Can You Afford Extreme Early Retirement?

There is a general difference of opinion regardingthe desire to redesign their careers to have more
the philosophy of life as to whether we live topersonal meaning. Finding passion outside of a
work or work to live. There are many who havecareer that had become a chore is a theme
changed the traditional age of retiring. The dreamamong most extreme early retirees. Such people
to retire early can be true if one is consistentlydo not care about the social viewpoint; have an
disciplined, focused and motivated. In fact, there isunwavering focus on their goal and also an
a big media hype about those retiring early, whichindifferent attitude toward amassing all the latest
is certainly encouraging others to follow suit.stuff. There is no one set category that seems
Those canvassing early retirement opine thatto be generally opting for early retirement. They
retiring early leaves you with youth, vigor andrange from young parents, singles and
plenty of enthusiasm to venture out into travelingdual-income couples without children. Early
the globe. It is like being set free to explore theretirement may mean rarely eating out or no
world and experience diverse cultures. There aretelevision but for many that too is an acceptable
many who have taken the plunge. The Kaderlis,option. They share an excitement about their
who retired at the age of 38, are members of alives, a desire to spend time in pursuits that are
small group of founders of the extreme earlymeaningful to them, and often, an environmental
retirement trend among baby boomers. Theconscience.
Kaderlis' initial 500,000 dollars savings grewThe aspiration to retire early demands planning
steadily, partly because they hung in the stockand certain changes in one's lifestyle. Firstly, the
market through the '90s boom and partlyspending and investment priorities need to be set
because they cut down their cost of living to anbeforehand. Secondly, one must remember to
average of just 24,000 dollars a year. Also, initiallystay 100 percent out of debt, except for a
they put all their savings in a low-cost index fund.mortgage. Thirdly, consider investing in stocks
They feel retiring at 38 was an excellent agethrough index and mutual funds. Fourthly, it is wise
because they had accumulated life experiencesto utilize the compounding effect of time by
through their careers. Now in their 50's, they stillinvesting early and lastly, one should try to search
have no regrets except that given a secondfor a partner with the same financial values.
chance they would probably invest sooner andExtreme early retirees often face unanticipated
with more confidence. They have their ownopposition from those around them. The reason
website, which serves as a platform ofcould be envy or just sheer loathing for anyone
communicating with other early retirees and helpswho dares to think differently. An early
to educate the younger generation. Theyretirement is undoubtedly difficult to afford. One's
propagate the basic rule of saving everything andlifestyle is restrained to a large extent. But for
staying out of debt.those who find solace in early retirement, the
Early retirement is a fast catching concept withsatisfaction lies in being able to determine what
today's generation. There is a renaissance ofone is going to do with his or her precious life
attitude amongst the youth. They no longer wantenergy.
to be chained to their desks. Instead they harness