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.
Learn about Retirement?
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Billy and Akaisha Kaderli
Decades of retirement
under our belts
Recently we have
read articles on retirement in general and early retirement in
particular in notable publications. What strikes us odd is that the
authors might interview one retiree, and then three or four
“financial experts” describing the risks that retirement entails. We
are told over and over that $500,000 net worth is not enough, $600,000,
$800,000 - it’s never enough. The “new number” for net worth
before retiring is 1.3
million. Then, perhaps you would be “safe.”
While these articles might
shed light on the topic, and could be interesting to discuss with other retiree
wannabes, in our opinion, if you want to know what it takes to retire you should
go to the source. Ask retirees, not people who profit from keeping your money
invested with them. Remember, these people are still working and have not
managed a retirement themselves.
we left the work force in 1991 we did not read these misleading articles
thereby creating doubt about our decision. Penciling out our figures, we had
confidence in ourselves that we could make
adjustments if necessary and took a leap of faith.
Financial planners aren’t
doing their job
So many of these career
financial planners don’t seem to know about how the stock market works, what the
stock market has returned over the last several decades, or even about the
of compounding. (When we retired in January of 1991, the S&P 500 closed at
312.49 and over the last 27 years has returned 8.27% plus about 2% in dividends.) When interviewed by these authorities on finance,
they show surprise when we say our net worth has increased more than inflation
during our retirement. They don’t seem to understand
how that happens.
And they appear baffled and
disbelieving about the
historical market returns, spending 4% of what you make, and allowing the rest
to be invested to create more wealth.
We wonder if they have ever
tracked their spending or managed a daily cost average. Now THIS is useful
information to you.
Taking advice from
“experts” who are still working and who are not retired is like asking your
waiter how to prepare the meal you ordered. He may have some understanding of
the procedure but he is not the Chef who creates your entrée. He doesn't really know how it’s all put together in a practical, manageable way.
And it's the same thing with these "experts."
If you want to learn how to
sail, it’s a good idea to hang around a body of water where there are boats and
sailors. If you want to learn about retirement, we say to go to places where
retirees spend time and get to know them. Discreetly ask what kind of
lifestyle they have, how much they spend per year, if they own their home or rent, how many cars they drive
and if they think they need millions of dollars to live the lifestyle they are
enjoying. Does Social Security cover most of their expenses or just a portion?
Over time, you will learn how to frame questions in order to satisfy your
curiosity and still be respectful. Heck, buy them a beer, a cup of coffee or a
meal and your knowledge will be greatly expanded and many of your fears put to
No doubt if you go to a
country club or golf course you will get one set of answers as compared to
your local coffee shop or an active adult community. Go to them all and ask
questions. With that information – from real retirees - you can decide on
the lifestyle you want to support.
Then, you too can become an
“expert in retirement”.
About the Authors
Early Lifestyle appeals to a different kind of person – the person
who prizes their
independence, values their
time, and who doesn’t want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha