Early Retirement

[RichLB]

I'm not quite sure what the issue is here, but I sense it's a question about how one can retire in their early 50's. It's impossible to make generalizations due to everyone's different idea of what retirement means to them. I do think, however, there are some simple ideas which make it more likely a person will be able to retire early. The first is get rid of credit cards - never use them and if you have any cut them up. That interest on unpaid balance eats up your funds like nothing else. The second hint is more difficult - manage your wants. That doesn't mean to deny yourself life's pleasures, but instead to learn only spend money on things you really want. Do you really want a new car every year, do you really need a new outfit every few weeks, do you really enjoy $50 meals at a restaurant,etc.? I think we'd all be surprised how much we spend on things we really don't want. Following those two suggestions go a long way toward making early retirement possible.

[Alex]

Okay, so looking at thaifarang's personal situation, he's 44 and already firmly locked into a particular job/career. I'd agree that it's unlikely that he can make a change of the magnitude required to allow him to retire in 6 short years from now - if all that he's done so far has put him on that 67+ trajectory he's written about. But on the bright side, it's not a digital 50 or 67 thing, he could still succeed in retiring early. Not by lamenting though.

[Undaunted]

I think thaifarang's situation is totally fucked. If he wants a life he had better think out of the box before he retires at seventy and his balls hang half way to his knees an erections are infrequent if at all. If his parents are alive might I suggest he find a way to put them in the care of the state while selling their home taking the money and investing it in bitcoins.

[lvdkeyes]

It seems as if some things (people) never change.

[Undaunted]

It seems as if some things (people) never change.

How True

[thaifarang]

I think thaifarang's situation is totally fucked.

My situation is the situation of as good as everyone of my generation (of course excepting the very high earners, I am talking about the bulk of people my age).

Retirement age has gone up, early retirement subsidies of the government are cancelled. Yes the previous generation (yours?) could profit from these laws. Also my parents generation when they worked 20 years and they were fired they got a lot of money from their employer, also these laws have been made far more sober. Employers don't need to pay out as much anymore.

My situation is not special, it is the new normal.

[Jun]

I've tried several times to explain about retirement pensions.

No you didn't really explain it. Because if you had done it, you would have shown how the average person can retire at 50 if he wants to. My question is not how it is possible to retire at 58 or 60. That I understand. My question is about retiring at 50. Which is so very rare (99.99% of people can't do it) that I am very curious how the ones did it, who have done it.

You are moving the goalposts. The original question was tell me what kind of job allows you to retire at 50.

We answered that. Now you are asking us to show how the average person can retire at 50. That's irrelevant. Most of us never claimed to be average, although many are earning not that far above it.

Since you already have a masters degree, MSc, so quite potentially in a useful subject, you should be earning slightly above average. Which, if you control your costs carefully, then gives you capital to play with. Then make sure you are with the employer which pays the best in the sector.
Then since you have a mortgage, rent out the spare room.
Then examine all your costs & figure out ways to minimise them.

Then invest wisely.

That's one way. There are other ways, frequently involving making a couple of good major investment decisions.

Anyhow, if you are 44, it is difficult to say without considering your financial situation, but I would guess you could make enough changes to retire by, say 59, if you really wanted to.
Of course, you will not, since you don't want to even believe it is possible.

Planning a retirement by 50 usually requires an early start. I already was aggressively managing my finances from 27 years old.

[Alex]

I can only agree with Jun. When I started working at age 26 and even more so once I relocated to Thailand at age 30, retiring early was already on my mind as one of my most important goals - maybe THE most important goal.

If you don't make any effort and just wait and see if you get lucky, chances are that Lady Luck will choose others.

[thaiworthy]

My situation is the situation of as good as everyone of my generation (of course excepting the very high earners, I am talking about the bulk of people my age).

If the company you work for has a 401K plan, contribute the maximum allowed by tax law. I did that for many years and it will build up and you never miss it. It's automatic by your company with its payroll plan. If your company does not have a 401K or similar plan, find another job. The government gives you the best deal and it would be foolish not to take advantage of it.

Also, find something you like to do and make a side business out of it. I did magic shows for kids, mostly on weekends, and made an extra $10-15K a year. Parents will spend any amount of money to make their kids happy. The poorest tip the most, the richest tip the least. You have to be creative and find what's best for you.

Live frugally. You'll get used to it. When you finally do retire, you will look back on these years and wonder why you didn't do more.

There are no schemes, get rich quick plans, easy-money inheritances or real estate moguls for the majority of people. Think practically and realistically.

My situation is not special, it is the new normal.

All the more reason to start doing something more positive and pro-active now. Complaining isn't it. Every generation thinks it has it rougher than the previous one. Justified in some ways, but generally I think it's a circumscribed point-of-view.

[Up2u]

Thaifarang is paid in Euros so he may not have a 401k plan which is USA tax law. Regardless, a gay single man should be able to save and finance an early retirement.