Early Retirement Extreme

[cbeast]

My plan is to make $250k a year, save $100k a year, and retire by the time I'm 40.

I can live easily off $50-100k annually in retirement because I'll already own my home and vehicles outright and have no debt.

Where is bitcoin in this picture?

BTC = $0.00
XRP = $0.50
DXY = 85

If dollars hyperinflate, then $100k may not buy much.

[1715340902]

1715340902

[1715340902]

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[Pruden]

If dollars hyperinflate, then $100k may not buy much.

I tend to dismiss the most catastrophist scenarios. When oil runs short life will be less comfortable; with that I agree. But Mad Max scenarios like hyperinflation are out of the question. The powers that be make sure it never happens because, what business would corporations do in such a situation? There have been many recessions like the current one yet the stocks profitability has remained faithful to the long-term trend well above inflation. Besides, since stock price is a price, how could inflation undermine its value? 

You can start getting ready, hoarding food and weapons, but I would first make sure I have a nice money stash for the rest of my life.

[ex-trader]

If dollars hyperinflate, then $100k may not buy much.

Only if you kept it in banknotes.

This is the stupidy of the deflation argument so often quoted on these forums, most people with any investments/wealth keep it in property/stocks/income generating assets. These assets largely outperform inflation, so real values go up not down over time.

[Jackin Jill]

If dollars hyperinflate, then $100k may not buy much.

This is the stupidy of the deflation argument so often quoted on these forums, most people with any investments/wealth keep it in property/stocks/income generating assets. These assets largely outperform inflation, so real values go up not down over time.

Most people, especially in here, don't understand that most "assets" are not investments because they have been brainwashed by banks to think that their devalued car is an asset. Their house is an asset. And so on.
When in reality, if it were not for the housing bubble, most people would never see any kind of profit from a home sale. And you certainly cannot expect to profit from selling most cars. Yet banks view this form of chattel as something with value and therefore brainwash you to believe that you are making money by owning them and borrowing from the bank against them.

The stupidity of people never ceases to amaze.

[ex-trader]

Most people, especially in here, don't understand that most "assets" are not investments because they have been brainwashed by banks to think that their devalued car is an asset. Their house is an asset. And so on.
When in reality, if it were not for the housing bubble, most people would never see any kind of profit from a home sale. And you certainly cannot expect to profit from selling most cars. Yet banks view this form of chattel as something with value and therefore brainwash you to believe that you are making money by owning them and borrowing from the bank against them.

I agree on one part.

A car is definitely not an asset in general, particularly recent models, but I don't think banks promote them as assets, but simply provide debt to allow their purchase. The debt usually amortises fast, to reflect the expected decline in value. It's similar to paying for a lease on a car, no-one expects to have any savings as a result of it.

That said some older cars, if bought well can be great assets, such as collectible sportscars, which have rocketed in value recently (mainly older Porsche/Ferrari/McLaren etc).

Regarding housing, other than in the recent bubble, which was extreme by any standards, especially for the US, housing has generally been an excellent asset. It is is almost always been cheaper historically to pay a mortgage over 30 years, than to pay the ever increasing rentals over the same period and equally over the longer holding periods capital values increase massively. Owning rental property is even better, since the upside is free provided the tenant pays the mortgage. The majority of privately owned wealth at middle-income levels in most developed countries has been created from ownership of property. Few people make significant wealth from simply saving their incomes through their lives.

[Peter Lambert]

If dollars hyperinflate, then $100k may not buy much.

This is the stupidy of the deflation argument so often quoted on these forums, most people with any investments/wealth keep it in property/stocks/income generating assets. These assets largely outperform inflation, so real values go up not down over time.

Most people, especially in here, don't understand that most "assets" are not investments because they have been brainwashed by banks to think that their devalued car is an asset. Their house is an asset. And so on.
When in reality, if it were not for the housing bubble, most people would never see any kind of profit from a home sale. And you certainly cannot expect to profit from selling most cars. Yet banks view this form of chattel as something with value and therefore brainwash you to believe that you are making money by owning them and borrowing from the bank against them.

The stupidity of people never ceases to amaze.

A house is most definitely an asset. Maybe you need to check the meaning of the word 'asset'? A house may not be an income generating asset, but it is none-the-less an asset.

[jubalix]

If dollars hyperinflate, then $100k may not buy much.

This is the stupidy of the deflation argument so often quoted on these forums, most people with any investments/wealth keep it in property/stocks/income generating assets. These assets largely outperform inflation, so real values go up not down over time.

