30's and retired with $870k net worth?

[disneysteve]

it is interesting that they aggressively put money into retirement accounts when they planned to retire in their 30's.
i'd probably be investing in taxable accounts so i had access to the funds.

The article says, "They funneled all of the extra savings into a Roth IRA, brokerage account and savings account." I think that makes perfect sense. The brokerage and savings account are taxable and free of any restrictions on withdrawals. The Roth lets the money grow tax-free but you can always pull out contributions, just not earnings, at any time without penalty until you're 59.5. I suspect, given the low contribution limits on Roths, the bulk of that extra money went to the brokerage but anything that went to the Roth would still be accessible if needed.

[QuarterMillionMan]

The thought of living off the grid is fascinating, but if you really think about it could you do it being isolated with no neighbors and basically being a hermit couple? I hate my neighbors with a baby on one side constantly crying and on the other side a young 20's couple constantly fighting, slamming doors, her crying hysterically and I've had to call the cops 3x's in a year but being isolated in the desert such as them might be more than I can handle but it would be peace and quiet and so serene with 100% nature and no civilization. Must be similar to living on a farm with acreages of land and the closest neighbor maybe 5 or 10 miles away. That beats having to deal with people any day. That's the true definition of not having to deal with the rat race.

[disneysteve]

The thought of living off the grid is fascinating, but if you really think about it could you do it being isolated with no neighbors and basically being a hermit couple? I hate my neighbors with a baby on one side constantly crying and on the other side a young 20's couple constantly fighting, slamming doors, her crying hysterically and I've had to call the cops 3x's in a year but being isolated in the desert such as them might be more than I can handle but it would be peace and quiet and so serene with 100% nature and no civilization. Must be similar to living on a farm with acreages of land and the closest neighbor maybe 5 or 10 miles away. That beats having to deal with people any day. That's the true definition of not having to deal with the rat race.

I don't think I'd mind having no close neighbors. What I'd hate would be having to travel some distance to do anything: post office, grocery store, restaurants, Target, Walmart, etc.

[Petunia 100]

Maybe it’s the optimist in me but I think they can! Especially since they still work a little here and there and seem very disciplined.

Would I do it? No. I don’t want to live in an Airstream and I’m not willing to move to a LCOL area. We have an early retirement plan that’s somewhere in the middle of extreme FIRE and work till we’re 65 and life has passed us by.

But I’m still impressed - good for them!

They own an Airstream, but they don't live in it full-time. They also own a sticks and bricks in Arizona.

[LivingAlmostLarge]

Absolutely not. It's way to tight. The only thing saving them is the fact they are still working. On their own terms which is great but 30s and working part-time because you have a large savings is nice. But what happens when they are 55 and get prostate cancer? Or some other disease you can't predict? What if you are genetically pre-disposed to needing a new knee at 50 after exercising so much and being super "healthy?" What happens if you have early onset MS or rheumatoid arithis?

I am all for working part time and picking your jobs. But reality check. They retired in a bull market with $800k and now have $1.2M. Their medical expenses at 30 something is minimal. So yes like MMM you work out and eat clean and do everything right. Until you get into a car accident and you break your leg and need PT. You fall down the stairs. You have cataracts. Your sight goes in your 40s. You need hearing aids. You develop food allergies.

The list goes on and on. I can honestly say that in my 40s I have things wrong with myself and my DH that I wouldn't and couldn't have predicted. I can also say that most people on this board probably is in better shape than the average person. But you still get old. You still get aches and pains and need more medical care. Unless aging stops. Even the healthiest people can need more medical care.

So your bare bones budget goes from $35k to $50k. How do you handle it? And you get HDHP but you now have a high deductible to cover and dental and prescription and vision. Your 20% even on medicare is a lot along with medicare premiums and then you buy supplemental. Not cheap and only going up.

Yeah and your SS from stopping work in your 30s is a lot lower than you thought. And the price of medicare goes up. Property taxes goes up. , Do you end up eating cat food in old age?

I think FIRE in your 30s when you had a large shovel and millions great. Awesome. Or older and are prepared for increasing your budget because did you know health care premiums go up (surprise surprise) as you get older?

Even Mr Money Mustache stopped writing about medical because he hit 40 and suddenly he needed his millions for private dr care and self-insuring. So retiring on his $800k was suddenly crap. But he wouldn't be making money off his blog and forum if he admitted it.

[disneysteve]

They retired in a bull market with $800k and now have $1.2M.

And that article was written over a year ago. How much is the $1.2M portfolio worth today?

[Fishindude77]

Their plan would not be my cup of tea, but one heck of a lot of people retire with a whole lot less than that and manage to get by okay.

[disneysteve]

Their plan would not be my cup of tea, but one heck of a lot of people retire with a whole lot less than that and manage to get by okay.

You’re right that many retire with less but most do it at 65 or 62, not 35. It’s much easier when you’ll have SS, Medicare, and maybe a pension.

[LivingAlmostLarge]

You’re right that many retire with less but most do it at 65 or 62, not 35. It’s much easier when you’ll have SS, Medicare, and maybe a pension.

this is the real problem. Retiring and living at 65 on $30k is different than retiring at 35.