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You are here: Home / Case Studies / Case Study #12: Escaping a soul-crushing job before you’re 70

Case Study #12: Escaping a soul-crushing job before you’re 70

by jlcollinsnh 71 Comments

crossroads

When Tom’s comment/question showed up February 5, 2015 in Ask jlcollinsnh it immediately captured my imagination as a potential Case Study, mostly because it offered something different. He has arrived at a crossroad.

On the surface it was just a couple of simple questions. What retirement accounts to use? Can they be accessed before age 59.5? Questions I’ve answered many times here and have discussed in several posts. But the truth is, simply answering those wasn’t going to help Tom much.

Tom’s real issue was in the line: “I simply do not want to work a ‘regular’ job until 59-½, the thought of that is soul crushing…”

At some level Tom knew that’s what he was asking and so he provided some detail as to his situation.

In review, it was clear Tom has arrived at a crossroad. He could continue down the path he’d created hoping to escape or he could make a hard turn down an entirely new path, and actually escape.

The following is a combination of his original note and some additional information he provided in an email exchange. Let’s take a look….

Tom writes:

Hello Mr. Collins,

I am a follower of your site, and point anyone who seems interested here as well. I would find it very helpful to hear your advice for our situation, when you have a chance.

Personal Situation –

  • My wife and I are 35 and 37 years old, expecting our first baby this year.
  • I have a regular job, with Fidelity 401k and ROTH 401k plans available.
  • I currently contribute 15% to the 401k. Plus the 3% company match.
  • My wife works from home, has no company retirement plans available.
  • Together our annual income is ~$115,000
  • I also have additional income of ~$18,000: $1,500+ per month before tax, from side hustles, and intend to grow this further.

Assets –

  • 401k (me): $20k (VTSAX)
  • Rollover IRA (me): $88k (VTSAX)
  • Non-Vanguard Rollover IRA (wife): $75k (Target Date Fund)
  • Cash Savings: $30k
    Total: $213k

Properties —

  • Townhouse (Rental): Value $150,000, $165,000 mortgage @ 4.125% (This property is essentially break even, until we need new tenants, or a repair comes up). Equity = -$15,000
  • Current House: Value $195,000 (hopefully, it is a tough market), $178,000 mortgage @ 4.625%. Purchased one year ago. Equity = ~$17,000

Other Liabilities –

F150 and boat

Not actually Tom’s

  • Boat: $14k on the Loan (Fishing is my one indulgence…important to my mental health :) )
  • Future Car to Replace Wife’s Vehicle: $TBD

Vehicles (both paid for) —

  • 2003 Jeep Liberty (high miles and the one we want to replace)
  • 2003 Ford F150

I simply do not want to work a “regular” job until 59-½, the thought of that is soul crushing…yet we couldn’t access any of our investments thus far until 59-½ anyways.

How do we get out of that ‘box’? In what order would you recommend investing in the various retirement account options in our situation?

There is a lot of information out there to clutter one’s mind. I feel stuck and unsure how to go forward, or what changes I need to make. I suspect just dumping everything into the 401k is not the best plan. Your thoughts are always appreciated.

-Tom

 

jlcollinsnh replies:

Hi Tom…

Thanks for the kind words and welcome.

I’m happy to give you my thoughts, but you might not like them. You are asking mostly about your investments when it is your lifestyle that stands in your way.

You say the thought of working to 59.5 is “soul crushing” and yet you’ve constructed your financial life as if you plan to work into your 70s. So let’s start with a reality check.

With the side gig, your annual income is ~$133,000. You don’t say what your annual expenses are but, since your only savings is the 15% to the 401k, they are running very high.

Let’s assume you are going to get those down to half your income: $66,500. Using the 4% rule, you’ll need $1,662,500 to generate that income. You currently have $213,000, plus basically zero equity between the two houses.

Your current savings rate is ~15%, less actually as that is simply against your job income. Take a look at this chart*:

Image

The chart assumes an 8% annual investment return and that you’ll live on the classic 4% withdrawal rate, which implies assets of 25 times your annual needs. So, this is not a gospel, but a guideline.

At a full savings rate of 15%, you’ll be retired in 33 years, when you are 70. Double that rate to 30% and you’re there by ~59.5. If you want to get there by age 47, you’ll need to save ~65%. Maybe a little less as you have a $213,000 head start.

At this point it should be clear that getting there is going to take a major shift in your priorities. Assuming you’re game, let’s take a look at what those might be:

—You need to max out your 401k and an IRA for your wife. You want these to be deductible to defer taxes and to keep as much of your money growing and working for you as possible.

—Don’t worry about not being able to withdraw tax-deferred money before 59.5. There are ways around that as described here: Early Retirement Withdrawal Strategies. But more importantly…

—Your new savings rate is going to allow plenty more money to invest in a taxable account accessible anytime. Read the Stock Series on how.

—Unload the rental townhouse. Break-even is a terrible position to be in and, as you correctly observe, it leaves you vulnerable to large, random expenses. This is going to mean a hit to your cash reserves as you are underwater. But that is a sunk cost and it is important not to let such thinking keep you trapped.

–As an alternative, you could sell your house and move to the townhouse. This would preserve your cash and might (?) offer less expensive living.

house-on-cliff

–But if it were me, the truth is I’d dump them both and find the cheapest apartment I could tolerate. Ideally close enough to walk to work.

—Dump both vehicles and replace them with one small used indestructible Japanese sedan. Spend less than what you get for the Jeep and Ford on this. Should be easy. With gas prices down, economy cars are cheap just now and the price for your truck will never be higher. Try to bank at least some of the money.

–With your wife working at home, you only need one car. Yes, I know this will be inconvenient. But we did it right thru our teenaged daughter’s driving years. It just takes a little planning and coordination.

–The Jeep you say is used up and an F150 is way too expensive to operate if you are serious about reaching for FI.

–But wait, what about towing the boat?  Well, about that…

—You borrowed money to buy a boat?? Look, I’m all for indulging myself. I own a motorcycle (bought used for less than $4000 cash) for that purpose. But then, I’m FI.

Before I was, my biggest indulgence and what was most important to my mental health, was buying my freedom. That meant investing every spare cent I could scrounge up. It is not my place to tell you how to spend your money, but you do need to decide what you truly care about:

Escaping a soul-crushing job or fishing from a fancy boat. If it were me, I’d dump the boat and fish from shore. Hands down.

Finally, congratulations on the little one on the way.

baby-drawings

Courtesy of Sketches by Angela

There is no real reason a new baby needs to be an obstacle to your FI goals. But there are a lot of phony ones.

You are going to have to learn to avoid the “babies must be expensive” syndrome. No fancy strollers or SUVs because it’s easier to fit in the child seat. No cute new baby clothes that will be out grown in three weeks. The world is filled with barely used baby clothes. Kids need love, not stuff.

At this point, if you are like the vast majority of folks, you are recoiling in horror at most, if not all, of these suggestions. Precisely. This is why most folks will never reach FI. You have a choice to make.

Your obstacle to becoming FI isn’t one of investing, but one of lifestyle. And if you really want to escape that soul crushing job before you’re 70, reviewing the points above should give you an idea of what the task looks like so you can decide just how serious you are.

