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. |
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Interview
with Early Retirees Jim and Sue
Billy and Akaisha Kaderli
There is no one-size-fits-all when it comes to FIRE.
We met up with Jim and Sue in
Chapala,
Mexico by accident. Billy was at
a
local coffee shop with some friends, and as Sue passed by, she took a
double take.
"Billy, is that
you?!" she asked, beaming.
"We've been following you for years! I
can't believe it's you!"
Well, one thing led to another and we are
happy to present Jim and Sue's retirement story below.
Budapest, Hungary
Retire Early Lifestyle: Could you tell
our Readers a little about yourselves?
Jim and Sue: We
retired early at 52 and 53 after working for 29-30 years in our respective
Megacorps after grad school. We met in college and married a few weeks after
we graduated together from undergrad. We have been traveling the world
perpetually since January 2016.
REL: When did you
decide to FIRE, and how did you know you were ready to interact with the
world differently?
Jim and Sue: We
had been planning to retire early and travel perpetually ever since DW
(Darling Wife) heard
you two on a
radio show on a miserable commute home one day. She
immediately
ordered an early version of
The
Adventurer's Guide to Early Retirement, and the rest is history!
Travel has always been our passion, and you two were our inspiration. We
wanted to really see the world, not skim over it on 1 or 2 week vacations.
REL:
Could you tell us
how your lives have changed since you left your jobs and began to live the
Early Retirement Lifestyle?
Jim and Sue: It
has been the best thing we have ever done. We have the luxury of taking our
time in seeing places, doing things and meeting interesting new friends, all
without feeling rushed. We have so much less stress than when working our
high stress jobs. Any stress we have now is of our own choosing. It often
feels like we are kids again during summer, carefree with all the time in
the world in front of us to play and explore.
REL: How many years
have you been retired now?
Jim and Sue: 4 ½
years.
Temple Gate in Kyoto, Japan
REL: We know your love for travel. Can
you mention a few of your favorite places where you traveled in the years
since your FIRE?
Jim and Sue: We
really loved the country of
Vietnam,
diving in Indonesia and the Red Sea, and we thought the southern island of
New Zealand
was beautiful. We will never forget seeing Machu Picchu in all its splendor,
or the creatures in the Galapagos Islands. Also, we were pleasantly
surprised by Eastern Europe and Japan, each in their own unique way. So many
beautiful places in this world, and still so many left for us to see!
REL: How do you
balance the mix of travel with family time?
Jim and Sue: We go
back to the states for around a month during the holidays to see our
families and some friends.
REL: Since housing is
a big expense, how do you manage
lodging on the
road? Do you
house
sit? Rent apartments? Stay in hotels?
Jim and Sue: For
longer stays, we use Airbnb to rent private apartments, and just love it.
There are often 30-50% monthly discounts for great city-center apartments.
We also stay in smaller hotels, especially for shorter stays. We have
used reasonably priced
repositioning cruises as transportation and lodging.
Mirror Lake in South Island of New
Zealand REL:
Do you own a home or have a home base?
Jim and Sue: We
sold our home after we retired, but we do have a few boxes stored at
parents, and visit their homes for the holidays once a year.
Rel: Since you are
still too young for Medicare, what do you do about health care?
Jim and Sue: We
have an ACA plan and have a travel insurance policy as well. World Nomads
and Allianz are two popular choices for travel insurance for nomads. That
said, we have had
excellent
health and dental care overseas for a fraction of the cost in the U.S.
and usually just pay out of pocket. We know that you understand how superior
some of the
medical and
dental care is overseas!
REL: What do you
average in spending annually? Does this include
health
insurance?
Jim and Sue: We
keep a monthly running average, so we are answering monthly.
Our average
monthly spend is $7,000 (this includes absolutely everything else we spend
on our life, in addition to all of our food, all lodging and all
transportation, including a few cruises a year, and all medical and travel
insurance, all clothing and shoes, cell phone bill,
traveling mailbox,
electronics, all medical and dental expenses and the medicine we pay out of
pocket, lots of scuba diving, personal care products and services including
haircuts and occasional mani/pedis, gifts, etc.). It is every penny we
spend in total annually divided by 12, except for federal taxes we pay
on Roth conversions and some life insurance policies, which average about
$1,000/month total.
Moorea in French Polynesia
Jim and Sue: Those are two
personal choices that have nothing to do with our lifestyle expenses as
perpetual travelers and we could drop them anytime we choose. We spend more
than many budget perpetual travelers, but we could also cut back and spend
less anytime by staying longer in lower cost countries.
Jim and Sue: We
have hit many of our bucket list places the past few years, and it has been
amazing. We have also occasionally spent a lot on some expensive activities
and hobbies while we are still able to physically, and we have visited some
expensive countries. But, it all averages out. The main point for us is
that, like you two, we have a higher net worth than we started with 5 years
ago (thanks, market!).
