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Retire Young! You CAN Retire Young: How to Retire in Your 40s or 50s Without Being Rich |
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INTERVIEW QUESTIONS AND ANSWERS
If you are interested in the Ferstenou's story and don't have time to read the book, here is a list of 37 interview questions that have been asked by journalists and other interviewers. They are divided into four sections:
Personal Background & Writing the Book
If they make your job easier, please feel free to use them in an article or contact Larry for more information.
Personal Background & Writing the Book 1. Why did you write You CAN Retire Young? So that others could follow our lead and also enjoy the advantages of retiring early. Because our income of $47,300 per year average over 18 career years was far more “average” than is normally the case when someone writes a book on early retirement, I felt that readers would better identify with our story and it would provide the inspiration and strategies for others to follow suit.
2. Who, if anyone, provided inspiration in writing your book? Credit goes to Paul and Vicki Terhorst. In 1992 we read their book, Cashing In on the American Dream (1988), and retired a year later. We realized that retiring young was not only financially feasible for us, but it was preferable to working for a living. It's a great book that, unfortunately, has been out of print for many years and can be hard to find. I was delighted to be retired at 42 and wanted to write an updated book that shared our "3 Keys" to retiring young so that other baby boomers, and especially those younger, could also retire early if that was their goal (and surveys indicated it was for most).
3. What input did your wife have in writing the book? Kris said, “It’s your book” and left me to write whatever I wanted. But the book is based on our joint philosophy about following the “3 Keys” to retiring young: simplify your life, embrace financial self-discipline, and invest wisely. Retiring from full-time employment in our early 40s was a joint decision and one we've never regretted for a second. Kris assisted with calculating statistics and, after reading the first draft of the book, suggested the addition of more charts and provided input on things I’d written and hadn’t written. I then finished it.
4. Tell me about the circumstances of the unexpected family death which changed the course of your life. In 1977, at the young age of 52, my dad suddenly died of a heart attack. My wife and I were in our mid-twenties at the time and realized first-hand that life can be much shorter than we anticipate. It was predominantly that experience, reinforced by my 17-year career in vocational rehabilitation where I saw how peoples’ lives were altered so suddenly by accident or illness, that convinced Kris and I we needed to retire early. Our initial goal was to retire when I turned 50, since my dad died at 52. We set savings goals in 1977 and spent the next 16 years doing what we could to make retiring early a reality. As it turned out, reality came eight years earlier than initially planned.
5. After living in Wisconsin for 25 years, why did you move to Kansas? It appeared the best opportunity for us following my graduation from the University of Wisconsin–Stout. Besides the job itself, it was further south, we figured the winters wouldn't be so cold, and it was a different area of the country to experience. We assumed Wichita was a large enough city that Kris could continue teaching.
6. What prompted your move to California after living in Kansas only three years? After growing up in small Wisconsin towns, we found Wichita to be too large of a city for us. There was too much crime, traffic, wind, and too many racial problems. But the kicker came in the winter of 1979 when we were trapped in our house from Friday night until Sunday night with no power due to an ice storm. We were so cold and miserable that weekend (which had to be the longest two days of our lives) that we vowed to never spend another winter in the Midwest. In June we moved to Santa Maria, California because of a job offer for me that fit our needs well and because it was a smaller city with no snow or pollution. Again, it was a totally different area of the country to experience and explore. It also fulfilled a childhood dream. As a youngster in north-central Wisconsin, I used to watch the Rose Bowl Parade every New Year’s Day and wish I lived where it was warmer in the winter. That opportunity had finally come.
7. Why have you chosen Utah rather than California for your retirement years? We wanted to expand our horizons and experience yet a different area of the country (this time the desert). We decided there were too many people and too much traffic in California and it would be less expensive to retire elsewhere. St. George was the right size (about 35,000) and had a good reputation for retirees. It was also: less expensive than California, known to have strong family values, relatively close to a major airport (Las Vegas), and it met our number one criteria—below the snow belt. The first time we drove through Southern Utah in 1975 and saw all the natural beauty, I commented to Kris that some day we should live here. Once again, the opportunity to fulfill a dream had come to reality. Having had the opportunity to experience four different areas of the country has been truly enjoyable, and I don’t think we’d look at things the same way if we’d stayed in the upper Midwest all of our lives. Once we decide on a fifth area of the country to try, we’ll look forward to that move, too.