Most people, especially in here, don't understand that most "assets" are not investments because they have been brainwashed by banks to think that their devalued car is an asset. Their house is an asset. And so on.
When in reality, if it were not for the housing bubble, most people would never see any kind of profit from a home sale. And you certainly cannot expect to profit from selling most cars. Yet banks view this form of chattel as something with value and therefore brainwash you to believe that you are making money by owning them and borrowing from the bank against them.

The stupidity of people never ceases to amaze.

a house is an asset...and can generate net income

it can also be an appreciating asset.

also at what point is a bubble no longer a bubble....eg the Australian housing market still has not popped, particularly in Sydney, it may have gone down 1-3%, but then in one month goes 1.5%. I wish it would pop....but they have taken to calling it the longest bubble ever....!

The problem I think, is property is a religion there....so may defy reason for an indefinite amount of time.....

[calian]

MMM was interviewed in the Washington Post recently: http://www.washingtonpost.com/business/meet-mr-money-mustache-the-man-who-retired-at-30/2013/04/26/71e3e6a8-acf3-11e2-a8b9-2a63d75b5459_print.html

[inspiredinvestor]

thanks for MMM article, he is great. 
I read early retirement extreme,  it's inspiring. it's good to question the consumerism.

[cr1776]

Eduardo Saverin became a Singapore resident/citizen, but but there have been no reports about a similar move by Zuckerberg (except on a humor web site).

.. This is why Zuckerberg is no longer American.

[wachtwoord]

Eduardo Saverin became a Singapore resident/citizen, but but there have been no reports about a similar move by Zuckerberg (except on a humor web site).

.. This is why Zuckerberg is no longer American.

It seems I was wrong. Thanks for correcting me

[calian]

Let's talk for a minute about the original idea I mentioned of wandering the globe while waiting for bitcoin appreciation. Rolf Potts' home base is a mobile home in Kansas but he's rarely there.

Although it was a marketing stunt I enjoyed his round-the-world with no bags trip: http://www.rtwblog.com/

Here's his main blog: http://www.vagablogging.net/

And bio: http://www.rolfpotts.com/bio/

Someone here already mentioned the WWOOF program. If you're willing to spend money there are hostels and AirBNB. Free options could include camping in National Parks or on BLM land/slab city. There's also https://www.couchsurfing.org/

Glenn Campbell has chosen to live homeless. For a golden couple of years he qualified for free standby flights so he was almost always flying somewhere.

Here's one way he spent the night waiting for a flight: http://travel.baddalailama.com/2010/03/lodging-on-fly-ontario-california.html

[cbeast]

Glenn Campbell has chosen to live homeless. For a golden couple of years he qualified for free standby flights so he was almost always flying somewhere.

Not the country singer. That would have been cool.

[Evo]

I might buy the book, thanks for the link. It'd be nice to live on so little.

[inspiredinvestor]

The great thing about bitcoin, is it's making it possible to go live all over the world and just transfer what you need into Fait when needed and if your good with money/assets

I met a guy at our bitcoin meetup acouple of days ago who 2 years ago was paid for a DJing gig in Bitcoin, he wasn't happy about it at the time.
But over past two years he has been able to travel and live in several countries, dj occasionally.

I have heard of it but seeing someone makes it alot more real.

[calian]

I've had this vision of selling all one's possessions for bitcoin, getting down to just what would fit in a backpack and travelling the world for 3-5 years waiting for full valuation to arrive.

Might have found someone on this plan:

I am traveling around the world thanks to profit on Bitcoins, instead of working. So thank you for the profit bulls, keep buying 

[strawbs]

I've had this vision of selling all one's possessions for bitcoin, getting down to just what would fit in a backpack and travelling the world for 3-5 years waiting for full valuation to arrive.

Might have found someone on this plan:

I am traveling around the world thanks to profit on Bitcoins, instead of working. So thank you for the profit bulls, keep buying 

I was made redundant a few months ago and have since made more thanks to bitcoin than I've ever managed to save previously.  Also thanks entirely to bitcoin, I'm off next week to travel through Africa for a few months, during which time I don't plan to do any trading (I might have to take a glance at the price now and then, though).  I don't fancy having a job ever again!!

[calian]

I was made redundant a few months ago and have since made more thanks to bitcoin than I've ever managed to save previously.  Also thanks entirely to bitcoin, I'm off next week to travel through Africa for a few months, during which time I don't plan to do any trading (I might have to take a glance at the price now and then, though).  I don't fancy having a job ever again!!

That's fantastic! Have you started a blog for the trip yet? Some of us still have to go to work on Monday and would enjoy seeing what's out there in the rest of the world.

[DPoS]

We need to start making more islands so we all have a few each to retire to in a year or so 

[calian]

Mr. Money Mustache has updated his blog. http://www.mrmoneymustache.com/