In a world where business has no loyalty to employees, some people are fighting back in an innovative way--by saving a high percentage of their income and exiting the rat race decades earlier than normally expected.
These folks are retiring in their early 50s, 40s, or some even in their 30s.
The strategy is simple. These people install themselves in well-paying jobs and do everything to live as cheaply as possible, creating a huge savings rate. These buckets of cash are then invested. Within a decade or two, enough is saved to ensure a moderate standard of living for the rest of their life.
These people are then free to volunteer, travel, or even just sit around the house all day. Many don’t even know what they’ll do, all they’re worried about is quitting their job.
Critics question an early retiree’s ability to properly anticipate potential pitfalls that may be decades away. They also doubt a nest egg accumulated during a short time can last that long, especially as life expectancies get longer. And finally, there’s the boredom factor. What exactly does an early retiree do for 50 years?
The whole point of financial independence is freedom. Some early retirees might stay retired for decades. Others might take a year or two, recharge, and then work in an industry that doesn’t pay as well.
For most people, retiring 20 or 30 years before traditional retirement years just isn’t possible. But that doesn’t mean they can’t aspire to financial freedom as well. The idea of saving as much as possible is a good one, no matter what someone’s retirement plans are.
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