Retirement; like your parents, but way cooler
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.
Billy and Akaisha Kaderli
Just for kicks I ran some numbers. What if I would have been able to receive in
a lump sum on the day I retired back in 1991, all of my social security money
that I and my employers contributed to my account?
I was impressed. In fact I was really impressed.
On the day I retired the S&P 500 Index closed at 312.49. At the end of 2015 the
Index closed at 2043.94, roughly a 7.8% annualized return plus a couple of
percent for dividends. We will call this a ten percent annual return.
What I learned is that had I been able to invest my contributions into the S&P
500 Index, my annual take away from Social Security today would be three times
what I am currently receiving. Three times, and without touching the principal!
Think about this... If you are planning on receiving $2000.00 per month from
Social Security, under this scenario I just described you could receive $6000.00
per month. This would be a nice retirement boost, for sure. Plus, what if you
would be able to add this asset to your estate and therefore able to gift it
through inheritance? You can’t do that with Social Security.
Imagine if I could have been able to invest in this fund beginning when I
started working in my teenage years? The amount per month that I would be able
to withdraw would be considerably higher.
But, what if’s are for children.
The reality is that our current Social Security System does not allow such an
investment. Therefore it is important to create your own retirement strategy and
Many younger people believe that Social Security will not be there when it is
their turn to receive benefits. So how can they create a
sustainable financial retirement?
Create a Social Security Life Hack
My advice is that whenever you get paid, invest an amount equal to what is being
withheld from your pay check for FCIA (Federal
Insurance Contributions Act)
taxes. In fact double it to match what your employer is paying. Buy the ETF’s
(Exchange Traded Funds) SPY or VTI or VOO through a discount brokerage firm like
Fidelity or Vanguard. Do this investing in addition to a 401K plan or other
retirement accounts that you may have.
The naysayers are going to react by saying what if the market crashes like it
did in 2000 and 2008 where the S&P 500 lost 50% of its value? Yes… That too is
going to happen, possibly more than once during your investing years. Take
advantage of those times by adding to your investments and a few years later you
will be rewarded.
one path for sustainable
financial freedom so that you are not dependent
on the government or anyone else for your financial security.
And if Social Security is still viable when you become eligible, you too will be
able to party like it’s 1999.
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
and Akaisha continue to journal and photograph their world travels.
Retire Early Lifestyle Blog
About Billy & Akaisha