Monday, July 22, 2013

Can You Retire at 30?

When I was about twenty-six and living abroad, making good money and saving a lot, my father introduced me to the idea of investing and saving for retirement. He had retired with a lump sum that he invested, and was learning a lot more about financial advising. So, he got me started with an IRA and investment account - some stocks and mutual funds. With his information about saving ten percent and the magic of compound interest, I started of with those dreams of a millionaire's retirement. In fact, a part of me started to believe I could retire with millions by the age of fifty ... Or younger.

As I approach my mid-forties, I accept I won't be sitting around with millions in my fifties. However, I still wonder about those stories of people retiring in their thirties. Because it is possible, and you don't have to live you're twenties in poverty to do so. That's the story of The Mustache Money Man, who retired in Longmont, Colorado at the age of 32, with a cool $800K in the bank. By saving money on the little stuff, investing wisely, and planning for retirement, MMM did actually retire that early. Most people who research investing and retirement plans know the advice from The Automatic Millionaire author David Bach who warns about the latte factor. And MMM certainly follows that advice. He carefully selected where he could afford to live well for less, and he made prudent decisions about car payments and mortgages and daily luxuries.

Certainly, MMM has learned to live simply in exchange for his early retirement. And not everyone could make such choices or live in such a way. However, it is interesting to learn MMM's story and keep an eye on his advice. Living the dream the way MMM does is absolutely doable - it's simply a matter of some research and choices.

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