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). I know this is possible, but the only people that I know who have done this in the last few years have started Amway Distributorships which have created large residual incomes for themselves. It's obviously a good, reputable business, but it's tough to get over the cynicism that people have about Amway. Does ANYONE know any other way to create a large residual income to produce an early retirement??

Greetings, Dier71, and welcome. You asked:

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). I know this is possible, but the only people that I know who have done this in the last few years have started Amway Distributorships which have created large residual incomes for themselves. It's obviously a good, reputable business, but it's tough to get over the cynicism that people have about Amway. Does ANYONE know any other way to create a large residual income to produce an early retirement??

Well, lessee. You could win the lottery or the American Publishing House Sweepstakes. Or perhaps a filthy rich relative could die and leave you everything. Maybe you could invent the better mousetrap no one can live without. You could even rob a few banks or print money as you need it, but I don't really advocate either. Beyond those ideas, I guess you'll just have to earn your retirement like the rest of us. It's reached through something called work and investing. Sometimes the combination produces favorable results rapidly, and at other times it takes a number of years. Regardless of which, the approach is successful more often than not.

Regards….Pixy

>> 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.

Tim

<<the only people that I know who have done this in the last few years have started Amway Distributorships which have created large residual incomes for themselves. It's obviously a good, reputable business, but it's tough to get over the cynicism that people have about Amway.>>

Not to mention the scads of people whose garages are filled with Amway products that they can't sell, having lost all their [former] friends, relatives, and casual aquaintances.

<< Does ANYONE know any other way to create a large residual income to produce an early retirement?? >>
1) Powerball comes to mind.
2) Buy Home Depot 10 years ago.
3) Buy Dell 7 years ago.
4) Sell short OXHP, CD, ATCT one year ago.
5) Buy "the next Microsoft". (Hmm, yes. But which one? Everytime a broker cold-calls me, he has the next Microsoft.)

Or you can do like the rest of us: Dump every spare penny from every paycheck into good investments for the next 10-15 years.

Ray

ziggy29 said:

"At 27, put money aside until it hurts and invest for maximum growth over 10-20 years. You should be in pretty good shape."

I love this. I'm 26 and I'm hoping so!

--AliFool : )

An earlier reply wrote:
<<the only people that I know who have done this in the last few years have started Amway Distributorships which have created large residual incomes for themselves. It's obviously a good, reputable business, but it's tough to get over the cynicism that people have about Amway.>>

Not to mention the scads of people whose garages are filled with Amway products that they can't sell, having lost all their [former] friends, relatives, and casual aquaintances.

dier71 wrote:
<< Does ANYONE know any other way to create a large residual income to produce an early retirement?? >>

When I spent 22 years working for the government and ten in corporate America, I thought I was getting set for retirement. Had a nice home, some investments in 401k and self-directed IRA. After a few corporate downsizings due to corporate bankruptcy, a corporate buyout, and a division divestiture, I realized that control was not in my hands. I did not start an Amway distributorship. But I did start with another network marketing company and am growing a very large organization through a few committed people like me.

There are lots of people who are not "The millionaire next door" who are being successful in networking. Some of us are just carving a very nice extra income that we can use Foolishly. And you don't have to have garages full of product with today's fast distribution systems. I am affiliated with Enviro-Tech Int'l (NASDAQ BB: ETIC) and would welcome your inquiry. There are lots of companies like this one with great products and great people who might be just the ticket for an ambitious entrepreneur with a few years to devote to building a business. The tax breaks might be just the thing a retiree needs!

I gave this message lots of consideration before posting, because I know there are lots of misunderstandings about this business. Believe me, I had most of them before involving myself 16 months ago!

Congratulations to a fellow Network Marketer. My wife and I started our Shaklee distributorship 2 years ago after 8 years in Corporate America left a sour taste in our mouths. I am currenlty in "Foolish training" absorbing everything I can....what a fantastic web site!! Take care....