Retire Early Lifestyle
Retirement; like your parents, but way cooler

In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 4th decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

Billy and Akaisha at Mar de Jade, Chacala, Nayarit, Mexico

How do you define retirement?

When we “retired” in 1991, there was no word for Financial Independence. We don’t really use the word “retired” any longer, but rather describe ourselves as Financially independent – which means we can do what we want, when we want, where we want.

We spend a good deal of our time doing volunteer work, and our website is one of our volunteer projects. We want more people to become free of being wage slaves. We use our free time to travel, learn languages and new skills.

Who taught or influenced you about money when you were growing up? What was the impact?

When we grew up, both of us had hard working fathers who supported the traditional family. Neither of our fathers understood investing, nor was the concept of “wealth” or “working smart” ever discussed. It was the philosophy of work hard, save for the future, find value in what you purchase, buy Certificates of Deposit, have a savings account, buy life insurance.

Billy thought a little more outside the box and began as a teenager to read the Wall Street Journal stock tables. He intuitively understood having his money work for him, and initially wanted to purchase enough of a local utility dividend stock to pay his monthly utility bill. We didn’t begin serious investing until we hit a business snag with our restaurant when we were in our thirties. Using this obstacle as an opportunity to invest changed our lives.

Do you discuss money or financial matters with friends and family? Why, or why not?

We have conversations with some of our family members and some of our friends, but mostly not. One would think that, since we hit Financial Independence 30+ years ago, that our family and friends would be flocking to us for advice and guidance, but such is not the case.

Everyone in our family and all of our previous friends (not the new ones we have met through our website and travel) worked until retirement age, collect a pension or inherited family money through the death of their parent. Maybe FIRE just isn’t for everyone!

We don’t understand the “secret” everyone wants to keep about money, or the fear many hold surrounding it. There is nothing mysterious about money and the numbers work the same for everyone.

How did you ultimately find the courage to FIRE? (How did you avoid "one more year syndrome"?)

Billy was working days and having weekends off, and Akaisha was working nights, weekends and holidays at the restaurant. We were like ships passing in the night. Our relationship suffered greatly, and we could choose to end our marriage or jump forward  into living our dream of traveling the world.

By this time, we had managed several large business problems and had matured early in life. So, we knew we could figure out any problems we might face on this new road of adventure. We didn’t hesitate.

We retired in January of 1991… and then the Gulf War broke out that same month with US travel warnings everywhere. We pressed on. There is never a perfect time to retire.

Were ETFs even around back then? How did you invest?

A catastrophic event in our city shut our restaurant down for a week, and it was at that time we decided that we needed another source of income. This is when we began to invest in the stock market.

We bought Exxon stock every chance we could. Mutual funds were around but no ETF’s. Eventually we sold the stock to purchase our home and looking back this was a bad financial move.

If we knew then what we know now, we would never have sold that stock to purchase our house.

Has your investment strategy changed in the past 30 years?

Yes, as we have aged we started moving into some dividend ETF’s like DVY, (iShares Select Dividend ETF) to increase our cash flow. Today, including our Social Security, we are roughly 50/50 growth to income and between dividends and Social Security covering our expenses, we can let our portfolio grow.

Do you believe sacrifice is necessary in order to achieve FI? Why, or Why not?

We would prefer to call it discipline, and yes, discipline is needed to achieve FIRE.

It will not be given to you, unless you inherit tons of money. And then - because you might not know the value of what you just received - you could squander away that money and no longer be FIRE’d. We’ve seen this happen.

Tracking one's spending, learning the language of Finance, preparing for the future of your own best life transforms you. We don’t think you can get there without that transformation. Being uncomfortable can be a good thing. It causes one to grow.

Your expenses were $20,000 USD/year for the 2 of you back in 1991. Now, according to your blog, it's $30,000 USD/year. That means your yearly inflation rate was less than the prescribed 2%/year. How did you manage to beat inflation?

Basically, we live a very happy minimalist lifestyle.

The cost of living in Arizona where our manufactured home is located is one of the cheapest places we have ever lived. In fact, recently this location was just named the #1 place for retirees to live. Much of what we need (restaurants, groceries, entertainment) is within walking distance.

We don’t have high property taxes or expensive house insurance. We “went naked” of health insurance decades ago and we haven't owned a car for nearing 20 years now. We walk, bike, take local transport or utilize one of the ride sharing options.

Since we do so much travel, our needs are nominal – if you want it, you carry it – so our wardrobe is functional, not always the latest fashion.

We utilized Geo-Arbitrage almost from the very beginning (before that word was coined) and our exercise and sports requirements are very affordable (hiking, biking, tennis, yoga, reading, taking digital photos, writing on our blog, studying indigenous cultures and food, cooking our own meals, enjoying each other’s company, etc.).

When one’s needs are minimal – without sacrifice – inflation isn’t much of a problem.

These days we are looking to spend more as we could run out of time before we run out of money.

How did you handle deciding on and paying for healthcare?

Because we had been self-employed for so long, we were already used to paying for our own health insurance.

For the first several years of our lives without a job we had a US-based, high deductible emergency health care plan. But since we were traveling the globe, we would find ourselves taking care of our medical needs in whatever country we might be – whether it was dental, being sick, having an emergency, getting special tests, eye glasses and so on. We were participating in Medical Tourism before there was such a word. So eventually we just dropped our US health insurance and went “Naked” as they say in the community. Now we qualify for Medicare but we get our medical needs taken care of here in Mexico.

Was there any emotional impact from leaving the workforce?

