to have that time / money much younger in life.

[Edited on October 24, 2007 at 11:17 PM. Reason : .]

10/24/2007 11:15:30 PM

^i don't need wealth to rock climb and go rafting

10/24/2007 11:34:49 PM

http://www.fool.com

look on the left side under "calculators"

reality check time

10/24/2007 11:35:34 PM

^^ you don't? last i checked, equipment, gas, lodging, transportation - all that takes money.

the irony is this - if you save enough money to "retire" by the age of 40, you will still barely have enough money to sustain yourself for the next 40, possibly 50-60 years of your life. So instead of "living it up" in retirement, you'll be so strapped for cash that you wouldn't be able to do anything, except eek out a living, possibly miserable, because you're so worried about money all the time.

Of course, if you are working a decent job, then you have a steady income stream so you have enough money to do the things you want, but you don't have the time, because you're working.

..... C'est la vie

[Edited on October 24, 2007 at 11:41 PM. Reason : .]

10/24/2007 11:39:35 PM

What a bunch of douchebag responses especially considering this is the lounge. Early 50s would be much more possible assuming you max out a roth ira and 401K. For 35-45 you'd have to be a good entrepreneur and create a successful startup and/or plan to retire to somewhere with a lower cost-of-living. Bankrate has some good articles on retiring abroad, specifically

http://www.bankrate.com/brm/news/advice/20020903a.asp

Also, there are some exceptions for the 59.5 age thing, plus you can withdraw the principle from a roth IRA or principle plus earnings from any regular brokerage account.

10/24/2007 11:41:38 PM

^douchebag responses? if he wants to retire at 35, tax deferred accounts is the least of his troubles.

in order to save enough he'd have to make much more than the roth ira limit. and if he becomes self-employed, which he pretty much would have to do, he would then want to look at setting up a 401k and sep-ira.

but if you are making that much money that retirement that early is possible, you will likely have access to some top asset/wealth managers.

10/25/2007 6:58:07 AM

The main thing is that if he's 11 years out from his "targeted retirement", and he's asking TWW for advice, he clearly doesn't have what it takes to accomplish such a thing, short of inheritance.

10/25/2007 8:06:56 AM

I agree it doesn't really sound plausible but nearly all the initial responses were pure garbage aside from FykalJpn.

10/25/2007 9:45:23 AM

Garbage in, Garbage out.

10/25/2007 9:46:39 AM

Hah. I didn't realize it was you Eddie. What else do you do aside from that Wed night game?

10/25/2007 9:49:30 AM

Quote :

"The main thing is that if he's 11 years out from his "targeted retirement", and he's asking TWW for advice, he clearly doesn't have what it takes to accomplish such a thing, short of inheritance."

10/25/2007 9:55:28 AM

I hope you guys were being sarcastic...

Quote :

"Actually, given this guy's disconnect with reality, he should look into Quixtar."

Quote :

"yeah quixtar is the way to go. Not only could you retire at like 40, but until then you could make hundreds of thousands of dollars a year just sitting at home. Seriously you can't beat that. I did it and last month I made 20K working part time from my home! "

... Quixdeath

10/25/2007 9:58:55 AM

State employees can retire with full benefits after 30 years' service...if you had done that right out of school you'd have been able to retire no strings attached at 52. However, now you'd be looking at 56, which is only 3.5 years before that 59.5 figure you mentioned, and while gov't jobs have good benefits and excellent job security, the pay isn't stellar and they don't fully match contributions.

Why don't you just go talk to a financial advisor?

10/25/2007 10:07:21 AM

What good will a financial adviser do for his situation?

10/25/2007 10:12:35 AM

1. Marry rich

2. Pop out a kid

3. Get a nanny

4. ... PROFIT

ohhhhh you're that guy.... well try for step one and hope for the best


[Edited on October 25, 2007 at 10:30 AM. Reason : atleast if you have a kid you can sue for alimony, and child support and still be confortable...]

[Edited on October 25, 2007 at 10:30 AM. Reason : male]

10/25/2007 10:14:06 AM

Quote :

"What good will a financial adviser do for his situation?"

Maybe he's being a bit unrealistic about retiring 9 to 19 years from now, but a good adviser should be able to help him plan his finances so that he can comfortably retire at the youngest age possible. Better than randomly asking on TWW anyhow.

10/25/2007 10:19:53 AM

Hell, I could do that.

1. Save as much money as possible
2. Invest in index funds
3. Profit

10/25/2007 10:24:53 AM

join any federal agency today

serve 20 years

retire at 46 with pension.

10/25/2007 10:32:04 AM

didn't want to start a whole thread on this, but saw this on Craigslist, and it sorta fits in this thread:

Quote :

