How to Retire Early | Peter Fuller MBA CA

How to Retire Early?

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How to Retire Early

Most people spend their lives saving, or not saving, for retirement.

Some wake up one day, say fifteen years from retirement and realize they have not saved enough.

They see those commercials about retiring with a vineyard and they think, hey it isn’t too late, they can help me.

Guess what, it is too late.

For many of us this means that we cannot retire, that we need to keep working to keep the cash flow going.

Nothing wrong with that if you like working when you are in your seventies.

And if you cannot work that means poverty.

You have two options when it comes to retirement.

One is to save, which really means you have to give up something that you may want, like a vacation, so that you have funds in the future.

Many do not earn more than they need to live the lifestyle they want, so they have to give up something.

The other option is to create cash flow that continues whether you are working or not.

You may have to fine tune that cash flow, maybe a few hours a week, however it is not like working 9 to 5.

Plus creating your own cash flow makes you feel good, really good.

And that cash flow allows you to retire early.

Downside?

You have to also give up something, your time.

You are going to trade your time to build a cash flow now, so that you can have more time in your retirement to enjoy.

This is not easy, just like saving for retirement is not easy in this economy.

You know that saying “Nothing is certain but death and taxes”.

Well, if you can avoid the former then retirement is also certain.

Are you ready for it?

So how do you create this elusive cash flow?

Stay tuned.

Peter Fuller MBA CA
905-566-1927

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This entry was posted on August 18, 2011, 7:50 pm and is filed under Cash Flow Mindset, Retirement Planning. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.

#1 by Nile on January 11, 2012 - 6:45 am

I think the creating the cash flow that will continue when I am not present will work best for me. I like to teach and I know well after I “retire” I am going to go to different conferences to speak and mingle. However, I also find it fun, especially these days.

I know that 5 years ago I did not think much on retirement, but it really is a big issue and technically I have another 35 years until “retirement” according to the normal workforce. I’d like to make that earlier.
Nile’s latest post Determining How Frequent You Should Blog In Order to Be A Success

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#2 by crescele on November 4, 2011 - 2:00 am

Good post, Peter. Thanks for sharing your thoughts. To retire early is every man’s dream indeed. And one way to achieve this is to start putting money on investments as early as possible so as to give it more time to grow. If the returns are great, you will be living off each of your glorious retired years just on the interest that your capital is earning. How awesome is that!
crescele’s latest post Dating Objectives – What to remember.

#3 by car stereo on September 13, 2011 - 3:50 am

I am 37years old. Earn 350kpa after tax. Own 2 condo, total value of about 2m. Both under loan. Rental for one paying for itself and a bit more. Car fully paid. Cash in hand and stock current value about 600k. Passive stock income about 24kpa(taxed already)

My wife and I will need about 10k pa for retirement.

Any advice?

#4 by Peter Fuller on September 13, 2011 - 9:53 am

First, get an avatar with your real pic

I do not provide investment advice, however it sounds like you are off to a good start, especially at your age.

For the condos, I would make sure that your condo board is properly maintaining them. Recently I read about a condo association that skimped on maintenance and after just twenty years the condos were almost worthless.

I assume that you made a typo on the 10kpa, so I am going to assume you meant 10kpm or 120kpa.

Eventually the second condo will contribute to your cash flow, so you may just need 7kpm.

At today’s dollars, to generate 7kpm from investments to last your expected lifetime would require a nest egg of $2.1M.

I am using the 4% rule of thumb.

If you want to retire at 65 that is 28 years from now. so your nest egg will have to be more like $4.8M

This is assuming you want to go the traditional retirement route.

Another way is to continue to save but also create your own cash flow that does not end when you retire.

And for many who are past 40 with no savings that is their only solution.