Other than de-stressing, there was no emotional impact from leaving the workforce. We have always been productive people so we didn’t identify with our jobs per se. Our careers were just the framework within which we were creative and dynamic. When we left our professions we simply found other pathways to be valuable and to contribute.

Can you give us some insights into your post-retirement spending and income? How much do you spend annually and on what? And where does the income to pay for your spending come from?

You can see our annual spending update here.

We typically spend around $30,000USD annually for all living expenses including travel, health care, dining, entertainment, food, rent -- the usual. We do not budget separately for travel, as it is our lifestyle.

We live off our investments as we always have from the beginning. We now receive Social Security which we didn’t qualify for initially, and we have dividends. All of this income is far more than what we spend, so we re-invest in the market, and keep several years of spending in cash in case of market downturns.

We don’t budget at all. We track our spending daily, spending a fraction of our net worth, and we travel as a lifestyle, not a vacation. If we want something or need something we purchase it. We know right away in real time what percentage of our net worth we are spending.

As we mentioned previously, these days we are choosing to spend more annually, having more comfort in our travels.

Did you return to paid work? Why or why not?

There was only one time we even considered returning to paid work and that was in the down market of 2008-2009. But then we realized that by the time we purchased a car (with the costs of maintenance, insurance, parking, and fuel) and re-supplied our work wardrobe (and lunches out, commuting time and expense) and moved to a location where employment was abundant, that we weren’t willing to make those adjustments.

We made some changes in our portfolio, tracked our spending, utilized geo-arbitrage to reduce spending and continued living our lifestyle. In fact, we made about 6 or 7 trips to Thailand during that time period and just after.

Did you find it hard going from being a saver to a spender?

As we have aged, it did feel odd to spend more.

We don’t have children, so besides the charities and special causes we will leave money to, there is no point in bringing this money with us to the grave.

What is your social life like?

Our social life is wide and varied.

We host friends from around the world who come and visit, some from the Philippines, Panama, Thailand, Guatemala and the States. There are private and public music concerts and theater and lots of activities like tennis, pickleball, going to the natural hot springs, hiking, and walking around town. Sometimes we'll go to the beach or to a thriving international Colonial City in Mexico, or visit another country. Last year we made two trips to Europe, Italy, Malta, Paris and the Caribbean. This year we will go to Japan, Thailand Vietnam and the Caribbean once again.

Looking back, what would you have done differently?

We might do two things differently.

Had we known better, we would not have sold our Exxon stock to purchase our home in the 1980s. The Exxon stock performed far better than our coastal home in California and was more liquid.

The second thing we would have done differently, is that we would have been more prepared for the emotional factor of leaving “conventional society.” We hadn’t expected the pushback and thought friends and family would be happy for us and supportive of our choice. We learned a lot, but that was sometimes difficult, confusing and unexpected to go through.

What did your friends and family think of your unconventional plans?

Remember, this was before personal computers were commonplace, before financial forums, Skype, blogs, Amazon, Facebook, email, WhatsApp and the internet as we know it today. We were walking on a "high wire" with no net, but we had a lot of confidence in ourselves. It was an adventure we wanted to take, as we were following our dreams.

How do you manage your finances and mail while traveling so much?

We have very little "snail mail" coming to us now, and 99% of our communication and bill paying is done electronically. It wasn't this way when we started over three decades ago, but the internet has made dealing with these obligations much easier. Today we utilize Traveling Mailbox where we can view our mail online from anywhere in the world. They will deposit a check for us or forward our mail to any address where we might be traveling.

We also utilize a personal assistant who handles private matters and various things that need to be done if we are on the road.

We explain this topic in more detail in our very popular books, The Adventurer's Guide to Early Retirement, 5th Edition, A New Perspective and Your Retirement Dream IS Possible. 

Akaisha in a coffee shop, Oaxaca, Mexico

Do you have long-term care insurance? Now that you are getting older, what do you plan to do about assisted living in the future?

We do not have long-term care insurance.

Over our decades of living around the world, we have seen different options for personalized care for the elderly or infirm.

If one is still able to manage on their own but would like some personalized daily attention like cleaning the home, cooking or shopping, this service is very affordable. Countries in Asia, Mexico and Central America where we have lived, wages are less so house keepers, gardeners, and dog walkers are readily available and economical. Private drivers on retainer to take you to doctors appointments, to meet friends for lunch or go to social events are also very inexpensive.

The option of having a live-in caregiver is easily managed. Some people have a small apartment or casita on their property where a nurse or caregiver may stay as part of their wages. Or if one lives in an apartment complex, then paying for a caregiver's apartment next to yours is also an option. Doctors commonly make house calls.

If you would rather live in an Assisted Living facility, here in the town of Chapala, Mexico for instance, there are a variety that are full service. Laundry, meals, nurse and doctor visits, a driver, activities, swimming pools, a gym, and more are included in the monthly price. Sometimes there are restaurants, beauty shops, and scheduled shopping trips available. Medical "packages" can also be purchased. These monthly rates - depending on the services one needs - currently run from $1,500 to $3,000+ a month.

With all of these feasible and convenient choices available, we figured we'd work out something that fits our situation, should we need help. There are so many options here.

How much capital is enough? How/when did you know you were ready to retire?

As far as when to retire, do not let Fear make that decision for you. Risk has a price, and so does security.

With your investments in the stock market, were you hurt in any of the bear markets over your retirement time period? Did it affect your lifestyle?

Do you own a car? What do you do about transportation? 

Retire 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.

HOME   Book Store

Retire Early Lifestyle Blog      About Billy & Akaisha Kaderli      Press     Contact     20 Questions     Preferred Links    

Retirement     Country Info     Retiree Interviews      Commentary     REL Videos