If you decide to go for it, turn next to Mr. Money Mustache. More than any other blog out there, he is the one who can show you in detail how to inject into your life the baddassity you’re going to need. But, be warned. He’s not as soft and fuzzy as I am. Here’s a sample of his take on driving a pick-up truck and this guy didn’t even have a fancy boat to tow:

“Holy shit, brother, how many heads of cattle and pigs are you hauling on that roundtrip, while simultaneously carrying international heads of state in the stately cabin? That is a fucking ridiculous vehicle for ANYONE to drive except the rarest breed of Farmer/Diplomat.”

 Mr. MM would say your situation calls for a face punch or two. I’ll just say, you have some decisions to make. Oh, and now that you know how to shed that soul crushing job, should you chose not to make the changes needed, you’ve officially forfeited your right to complain about it. 🙂

My guess is, once you get started and see your stash begin to grow, those things that felt like sacrifices to give up you’ll come to see as the blood-sucking leeches they are.

Good luck!

*Chart courtesy of my pal (Can I Retire Yet?) Darrow’s book:

 

 

Note: 

The original title of this post was “Tom at a Crossroads.” J Money picked it up as a featured post in Rockstar Finance.  In the process he retitled it much more compellingly as “Escaping a soul-crushing job before you’re 70.” With his kind permission, I’ve changed it here as well.

Nothing to do with this post, but…

I was recently interviewed on Mike & Lauren YouTube: Why your house is a terrible investment. In the Q&A we also discuss asset allocation, bonds and even dating.

Related

Important Resources

  • Talent Stacker is a resource that I learned about through my work with Jonathan and Brad at ChooseFI, and first heard about Salesforce as a career option in an episode where we featured Bradley Rice on the Podcast. In that episode, Bradley shared how he reached FI quickly thanks to his huge paychecks and discipline in keeping his expenses low. Jonathan teamed up with Bradley to build Talent Stacker, and they have helped more than 1,000 students from all walks of life complete the program and land jobs like clockwork, earning double or even triple their old salaries using a Salesforce certification to break into a no-code tech career.
  • Credit Cards are like chain saws. Incredibly useful. Incredibly dangerous. Resolve to pay in full each month and never carry a balance. Do that and they can be great tools. Here are some of the very best for travel hacking, cash back and small business rewards.
  • Personal Capital is a free tool to manage and evaluate your investments. With great visuals you can track your net worth, asset allocation, and portfolio performance, including costs. At a glance you'll see what's working and what you might want to change. Here's my full review.
  • Betterment is my recommendation for hands-off investors who prefer a DIFM (Do It For Me) approach. It is also a great tool for reaching short-term savings goals. Here is my Betterment Review
  • NewRetirement offers cool tools to help guide you in answering the question: Do I have enough money to retire? And getting started is free. Sign up and you will be offered two paths into their retirement planner. I was also on their podcast and you can check that out here:Video version, Podcast version.
  • Tuft & Needle (T&N) helps me sleep at night. They are a very cool company with a great product. Here’s my review of what we are currently sleeping on: Our Walnut Frame and Mint Mattress.
  • Vanguard.com

Filed Under: Case Studies

« Case Study #11: John, a small business owner in transition
YNAB: Best Place to Work Ever? »

Comments

  1. Shaz says

    February 11, 2015 at 12:30 am

    Way to go JLC, an excellent post. Tom all the best with your transformation! As Captain Planet would say: “the power is yours”
    Cheers,
    Shaz

    Reply
  2. EurFI says

    February 11, 2015 at 5:25 am

    Tom, maybe you can increase your side hustle? 1.500$ sounds like a very promising start. For our family it would be over half of what we need each month.

    Reply
    • Tom says

      February 11, 2015 at 11:57 am

      That will part of the plan for sure!

      Reply
  3. Jon says

    February 11, 2015 at 8:33 am

    Wow. Firm, fair but most of all fantastic! Great Uncle Jim flashing an iron fist wrapped in a velvet glove.
    You can do this, Tom. But if it were easy…everyone would do it. 🙂 Mid 30’s is a critical time to make ( halftime ) adjustments in your financial life.

    Reply
    • longwaytogo says

      February 12, 2015 at 7:52 am

      I agree with the halftime adjustments ! I’m 34 now and have f**ked up plenty; but since seeing the light I still hope/plan to retire around 50.

      Not early by MMM standards but way ahead of the 65/70 crowd. Plus my wife is a teacher so we plan on some fun travel during working year Summers while we await FI as well.

      Good luck Tom, selling my Harley was tough (similar loan to your boat) but I have not regretted it at all.

      Reply
  4. Thegoblinchief says

    February 11, 2015 at 8:54 am

    Big +1 to the kids need not be expensive. We fell into that trap at first, and have relatives who still insist on overwhelming us with crap.

    But now we are saving 50%+ on about $60k income with three kids, 5,7,8. The kids have never been happier, and they get happier with every lifestyle simplification we make.

    There are tons of frugal-minded “what do kids really need?” articles and forum threads to peruse. I’m partial to the MMM forums because I’ve been very active in that community for the past 1.5 years and it’s a great mix of folks.

    Reply
  5. Chris @ Flipping A D says

    February 11, 2015 at 9:04 am

    Bam! Right in the kisser. My wife and I needed a similar punch. We didn’t finance a boat, but still had some student loan debt. I looked around and said “I do not want to work.” I’ve been hustling to save more and move ourselves toward a more financially stable position. Slowly but surely, it’s going well!

    Reply
  6. Fervent Finance says

    February 11, 2015 at 9:30 am

    I agree with Jon above, firm but fair. I knew he was going to take a lickin’ for taking out a loan on a boat and driving a big truck, but he asked for it.

    But I also applaud Tom for taking the time to ask the right questions, and hopefully he listens if FI is his true goal. Good luck Tom!

    Reply
  7. insourcelife says

    February 11, 2015 at 9:46 am

    Straight and to the point. I hope Tom will come back here and give his perspective on this advice. I enjoy reading these studies but one thing most of them lack is follow up to see if anything actually changed afterwards. With a baby on the way big changes like these would take a lot of guts to implement and Tom is not the only one in this equation – he’s got to think about his wife whose main focus for a while will probably be the baby… Nevertheless, this might be a good fit for “baby steps” at least until the dust settles around the pending arrival.

    Reply
    • jlcollinsnh says

      February 11, 2015 at 7:15 pm

      I agree. These are always better when the original poster (OP) returns to participate. I believe all have with these case studies. But I answer countless questions on Ask jlcollinsnh and elsewhere on the blog with no follow-up from the OPs.

      To those few who do, my thanks. It is always nice to know if my reply helped, or at least got read. 😉

      Reply
  8. Mark from Orange Cty says

    February 11, 2015 at 9:58 am

    Good luck Tom. Uncle Jim is right no doubt about it. You can’t live like the Jones’ and retire with the Collins’!

    Reply
  9. Ryan M says

    February 11, 2015 at 10:09 am

    I can relate to Tom’s situation. I am not anywhere near FI but I want to be FI tomorrow. I also love to fish. I thought JLC’s advice on Tom’s situation was right on point. I had to come to terms with out of control expenses last year. Luckily for Tom, there is a lot of good in his situation.

