YAHOO ANSWER: How am I ever gonna retire early?

*** begin quote ***

How am I ever gonna retire early? I really want to but I’ll be like 35 when I finish paying for college?

PLUS, life expenses and stuff, I really am willing to SAVE UP ALOT. I’m not sure my job will have a 401K so what should I do to be able to put A LOT of money aside and retire by the time i’m 50? IRA’s kind of suck they only allow 4,000 YEARLY. And I don’t wanna gamble my money away by investing in stocks which I know absolutely nothing about. Does this have no solution whatsoever?

*** end quote ***

Well, of course it has a solution. The answer is “it depends”. It depends upon how much you want what when.

College debt, life, and then retirement.

How early do you want to retire and what do want to give up for it?

I suggest that you need a blended solution. You have three priorities to balance — college debt, life expenses, and retirement savings. One thing you’ll have to avoid like the plague is credit card debt.

My standard answer for success in the future is that you need a ruthless dedication to financial discipline (i.e., earn money, save, invest, and keep everything working for you; no lazy money), a good white collar job, a blue collar skill like plumbing, and one or more internet businesses.

Roth IRAs are fantastic. You can accumulate gains tax free.

I think you need to do debt repayment, retirement savings, then allocate whatever’s left. You can get extra work and bank the difference. It’s about tuning and discipline.

I’d suggest you use Vanguard low expense mutual funds or etfs to do you saving in. Don’t try to be too fancy. Focus on getting it into the accounts and left he market work over time.

I won’t be around to see how you make out, but stay flexible and discipline. Where ever I am (upstairs or down), I’ll be rooting for you.

# # # # #

Update 2007-05=24 at 2200: Notified this was the best answer as chosen by the asker. Happy dance time!

  avatar3.png

Me, doing my happy dance. See the moves?

2 Responses to YAHOO ANSWER: How am I ever gonna retire early?

  1. reinkefj says:

    Thanks for your comment.
    Yes, I did. But depending upon luck, strategy, and tactics, it could work.
    In the 70’s, I was enthralled by a fellow by the name of Sonny Bloch (I think that’s how it’s spelled.) and his theory that you should seek to “collect” 12 single family homes as rental properties. His theory was that after 30 years they’d become a “cash cow” to be milked. He fell afoul of the law some how (I don’t remember exactly.) I did one rental property and it worked out OK. But, it was a lot of work, made more profit for real estate rental agents, tradesmen, and such than I was making. So I move on. If I had been handy andy and not minded getting dirty and sweaty, then I think that would have worked.
    From where I am now, I wish I had tried harder at it.
    The Universe has been kind to me so I’m not starving. It probably would be a great opportunity for the right couple. I think that today, I’d incorporate each house. I’d sell shares. And, I’d seek to be the rental agent and tradesmen.
    It’s possible. Look at Trump and yourself.
    It’s not brain surgery or rocket science. But it does have some big risks. As speculators across America are finding out now.
    Any way, thanks for the comment,
    fjohn

  2. Randy says:

    Have you considered real estate? I did and it has out performed the stock market.

Follow

Get every new post delivered to your Inbox.

Join 1,047 other followers

%d bloggers like this: