notes on early retirement

Notes from Quit Like a Millionaire:

1. You need 25x your spending rate to retire. e.g. if you need $40,000 per year in retirement, you need a million dollars to retire. Index funds you invest in can replenish the money you withdraw. Aka the 4% rule. The book also explains how to handle edge cases of the 4% rule.
2. People can have kids and still retire early. The book gives examples and works through the numbers. According to the USDA, a kid costs $233,610 to raise from 0 to 18. Meanwhile, one retiree in the book spent $46,800 raising their child, another $100,080. One final retiree described made a profit on his kid lol cuz tax breaks. And none of this is while cheaping out on your kid! That said, this doesn't include spending on college 🤔
3. You can travel year round in retirement and spend less than you would at home. Just spend some time in parts of the world with lower cost of living (e.g. Southeast Asia).
4. Side hustles can reduce the amount you need to retire. e.g. if you have a side hustle you enjoy that makes $20,000, and you need $40,000 in retirement, suddenly you need half as much to get to retirement.
5. Strongly consider not buying a house (for a primary residence). It can be what keeps you from your early retirement plans. Do the math! Often it's not a better investment than index funds, because of all the costs associated with a house.
6. Retirement can be a chance for a fun second career!

I recommend this book!

Early retirement is very possible for many with the right amount of discipline. I'd recommend reading about it and looking at the numbers, before flagging it as "not possible" in your head.