Author Topic: Another reason to retire by 40 . . .  (Read 6614 times)

pagoconcheques

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Retire-Canada

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Re: Another reason to retire by 40 . . .
« Reply #1 on: February 22, 2015, 10:09:14 AM »
your income is going to peak then anyway:
http://www.motherjones.com/kevin-drum/2015/02/age-40-your-income-probably-good-its-going-get

That would suggest you should work in your 40's to harvest the peak $$ not to quit just because you've reached peak.

If you retire by 40 you are missing the benefit of those peak earning years.

That's not to say you shouldn't retire by 40....just that peaking of income isn't the reason you'd do it.

-- Vik

Calvawt

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Re: Another reason to retire by 40 . . .
« Reply #2 on: February 22, 2015, 06:41:58 PM »
Its more than just getting to the peak, you need a few years of earnings at the top to be saving the most you can!

willow

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Re: Another reason to retire by 40 . . .
« Reply #3 on: February 22, 2015, 08:15:04 PM »
There was a post like this somewhere else in the forum. My question is, what is causing the peak?  Most likely it's a lack of willingness to move, or the fact that it's not common to seek more education at that age, or the fact that it's easier to have huge gains on a small income than a large income.

Also, I think for any of us mustachians here, if you're making 50% more when you're 40 than you did when you were 25 that's a lot of extra money that you really don't need. So who cares if you've peaked?

I'm expect that my spending stays relatively the same over the course of my life. I expect to replace my mortgage expense with travelling or continuing education when I pay off the house and overall I'd still be at 50% of my current income levels.

NumberJohnny5

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Re: Another reason to retire by 40 . . .
« Reply #4 on: February 23, 2015, 08:22:08 PM »
your income is going to peak then anyway:
http://www.motherjones.com/kevin-drum/2015/02/age-40-your-income-probably-good-its-going-get

Forwarding this link to my wife. I kept telling her there was no need for me to work in my 30s...now I have research to back that up!

dragoncar

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Re: Another reason to retire by 40 . . .
« Reply #5 on: February 24, 2015, 12:18:02 PM »
your income is going to peak then anyway:
http://www.motherjones.com/kevin-drum/2015/02/age-40-your-income-probably-good-its-going-get

Forwarding this link to my wife. I kept telling her there was no need for me to work in my 30s...now I have research to back that up!

Based on this graph, I think the ideal scenario is to work only from ages 45-55.

partgypsy

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Re: Another reason to retire by 40 . . .
« Reply #6 on: February 24, 2015, 12:20:50 PM »
your income is going to peak then anyway:
http://www.motherjones.com/kevin-drum/2015/02/age-40-your-income-probably-good-its-going-get

Forwarding this link to my wife. I kept telling her there was no need for me to work in my 30s...now I have research to back that up!

Based on this graph, I think the ideal scenario is to work only from ages 45-55.

lol

slugline

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Re: Another reason to retire by 40 . . .
« Reply #7 on: February 24, 2015, 12:27:37 PM »
The financial fantasy scenario would be to do your working career backwards: Earn your stash in your peak-earning 40s/50s and have an immensely compounded snowball of wealth land in the lap of your 20s/30s self.

netskyblue

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Re: Another reason to retire by 40 . . .
« Reply #8 on: February 24, 2015, 12:46:54 PM »
Sadly, to retire by 40, I'd have to be socking away over $50k/year for the next 9 years, and I don't even make 40k gross :(  Not gonna happen for me.

Sid Hoffman

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Re: Another reason to retire by 40 . . .
« Reply #9 on: February 24, 2015, 03:19:33 PM »
There was a post like this somewhere else in the forum. My question is, what is causing the peak?

I'm sure if you ask a hundred people, you'll get a hundred difference answers.  Here's what I've seen though: I've never seen a regular job that required more than 10-20 years of work experience.  Most jobs if you have 3-5 years of experience you could be making at least 80% of what the old pros are making.  Keep in mind we're talking about the bulk of cases: people in the middle class here.  The data specifically has an exception for executives and other high-value people who may see their pay peak as late as 70 years old upon hitting their prime in the CEO's office.

Anyway, for a skilled middle-class job that you reach peak pay after 10-20 years, that is right on track to say that somewhere from age 35-45 is where your pay will reach peak.  The jobs where you see people getting paid more with 30 or 40 years experience are frequently either people who own their own businesses, or are artists.  Really artists own their own businesses too, so you could say it's the same thing.  All those middle-class jobs though are hard to find anything that truly needs more than 10-20 years of experience to be among the best in your field.

Bob W

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Re: Another reason to retire by 40 . . .
« Reply #10 on: February 25, 2015, 08:59:33 AM »
Sadly, to retire by 40, I'd have to be socking away over $50k/year for the next 9 years, and I don't even make 40k gross :(  Not gonna happen for me.

That's weird?   Why would you need 1 million to retire?   In my very nice Midwest state you can buy a decent house for 75K at 3.5%  Your total payment, taxes, insurance, utilities will be 6K per year.   Your car costs 1K.  Your food costs 2K.  Misc 2K.   So your total costs = 11K.   If you have a spouse you can pretty much cut that down to 7K.

So at a SWR of 5 (anticipating social security) you would need only 140K.   

But the real answer is that there are numerous sales careers in almost any  industry that pay over 100K.   I think the "Not gonna happen for me" is self defeating.  It doesn't happen to you.  You make it happen. 

My son at age 29 just went from 24k to 110K in 6 months sell security systems.   You might look into that?  It requires no HSD, no experience and no up front capitol.   

This is the land of opportunity my friend.

Sorry for the preaching --- in that mood this morning. 

jmusic

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Re: Another reason to retire by 40 . . .
« Reply #11 on: February 25, 2015, 03:01:54 PM »
your income is going to peak then anyway:
http://www.motherjones.com/kevin-drum/2015/02/age-40-your-income-probably-good-its-going-get

It's really not a reason for or against.  Just because your earnings are unlikely to increase doesn't mean the EXTRA money you'd have by working OMY vs. not, would be wasted.

willow

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Re: Another reason to retire by 40 . . .
« Reply #12 on: February 26, 2015, 10:28:52 AM »
your income is going to peak then anyway:
http://www.motherjones.com/kevin-drum/2015/02/age-40-your-income-probably-good-its-going-get

Forwarding this link to my wife. I kept telling her there was no need for me to work in my 30s...now I have research to back that up!

Based on this graph, I think the ideal scenario is to work only from ages 45-55.

Ha!

I'm a red panda

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Re: Another reason to retire by 40 . . .
« Reply #13 on: February 26, 2015, 10:46:35 AM »
  In my very nice Midwest state you can buy a decent house for 75K at 3.5% 

Wow, my midwest state sucks.  Our crappy zero lot house (so attached, not a detached, but different from a townhouse, which have shared attic access, and not a condo) cost $135k.  It does have an okay backyard though.