In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 3rd decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
Keys to Retirement
Billy and Akaisha Kaderli
On the Beach in the
So do you want to
Get your finances in
Just as any successful
business, you need to know your assets and liabilities. You are in charge of
your financial life, so treat it like you are the CEO.
Track your spending and
know what your cash outlay is per year, month, and day. Once you establish this
information then multiply your yearly amount by twenty-five. This should give
you a rough estimate of how much in invested assets you are going to need to
cover your current expenses in retirement.
Could it really be that
simple? Yes! This is how you arrive at "your number."
How social security
plays into the equation
Don’t forget that at
some point you will be receiving
Social Security and it will cover at least a
portion of your monthly expenses.
For example: if today
you need $3,000 per month (this is NET after taxes) for living your current
lifestyle and you are going to receive $2,000 per month in Social Security
benefits then you need to cover the remaining $1,000 from your investments.
In this example that would be $12,000 per year times 25 equaling $300,000 in
All of our books lead
to adventure. Don't miss out on yours!
The 4% rule
Most experts agree that
in a “normal” portfolio of 60% stocks and 40% bonds you can withdraw 4% per year
and your nest egg will continue to grow ahead of inflation. Again in our example
with a $300,000 portfolio, 4% of that is $12,000. Bingo! That covers your $1,000 per month differential from the above example.
Get me outta here!
You have to live
somewhere, so you may as well start looking at either staying put or moving to
another location. Better weather, lower cost of living, more interesting
lifestyle - whatever your decision, cost of housing will be a large part of your
budget. Manage that expense assertively and, number one, you’ll need less income
and secondly, you’ll have more disposable dollars. There are many lower cost of
living places outside the U.S. that qualify for your attention.
Dominican Republic and
Ecuador are a few with which we are familiar.
Have faith in
You have all your bases
covered. You’ve created elaborate spreadsheets detailing all of your expenses
and income, yet you just continue to have this doubt and are afraid to pull the
trigger on retirement.
You have a finite number of years in your life and every
year of “just one more year of work then I will do it” brings you closer to the
end. Then what? Are you going to be too old and stiff to make the adjustment of
living a new lifestyle? Will you come down with an illness preventing you from
traveling? The list of excuses to not move forward to retirement is endless. At
some point you just have to have faith in yourself and go for it, knowing that
you have managed your life just fine up to this point and that you can do the
same after retirement.
Being 62 and into our 25th
year of retirement, at this point in our lives we are more concerned about
running out of time than we are of running out of money. We advise you to take
stock and realize that none of us live forever. Even if you have all of your
ducks in a row there is still apt to be some low level angst that will follow
you into retirement.
Guide to Early Retirement, 3rd Edition
A Common Sense Approach
While not encouraging
you to be flippant or frivolous, we feel that life is to be lived while you are
able. We urge you to move into the life of your dreams and don’t let anyone take
them from you.
About the Authors
Billy and Akaisha Kaderli are
recognized retirement experts and internationally published authors on topics of
finance and world travel. With the wealth of information they share on their
they have been helping people achieve their own retirement dreams since 1991.
They wrote the popular books,
The Adventurer’s Guide to Early Retirement and
Your Retirement Dream IS Possible.
information about financial independence and travel, visit our
Billy and Akaisha continue to journal and photograph their
Retire Early Lifestyle Blog
About Billy & Akaisha