Jim and Sue: We
don’t
track expenses daily or anything like that, we just do a monthly
calculation from all accounts to see where we are overall and get our
monthly average spend and net worth. Takes just a few minutes monthly with
our custom spreadsheet. Our months vary widely based on where we are and
what we are doing, but our monthly average over time ends up
staying on track and is within a
safe withdrawal rate. We want to take advantage of exciting experiences,
but we are also happy settling in somewhere and taking it slow, too. So far,
so good!
Locals living on Lake Titicaca in Peru
REL: Can you share with us anything
about how your portfolio is structured? Did your retirement affect your
allocation at all?
Jim and Sue: It
did. We thought a lot about it before retiring and decided we did not want
to actively manage or rebalance investments on the road, and were concerned
about panicking if we hit another 2008. We read a lot of early retiree
advice about what they changed after the Great Recession and what helped
those who made it through with less stress. So, we keep two years expenses
not invested in the market, and keep the rest in a balanced low cost fund
that is about 60/40 (Vanguard Wellington). Overall, we are about 50/50 with
our 2 year living expenses in high interest online savings and I-bonds. No
financial advisors, and just one low-cost fund. Everyone has to find their
own level of comfort, and this is ours.
REL: How do you manage
your finances while on the road?
Jim and Sue: All
online. Personal Capital is a real gem so far.
Machu Picchu in Peru
REL: Do you own a vehicle?
Jim and Sue:
No.
REL: What’s the worst
thing you deal with in this new chosen lifestyle? Your biggest challenge?
Jim and Sue:
Taking care of chronic ailments is not always easy on the road. Also, it is
tough being
so far from family and some dear friends. We do try to take care to
reach out and call when we have good wifi, and keep in contact as best we
can and keep up with their lives.
REL: What has
surprised you the most about your Early Retirement Lifestyle?
Jim and Sue: How
little we need! We
do not miss our house or all of our stuff that we gave away. We enjoy
the smaller apartments where we now stay. We hope to never again
accumulate
so much stuff, and whenever we do settle down again, it will be to a
much smaller home. Right now we travel the world with a carry-on sized
roller bag and a backpack each, and it is liberating!
Abu Simbel, Egypt
REL: What is exhilarating beyond
words? Something you would never trade about your lifestyle to obtain “security?”
Jim and Sue: I think it is just
seeing so many fabulous places, things and people. Sometimes we are both
just sitting there with our mouths open amazed by something we have seen or
something amazing we have learned. Pretty hard to think about not exploring
anymore, as we have learned that
around the next
corner, there may be another mind-blowing experience.
REL: What would you
say to someone who is considering tossing the conventional lifestyle and
living one of travel? What advice would you give?
Jim and Sue:
Give it a try; test drive it. We have
met many people who have rented their house back home to make sure they
really like this lifestyle. We kept some things in storage for a year, but
at the end of the first year we went back and gave it all away. We knew six
months in that this life was for us. It is not for everyone, and that is
perfectly OK, too. We also know of people who went all-in and were divorcing
before the end of their first year.
Chiang Mai, Thailand
REL: What are your
greatest passions in life?
Jim and Sue:
Seeing more of this marvelous world!
REL: How do you
contribute to the world?
Jim and Sue: Not
sure we do. Need to work on that. We do try to encourage younger people
about the benefits of saving, FI and FIRE. We try to be good citizens and
try to be kind and have empathy for people, but this lifestyle can feel
selfish. If we settle down later, we have ideas of how we could contribute.
REL: What is a secret
fact about you?
Jim and Sue: If we
told you, it wouldn’t be secret!
Koala in Australia
REL: Where do you see yourself in 5
years from now?
Jim and Sue:
Probably still traveling, but maybe staying longer in each place.
REL: What is your
biggest splurge?
Jim and Sue:
Travel!
REL: Is there a
happiness mantra or motto that you've found to be very helpful?
Jim and Sue: Yes,
one of yours! When we travel to new places we try to eat local and often
have to point or guess at the menu. So when food comes that surprises or
perplexes us, we always say “Order
what you want; Eat what you get!”. Also, “Don’t worry about things until
you have something to worry about!”
REL: What do you do
for fun or entertainment?
Jim and Sue: Plan
travel (but not too much, and not too far ahead), read, watch movies, wander
around new places, try new-to-us local food, meet new friends, and talk to
friends/family.
REL: Where are you
going next?
Jim and Sue: Back
to states on a transatlantic cruise with 2020 still to be determined!
We would like to thank
Jim and Sue for sharing their FIRE lifestyle with us, and to provide yet
another approach of living life without a paycheck.
What would YOU like to do if you didn't
need to work any longer?
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About the Authors
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.
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