How to retire early with millions in the bank
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Why cutting down on beer may help you retire early — and rich. Yahoo Finance's Zack Guzman & Kristin Myers discuss with 'Quit like a Millionaire' co-authors Bryce Leung and Kristy Shen.
  • D
    David2
    They are pushing their book so technically that means they are not retired.
  • D
    Deplorable
    Beer? Really...
  • R
    RadioHead
    They said they are turning 7% or 8% on index funds. That is $70K to $80K growth per yer. Cannot be in their IRA because they would pay a 10% penalty because they are not 59 1/2 yet. So, investing in taxable account - subtract fees, capital gains at 15%..that brings them into the realm of $60K to $70K...enough to perhaps live on a cruise ship? No wonder they are writing a book?

    There you have it. Publish a book and then retire.
  • t
    tim
    Cheers
  • J
    JONATHAN
    Initial income. One has to have a job (or jobs, since these are usually combined income stories) where income(s) are quite high in comparison to housing. I'm guessing these two were making roughly 200K per year, give or take a bit. So, if you're able to keep housing costs relatively low, you can put massive amounts into the stock market. As noted, these two did it at a very good time, coming out of the Great Recession. If they're in Index Funds, then they're averaging 10%, or so. If they don't spend the full amount the fund throws off every year, that means they'll be reinvesting a good chunk, which will help with growth to cover them for a year or two of a downturn, as there are usually several years of growth for every recessionary year. It's great for them, and it can be done, for sure, but you need the high incomes to do it relatively quickly (by 30). They also don't have kids, and most people don't forgo those expenses, er, I mean, blessings, either.
  • t
    tim
    You lost me with the first sentence. I guess ill be poor and happy.
  • J
    Jennifer
    Indeed!
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