4 people retired early

Who don’t want to retire early? I’m one of them that wanted to retired early but in my age of 34 there’s no chance to retired. I just read about the 4 people retired early without fortune . Read it :-

Bob
Scottsdale, Ariz.
Age: 62
Retired at 52

Bob began saving for retirement at 30, stashing away 15 percent to 25 percent of his annual income. He was able to amass $500,000 in a retirement fund by the time he stopped working just 22 years later.

Since then, he has kept that money in an IRA and lives on an annual pension of $40,000, which is about half of his pre-retirement income. That, combined with the inheritance of a modest estate from his parents, has given him a comfortable retirement.

However, his IRA portfolio lost $250,000 after the crash in 2008. He hopes to recover that money before he turns 64, when he intends on drawing on his IRA. The experience also taught him to simplify his life by cutting expenses and having less stuff.

Bob calls his investment approach “very conservative” — he invested for long-term growth and avoided riskier investment opportunities. He also believes in cost-cutting on big items. For example, with the proceeds from a home sale, he bought his current house outright in cash to avoid having a mortgage. The biggest financial hurdle for him is medical care. He spends a quarter of his yearly income on health insurance alone.

// Okay. It is not too early to retired at 52 but that still good age..

Gary
U.S. Virgin Islands
Age: 66
Retired at 49

Gary retired about 17 years ago with approximately $350,000 in a variety of investments. Before choosing to retire, he and his wife Julie spent about $80,000 a year. In the last couple of years before they quit working, they made retirement a priority and cut costs. They now live on about $50,000 a year.

With a paltry pension of just $49 a year, Gary and his wife currently receive about $17,000 from Social Security and an additional $33,000 annually from various investments. Gary says this is enough to fund a fulfilling lifestyle. Their only financial worry now is the $10,000 deductible on their health insurance. While working, they invested aggressively in growth stocks, but since retirement, they have focused more on conservative mutual funds.

They live on a smaller income, so they cut down on expenses. Most importantly, they gave up status items. Before retiring, they had two Mercedes-Benzes, designer-label clothing and a “country-club lifestyle.” Now they live more simply.

These days, Gary finds his frugal lifestyle to be fulfilling. “It is more important to be together 24 hours a day than to be working and earning a lot of money,” he says.

// Age before 50s to retired is great achievement. Maybe I’ll target that age too..

Syd
San Francisco
Age: 47
Retired at 44

While most people try to save a fixed amount before retirement, Syd took a different approach to early retirement and looked at her costs instead. “I’ve never believed in calculating your retirement nest egg based on a percentage of your annual income,” says Syd, who regularly blogs about retirement. Instead, she calculated that her post-retirement expenses would be 65 percent of her pre-retirement spending. After three years, she found it was an accurate estimate — often, she has spent a bit less.

It took Syd 15 years to build a nest egg 33 times her total projected annual costs. With this amount of money, she has been able to withdraw 3 percent of her savings — which means she will not run out of money as long as her investments perform well. She actively tracks her portfolio and rebalances her investments when they underperform.
Syd has followed different strategies to build her investments and make them last. Before retirement, she invested aggressively in stock funds to increase her net worth as quickly as possible. Now she is more conservative, with more than 30 percent of her portfolio in cash and the rest in diversified mutual funds.
// That’s how she retired in early 40s. How she invest to earn passive money. Like how she planning..

Jacob
San Francisco
Age: 36
Retired at 33

Jacob named his website “Early Retirement Extreme,” where he describes his philosophy and financial strategy. After working in academia for five years, Jacob decided to quit.

This was possible because of his aggressive savings strategy. While working, Jacob saved nearly 80 percent of his after-tax income by eschewing a consumerist lifestyle. Then he began managing his own investment accounts.

“If you’re retiring at my age, it’s because you prefer time more than money, which is a somewhat rare attitude in this day and age,” says Jacob. “Fortunately, I’ve learned to live quite well on little money.” He cuts costs by using a bicycle instead of a car, eating at home and enjoying low-cost activities.

Jacob lives on about $7,000 a year — $1,000 of which goes to sports hobbies, while the rest covers his basic expenses. He describes himself as a conservative investor who focuses on nongrowth dividend-yielding stocks, and he tries to withdraw less than 3 percent of his portfolio annually. Jacob shares a recreational vehicle, or RV, with his wife, and they split costs halfway. Jacob’s monthly expenses include $270 for rent and utilities, about $100 for food, $95 for health insurance and $120 for discretionary expenses.

// Wow.. It is really early to retire… The expenses absolutely ridicolous. How on earth he used only $7,000 a year? Can’t believe it..
Great achievement but need to know detail how he do it…

Like or not, we will retire one day. But whether we are prepared financially for
Retirement planning is important. It doesn’t matter whether we start early or late. Maybe start

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