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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76111  
Subject: Re: Retire at 30 Date: 4/28/2013 7:39 PM
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PSUEngineer writes,

Absolutely!

As Warren Buffett says, "I won the ovarian lottery." I was born a white guy in America -- and that puts me ahead of 99% of the world.

That's not the luck that I was referring to. It was your investment in Dell.

</snip>


While I bought Dell and Pfizer in the early 1990's (some would say that's the equivalent of winning the lottery) those two stocks didn't really take off until after I retired in 1994. Prior to my retirement, my investment returns only exceeded the S&P500 by about 1%. I can't say that it was "beating the market" that allowed me to retire early (though it made me wealthy after I retired). Minimizing my living expenses and saving played a much larger role.

Even if you just invested in a 60% S&P500/40% fixed income portfolio when I retired in 1994 instead of the much more volatile mix of individual stocks I held, you'd still have 2-1/2 times your initial portfolio value today after 18 years of inflation-adjusted withdrawals. I believe most retirees would call that more than comfortable.

intercst
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