    In particular Tom, you make a great salary and have a side hustle! Plus you are young! Fixing the expense side of things to me is the easiest part. Once you get past the initial shock and awe of the initial cuts in expenses, all it takes is discipline and team work with your wife to continue the new lifestyle. Keeping the end goal in mind helps my family with the discipline part!

    I totally get the “soul crushing” description. Last year, we had to take a look in the mirror and make some major family changes to get us on track just so I can leave work in TEN years (after 32 years on the job). Realizing I had to stay 10 more years was “soul crushing!” However, there was no one to blame but me. One of my many cuts was in the fishing department. While I have never owned a boat with a motor, trips and gear quickly add up. Cuts were painful for me, but not so much with the realization it is short term pain. I know I will get back to where I want to be with fishing in the not so distant future.

    I recommend selling the power boat and getting a sit on top kayak to get you through until you are FI. A kayak doesn’t require gas, maintenance or a big truck to haul it. And they are fish catching machines in rivers, lakes and bays. A frugal fisherman’s go to vessel…buy it used and with cash. You will not be disappointed.

    As for the kids, we made all the expense related mistakes mentioned above. If only I had known what I know now…things would have been very different. One of our kids is now an Elite level athlete and that has been a financial game changer… competes all over the country. $$$

    Keep reading MMM and this site for the best information I have found anywhere to help you with your goals. They helped me right a sinking ship and get on track for a healthy regular retirement.

    Tight lines!
    Ryan M

    Reply
    • Tom says

      February 11, 2015 at 12:02 pm

      Thanks for your comments and encouragement. I think having a clear vision of the end result is going to be key to making changes.

      I’ve tried kayak fishing, I just felt so constrained, and not in control. The slightest breeze would put me out of position. But no question I went the fancy route on the boat, lesson learned.

      And congrats on the success of your child, enjoy the ride!

      Reply
    • Vik says

      March 10, 2015 at 12:39 am

      Ryan,

      I got hooked on kayak fishing in Baja. It’s a great way to get out and explore as well as fish….plus you get fit.

      My sit on top was bought new back in 2001 and is going strong. If I keep it out of the sun when I store it I should get another 20yrs out of it.

      Another great fishing boat option is a pack raft. Mine is 4lbs + paddle and PFD so I can hike in to lakes that other anglers skip. It can be carried in a small car and ready to rock in a few minutes if an after work stop at the lake happens. And it’s very easy to store in a small apartment or take on a plane.

      A paddle powered boat can be a great fishing partner. Excellent suggestion.

      — Vik

      Reply
  10. earlyFI says

    February 11, 2015 at 11:04 am

    Jim,

    Another home run! I love how you boiled this all down to choosing whether freedom or stuff is more important. I have chosen the same path as you, believing that my long term freedom is more important than any short term sacrifice. Thank you for inspiring articles.

    Reply
  11. Tom says

    February 11, 2015 at 11:53 am

    Jim, you read between the lines, and have us pegged. We are indeed at a financial crossroads. All the inaction and prior missteps have brought us to this point.

    As for the “soul crushing job” part… a little dramatic on my part, but I certainly do feel that way from time to time like I bet most folks do. There is so much more to life that I want to experience beyond sitting in a cube for years on end!!

    My Thoughts from your Analysis (and follow up questions):

    1.Greatly Increase our Savings Rate – Max out pre-tax 401k, and pre-tax IRA, then build the taxable accounts.

    YNAB tells me we have been averaging $5,900/mo expenses(!!!) excluding the rental, leaving a net $1k/mo that has been going into cash savings. So…cut the fat, and try to grow my side hustle income to help fund the accounts.
    -(Shouldn’t we max out a ROTH IRA before we get to a taxable account?)
    -(How to make this palatable, and not a needless hardship to my amazing Wife?)

    2.Unload the (out of state) Rental Townhouse – Agreed, the lease is up this Fall.
    (is it worth taking a hit selling now, or getting another 2yr lease to let the prices recover further?)

    3.Unload the House – We jumped the gun buying a house, yet again. Without getting too detailed, housing options are limited, and I’m afraid we are stuck with it as long as we live in this area.

    4.One Car – I would be more inclined to do that if they weren’t already paid off. But knowing we have one vehicle in rough shape already…I need to seriously consider this.

    5. Boat – Whoops. And this is my 2nd boat. I should have kept the first, long since paid off one. I had convinced myself I had “earned” a newer fancier model, all the while I knew I could have paid cash for different yet perfectly adequate fishing boat.

    6.Baby – Thanks, and agree 100%, but I think it’s going to be challenging at times.

    Thanks again for the insights, and tough love Jim.

    This won’t be easy. But like you say…We Have a Choice to Make.

    Reply
    • jpmitchell says

      February 11, 2015 at 3:02 pm

      Hi Tom,

      Sounds like you have a pretty good grasp on where you want to go and what it takes to get there. A few things to consider:

      (Point 1) – Based on your income, you probably don’t qualify for the “pre-tax” part of a traditional IRA. My suggestion would be: Max out company 401(k), Max out 2 ROTH IRAs (one for you and one for the wife), Max out HSA (not necessarily in that order). You didn’t mention anything about health insurance, but if you have an HSA they are a great places to stash some cash. HSAs are tax free in and tax free out for qualified medical expenses (which you will be having plenty of with a new baby on the way), and work just like a traditional IRA after 65.

      (Point 2) – Don’t speculate on the housing market. Maybe it continues to go up, or maybe it crashes next year. By the same token, maybe your next tenants are great or maybe you suffer through a long vacancy only to have them trash the place. One thing is for certain though, you will continue paying taxes and insurance as long as you own the townhouse. If it makes sense to sell it, sell it now.

      (Point 6) – My wife and I have a 16 month old at home and another on the way. It’s hard not to want the best stuff for your kids, but what you kids really need is YOU. The more time you can spend with them instead of cooped up at the office, the better (still working on that one myself). On top of that, there are TONS of baby consignment stores out there where you can get all kinds of almost new stuff for pennies on the dollar. Hell, you could dress them in burlap sacks for the first two years and they wouldn’t know the difference (but your wife would…)

      Best of luck!

      Reply
    • jlcollinsnh says

      February 11, 2015 at 7:26 pm

      Hi Tom…

      Glad to help and glad you are taking this all in the spirit in which it was intended.

      The choices are clearly yours to make, but at least now you know what the playing field looks like.

      As for your questions, I think JPM above nailed it, especially on the townhouse. Don’t hold it hoping for a better price. That is falling prey to the “sunk cost” fallacy I referenced in the post.

      As for: “How to make this palatable, and not a needless hardship to my amazing Wife?”

      Perhaps helping her see the freedom vision? And helping her see that living modestly doesn’t equal hardship. Certainly not at the ~60k level. Other than that….

      There are limits to my powers. 😉
      You’re on your own in this department! 🙂

      Reply
    • TheMoneyMine says

      February 12, 2015 at 10:41 pm

      Tom,
      You will indeed have to change your lifestyle if you want to reach FI. This may have an impact on your social life and what ‘others may think’, your wife may be sensible to that, but what I find comforting in the quest to FI is that it gives you a 20,000 feet high perspective on what is really important and why you’re doing it.
      Once you’re on the path to FI, knowing that it’s the best you can do for you and your family, those short term sacrifices like selling the boat and the car feel less painful 😉

      Also, that shot of optimism and renewed energy may help you look for a new, more enjoyable job! Unemployment is at records low, maybe now is a good time!

