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 Kaderli
Stylin' in Otavalo, Ecuador
Our adventures around
the world allow us to interact with many younger travelers in cafes and
restaurants. Travelers are a great source of information about where they have
been, places to stay and where to avoid. Things to do and the best way to get to
a destination are often the topics of conversation.
Many times we are asked
about how we can afford to travel for so long and then there’s the predictable
wistful response: “I wish I could do what you’re doing.”
That’s when I tell them
I explain in simple
terms about investing and how they can create their own pension or annuity or as
I like to call it a "personal money machine." It is right about now when their
eyes glaze over like they are speaking with their crazy uncle at a Thanksgiving
I bring their attention
back by saying they have something that I do not have; time. Usually I get a nod
and a blank stare. I go on and ask if they know what “compounding” is. More
often than not, they do not have a clue. These are college grads or they are
taking a break from school to pursue their traveling bug. But to my surprise
they do not understand the concept of compounding, which, in my opinion, is the
easiest way to build wealth.
Investopedia, the definition of compounding is “the ability of an asset to
generate earnings, which are then reinvested in order to generate their own
earnings. In other words, compounding refers to generating earnings from
The earlier these “kids”
get started investing, the more
financially independent and self-sufficient they
will be and sooner rather than later.
Time is on
their side. It takes very
little to open an online brokerage account buying shares in VTI, (Vanguard total
stock market Index) or SPY (Standard and Poor 500 Index). Fees to purchase
shares have never been lower nor has it been more convenient.
From the year I was
born, the “average” return for the S&P 500 Index has been 11.08 % to the end of
2020. One Dollar invested grew to $1,408.39, which is a fantastic return for
letting money work for you, the investor. Imagine if I would have had just
$1,000 invested the year I was born. It would be worth $1,408,390.00 today without
adding another cent. Amazing! Your mileage may vary and you can check
here, but the
important thing is for this younger generation to get started now and take
advantage of the power of compounding.
We created our own money
machine before we retired early in
1991 and we were 38
at the time, older than these young travelers with whom I am
speaking. Yet we knew we still had many years for our investments to grow thereby
allowing the market to work for us while we traveled the globe.
The compounding effect
on their early-in-life investments will pay them dividends far into the future
and can become their solid foundation for retirement. If there was one thing I
could convince them of, it would be to start investing now, take control of
their financial future and build their own money machine.
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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