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.
Millionaire Status: The Power of Starting Early and Compounding
Billy and Akaisha Kaderli
Martha, Lori, Vicki, and Akaisha, all
Have you ever dreamt of financial
Traveling the world without a budget? Retiring early and pursuing your
passions? Becoming a millionaire might seem like a distant fantasy, but with
the right strategy, it's closer than you think.
Enter the power of compounding: the magic
of your money earning interest on its own interest, snowballing over time.
Forget quick fixes and latte sacrifices. Let's unlock the millionaire
mindset with a strategy anyone can start today.
Wow! Sounds great doesn’t it?
Well, you can become a millionaire and
life of your dreams.
Everyone has heard that
if you just give up that digital toy or pack your lunch daily you can achieve this
goal. And you can, but that's only half of the story, perhaps you can wrap your mind around the following idea more
When to begin
Meet Sally, the Compounding Queen:
On the day she was born she deposited $10.00 Dollars into the S&P 500
index. Fidelity is now offering a no fee, no minimum account balance fund
which would work for this.
Assuming that the S&P 500
Index performs as it has for the last 100 years, Sally's investment will grow at a ten percent annual rate
with dividends re-invested.
Chart of the S&P 500 performance from
January, 1923 to January, 2023, Over a 10% Annual Return
Sally knows that ten dollars isn’t going
to get her to a million in her lifetime - that’s how smart she is - so she
adds $10.00 each day, and after one year her account has grown to $3,838.21.
Not bad for her first birthday.
Sally also understands
the importance of paying herself first. Before that Latté, before going out
shoe shopping, before anything else including rent, car payments or
purchasing a home, she makes
her deposit into her future.
She continues with her
investment plan making contributions daily, and on her 34th birthday her
account has grown to $1,047,105.61. Congratulations Sally on being a
millionaire and - while most of her friends are trying to figure out what
they are going to do with their lives at that age - she has accumulated a
substantial nest egg.
This is the
Power of compounding.
But Sally isn’t finished.
She has big dreams.
So she continues with making ten dollar daily deposits
into her account and on her 40th birthday has close to two million dollars;
$1,934,668.51. Wow, in just six years almost a doubling of her account
value, and her total daily investment was only $146,000 over that forty year
Again, this illustrates
the Power of
What if you start
later in life?
Now everyone cannot be as
smart as Sally and begin investing right at birth, but Johnny is no
slouch and began his program on his 15th birthday with his grass cutting,
leaf raking and snow removal proceeds and by the time he was 55 years old
- which is considered
retirement - he too accumulated close to 2 million
Even if you waited until
you were 25 years old to start this plan when you reach the retirement age
of 65 you will have a sizeable net worth.
Chart of Smart Sally's years of
investing and her contributions.
pay-yourself-first-plan is separate from your student loans, from your
company's 401(k) matching plans, separate from purchasing a
vacation, a home, or having a child. This money is for YOU, and is not to be
touched for anything else in your life until it can produce enough gains per
year to cover your living expenses.
Once there, you are considered
Start Early: The earlier
you begin, the more
money has to compound. Even small amounts add up!
Pay Yourself First: Treat
your future self like a bill you can't ignore. Automate your investments to make
Invest Consistently: Even
small, regular contributions can lead to big results. Focus on the long game.
You, too, can
world and live your life
What are you waiting for?
Take charge of your life and make it happen.
What's Your Number? - How much money do you need to retire?
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