wouldn't say technically I would say
we are financially independent well you
know what technically is a good way to
say that I will take that back and agree
with you because I do have a job which
is not allowed according to the internet
they say I'm gonna have my job because I
really like my job and we have enough
money based on the 4% rule we have
enough money to never have to work again
and then Carl was kind of leery about
quitting his job so he stayed on until
we doubled it and then he's like okay
I'm gonna leave or maybe maybe it was
before then but yeah he we definitely
have to ex what we think we need for the
4% rule and I have a job and my job
provides health insurance and a salary
that we can live off of and continue to
save I max out my 401k every year I max
out my HSA every year so I don't need to
touch that right now but if I quit
tomorrow we have enough that neither one
of us has to work again your answer was
so like rich with like jargon and stuff
that I know maybe a year ago I wouldn't
have followed like much of what you said
but it's interesting that this whole
like subculture of Phi and it's pretty
cool because there's like again just
vocabulary and definitions that other
people don't know about so for the
people that don't know like what's the
quick definition of the 4% rule so the
4% rule is based on a study done by
William bankin I don't know in the 80s I
think he looked at all of the past stock
market data and he said based on past
performance and past performance is not
indicative of future gains based on past
stock market performance if you save X
amount of money and withdraw 4% in the
first year and then readjust for
inflation every year you should be able
to retire for or live off your your
savings your investments for 30 years
and have at least not
run out of money for 30 years with I
think a 96 percent chance of success so
basically if you take the inverse of
that 25 times your annual spending is
what you need to have in investments in
order to be financially free so our
number just like most people we spend
about $40,000 a year
so 40 times 25 is a million dollars we
had a million dollars we got to our carl
calls at the double comma Club we got a
double comma Club and then we
essentially doubled that with you know
the crazy stock market that we've had
right now so that is what the 4% rule is
if you can live off of 4% of your
investments as an annual spending you
should be good to go perfect very
concise definition yeah yeah way to
describe my conversations and when you
guys were first like thinking about
retiring and you were running the math
because I know a lot of people like I've
mentioned exactly what you said and
they're like a million dollars holy crap
that's a lot of money how could we
possibly do that so when you were first
looking at the numbers did you think it
was close like how did you feel
personally so Carl and I are both super
frugal some people pronounce that cheap
and we just always saved we didn't
really know what we were saving for but
saving is just something that you do you
don't spend every dime that comes in you
invest it in the stock market and and in
real estate real estate is my love and
the stock market is his true love he
invested in the stock market he was a
tech guy and he was fascinated in the
you know the early 2000s he was
fascinated by all of these internet
companies that are coming out Facebook
was this thing and Google he was working
on a project he's a computer programmer
it was having a problem and he was like
oh man does anybody know how to fix this
and it one of his friends said oh google
it he's like what is that and it's kind
of hard to imagine now there was a time
where people didn't know what Google
meant so he looked it up and there was
the exact thing he had to do he
my god this thing this this Google is
unbelievable and they announced that
they were going public so they were
doing this Dutch auction you can look it
up I don't know all the ins and outs of
that but basically everybody says oh
well pay this much for it I'll pay that
much for it and the highest price that
the most amount of people were willing
to pay is what they went with I think it
was like 85 dollars a share or something
and my thought was wow 85 dollars a
share that's a lot of money for a stock
but now it's worth what a thousand
dollars a share or something I don't
know and how many times did it split I'm
not sure cuz that's his wheelhouse he
does all the stock stuff but it has he's
called it a twenty bagger which means
that it is 20 times more valuable than
when we bought it and we bought Facebook
at the IPO we bought you know all these
things the Apple anything like $20 or
something Tesla $20 I don't know if
you've been watching Tesla just go crazy
so he bought all these stocks and just
kind of set them set it and forget it
buy it and then just don't look at them
anymore and of course now we recommend
that you and MSM index funds but that
Weatherly wasn't like a big thing then
so we were just investing in things that
he felt comfortable investing in this
Google is amazing this Facebook who do
you know that isn't on Facebook I met
one lady last night at a meet-up who
isn't on Facebook literally everybody
else I know at least has an account if
they're not on it every single day he
would invest in that and we had
approximately 580 thousand dollars just
in various investments when he
discovered financial independence so
that was the end of 2012 beginning of
2013 and at that point the market
started going crazy and so we had a
really good leg up but it was I don't
want to say it was all this money that
we weren't using because you're never
not using money you're doing something
with it but it was this money that we
had just we didn't need to live so we
had invested it and then it just went
crazy and when we hit the the double
comma Club it was like the week before
his 40th birthday
and he was so excited about that and now
I can't remember what the question was
if you ask me it was what did you have
for breakfast we ended up here so okay
so basically a million sounds like a lot
but because you guys were and you're
basically like mid to late 30s you guys
saved pretty well you weren't going
crazy
as far as spending and you were
generally living within your means for
20 plus years yes well I would say we
were living well below our means Carl
had a really well-paying job I quit work
to raise our two kids and that was
always the plan
I didn't leave some massive career I
left a job that was interesting but not
amazing I stayed home with the girls and
then he continued to make really good
money as a software programmer and we
just I don't know that we could spend
what he was making like that's just not
our makeup we don't we don't have
brand-new clothes we don't have the
latest phones or you know get computers
every time they upgrade or anything like
that and the whole kids are really
expensive
there's expensive as you want them to be
you know I I'm very very blessed that I
have healthy kids we go to the doctor
for their one-year checkups like or
their annual checkups and that's kind of
the only time we go to the doctor so I
do realize that that I'm very lucky in
that way but we just don't spend a lot
of money I don't care about cars and
clothes and you know if you look at me
and think wow that's not a very cool
outfit I don't care it covers the bits
that it needs to cover and that's really
all I need so we were probably living on
I mean we never really did the math but
we were probably living on 40% of his
salary okay and it's amazing too because
I didn't by the way if people want to
follow along the journey like go back in
time Karl documented on his blog fifteen
hundred days so he like tracked it along
the way before you were retired so
career before he left his corporate job
to be more specific
you
#Best Education Page #Online Earning
online earning,make money online, earn money online, online earning, online earning sites,
make money online free, online money income, earn money online free, money online, best way to earn money online, online income site, money earning websites, best online earning sites, easiest way to earn money online, earn money payment bkash, online money income site
Posts
No comments:
Post a Comment