"I retired at 34 in 2012, and my wife retired a few years later at 35 in 2015. We've been mainly living off our passive income and investments since. In 2023, I bought an expensive home I didn't need, becoming house-rich and cash-poor. Buying this house affected our desired lifestyle in San Francisco. As a family of four with two children, we had less liquid or passive income, which made me feel quite uneasy."
"In retrospect, retiring early was not the optimal career path. I'm 48 now, and if I were to talk to my 34-year-old self, I'd say stick it out for another five years and try to find a different work environment. Before anyone considers retiring early, I would suggest they speak to someone who has already done it and ask them what they would've done differently."
"Working for 3 to 5 more years would have made more financial sense for me Real estate and stocks were in a total bull market from 2012 to 2017. If I had worked longer, I probably would've been able to save and invest an extra $1 million. That decision could've generated $40,000 more in passive income at a 4% return rate, and I would maybe be more financially secure now."
A person retired at 34 and a spouse retired at 35, living mainly off passive income and investments. In 2023 an expensive home purchase created a house-rich, cash-poor situation that reduced liquid assets and passive income and caused unease. Retiring early proved less optimal in hindsight, as working three to five more years during a bull market from 2012–2017 could have yielded roughly an extra $1 million in savings and about $40,000 more annual passive income at a 4% return. Testing reduced-income living and consulting others who retired are advised before committing to early retirement.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]