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.
Time Is on Your Side
Billy and Akaisha Kaderli
"Begin now." That's what we say to those 20- and 30-year-olds who write to
us asking how they should prepare to retire early. It may surprise you that
we get letters from people still in college or just beginning (or even
finishing) their careers. Some ask us what line of work they should pursue
to give them a head start on cash savings, or where they might find a
We find it refreshing
and encouraging that these young people are already thinking of their
financial futures beyond the traditional consumer periods of life. Although
individual cases are different, there is a common thread to each answer we
offer. Here are the steps that we think young adults -- and older ones just
getting started -- should follow in getting their financial affairs in
Make your own
You don't need to hit home runs with all of your investments, but if you
don't do anything at all, you're sure to strike out. Do your research, and
make the best decision for yourself and your risk tolerance. No one is more
interested in the quality of your future than you are, and becoming your own
financial advocate and
financial terms is paramount.
The time is now
When's the best time to begin preparing for retirement? Right now, no matter
what your age.
compounding effect of investments is an advantage that
the young have over late starters. Use that advantage. Ignore the noise from
the financial pundits on TV. You'll often see
gloom everywhere, but
the stock market continues to be the best long-term growth investment
Find the right
We can't overemphasize the importance of finding a financially like-minded
spouse. If you find someone with complementary spending and savings styles,
you will avoid devastating financial wipeouts -- as well as the pain of
having to start over. Divorce is costly in numerous ways. Making your
marriage last will pay you dividends in many areas.
Getting out of debt -- and staying that way -- is another crucial leg of
your financial freedom.
Simplify your infrastructure, lifestyle needs, and
spending choices, and pay off all of your credit card debt. Then you'll have
more flexibility. You may not have to feel stuck in a job you dislike just
to pay off debt for items you no longer use or need. Always live below your
means, and don't ever leverage against your retirement savings. Consider
those accounts untouchable. If you have a choice between buying any consumer
item or contributing toward your retirement savings, choose your retirement
financial independence more quickly will be your reward.
Know where your
Tracking your spendinng is a lifeline. No matter what else is going on in the
world, you can establish a sense of control, not to mention confidence and
peace of mind, by keeping tabs on your spending. Combine this step with
downsizing the house, the car, and Uncle Sam, and you will be able to put
your extra money toward your financial independence. While you're at it, max
out your savings plan at work, and take advantage of every retirement option
your employer offers. If your employer doesn't have one, start your own IRA.
Young people sometimes think they will never retire. Maybe the term
"retired" conjures up images of loneliness, disconnection, and aimlessness.
That's why we prefer the term "financially
independent." When you have financial freedom, you can spend your time
as you see fit. There are many ways of
life significant when you are freed up from a commitment
to a 60-hour (or more) work week. You can use that same energy and drive
that you applied toward your career, direct it toward meaningful causes or
pursuits, and give
back to society. Perhaps that's the ultimate goal after
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