8. You and your wife retired at ages 42 and 40. How did you manage to retire so young? This is the most common question we've been asked over the past eleven years. We were motivated by my dad's death at age 52 and set a goal when I was 26 to retire when I turned 50. We believed there were three keys to retiring young that would get us where we wanted to be—and they did—eight years earlier than expected. The "3 Keys" to retiring young (simplify your life, embrace financial self-discipline, and invest wisely) that assured our early retirement are described in detail in the book. By the way, the second most common question we've been asked is: What did you do for a living?
9. Where did you learn the money management principles to save and invest like you did? We both come from relatively frugal families (and families without a lot of money) so we learned early on how to live with less. Our investing knowledge came from a combination of trial and error, a broker we trusted, and self-study. We're both analytical thinkers so we consider our options from different perspectives and then make informed decisions based on our goals.
10. You write in the book that your interests and hobbies have changed over the years. How have they changed and what are they now? We read a lot, attend plays, concerts, local workshops and seminars, and exercise 1-2 hours most days either hiking, biking, or using our treadmill, Bowflex, and stair stepper. In addition, Kris regularly participates in racquetball, Tai Chi, and Yoga. She has been the treasurer of her church for several years. I enjoy music and manage our investment portfolio. We visit with and help out friends far more than we used to when we were working for a living; of course, that’s because we now have the time and flexibility. In fact, much of the work we do is more to help out friends than for any other reason. We enjoy bargain shopping—buying things at prices too-good-to-turn-down—and get a kick out of shopping both mainstream and thrift stores searching out the best deals. Anyone can buy things at full price—the challenge is in finding exceptional values (which, for us, is usually 10 to 25 percent of retail price). We bargain shop for the challenge more so than because we need anything, so we donate most of our purchases. Building two new homes kept us busy for a couple years with searching out locations, monitoring construction, and doing our landscaping; we also volunteered hundreds of hours for our homeowners' associations. For about five years writing and promoting my book took up far more time than I anticipated, even though most of it was fun. We have done limited work as independent contractors over the years; the hours have varied significantly but amount to only a few a month on average. Kris has chosen to work more than I have, but I spent countless hours on my book and writing articles to post on the Internet. We most enjoy short-term, temporary jobs so we aren’t tied down to any regular schedule. This is our third consecutive year as volunteer Tax Aides for the AARP Tax Counseling for the Elderly program and the past three summers we have been volunteer ushers/shuttle drivers at the Tuacahn Center for the Arts (an outdoor amphitheatre). Last summer we began volunteer ushering at the St. George Musical Theatre and for the past couple years have been members of our Community Emergency Response Team (CERT). In January of 2005 we started a new volunteer project: sending care packages to our troops in Iraq and Afghanistan. Whether or not one supports the war, we feel there is a need to support the troops who are there risking their lives every day. We started with a goal of sending two or three care packages per month. But as others heard about what we were doing, many wanted to help. We received donations of books, magazines, food, personal hygiene items, clothes, DVDs, CDs, and cash to help cover shipping from individuals and organizations and by the end of the year we had sent 235 care packages. With reading literally thousands of emails on www.anysoldier.com to obtain names and addresses, shopping for bargains, collecting from organizations around town, packing boxes, writing letters to accompany those boxes, standing in line at the post office, keeping track of packages sent and responses received, and distributing a monthly report to all of our contributors, it turned out to be nearly a full-time job. Although scaling back some, we are continuing this project in 2006 and hope that these efforts help boost morale a little and make life a little better for our troops while they are deployed overseas. We've been involved in a variety of activities over the past 12+ years. Interests change and so do opportunities; that keeps life from getting too routine. One thing I can say in all honesty: boredom is not a problem and it shouldn’t be for anyone who retires early for the right reason.
11. How is your health and do you advocate any regimen to accompany retirement plans? We have our aches and pains but are reasonably healthy overall. To try and stay that way, we believe diet and exercise are important. Seven years ago we switched from the low-fat, high carbohydrate diet recommended by the American Heart Association that we'd been following for 25 years, to one that minimizes bad carbohydrates like white flour, sugar, and corn. We also added a daily dose of oats. My cholesterol dropped 50 points and has stayed in that range; though not overweight to start with, I also lost 17 pounds. Kris experienced less dramatic but positive results also. I usually walk/hike 20 to 30 miles per week; Kris walks less but plays racquetball twice per week and takes classes in Tai Chi and Yoga. And we use our Bowflex regularly for resistance training.
