Super Savers

During Discovery Meetings with potential clients, one of the questions I always ask is “what does retirement look like for you?” With young adults, I often get a perplexed look because retirement feels so far in the future that it’s hard to imagine. But it isn’t necessarily that far in the future.

There is a growing movement of young retirees and I’m not talking about child actors. They’re teachers, engineers, writers and nine to fivers. How can this be? They have a strategy and the right mindset. They understand that in order to hit their ambitious goal of early retirement, they need to build their lifestyle around that goal. Yes, they have reduced their consumption (spending only 25% to 50% of their income), but not at the expense of their happiness. Rather they focus on pursuing happiness itself rather than luxury or convenience. You can meet a big proponent of the early retirement movement and learn his tips and tricks here.  

I can not say that I am able to wholeheartedly subscribe to the movement (have you read my posts before? See dream retirement below), but I do agree with the basic principles of always spend less than you make, save as much as possible (the earlier the better), aim to capture market returns and avoid high investment fees. With these basic principles, I can certainly meet my vision of retirement – Age 60, a nice house on the water in Costa Rica with enough space for friends and family to come and go as they please, and a bar (not the one in my house, an actual place of business) to run on days I’m not bumming it on the beach.

If you want to take a look at what savings rate as a percentage of take-home pay you would need to retire early, take a look at this calculator.