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Subject:  Re: I want to retire early! Date:  8/25/1998  9:17 PM
Author:  ziggy29 Number:  5186 of 88077

>> I'm 27, and I'm just looking for a good way to retire early - not "sit around and eat bon bons" retire. I mean quit working a job, and do the things I WANT to do (golf, travel, raise my kids). <<

Well, I thought about that at an early age too. I'm 32 now, but when I was 22 I started putting 12% of my salary into a 401(k) plan to get me going. I've put in 8-12% ever since -- minimum 8% since that's what the company matches -- and it's looking pretty good now.

So good, in fact, that even at age 55 it should be comfortable given conservative estimates of a 9% return and no future contributions -- and assuming no Social Security. (I don't think anyone our age should plan to get it. We might, but it would be small-f foolish for us to expect it.)

Now I've decided to beef up the taxable, non-retirement portion of our portfolio. If I start small now and increase investment by $100 per month each year in a fairly tax-efficient vehicle earning 7% after tax each year, I can likely retire at 50.

Other than getting lucky, being in the right place at the right time or having a great idea, the best way to do it is to invest all you can from an early age. At 27, put money aside until it hurts and invest for maximum growth over 10-20 years. You should be in pretty good shape.


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