Author Topic: International Advice for a young Stache much appreciated!  (Read 1848 times)

Arab-Stache

  • 5 O'Clock Shadow
  • *
  • Posts: 1
International Advice for a young Stache much appreciated!
« on: April 12, 2012, 09:19:08 AM »
Iíve been lurking around this forum for the past 6 months and have just recently read the ERE book and become quite intrigued with the early retirement life plan.

I am currently 26 years old and a local citizen living in a Middle Eastern Country looking for any advice on how to accelerate my ERE plan. Iím sure plenty of you have several questions and will be surprised as to the perks of and basic background data that I will provide below:

Age:26

Marriage status: Single

Housing: Already paid completely

Debt: 0 USD (just paid off a minor loan)

Current Salary per year: 75,000 USD

Saving: I have just recently started saving (1 month ago) about 75% of my salary. Hoping to keep the momentum going.

Taxes: We donít have any taxes whatsoever in our country. (Yes I know thatís crazy!)

Retirement Scheme: My company which is a government entity automatically cuts about 15 percent of my salary above for our retirement plan. Itís a bit similar to your ROTH IRA plan which enables government employees to retire in about 25 years of working service (I have been working for 5 years so far) and you get to take about 4,000 USD a month in terms of retirement allowance.

My question is with all the above what should I focus on in order to achieve ERE with as minimum time possible? I would love to retire early in order to focus on travelling and spending my time doing the things I love instead of working a meaningless job.

Property is incredibly expensive to acquire in our country (at least 500,000 USD for a small plot of land) and therefore Iím not interested in real estate in our country.

What should I focus on in order to accelerate my ERE or any other tips would be greatly appreciated.

Thank You.

AJ

  • Pencil Stache
  • ****
  • Posts: 906
  • Age: 36
  • Location: Oregon
Re: International Advice for a young Stache much appreciated!
« Reply #1 on: April 12, 2012, 11:16:13 AM »
Wow, just wow! High salary, no debt, paid for house, no taxes, high savings rate. Best. Start. Ever. :)

I have a question for your for clarification: you mention your employer takes 15% for your retirement account, which you get after about 25 years. What will happen to that money if you retire early? Also, what kind of timeline are you looking at to retire? 5 years? 10 years? Stay the full 20?

catalana

  • Stubble
  • **
  • Posts: 119
  • Location: UK
Re: International Advice for a young Stache much appreciated!
« Reply #2 on: April 17, 2012, 04:16:38 AM »
Start learning about investing - there are lots of good articles and advice for free online.  The more you read, the more you will be able to separate the sensible advice from the crazy.

Carry on saving in secure account(s) while you do so.