November 3rd, 2007 at 7:04am
Here’s some good news. You can, in fact, retire early by saving and investing wisely.
Case in point: The Furbeck Family. A father (Frank) working as a Systems analyst. His fiance (Trudi) working as an office coordinator. $119,000 combined yearly salary. 2 sons. $1,470 monthly expense + $1,200 real estate property tax.
How do they do it?
Frank places $15,500 a year into a savings plan, while Trudi places around $18K. Aside from their savings plan, they also place some of their money in the money market, in a retirement account, and in mutual funds. They also save for their two sons, who now have around 529 plans.
The key is living comfortably, but not extravagantly. They do carpool to save on gas, use coupons, and raise cattle for additional income. Aside from that, Frank saves a percentage of the sons’ allowances.
As a result, they have managed not to carry any debt and can comfortably retire when they reach their 50’s, after they have earned eligibility to get their pension. Their sons’ education will be well provided for as well.
According to a Certified Financial Planner Ric Martin, “Frank and Trudi are well on their way to millionaire status… Frank can retire at age 53 ½ and Trudi can retire at 53. Both of them will have accumulated $1,910,378 of investment assets by Frank’s age goal of 60.”
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