      Nick

      Reply
    • jian says

      February 16, 2015 at 3:14 pm

      Tom,

      Thanks for sharing your story here. My own lessons learned in nudging myself towards doing something (be it eating healthier, exercising more, spending with more consciousness instead of being mindless consumer, …) has been, everything becomes so much easier if I make it a reward rather than a sacrifice. We are wired to do things when there’s a reward to look forward to, the more immediate the reward, the more inclined we’ll do them.

      For example, I make “latte” at home (not quite a real one, but pretty darn close) in the morning, which is a bit of a production really; but it also makes getting up a lot easier and puts me in a good mood to start the day.

      Another example, promise myself a little reward such as a piece of gourmet chocolate or ice cream or pastry, when I’m debating if I really want to go jogging/do yoga/file tax return. I generally don’t WANT to, but the allure of the reward usually wins me over. 🙂

      One can extrapolate this reward approach to anything in life really. Donate time or money to a worthy cause? Focus on the reward of that warm and fuzzy feeling we’ll feel in our hearts afterwards, instead of the sacrifice of giving something up. Not buying a shiny new “toy” (be it a fancy car, or designer shoes)? Focus on the months/years shaved off on the path to FI, in stead of the feeling of denying ourselves of something we “deserve”. You get my point.

      Choose these rewards carefully to maximize their power. I generally pick small pleasures of life as rewards, because I enjoy bourgeois decadence:) and can afford the best of them without having to spend a ton (while I can’t afford a Porsche or McMansion, nor do I want those).

      It’s also tremendously satisfying to me, psychologically, to consume something that I know is really fancy (meaning expensive too) and of the best quality at least in theory. I can face those wearing Rolexes and Pradas much more confidently, knowing that while I can afford those too, I chose to spend the money on $6 a piece chocolate bars instead and get much more frequent pleasures out of that choice. Does that make sense to you?

      Another trick I find really helpful is to take the decision-making out of my daily life as much as possible. Making decisions are hard; making the “right” ones are exhausting! It’s too much to ask anyone of us to always make the conscientious choice, esp. when we are tired, hungry, or in a bad mood. So building good behaviors into my daily routines really makes it easier on myself.

      Workout in the morning just after I get up is so much easier to do than trying to will myself to do it after work, when a glass of wine seems way more pleasant. In stead of going to the mall on weekends, go hiking/biking/jogging outside; the benefits are plenty – it’s almost free, I get a nice workout, and don’t have to debate if I should buy that cute skirt or not.

      That’s a lot of tips for one day. Hope they help. I’d love to hear your progress on the road to FI. Good luck!

      Reply
  12. SavvyFinancialLatina says

    February 11, 2015 at 12:23 pm

    I completely understand the not wanting to work in a job that’s soul crushing. I feel the same way at 24. Scary! All education prepares you for is to work in a soul crushing job.

    Reply
  13. Gen Y Finance Guy says

    February 11, 2015 at 12:27 pm

    Jim, loved this case study.

    As you pointed out and I will summarize in my own words:

    Financial Independence is something most people will never reach, because the decisions to that lead you there are easy to do…the problem is that the decisions that divert you are just as easy and usually more fun in the short term. People don’t take the time to realize the unintended consequences of there actions. Or they live in direct conflict with what it is they think they want.

    So many people say they want to reach financial freedom, but then when I ask what they are doing to get there, they have nothing worth saying.

    Its just like someone saying they love to write…but they say they don’t have any time to write. But they assure you when this or that happens then they will finally start writing. I call BS.

    There is a quote out there that I will modify to truly encapsulate the pursuit of financial freedom:

    “Financial Freedom Fighters live a few years like most won’t, so that they can live the rest of their life that most can’t”

    Thanks for sharing!

    Reply
    • jlcollinsnh says

      February 11, 2015 at 7:28 pm

      “People don’t take the time to realize the unintended consequences of their actions.”

      Amen to that.

      Reply
  14. mike says

    February 11, 2015 at 12:36 pm

    Excellent case study. I enjoy these the most.

    How many can sit down with a financial adviser and keep it real? Tom might have thought everything was AOK until he started to read this post. I know if it was me it would feel like I got a swift kick in the a**.

    And I know I could use one of those now and then.

    Jim, thank you for this. Of course it’s not only Tom’s experience but being able to extrapolate to my own life.

    Reply
    • jlcollinsnh says

      February 11, 2015 at 7:31 pm

      Glad you like them, Mike.

      And glad to hear you can extrapolate the ideas into your own life. That’s the whole point of doing these.

      On a regular basis I get emails asking for help. I always ask that they put their questions on the blog so others can benefit from the conversations.

      Reply
  15. Walter says

    February 11, 2015 at 12:47 pm

    What a great post!

    I can totally relate to Tom’s situation in most aspects. I truly recommend MMM blog as well. Great post.

    Reply
  16. Homestead Momma says

    February 11, 2015 at 1:18 pm

    Wonderful to see Tom’s case study! Wishing you all the best in this adventure, and may you find your FI. As JLC says, as you go further down the FI road, you will start to find “sacrifices” are actually liberating in your day to day life. In my lifes we have at times been so frugal our families laughed at us, but the approaching FI makes it really, really worth it.

    JLC, thank you for your inspiring (and slightly less face-punching) style of writing. It’s what keeps us coming back!

    Reply
    • jlcollinsnh says

      February 11, 2015 at 7:34 pm

      My pleasure, HM…

      and glad you like the “less face-punching” style.

      That said, Mr. MM’s “more face-punching” style generates a far, far, far larger readership. 😉

      Reply
      • JP says

        February 15, 2015 at 12:01 am

        Jim,
        Brainless TV shows have a large audience so I would not compare myself with others based on how many followers you have. You bring great and fresh ideas in a respectful way. Many appreciate that. Keep up the good work!

        JP

        Reply
        • jlcollinsnh says

          February 15, 2015 at 1:51 am

          Yeah, but the big money is in brainless TV shows! 🙂 🙂

          But thanks for your very kind words, JP.

          At this point in my life the respect of thoughtful people is more important than money.

          Reply
          • Maverick says

            February 15, 2015 at 3:56 pm

            “Yeah, but the big money is in brainless TV shows!”

            Or in the case of music, big money is in the brainless taste of Kanye Omari West. 🙂

          • jlcollinsnh says

            February 15, 2015 at 6:39 pm

            Who is very likely richer than all of us together. 🙂

            It is a cruel world… 😉

  17. Adam says

    February 11, 2015 at 6:49 pm

    “My biggest indulgence and what was most important to my mental health, was buying my freedom”

    Good way of putting it and good to keep perspective whenever more immediate indulgences rear their heads. 🙂

    Reply
  18. Mark A. says

    February 12, 2015 at 8:55 am

    I love boats and have occasionally toyed with buying one, but it is too staggering to think of all of the wealth in the country tied up in them. Plus, outboard motors might be the most headache-inducing gadget ever built. Americans have spent bazillions on boats, mostly sitting in garages, and even bobbing up and down in expensive slips in marinas in every major lake and river and up and down both coasts, constantly draining funds in licenses and insurance. A boat is a symbol of freedom and fun and, yet, their cost is one of the indulgences that prevent freedom from being able to happen. I decided to see if I could satisfy my own pure want of a boat with a kayak. If a boat is a hole in the water into which one throws money, I thought I’d start with a small hole. Guess where it sits? Anyone looking for a nice kayak?!