12. What concerns do you have about the future that might impact your continued retirement? Our main concern is our aging parents. According to our retirement plan, we have enough money to sustain the two of us for the rest of our lives, as long as we follow our budget. But our parents are getting older and our concern for the future is the day they can no longer live independently. We could find ourselves in the position of having to care for them physically and/or financially and that potential expense is not figured into our long-term retirement plan. Since there are numerous variables that can occur, we don't lose sleep worrying about how we are going to handle that potential situation. If and when the need arises, we will take care of it at that time.
13. After 12 years of being retired, do you have any regrets? Absolutely none. We recommend early retirement for anyone who believes it would be beneficial for them, and it was for those people that I wrote my book. Of course, the other question we get is, do we wish we had retired earlier? The answer to that is also no. Had we retired earlier, we wouldn't have had enough money to fulfill our goal of being retired for the rest of our lives.
14. Money disagreements are the number one cause of marriage problems. Did you and Kris always have the same philosophies? Fortunately, we're both practical when it comes to spending and we've both always been good savers. We agreed early on that we could best achieve our goals by working together and, in the 29 years we've been married, all purchases of any significant value have been made with input from both of us. We usually shop together so each of us has the opportunity to express our opinion. Like most couples we don't always see eye to eye and, in those situations, compromise goes a long way. Tracking expenses since 1974 has kept each of us informed as to where our money is being spent so that we can make adjustments as needed in the future. Our advice to others: Money disagreements can be minimized if each spouse stays on top of their financial situation and makes a concerted effort to work together to achieve mutually-beneficial goals.
15. You accumulated $500,000 in 18 years and retired. Specifically how did you accumulate that much money on an average annual income of only $47,300? It is important to set goals, to save as much as you can, and to start as early as possible. In 1977, while in our mid-twenties, we set a goal of saving an average of $10,000 per year so we could retire early. Although the amount of money we saved each year wasn't consistent, we put away about 30% of our income per year on average and by the end of our first ten years of marriage we had $97,000 in the bank earmarked for retirement. Thereafter, our annual income increased significantly and our percentage saved increased with it. We were earning close to $100,000 our last couple years and were saving 60% of after-tax income. This aggressive savings/investment program allowed us to retire after 18 career years rather than the 24 years we'd initially planned.
16. How can readers pick up their savings pace? They should start by tracking expenses so they know where their money is being spent. Thereafter, they should do the following: (1) Cut a little out of each expense category if possible. Try for at least 10 percent, but it may be possible to cut some areas much more than that. (2) Set up a budget to focus future spending. (3) Simplify their lives. (4) Shop wisely by bargain hunting, buying in bulk, taking advantage of clearance sales, and seeking the best value as often as possible.
17. Is a six-figure income necessary to exit the workforce in one's 40s or 50s? Not if we're the example. We retired young on a combined income that averaged only $47,300 per year over our 18-year careers. By following the "3 Keys" to retiring young, it is possible to exit the workforce early without being rich or earning six figures. However, that doesn't mean everyone can retire in their 40s. Having children or possibly parents to care for financially may delay retirement 10, 15, or even 20 years. But those who start preparing well in advance and who follow the 3 Keys to retiring young will retire years earlier than will otherwise be possible.
18. If a reader has a lot of debt now, what can that person do? Top priority is to stop increasing the debt. Cut up all credit cards and start paying with cash. This will provide a renewed perspective and appreciation for what the reader can and cannot afford to buy. Pay off debt as soon as possible by establishing a budget and cutting back expenses as much as possible. Try borrowing money at a lower interest rate from family or friends to pay off high-interest debt. Then start saving and investing the money that was previously spent on debt interest.
19. You've worked part-time during your early retirement. Was that out of necessity or choice? According to our retirement planning program, we didn't need to work at all to retire young and stay retired. However, Kris wanted to work enough each year to continue contributing to her IRA. I got an earlier start than she did and have considerably more money in my retirement accounts; her goal was to catch up. I started working a few hours a week thereafter, too, in an effort to continue padding my retirement account. Since working had become a choice rather than a necessity, we didn't mind. What we learned from that choice is the impact that working part-time can have on one's early retirement. It can allow you to do things you wouldn't otherwise be able to do, or it can allow you to save more for the future which grows tax-deferred and can make a significant difference later in your retirement. Chapter 15 of my book is devoted to the issue of working part-time in retirement.
