My Solitary Journey Towards Financial Freedom

One morning I woke up and realized it, so I just packed up my stuff and moved out.  It was over; she knew it and so did I.  Hit me like ton bricks;  no fight, just a long and deafening silence.

If I had to pay someone else’s mortgage, at least help with it, then it would be family. So I moved into the unfinished and long forgotten apartment. Finished it up and all parties ended up quite happy. They now had rental property and I had a place to live at a very reasonable, actually below market rate.

The time to put my needs first, ahead of others' wants had finally arrived. I was not becoming selfish or  irresponsible; I simply prioritized and really got on track.

Working 40+ years so that I could finally retire had always seemed rather pointless.

I had started contributing the maximum allowed by the IRS into my 401K and soon thereafter learned that I could actually retire at the age of 59 ½ and start withdrawing from the plan without incurring any penalties. That became my goal. To not have to work a day past that point.  At least not at that soul sucking job where my sole purpose was to make money. Wish I had known about this a few years earlier.

So I started looking for ways to retire even earlier than that.  First I found out that I could start receiving a small pension at 55 so that became an even better possibility and soon became the new target.  Even if it meant that I would have to do part-time work elsewhere.  Fifteen or even 20 hours a week at something you really enjoy, even if at a lower salary, beats having to work closer to 50 hours just to make ends meet.

More time to pursue a passion, volunteer or travel.  I would like to visit Machu Picchu and Chichen Itza and be able to walk up the Spanish Steps in Rome without having a heart attack.

At about this time I discovered the FIRE community, the financial independence/retire early. Many have retired before 40.  I have passed that point, but found what they did and how they did it useful. 

Imagine it is Tuesday and you are going to pick-up you children from school just because you can.  Is that not much better than being stuck at work for several more hours?  Don’t know about you, but I would much rather spend time with the family.

The Mad Fientist wrote about a conversion ladder that allows for early access to retirement funds while avoiding taxes and penalties. He explains it better than I ever could.  You should check it out.  He walked away at the ripe old age of 34!

I also opened up a Roth IRA and contribute every year without exception. Max it out if at all possible.  While the initial deposit of $5,500 may not seem like a lot of money, accumulating $5,500 a year for 15 or 20 years adds up to a nice sum of money.  This will cut several years off the must work calendar.

Lastly, I opened an account with a robo advisor. I may not end up having much in there.  Worse case scenario it will only amount to beer money and not much else. I will surely find a better way to use it and that always beats throwing money away on junk and having nothing to show for it.

Many wonder how my savings rate is so high. Quite simple, I do not need 12 pairs of shoes and I brew my own coffee. All sorts of frugal. Not wanting for anything really. I spend on what I need, makes me happy or raises my quality of life.  Sometimes all three at once.

I lead what many would call a "normal" life; I go out to dinner, the movies; sometimes I will go and purchase the expensive concoction that so call coffee. We have to enjoy life, otherwise what is the point.

I started investing in index funds. Specifically those that mirror the S&P 500; between 1871 and 2016 the S&P 500 averaged gains of about 7%. That is 140+ years of data; while we cannot predict the future, that track record is hard to ignore or even argue against.  

Do have some money invested elsewhere to diversify.

After a few stumbles the path was cleared. Sure, I will work some; more than likely part-time or maybe seasonal to stay motivated and not become a hermit.  Wherever it may lead, and the to do list is long; life will be much more enjoyable.

The views here expressed are all my own are not legal, professional or financial advice.  You should consult a professional before investing.  Referral links may be found throughout, I only recommend products I believe in.  This site presents links to other sites but is not responsible for their content or privacy practices.