    Reply
    • Tom says

      February 12, 2015 at 10:34 am

      Mark,
      You are absolutely right on about the amount of money people have tied up in boats that sit unused in garages or sitting in the backyard. I do get plenty of use out of my boat, in the range of 50+ times a year, but if I could take it back I would have kept my older model boat or bought a much more modest ride. I could have thought about it this way…Its costing me $60 every time I take this newer boat out, before I even turn the motor on or make a cast…ouch!

      Reply
      • Mark A. says

        February 12, 2015 at 2:32 pm

        Well, you get a whole lot more use and enjoyment than most people seem to from their boats, so good on ya.

        Reply
    • Sean says

      February 14, 2015 at 10:58 am

      My dad keeps wanting to buy a boat. Thing is, he’d use it maybe twice a year. I tell him every time we talk about it that he could charter a yacht staffed with serving girls to wave him with palm fronds and feed him peeled grapes while he fished those two times a year for far less money and hassle. This never seems to satisfy him.

      If it flies or floats, rent it.

      Reply
      • jlcollinsnh says

        February 14, 2015 at 10:48 pm

        You would have had me at “…staffed with serving girls…” 😉

        Reply
  19. Jenny says

    February 12, 2015 at 12:10 pm

    Sometimes the daily struggle is dealing with the line from well-intentioned friends that “It’s only $5” but then you get used to ignoring it. Every dollar counts and every dollar is accounted for- our splurges are pre-planned. That’s our motto.

    Great post!

    Reply
  20. The Roamer says

    February 12, 2015 at 12:56 pm

    Great write up Jim

    Tom it sounds like you are ready to make some changes.

    As for convincing the wife. You need to find and understand what she want. Maybe she want you to be around more days to help with the baby. Reminding her how saving money is directly tied to her goal will make saving easier.

    Reply
  21. Adam @ AdamChudy.com says

    February 12, 2015 at 6:06 pm

    Great post. They have a lot of cutting to do, but in reality they’re in a vastly better position than most people from an income and savings level. A few strategic changes and they’re on the path.

    Reply
  22. Heather says

    February 12, 2015 at 7:31 pm

    Tom,
    Maybe to help your wife you can both dream about the “end”, the day you are FI. Then when she is excited about it, from all the talking and dreaming, then work backwards and see how much money you need to get there and THEN what sacrifices will have to be made to get there. (Kinda of like having a baby, you want the baby which is the end goal and pregnancy and labor are the hard parts and sacrifice that you have to do to get there but are so worth it and can be fun as you spend time dreaming of your baby, but once you hold that baby you know it was worth it!)

    Also remember that BOAT stands for Bust Out Another Thousand!!!!!!!!

    Good luck and Congratulations! !!!!!

    Reply
  23. Matt says

    February 13, 2015 at 3:29 pm

    I echo many of the other comments. These are great posts Jim, and the community feedback is great too. I usually get a laugh or two reading the comments.

    I didn’t see anyone mention a mortgage refi. If the OP can do a no points/no cost refi, that could shave off $75-$100 per month at the cost of doing paperwork.

    Reply
    • jlcollinsnh says

      February 13, 2015 at 6:16 pm

      I agree Matt…

      some of the best reading is in the comments.

      Unfortunately, I gather most readers skip them. 🙁

      Reply
  24. Mr. Money Mustache says

    February 13, 2015 at 7:27 pm

    Thanks Jim and friends for the generous words and recommendations.

    I really enjoyed Jim bringing down the hammer here and I admire Tom’s open attitude toward receiving some hardcore lessons 🙂

    The important part I’d suggest that Tom realize is that he is currently operating on a multimillionaire’s budget (actually more than 300% what I spend right now at full throttle), while having a junior janitor’s level of wealth (a direct result of the former).

    Age 37 is no spring chicken – THESE are the years to start putting away the majority of what you earn, or the later version of yourself will be fuming mad at how you squandered everything and left him holding the bag.

    As for your comment on cars:

    “One Car – I would be more inclined to do that if they weren’t already paid off.”

    The loan status of a car shouldn’t influence your decision on whether or not a car is the right one for you*. For non-millionaires, the right car is the one that destroys your hard-earned cash at the slowest rate. For non-farmers, this is usually a 35+MPG manual transmission hatchback that you buy with cash on hand from Craigslist. You will never have a car loan again.

    *Except for the fact that if you have a loan on ANYTHING other than an appreciating asset, you are in a lifestyle emergency and your hair is on fire.. more details here:

    http://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/

    Reply
    • jian says

      February 16, 2015 at 3:36 pm

      MMM,

      Your blog posts always give me inspirations and renewed resolution on reaching FI and beyond. So thank YOU!

      I do take a softer approach though rather than taking or giving face punches:), which I just posted above directly to Tom (https://jlcollinsnh.com/2015/02/11/case-study-12-tom-at-the-crossroads/#comment-4212124).

      Could be just gender difference or personal preference, but I suspect the significant other of the typical MMM reader (stereotyping here) might find my “decadent path to FI” just a tad more palatable:). The way I see it, if it’s the right medicine, I don’t mind sugar-coating it if it helps the swallowing.

      Anyways, thanks again for writing a tremendously inspiring and helpful blog! I’m in such a better and peaceful and enjoyable place both financially and psychologically, since I started reading it in the summer of 2013, than I would have been if not for your and Mr. Collins’ blogs. Thank you both!

      Reply
  25. Josh says

    February 14, 2015 at 8:15 am

    Hi Jim,
    I hear you often talk about your house being a poor investment. I’m curious what your thoughts are on rental properties as an investment? I’m not talking about just 2 or 3, I think it is very difficult to make money consistently unless you have more than 10 units, at that point income and expenses seem to become more consistent. We are in the process of acquiring a portfolio (currently up to 70 units). While it can be a fair amount of work to manage the portfolio, it has been fairly profitable thus far and as we have implemented systems the workload has morphed into less hands on. It is my escape plan from a mid six figure job. What do you think?

    Reply
    • jlcollinsnh says

      February 14, 2015 at 11:02 pm

      Hi Josh…

      I think rental properties can be a very lucrative business. But it is just that: a business.

      Like any business, to be successful requires time, work and accumulating the specialized knowledge required.

      Where many get in trouble with it is, I think, that they read a few blogs or watch some TV shows and come away thinking it’s easy.

      Back in the day when I was doing it, my first I backed into by accident. Not surprisingly, it was a disaster as I describe in the series beginning here: https://jlcollinsnh.com/2012/03/15/how-i-lost-money-in-real-estate-before-it-was-fashionable-part-i/

      After that I got serious about it and did pretty well, but I’ve never written about that. In the end, it was way too much work for my tastes and I sold off my last in 1986.

      No regrets and I’m glad to have the experience, but if I had it to do over I don’t think I would bother. But that says more about me than than RE investing. 😉

      As for using it to escape your job, that depends on if you prefer RE investing work to what you’re currently doing and how much you can make on your time and invested capital v. your salary.