20. Where did you learn how to invest so you could give up working in your 40s? Interestingly, whereas the stock market has long been the place to invest if one wants to accumulate wealth, that isn't how we accumulated our money over most of our 18 career years. We didn't understand the stock market and had a fear of investing in it. Instead, we made other good and bad decisions. In chapter 10 of the book I discuss investing mistakes we made so that others can maybe avoid those same mistakes. On the positive side, in the years we were trying to accumulate net worth to retire young, the U.S. experienced several years of high interest rates. Those were years in which we had money in CDs and a 403(b) annuity where we were earning 10–13% interest; that was most beneficial in growing our money. It wasn't until 1990 that we started investing in the stock market and we started aggressively buying no-load mutual funds in 1992 after I began studying financial magazines, books, and Morningstar. I still read personal financial magazines and other sources on a regular basis, even though our portfolio and asset allocation are pretty well set and need only a little adjusting now and then.
21. For those already in their 40s, is it too late to start saving and investing? It's never too late to start investing. In fact, we are still contributing to our retirement accounts. With the three-legged stool looking so wobbly, many baby boomers and those younger are going to find themselves working well beyond what used to be retirement age and some may never be able to retire. So those in their 40s who are motivated to retire earlier rather than later and who follow the 3 Keys to retiring young, will be able to accelerate their retirement date. There are numerous variables to consider besides age: income, savings discipline, investments, desired lifestyle before and after retirement, and whether or not there will be a defined-benefit pension to look forward to in the future.
22. Have you ever been in debt and, if so, how did you get out? Upon first getting married, we had about $5,000 between us in savings and $11,000 in school loan debt. We paid off the highest interest rate loan (8%) within the first year and the remaining low interest rate loans (3%) over time. Until we retired, we always had a mortgage and we usually took out three-year loans on our vehicles. But we kept our cars well beyond three years so they were debt-free most of the time. Most importantly, we have never maintained a credit card balance. With the exception of our house and vehicle, our philosophy has always been that if we can't afford to buy something with cash, we can't afford it; we recommend that same philosophy for anyone who wants to retire early. We are debt-free in retirement and strongly endorse that strategy.
23. How should people invest their money so it will grow? I believe the best investment strategy is to diversify into at least three different investment categories like stocks, bonds, cash, real estate, and maybe some gold or other natural resources. Set your asset allocation based on your age, goals, and comfort level. Research historical rates of return for various investments to give yourself confidence that your choices can help you meet your goals. Dollar-cost-average your money into the stock market. Use mutual funds for simplicity. Buy no-load mutual funds with low annual expenses and no 12b-1 fees. Keep in mind that It doesn't get much easier than index funds. Always remember that there are no guarantees and growing net worth so that you have enough to retire early will require assuming more investment risk.
24. Investing tends to be cyclical. How can people figure out the next hot sector to invest in? The bull market years of 1995–1999 were fantastic for anyone accumulating net worth to retire young. They didn't "make" our retirement because we were already retired, but it surely solidified it because we didn't give our gains back when the market nose-dived in 2000. The recent "bear" market hurt a lot of people, but after five consecutive record-breaking "up" years, it should not have surprised anyone that the market was going down. We don't try to outguess the stock market and have no plans to shift our investments to what we think might be the next hot sector. We are comfortable having a diversified portfolio of stocks, bonds, cash, and REITs and holding them for the long-term. If you are in the net worth accumulation stage, you will probably invest more aggressively than you will during your retirement years. Once you retire your main concern has to be keeping your money so that you can live off it and stay retired. But if you get too conservative, inflation can eat up too much of your nest egg too. In my opinion, since no one can predict the future, a diversified portfolio of stocks, bonds, cash, and real estate seems a prudent strategy for the long-term.
25. How did your portfolio survive the bear market? For the three years ending December 31, 2002, the Wilshire 5000 Total Stock Market Index lost nearly 40%, the S&P 500 nearly 50%, and the Nasdaq about 70%. Considering that, were were pleased that our net worth (comprised of stocks, bonds, cash, and REITs) over that same three-year period declined only 8.2%. Of course, 2003 was a great year and, as of December 31, 2003, our net worth was up 8.5% from where we were on December 31, 1999 before the bear market started. And we take money out on a monthly basis to live on. One thing we don't do is sit around worrying about our investments.
