Almost thirty years ago
– and some of you might just now be thirty - we embarked on creating ourselves a
machine that would last our lifetimes.
What if we could receive enough
income from investments so that we could travel the world and discover new
horizons without running out of money?
Is this even possible?
Yes, it is and YOU can do
By working hard, saving
a lot and investing wisely we have been afforded the opportunity to live in
numerous countries such as
Guatemala as well as
the U.S. all the while our net worth and future income have increased.
We figure we have spent
well over half a million dollars in retirement so far and have a higher net
worth including inflation today than we did in 1991 when we retired.
How did we do it?
Heavily invested in the
equity markets for the past 28 years, our average annual returns have far
outpaced inflation and
our spending has remained a small percentage of our net
worth. Basically invested in the S&P 500, (SPY) has returned approximately 8%
per year since our retirement date, plus a couple percent for dividends,
totaling 10%. Inflation is roughly 3% per year. (I know the government figures
are less but I use 3% to be safe), leaving us 7% to spend or reinvest. Fast
forward to today, and now that we are taking
Social Security, our spending
percentage is nil.
Creating a money machine
is very achievable for most people, and the best time to start is when you are
By investing in ourselves, traveling to places most people will never see and
staying married, we won the personal lottery. Valuing experiences over stuff is our mantra. Stuff wears out and needs
to be replaced, but experiences last a lifetime and are forever cherished.
OK… We didn’t win the
actual Powerball lottery; we created our own
financial independence. And we
encourage you to do the same and reap all the benefits.
We may not be
billionaires but we are rich beyond our needs and we are grateful for it. What could be better?