      Good luck!

      Reply
      • Aaron says

        February 22, 2015 at 9:07 pm

        Mr. Collins,

        Sir, you mention in your advice to the original poster that “Break-even is a terrible position to be in…” and that he should unload the rental property. However, even if someone is breaking even each month from a cash flow basis…isn’t it conceivable that they are increasing their equity in the rental property each month…and therefore they are actually increasing their net worth by the value of that equity each month?
        I ask because this one hits awfully close to home. We have a rental property that we break even on each month. But I’ve always been able to justify it in my mind as “the renters are paying off my mortgage…and I will have essentially bought a house in 15 years for only the price of the downpayment.”
        I am legitimately curious to see if I am missing something in my thinking (entirely possible).

        Thank you,
        Aaron

        Reply
        • jlcollinsnh says

          February 23, 2015 at 1:11 am

          Hi Aaron…

          Here’s how I think about it…

          Imagine points along a line.

          At one end you’d have a property with a solid, positive cash flow. At the other what used to be (maybe still is?) called an “alligator.” That is a cash flow negative property that’s eating you alive.

          A break even property is right in the center.

          That’s OK as long as things go smoothly. But rentals are subject to ugly reversals should something major need repair, a tenant become unable to pay the rent or demand drop in the area leading to an extended vacancy or the need to reduce rents.

          You build equity with your payments as long as your property value stays stable or increases. That’s certainly possible, maybe even probable. But not guaranteed.

          Add to this that owning property is a part-time job. Even if you hire property managers, another expense, you have to find and manage the managers.

          With those risks in place (as they always are) and because I value my time, I’d only buy a property with solid positive cash flow to protect me from them and to reward me for taking them.

          Because a break-even property does neither, I wouldn’t buy it. Too much risk for too little potential reward. And if I wouldn’t buy it today, I wouldn’t continue to hold it.

          By the way, that last line is a test I apply to every investment I own.

          Hope this helps!

          Reply
          • Aaron says

            February 23, 2015 at 8:30 am

            Sir,

            Thank you for the reply. Fair points all…I suppose I have failed to demand enough return to compensate for the risk I am taking. Now that you have framed the argument, it seems akin to me trying to pick the next hot stock (a property, a renter, a property manager, a rental market, etc.) that is going to pay out solid dividends – i.e. the renter is good and pays on time…vs. me picking the next Enron – i.e. the renter turns my property into a meth lab..
            Rats…now I have some decisions to make. Thank you for helping to clarify the argument.

            Very Respectfully,
            Aaron

          • jlcollinsnh says

            February 23, 2015 at 12:08 pm

            Happy to help!

            There is a discussion about this you might find interesting in this case study post my pal Jeremy just put up today:
            http://www.gocurrycracker.com/reader-financial-review-escape-new-york/

  26. Lauren says

    February 17, 2015 at 1:16 pm

    This is great. I think this is a pretty common thing. Our lifestyles get in the way of what we REALLY want. I myself have decided I have too many “things” and not enough time. I’d like to go about minimalizing our things and maximizing our time, however I don’t know if my bf will like the answers as well…

    Reply
  27. Andrew says

    February 17, 2015 at 2:28 pm

    Great case study…especially since Tom’s situation is somewhat similar to mine. Combined our incomes are similar and our investments/savings are also similar. I thought we were in pretty good shape, but I might need a face punch as well…or perhaps a stern talking too instead. No boat for me and one paid off sedan, but we live in the NYC area and housing among other expenses are tough to eliminate. Pretty frugal but I’m sure there are more things we can cut to increase our savings rate. I do have a lucrative pension at around 55…but I’m dreaming about an earlier retirement…

    Reply
    • jlcollinsnh says

      February 17, 2015 at 7:26 pm

      Consider yourself sternly talked to. 😉

      It is really a simple matter of deciding what you want to spend your money on: Financial freedom or those things you could cut.

      Which would make your life better?

      Reply
      • Mr. FC says

        February 19, 2015 at 3:48 pm

        It really is amazing how simple this is. Save more, FI sooner; save less, FI later.

        The rest – the fancy analysis, budgeting, blogging, reading, etc – ALL of it – is just about talking yourself into going one way or another.

        Anyway.

        Reply
        • jlcollinsnh says

          February 19, 2015 at 4:52 pm

          Spot on, Mr. FC…

          and you got me thinking.

          That’s exactly how I reached FI decades ago. No “the fancy analysis, budgeting, blogging, reading” I wasn’t even aware of FI as a concept.

          I just knew I wanted enough money to have options, what I called F-you money. So what I spent my money on was buying freedom thru investments. No brainer, really.

          Reply
  28. Alex from LA says

    February 20, 2015 at 3:09 pm

    Jim-

    Another great post. I like reading your posts like these over and over every couple months to keep my motivation strong. Great advice as usual!

    Reply
  29. FIkenny says

    February 22, 2015 at 8:40 pm

    I have seen the FI chart on a number of blogs. Has anyone seen a way to account for the $200k head start? I have tried myself but couldn’t quite figure it out. Simply dividing the networth by income is a start but does not give credit for expected investment gain.

    Reply
    • jlcollinsnh says

      February 23, 2015 at 12:36 am

      Not that I’ve seen.

      But if you click on the Calculators button at the top of the page you’ll find some other useful ways to project how long it would take to go from 200k to any given amount you figure you need.

      Reply
    • Nick says

      February 23, 2015 at 12:43 am

      FIkenny –
      There isn’t an easy way to account for it, you would have to recalculate the table including the headstart of this example.
      Because like you I was wondering, here are the results I came up with 🙂

      With a 213k$ headstart:
      – at 30% Savings Rate, Tom would reach FI after 18 years (vs 22 years)
      – at 65% Savings Rate, Tom would reach FI after 7 years (vs 9 years)

      Nick

      Reply
      • Prob8 says

        February 26, 2015 at 12:48 pm

        Try this:

        http://mustachecalc.com/

        Reply
  30. ea-builder.net says

    February 24, 2015 at 2:34 pm

    I entirely agree with your point of view by the way, but it’s too bad that so many people walk through life just working at a regular job and actually don’t follow their dreams. Let’s hope for the best I have to say!

    Reply
    • jlcollinsnh says

      February 24, 2015 at 6:52 pm

      Safe harbors can be tough to leave, but there are few great adventures to be found there.

      Reply
  31. Dan M says

    March 5, 2015 at 6:41 pm

    I had no idea you were a financial guy. I’ve read many of your books in the past, but now they’re more of a symbol of things I don’t aspire to (at least in the corporate sense). Great post… looking forward to browsing your site!

    Reply
    • jlcollinsnh says

      March 5, 2015 at 7:04 pm

      Hi Dan…

      I’m afraid you’ve confused me with this guy: http://www.jimcollins.com

      We’re not, in so far as I know, even related.

      Still, I hope you enjoy the site here.

      Reply
      • Dan M says

        March 6, 2015 at 10:19 am

        Ha!! I read about your publishing background and the pieces of the puzzle fit together pretty well to make me assume that! It has no bearing on my enjoyment of the site though 🙂

        Reply
      • jlcollinsnh says

        March 6, 2015 at 4:20 pm

        I can see that. 🙂

        But my publishing background was in business-to-business magazines rather than books.