26. How much time do you devote to managing your investments? A lot less than you probably think. Most of the time spent in managing investments is at the beginning when you need to decide asset allocation and where specifically to invest your money—individual stocks and bonds versus mutual funds, REITs, natural resources, cash, etc. Once those decisions are made, and assuming those decisions simplify your investing, there isn't a whole lot to do thereafter. I recommend in chapter 10 a simplified investing program that virtually anyone can do; in actuality, it's what I wish we'd done starting in 1990 to simplify our portfolio. As far as time spent, I devote a couple hours each quarter to calculating net worth, a couple hours at the beginning of each year re-balancing our portfolio (if needed), and a couple hours each February plugging net worth figures into our retirement planning program so I can see if we are on track to remain retired for the rest of our lives. That's minimal time to spend considering the many thousands of dollars we've saved on commissions to financial advisors. Of course, I spend several hours monthly reading related magazines and other materials, but that is for fun, not because it impacts our investing.
27. What can readers who don't have retirement plans expect in the future? They can expect to find themselves working the rest of their lives out of necessity rather than choice. Retirement has traditionally been possible because of income derived from three sources (defined-benefit pensions, Social Security, and personal savings) generally known as the three-legged stool. However, for most baby boomers and younger workers, that stool is collapsing and those three sources will not provide the level of income currently being seen. Defined-benefit pensions (otherwise known as employer-funded or traditional pensions) have been declining for years in favor of 401(k) and similar plans which require significant contributions by employees. Social Security is projected to be insolvent in about 14 years; you can expect the program to be around for a long time, but don't expect it to be the same as it is today. That leaves personal savings. Unfortunately, few are saving enough and working Americans will need to step-up their personal savings appreciably if they don't want to find themselves working forever.
28. Can you name one particular strategy you implemented that will guide others to an early retirement? I don't believe there's just one, but there is a combination of strategies that can be effective—what I call the "3 Keys" to retiring young: simplify your life, embrace financial self-discipline, and invest wisely. By following those keys we were able to retire in our early 40s. Not everyone will be able to retire that young, but by following the 3 Keys most anyone will be able to retire earlier than will otherwise be possible.
29. Give me an example of each of your "3 Keys" to retiring young. (1) Simplify your life: buy less stuff, have less clutter around the house, and spend more time with family and friends doing less-expensive activities. (2) Embrace financial self-discipline: live below your means—that is, spend less than you can afford to spend and save the difference. (3) Invest wisely: maintain a diversified portfolio that, at a minimum, includes stocks, bonds, cash, and perhaps real estate and hold on for the long term.
30. How can readers figure out how much they need in investment funds to retire comfortably? First, calculate how much it costs to live now, then estimate what it could cost without all the work-related expenses like clothes/uniforms, meals out, commuting, dry cleaning, child care, make-up, seminars/conventions, cell phones, etc. Add in any anticipated new retirement expenses—travel for example. Next, calculate anticipated income from employer-paid pensions, Social Security, dividends, interest, and capital gains. Does projected income cover projected expenses? Calculate investment income based on an estimated rate of return. For example, $500,000 at 8% return = $40,000 per year. But that assumes a steady return, which won't be the case for most people. Many financial advisors suggest that you can safely withdraw 3 to 4 percent of your money each year. Research has shown that 4% of a portfolio can be withdrawn each year (adjusted thereafter for inflation) without running out of money for 30 years. T. Rowe Price has a Retirement Income Calculator on their website (as do other sites) that can help you figure out how long your money might last based on how much you have, how you invest it, and how much you withdraw.
31. If a reader has several children under 18 and they want to help them with college, is there any hope for an early retirement? Yes, depending on several factors: How well they have planned to date; current income and, especially, future income potential; can they take advantage of school loans, scholarships, and grants rather than paying outright for college from what should be their own retirement fund; will they have at least one defined-benefit pension to look forward to which could significantly compensate for a lower net worth; are they willing to work part-time if needed in retirement to supplement their income; and what kind of a lifestyle are they living before retirement and how do they want to live in retirement?
