The Money Mustache Community
Around the Internet => Mustachianism Around the Web => Topic started by: meghan88 on February 26, 2018, 10:01:49 AM
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https://www.nerdwallet.com/article/retire-early-life-can-beach
They sound like they are living the dream on 30K / year. Enviable.
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They even have their blogs.
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Neat article! I was surprised by this but the math seems to work:
The important thing is for this young generation to get started now and take advantage of the power of compounding. The earlier they get started, the higher their assets will be when they get ready to retire. If my parents had invested $1,000 for me when I was born in 1952, it would be worth like $945,000 — something like that. That’s the power of compounding. That’s without adding another cent to it.
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I've been following their journey off and on for a decade or so. Good for them for figuring out what they wanted, making their own map and following it.
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Yep, they've been pioneers in the FIRE movement for a long time. So cool to see they're still enjoying it to the fullest.
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I don’t follow the Kaderlis specifically, but over the years they regularly pop up in the press and provide a nice little reminder of what I’m working towards.
I think I read a couple of years ago that they have now bought a home base of sorts in the US in a retirement community that they stay at for a few months each year, but still travel extensively. Sounds great to me.
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Neat article! I was surprised by this but the math seems to work:
The important thing is for this young generation to get started now and take advantage of the power of compounding. The earlier they get started, the higher their assets will be when they get ready to retire. If my parents had invested $1,000 for me when I was born in 1952, it would be worth like $945,000 — something like that. That’s the power of compounding. That’s without adding another cent to it.
then I must doing the math wrong....because they would need a nearly 11% return every year for 66 years to have $945,000 in 2018. Or am I doing the math wrong
1.1094^66 * 1,000 = 945,842
don't get me wrong, the power of componding is amazing. I just think
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Neat article! I was surprised by this but the math seems to work:
The important thing is for this young generation to get started now and take advantage of the power of compounding. The earlier they get started, the higher their assets will be when they get ready to retire. If my parents had invested $1,000 for me when I was born in 1952, it would be worth like $945,000 — something like that. That’s the power of compounding. That’s without adding another cent to it.
then I must doing the math wrong....because they would need a nearly 11% return every year for 66 years to have $945,000 in 2018. Or am I doing the math wrong
1.1094^66 * 1,000 = 945,842
don't get me wrong, the power of componding is amazing. I just think they're overstating what $1,000 would get you.
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don't get me wrong, the power of componding is amazing. I just think they're overstating what $1,000 would get you.
Yep - inflation is helping them distort the gain. That 11% return is the nominal return, not the inflation adjusted return. Plenty of inflation over that period - it would take nearly $10,000 to buy in 2018 what could be purchased for $1,000 in 1952. After adjusting for inflation the return would only be about 7.2%