“OMG, the stock market is going to collapse and the world come to an end! And then what are you going to do, wise guy? Go back to work? Ha! Get real. You haven’t worked in forever. Nobody wants your out of date skills. And in a big downturn EVERYONE is looking for a job, and you will be last on every employer’s list. Loser.”
I love 2018. Internet people are so friendly these days. But as much as I am unlikely to invite this guy over for dinner, he does have a point.
“Going back to work” is a fall back plan for a lot of aspiring retirees. If you are dealt a poor sequence of returns in the early years, just call your old boss. But woe is me, this is no longer an option.
But not because my skillz have been back shelved. And not because I am far too busy. The truth is, as far as employment is concerned, retirement has completely ruined me.
(GCC: During our months in Guatemala, we had some truly unforgettable experiences with new lifelong friends. I recall one guy who radiated positivity, was always up for an adventure, and was a gracious guest and generous tipper. Over a few weeks and numerous $0.50 rum & cokes, we talked at length about travel and money, and how to be better at both. I felt inspired to be more generous. He felt inspired to build a respectable “travel for life” fund. And Winnie claims to have not understood any of it, because Nick has quite the heavy Australian accent. So maybe it is a good thing that you get to read his story…. and OMG the PICTURES!!!!)
I am super honoured to be asked to write this for some definite idols of mine. (And I am not one to have many). Other than my parents, who have shown me how to be a decent human being and how to raise a family, (my life’s main goal), Jeremy and Winnie are up there. After meeting them in Guatemala, they have stood out with their ambition of living their dream. Not just because they found a way to retire early and travel, (my life’s second goal), but because they saw their dream and went for it. They didn’t get bogged down and follow the mundane society’s way of life. They are living their dream. Hopefully I am on that path now, as here I am currently working for a year at Mawson Station in Antarctica!
(GCC: The transition from “earning and saving” to retiring (early) and “spending” is daunting for many and terrifying for some. We analyze, examine, cross-examine, think, over think, and then analyze some more… So what happens when you ultimately pull the trigger? 3 years ago I provided some feedback* to Mr & Mrs NYC as they were going through these mental gymnastics. Now, let’s check in with them as they hit their 2-year and 3-year early retirement Anniversary, respectively, and see how they managed that transition and their Escape from New York. tldr: After reading their story, I’m super jealous. What a truly amazing and rewarding life!)
A few years ago, we were in our early 40’s, married with two cats, living in NYC, and working high-pressure jobs in careers where we achieved success but not much personal fulfillment. GCC performed a financial review for us and opened our eyes to an opportunity: if we sold our Manhattan condo and moved to a lower cost of living location, we could quit our jobs immediately and live off our savings — according to the math behind the 4% rule, at least.
(GCC: People read everything I’ve written about Real Estate and automatically assume that I believe owning real estate in any form is a terrible idea. That is understandable, but is only mostly true :) When consciously entered as a real business and with a compatible personality, rental real estate can be a capital friendly, cash flow friendly, and tax friendly path to Financial Independence. In fact, this is the approach I recommended to my own brother. Today, Coach Carson enhances our Never Pay Taxes Again series, paying no taxes with rental properties.)
Jeremy set the bar high for early retirees. While most of us aim to minimize or optimize our taxes, he wrote an article that took it to another level entirely. His crazy idea was to Never Pay Taxes Again!
After reading Jeremy’s article, I began to look more closely at my own tax returns. I realized that most years I also paid little or no income taxes. And it turns out I used the same core principles Jeremy explained, except I did it with real estate investing.
So, this is my turn to show how to never pay taxes again (or at least keep them to a minimum). I’ll build on the core principles you’ve learned from Jeremy. Then I’ll explain the nuances that make real estate both beneficial and challenging.