32. How will retiring early affect your future Social Security (or anyone else's for that matter)? Chapters 12 and 13 of my book are devoted to Social Security. I believe the program will be around for a long time, but it will be different than it is today. Social Security is headed for insolvency in 14 years or less. In order to survive, one or more of the following will need to occur: the retirement age will need to be raised, monthly benefits will have to decrease, annual cost-of-living raises will need to be eliminated, or the federal government will need to print more money and finance the program through additional debt. It’s going to impact the retirement of most of us baby boomers and especially those younger. Regardless of it's name, don't expect Social Security to secure your future retirement. As far as collecting future benefits, if you exit the workforce early you will get less money at 62 or later than if you continue working. But chapter 13 explains how the amount of money you will pay in FICA taxes will exceed the amount of money returned to you in benefits the longer you work (assuming Social Security is compared to how most retirement plans work). I think people will be surprised by what they read in chapter 13 and more motivated to retire early after they read it.
33. What kind of sacrifices did you have to make to retire young (and to stay retired)? We don't consider the moves we've made to retire young (and stay retired) as being sacrifices, but we do make trade-offs. Most of the choices you make in life are trade-offs. You look at your options and choose to do one thing or another. The choices you make normally impact you emotionally and financially. Some may consider not owning a 3,000 square foot house, a $40,000 luxury car, cell phones, a large-screen plasma or LCD TV, or taking a vacation to some exotic destination every year as sacrificing. But we consider not doing or having those things as trade-offs for being able to retire young. Financially, we could afford all of that (and much more if we maxed out a few credit cards). But having and doing all of that would require us to return to work because we would either be out of money and/or in debt. The trade-off is to find things to do that are less expensive and then invest the savings so that net worth grows and you can afford to quit working and do other things in life. If you value your time and want to have freedom and control over your life to do things you find more fun than working full-time, then you have to make trade-offs to save more money so you can live off your investments. In our opinion, early retirement for the past twelve years has more than made up for all the depreciating assets we could have had, but chose to trade-off, in years past (and still do trade-off).
34. What about health insurance when you retire early? While some early retirees choose to do without health insurance, Kris and I cannot imagine that. Health care is so expensive that we are not willing to risk one of us having an accident or coming down with some kind of illness that could cost us dearly—like a good share of our retirement nest egg which would force us back to work. We (and many other early retirees) have chosen high-deductible policies to keep premiums down. Of course, that doesn’t stop our insurance from going up 10% per year. Obviously any early retiree who believes health insurance is essential will have to decide how much of a deductible they are willing to carry (in essence, you self-insure up to your deductible amount). The next thing is to exercise regularly and not smoke, drink, or overeat so that you stay healthier and generally need less health care services.
35. If somehow your net worth shrank significantly, what would you do? Upon retiring in our early 40s, we discussed what could possibly happen in the future. We figured that in a worst case scenario (such as the stock market taking a plunge like Japan has experienced), the worst that could happen is we might have to return to work—maybe part-time, possibly even full-time. In that case, at least we would have enjoyed the years we were retired; and we figured we would still be better off than most people because we live by the "3 Keys" to retiring young. Of course the other scenario is that the stock market continues pretty much in its historical pattern and we never have to return to work. It's been over 12 years, we're still retired, and we plan to stay that way for the rest of our lives. What we find most amazing is that after nearly 12 years of early retirement our net worth is far higher now than it was when we retired.
36. If you could have done one thing differently in planning for your retirement, what would it have been? I would have invested differently. Instead of accumulating 22 mutual funds from six different fund families (which have now been reduced to 11 funds in three families), I would have invested in a couple of index funds and then added 3 or 4 other funds for variety. I also would have studied the stock market when we first got married and started investing in mutual funds in 1982 instead of real estate limited partnerships, which have cost us dearly over all these years. Kris has two answers to that question. First, had she known we were going to retire at 40 and 42 years of age, she would not have wanted to buy our last house; rather, she would have elected to remain in the smaller house we occupied before that. What it would have meant was nearly half the mortgage payment each month for seven years—a savings of nearly $49,000 that could have been invested for retirement and which would have grown significantly over that seven years and thereafter. The second thing she would have done differently had we known we were going to retire in 1993 was try to save even more money the last couple years. That might have been rather difficult since we were already saving about 60 percent of our after-tax income, but with a specific goal and focus on achieving that goal, I'm sure we could have saved even more.
37. Other than the "3 Keys" to retiring young that you discuss in your book, can you share a few essential factors for retiring early? Here are five things we see as beneficial, if not essential, for retiring early: (1) Good communication between spouses, (2) the ability to compromise when you don't agree, (3) analytical thinking applied to your spending and saving, (4) a focus on the long term and what is most important to you; and (5) a commitment to prioritizing expenses and making trade-offs to achieve your long-term goal.
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