"What am I doing wrong? Okay, I'm tired of beating around the bush. I'm a beautiful (spectacularly beautiful) 25 year old girl. I'm articulate and classy. I'm not from New York. I'm looking to get married to a guy who makes at least half a million a year. I know how that sounds, but keep in mind that a million a year is middle class in New York City, so I don't think I'm overreaching at all. Are there any guys who make 500K or more on this board? Any wives? Could you send me some tips? I dated a business man who makes average around 200 - 250. But that's where I seem to hit a roadblock. 250,000 won't get me to central park west. I know a woman in my yoga class who was married to an investment banker and lives in Tribeca, and she's not as pretty as I am, nor is she a great genius. So what is she doing right? How do I get to her level? Here are my questions specifically: Where do you single rich men hang out? Give me specifics- bars, restaurants, gyms. What are you looking for in a mate? Be honest guys, you won't hurt my feelings. Is there an age range I should be targeting (I'm 25)? Why are some of the women living lavish lifestyles on the upper east side so plain? I've seen really 'plain jane' boring types who have nothing to offer married to incredibly wealthy guys. I've seen drop dead gorgeous girls in singles bars in the east village. What's the story there? Jobs I should look out for? Everyone knows - lawyer, investment banker, doctor. How much do those guys really make? And where do they hang out? Where do the hedge fund guys hang out? How you decide marriage vs. just a girlfriend? I am looking for MARRIAGE ONLY. Please hold your insults. I'm putting myself out there in an honest way. Most beautiful women are superficial; at least I'm being up front about it. I wouldn't be searching for these kind of guys if I wasn't able to match them - in looks, culture, sophistication, and keeping a nice home and hearth. "

Response:

Quote :

"Dear Pers-431649184: I read your posting with great interest and have thought meaningfully about your dilemma. I offer the following analysis of your predicament. Firstly, I'm not wasting your time, I qualify as a guy who fits your bill; that is I make more than $500K per year. That said here's how I see it. Your offer, from the prospective of a guy like me, is plain and simple a crappy business deal. Here's why. Cutting through all the B.S., what you suggest is a simple trade: you bring your looks to the party and I bring my money. Fine, simple. But here's the rub, your looks will fade and my money will likely continue into perpetuity...in fact, it is very likely that my income increases but it is an absolute certainty that you won't be getting any more beautiful! So, in economic terms you are a depreciating asset and I am an earning asset. Not only are you a depreciating asset, your depreciation accelerates! Let me explain, you're 25 now and will likely stay pretty hot for the next 5 years, but less so each year. Then the fade begins in earnest. By 35 stick a fork in you! So in Wall Street terms, we would call you a trading position, not a buy and hold...hence the rub...marriage. It doesn't make good business sense to "buy you" (which is what you're asking) so I'd rather lease. In case you think I'm being cruel, I would say the following. If my money were to go away, so would you, so when your beauty fades I need an out. It's as simple as that. So a deal that makes sense is dating, not marriage. Separately, I was taught early in my career about efficient markets. So, I wonder why a girl as "articulate, classy and spectacularly beautiful" as you has been unable to find your sugar daddy. I find it hard to believe that if you are as gorgeous as you say you are that the $500K hasn't found you, if not only for a tryout. By the way, you could always find a way to make your own money and then we wouldn't need to have this difficult conversation. With all that said, I must say you're going about it the right way. Classic "pump and dump." I hope this is helpful, and if you want to enter into some sort of lease, let me know."

10/25/2007 10:44:38 AM

xvang were you born with a complete lack of ability to detect facetiousness?

why would you even bother to post what you did?

10/25/2007 10:47:36 AM

Some people are just that dense. A few people I know can't pick up my sarcasm and I tend to lay it on pretty thick.

10/25/2007 11:01:45 AM

Quote :

"Is there anything out there for people who wish to retire while they are still young enough to enjoy their wealth?"

Start a business and sell it for $TX

Acquire or create something that provides enough passive income

Win the lottery

Rob a bank. Rob a bank. Rob a motherf*cking bank.
Not a pizza place or a liquor store but a bank, bucko. A f*cking bank bucko.

10/25/2007 2:55:13 PM

Quote :

"join any federal agency today serve 20 years retire at 46 with pension."

no

10/25/2007 2:58:08 PM

you can pull money out of your 401k penalty free if you turn 55 in the year in which you retire.

Only IRA's are 59.5 or 401k's if you're actively employed.

10/28/2007 11:53:46 AM

dont get married, dont have kids

the end

10/28/2007 6:18:56 PM

Why? Marriage will get you tax breaks and dual income.

10/28/2007 6:36:47 PM

The golden number being floated around these days is 4%. As in you should withdraw 4% of your retirement account per year in order to avoid drawing down your savings before you die.

So even if you were able to scrounge up $2 million (not very realistic for most people) in the next 20 years that would leave you a mere $80,000 a year to live off of for the rest of your life. Adjusted for inflation thats closer to ~$50,000 dollars in 2027 (in 2007 dollars). At first things wouldn't be too bad but you'd be living around the poverty level for ~5-10 years until your social security kicked in. At that point if healthcare costs haven't ballooned (good luck) you may come out of the poverty level for a few years before inflation kicked you in the nuts again.

This is all assuming you can save $2 million in twenty years.


I can't imagine retiring with anything less than $3.5 million if you're in the ~25 year old range right now. That leaves you a more comfortable $100k a year to live off of for the rest of your life. It's not like you'd be living the high life but you could probably make do.

If you want to play it safe shoot for an easily doable $10 million that way if you come up short you'll still be fairly comfortable.

[Edited on October 28, 2007 at 6:40 PM. Reason : a]

10/28/2007 6:39:22 PM

Agreed. I'm shooting for $4 million in 30 years.

10/28/2007 6:48:11 PM

One thing to remember if you are married or plan on getting married. Don't count on your retirement account always being YOUR retirement account.

Better make sure she's collecting assets too. Nothing like having to start from scratch at age 40.

10/28/2007 6:53:28 PM