Cindy Novotny

Retiring at 35

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Retiring at 35?  WOW!

I recently read an article about how an increasing number of individuals in their 30’s and 40’s are  retiring early, claiming they are too stressed out.  There is even a group categorized as FIRE (Financial independence, retire early) that is supporting this trend.  This group is primarily made up of self- proclaimed exhausted and anxiety-ridden, young workers.  Are you kidding me?!  Seriously, where are we going with this type of attitude in the future?

I guess I should plan on seeing you early retirees clipping your coupons, meeting your other retirees at the local coffee shop for your morning ‘networking session’.  There, you will begin to discuss rising costs of medical.  You will address not being able to take that bucket list trip to Iceland and blame the recent increases in airfare.

Don’t get me wrong.  I realize that waking up every morning, knowing you don’t have to go to work, might sound quite enticing.  However, you need to face the reality of what this future looks like if you end up running out of funds.  The real issue is that 10 years comes and goes so quickly!   When you retire at 35 and don’t plan on working in the future, how will you be prepared for any unforeseen expenses you might incur?  Everyone needs to be prepared for that possibility!  By the time you are 45 and need more money, getting back into the work force you abandoned, will be much more of a challenge than you realize now.  Previous co-workers will have surpassed your expertise, your skills, and your experience in the workforce.  They will have created new positions and new opportunities, and you will become dated in your usage to employers. 

So how do you catch the FIRE?  Let me paint a picture on how this future looks, and the requirements to live it…

1.       Tell the boss ‘see ya!’

2.       Move in with some friends or your parents

3.       Invent an APP which will make you a millionaire

4.       Start the math – to arrive at your ideal wealth number, you calculate your annual spending (not your current income), then multiply that number by 25.  From that amount, you will be pulling 4% annually to live on

5.       For example, if your annual spending comes to $40K each year, you would need $1,000,000 to be able to retire early.  A 4% withdrawal would equal your $40K (source Transamerica)

6.       Cut back on your living expenses NOW!

7.       Oh, now I understand why all the ‘Little House Fixer Upper’ shows are so popular!  Tiny Houses!

8.       This will only work for the most disciplined millennial who can live very minimalistic without buying the Jimmy Choo shoes and designer bags

9.       Based on Transamerica research, one in five American adults (21%) have NO retirement savings at all and even Baby Boomers (those closest to retiring at 65) have an issue.  One out of three (33%) only have between $0 - $25,000 saved for retirement

10.   The good news is that you will have more freedom, but will you have the money to enjoy the freedom?


“Enjoy the Journey So That The Destination Means So Much More” Cindy XO

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