        That said, I am working on my book which should be out later this year. That should confuse things even more. 😉

        Reply
  32. Michelle Williams says

    December 3, 2015 at 7:33 pm

    I really like the picture that you used in the post for case study #12. I would like to use it with your permission for a CD cover. Is it copywrited? Please let me know. Thanks.

    Reply
  33. Tom says

    March 23, 2016 at 11:31 am

    Update Time…
    -Max out 401k – Check! Came close last year, on pace for this year. We’ve adapted to the lower paychecks.
    -Max out Wife’s IRA – Check! 2015 taken care of, 2016 will be soon.
    -Unload Rental Townhouse – Fail! We renewed the lease (at a higher rate), will revisit next year. Still holding onto the idea we might move back someday. Emotional thinking, I know.
    – Unload House – Fail!
    – Dump Both Vehicles – Check and Fail! Our hands were forced by mechanical failures, within a month of each other no less. Current vehicles bought with cash, but neither are indestructible Japanese ish-boxes 
    – Dump the Boat – Fail! I can’t seem to let go of this one. There are many solid benefits to downsizing…no truck needed, no boat payments…just wrestling with the limitations of a smaller boat.

    Wife is now stay at home (the baby is wonderful by the way), so we lost that income, but we gained it back and more through my side gig. The side gig in fact, could be our ticket to FU Money. I don’t know how long it will last, but I’m able to siphon a good chunk of money into our new cash account each month.

    So the race is on to $0.5MM where compound interest really starts look verrry interesting. My goal is to reach that milestone by the time I turn 40yo. Ambitious but totally possible, making life at the Day Job far more tolerable.

    Reply
    • jlcollinsnh says

      March 23, 2016 at 4:43 pm

      Welcome back Tom!

      Thanks so much for the update (something I wish more folks featured here and in Ask jlcollinsnh would do!)

      Always good to see my advice ignored. 😉

      But the broader point is that you are thinking about these things and these are choices only you can make.

      All the best, and enjoy the journey!

      Reply

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    • ► June (2)
      • Is there an interior designer in the house?
      • The Simple Path to Wealth goes Audio!
    • ► May (1)
      • Life on the Beach
    • ► April (1)
      • Sell! Sell!! Sell!!! Sell?
    • ► March (1)
      • Vicki comes to Chautauqua: United Kingdom
    • ► January (2)
      • Chautauqua - Ecuador 2017 open for reservations
      • Chautauqua - United Kingdom: August 2017
  • ► 2016 (22)
    • ► December (3)
      • Season's Greetings and other cool stuff
      • Angel Investing, or Angel Philanthropy?
      • Mr. Bogle and me
    • ► November (1)
      • Where did you learn about money?
    • ► October (2)
      • Buy Your Freedom; Rent the Rest
      • So, what do you drive?
    • ► September (2)
      • Stocks -- Part XXX: jlcollinsnh vs. Vanguard
      • A visit to the Frugalwoods
    • ► August (1)
      • What the naysayers are missing
    • ► July (1)
      • Reviews of The Simple Path to Wealth; gone for summer
    • ► June (2)
      • The Simple Path to Wealth is now Published!
      • A peek into The Simple Path to Wealth
    • ► May (1)
      • It's better in the wind. Still.
    • ► April (3)
      • Cool things to check out while I'm gone
      • Stocks — Part XXIX: How to save money for college. Or not.
      • Help Wanted: The Book
    • ► March (1)
      • F-You Money: John Goodman v. jlcollinsnh
    • ► February (2)
      • Q&A - V: The Women of Amphissa
      • jlcollinsnh gets a new suit
    • ► January (3)
      • Chautauqua 2015 Reviews, 2016 registration open
      • Case Study #15: The Scavenger Life -- Freedom first, then Financial Independence
      • 3rd Annual (2015) Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2016
  • ► 2015 (18)
    • ► December (2)
      • Q&A - IV: Strawberry Patch
      • Seasons Greetings! and other cool stuff
    • ► October (2)
      • Personal Capital; and how to unload your unwanted stocks and funds
      • Stockchoker: A look back at what your investment might have been
    • ► September (2)
      • Case Study #14: To Dream the Impossible Dream (and then realize it)
      • Hotel Living
    • ► August (1)
      • Mr. Market's Wild Ride
    • ► June (4)
      • Gone for Summer, an important note on comments and random cool stuff that caught my eye
      • Around the world with an Aussie Biker
      • Case Study #13: The Power of Flexibility
      • Stocks — Part VIII: The 401(k), 403(b), TSP, IRA & Roth Buckets
    • ► March (2)
      • Stocks -- Part XXVIII: Debt - The Unacceptable Burden
      • Chautauqua October 2015: Times Two!
    • ► February (2)
      • YNAB: Best Place to Work Ever?
      • Case Study #12: Escaping a soul-crushing job before you're 70
    • ► January (3)
      • Case Study #11: John, a small business owner in transition
      • Trish and Stan take an Intrepid Sailing Voyage
      • 2014 Annual Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2015
  • ► 2014 (29)
    • ► December (2)
      • Diamonds and Happy Holidays!
      • Micro-Lending with Kiva
    • ► November (3)
      • Chautauqua February 7-14, 2015: Escape from Winter
      • Stocks -- Part XXVII: Why I Don’t Like Dollar Cost Averaging
      • Jack Bogle and the Presidential Medal of Freedom
    • ► October (3)
      • Tuft & Needle: A better path to sleep
      • Nightmare on Wall Street: Will the Blood Bath Continue?
      • Help Wanted
    • ► September (1)
      • Chautauqua 2014: Lightning strikes again!
    • ► August (2)
      • Stocks -- Part XXVI: Pulling the 4%
      • Stocks -- Part XXV: HSAs, more than just a way to pay your medical bills.
    • ► July (3)
      • Stocks -- Part XXIV: RMDs, the ugly surprise at the end of the tax-deferred rainbow
      • Summer travels, writing, reading and other amusements
      • Moto X, my new Republic Wireless Phone
    • ► June (1)
      • Stocks -- Part XXIII: Selecting your asset allocation
    • ► May (1)
      • Stocks -- Part XXII: Stepping away from REITs
    • ► April (3)
      • Q&A III: Vamos
      • Q&A II: Salamat
      • Q&A I: Gaijin Shogun
    • ► March (2)
      • Top 10 posts
      • Cafe No Se
    • ► February (4)
      • Chautauqua 2014 preview, closing up for travel and other random cool things that caught my eye of late.
      • Case Study #10: Should Josiah buy his parents a house?
      • Case Study #9: Lars -- maximizing some good fortune and considering "dollar cost averaging"
      • Case Study #8: Ron's mother - she's doin' all right!
    • ► January (4)
      • roundup: Some random cool things
      • Stocks — Part XXI: Investing with Vanguard for Europeans
      • Case Study #7: What it looks like when everything financial goes wrong
      • 1st Annual Louis Rukeyser Memorial Market Prediction Contest 2013 results, and my forecast for 2014
  • ► 2013 (41)
    • ► December (4)
      • Closing up for the Holidays, see you in 2014
      • Betterment: a simpler path to wealth
      • Case Study 6: Helping an ill and elderly parent
      • Stocks -- Part XX: Early Retirement Withdrawal Strategies and Roth Conversion Ladders from a Mad Fientist
    • ► November (3)
      • Death, Taxes, Estate Plans, Probate and Prob8
      • Case Study #5: Zero to 2.6 million in 25 years
      • Case Study #4: Using the 4% rule and asset allocations.
    • ► October (3)
      • Republic Wireless and my $19 per month phone plan
      • Case Study #3: Let's get Tom to Latin America!
      • The Stock Series gets its own page
    • ► September (2)
      • Case Study #2: Joe -- off to a fast start!
      • Chautauqua 2013: A Week of Dreams
    • ► August (1)
      • Closing up shop plus an opening at Chautauqua, my new podcast, phone, book and other random cool stuff
    • ► July (1)
      • They Will Kill You For Your Shoes!
    • ► June (4)
      • Stocks -- Part VIII-b: Should you avoid your company's 401k?
      • Shilpan's Seven Habits to Live More with Less
      • Stocks -- Part XIX: How to think about money
      • My path for my kid -- the first 10 years
    • ► May (5)
      • Why your house is a terrible investment
      • Stocks — Part XVIII: Investing in a raging bull
      • Dining with the Ghosts of Sarah Bernhardt and Alfons Mucha
      • How we finally got the house sold
      • Stocks — Part XVII: What if you can't buy VTSAX? Or even Vanguard?
    • ► April (4)
      • Greetings from Prague & a computer question
      • Swimming with Tigers, a 2nd chance on the Chautauqua, a financial article gets it wrong and I'm off to Prague
      • Storage, Moving and Movers
      • Homeless, and a bit on the strategy of dollar cost averaging
    • ► March (4)
      • Wild Turkeys, Motorcycles, Dining Room Sets & Greed
      • Roots v. Wings: considering home ownership
      • How about that stock market?!
      • The Blog has New Clothes
    • ► February (5)
      • Meet Mr. Money Mustache, JD Roth, Cheryl Reed & me for a Chautauqua in Ecuador
      • High School Poetry, Carnival, cool ads and random pictures that caught my eye
      • Consignment Shops: Best business model ever?
      • Cafes
      • Stocks -- Part XVI: Index Funds are really just for lazy people, right?
    • ► January (5)
      • Social Security: How secure and when to take it
      • Fighting giraffes, surreal landscapes, dancing with unicorns and restoring a Vanagon
      • My plan for 2013
      • VITA, income taxes and the IRS
      • How to be a stock market guru and get on MSNBC
  • ► 2012 (53)
    • ► December (6)
      • See you next year....until then: The Origin of Life, Life on Other Worlds, Mechanical Graveyards, Great Art, Alternative Lifestyles and Finding Freedom
      • Stocks -- Part XV: Target Retirement Funds, the simplest path to wealth of all
      • Stocks -- Part XIV: Deflation, the ugly escort of Depressions.
      • Stocks Part XIV: Deflation, the ugly escort of Depressions.
      • Stocks -- Part XIII: The 4% rule, withdrawal rates and how much can I spend anyway?
      • How I learned to stop worrying about the Fiscal Cliff and you can too.
    • ► November (2)
      • Rent v. owning: A couple of case studies in Ecuador
      • So, what does a month in Ecuador cost anyway?
    • ► October (4)
      • See you in December....
      • Meet me in Ecuador?
      • The Podcast: You can hear me now.
      • Stocks -- Part XII: Bonds
    • ► September (6)
      • Stocks -- Part XI: International Funds
      • The Smoother Path to Wealth
      • Case Study #I: Putting the Simple Path to Wealth into Action
      • Tales of Bolivia: Calle de las Brujas
      • Stocks -- Part X: What if Vanguard gets Nuked?
      • Travels in South America: It was the best of times....
    • ► August (1)
      • Home again
    • ► June (4)
      • Yellow Fever, closing up shop for the summer and heading to Peru y Bolivia
      • I could not have said it better myself...
      • Stocks -- Part IX: Why I don't like investment advisors
      • Happy Birthday, jlcollinsnh; and thanks for the gift Mr. MM!
    • ► May (6)
      • Stocks -- Part VIII: The 401K, 403b, TSP, IRA & Roth Buckets
      • Mr. Money Mustache
      • The College Conundrum
      • Stocks -- Part VII: Can everyone really retire a millionaire?
      • Stocks -- Part VI: Portfolio ideas to build and keep your wealth
      • Stocks -- Part V: Keeping it simple, considerations and tools
    • ► April (6)
      • Stocks -- Part IV: The Big Ugly Event, Deflation and a bit on Inflation
      • Stocks -- Part III: Most people lose money in the market.
      • Stocks -- Part II: The Market Always Goes Up
      • Stocks -- Part 1: There's a major market crash coming!!!! and Dr. Lo can't save you.
      • You can eat my Vindaloo, mega lottery, Blondie, Noa, Israel Kamakawiwo 'Ole, art, film and a ride on the Space Shuttle
      • Where in the world are you?
    • ► March (7)
      • How I lost money in real estate before it was fashionable, Part V: Sold! and the taxman cometh.
      • How I lost money in real estate before it was fashionable, Part IV: I become a Landlord.
      • How I lost money in real estate before it was fashionable, Part III: The Battle is Joined.
      • How I lost money in real estate before it was fashionable, Part II: The Limits of the Law.
      • How I lost money in real estate before it was fashionable, Part I: Impossibly Naive.
      • You, too, can be conned
      • Armageddon and the value of practical skills
    • ► February (6)
      • Rent v. Owning Your Home, opportunity cost and running some numbers
      • The Casanova Kid, a Shit Knife, a Good Book, Having No Regrets, Dark Matter and a bit of Magic
      • What Poker, Basketball and Mike Whitaker taught me about Luck
      • How to Give like a Billionaire
      • Go ahead, make my day
      • Muk Finds Success in Tahiti
    • ► January (5)
      • Travels with "Esperando un Camino"
      • Beanie Babies, Naked Barbie, American Pickers and Old Coots
      • Selling the House and Adventures in Staging
      • The bashing of Index Funds, Jack Bogle and a Jedi dog trick
      • Magic Beans
  • ► 2011 (22)
    • ► December (1)
      • Dividend Growth Investing
    • ► November (2)
      • The Mummy's head, Particle Physics and "Knocking on Heaven's Door"
      • "It's Better in the Wind" or why I ride a motorcycle
    • ► October (1)
      • Lazy Days and School Days
    • ► July (2)
      • The road to Zanzibar sometimes goes thru Ecuador...
      • Johnny wins the lotto and heads to Paris
    • ► June (16)
      • Chainsaws, Elm Trees and paying for College
      • Stuff I’ve failed at: the early years
      • Snatching Victory from the Jaws of Defeat
      • The. Worst. Used. Car. Ever.
      • Top Ten reasons your future is so bright it hurts my eyes to look at it
      • The Most Dangerous Words Your Customer Can Say
      • How not to drown in The Sea of Assholes
      • What we own and why we own it
      • The Ten Sales Commandments
      • My ever so formal and oh so dry CV
      • How I failed my daughter and a simple path to wealth
      • The Myth of Motivation
      • Why you need F-you money
      • My short attention span
      • Why I can’t pick winning stocks, and you can’t either
      • The Monk and the Minister

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