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#5 by Maria Pavel on September 1, 2011 - 8:56 pm

I love your cash flow advice. Slowly working up the income ladder till we get to the perfect point: time/income, the latter should be going up in time while the first one goes down.
Maria Pavel’s latest post How To Become A CNA Instructor

#6 by Hans Schoff@ways to make extra money on August 31, 2011 - 4:06 am

Hey Peter, great post. Many people today are unfortunately realizing that is too late to start setting aside for retirement. Luckily there are other ways to provide for your retirement by creating real cash flow, which in the beginning will require an input of time and energy as you say. The good news is though, there is a solution!
Hans Schoff@ways to make extra money’s latest post Money Making Secrets – 13 Reasons NOT to Start A Residual Income Business

#7 by Tony@Leadership on August 30, 2011 - 10:09 pm

For me, if you want to retire early then I think you should have to think first whether you have enough to savings to sustain your daily needs for the upcoming years. And also, I think having your own business to run is a good idea if you want to retire early since that way, you can still sustain your needs and earn more money…
Tony@Leadership’s latest post What Tigger Taught Me

#8 by Roshanda Gilmore on August 30, 2011 - 1:54 pm

Great post Peter!

I think investing is similar to planning a vacation. When going on a road trip you don’t just get in your car and start driving aimlessly. You must know your destination! Same with investing and planning for retirement. The first question is where do I want to go? How much money will I need in retirement to live the way I want and to live comfortably? What is my destination? From there you work backwards and come up with a plan of action.

You do this with the end result in mind and then choosing which investment vehicles fit into your investment plan. There are many investment vehicles to choose from as you know ( stocks, bonds, real estate, mlm, mutual funds, home based biz, gold, silver, etc). The way to choose which ones work for you are to take a serious look at your passions, risk tolerance and which ones are aligned with your plan. Some vehicles of course take longer then others but a little self education goes a long way!

There will be a sacrfice on time as you mentioned but having a uncomfortable retirement is much worse then sacrificing a few hours a week to your investment plan and cutting out the t.v.!

I know I went on a tangent, but as a previous financial planner I just couldn’t help myself Peter, lol!!

I’ve had a blast on your site today buddy!
-Ro
Roshanda Gilmore’s latest post Branding Definition – The New Era Of Personal Branding Defined + FREE Gift!

#9 by Peter Fuller on September 13, 2011 - 9:56 am

Great comment Roshanda, and no worries about going on tangents

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#10 by Janet @ The Natural Networker on August 28, 2011 - 9:52 pm

Peter, aloha. Much better to trade a bit of time today for a better future tomorrow. When you think about it, Peter, people are not “giving up” time rather they are using it in a different way.

The number of hours people spend each day watching television is shocking. If they would take even 1 of those hours and use the entire hour productively to build for their future, they would be surprised what they could accomplish.

Here is a simple wealth formula that I learned years ago from a business associate who was mentored by a very successful businessman. This is his wealth formula.

There are:
168 hours in a week

56 hours for sleep (7 nights/8 hours)
40 hours for work (5 days/8 hours)
42 hours for living (7 days/6 hours)

30 hours remaining

Peter, tt’s what people do with these 30 hours that makes the difference. Unfortunately, most people spend those 30 hours watching television or playing games on computers. Wealth is built in everything over 40 hours.

Wishing you a terrific week. Aloha. Janet
Janet @ The Natural Networker’s latest post Passion + Patience + Persistence = Payoff by The Natural Networker

#11 by Marcus Baker on August 27, 2011 - 8:46 am

Hi Peter,’

Been seeing you around the blogosphere again. Good to see you back.

Making money work for us instead of us working for money in the short and long term is without a doubt a worthwhile pursuit.

Retiring does not mean you have to give up doing what you love but when you don’t have to do it to make a living it sure does change one’s perspective.

~Marcus

#12 by Pearly Quah on August 26, 2011 - 2:58 pm

Hi Peter,
This is such a great post and ypur content is definitely for everyone ,

I sit back and think again about retirement you mentioned above and to be honest, I would say that retirement fund can never be sufficient if we depend on saving. So creating positive cash flow by collecting rental from property or probably able to move some of the saving and take the risk in other type of investment can be one of the good options to consider…

This is just my opinion but I am sure I can learn very much more from you and I look forward to it

Many thanks
Pearly
Pearly Quah’s latest post Use Video Email With Appreciation

#13 by Loren on August 25, 2011 - 11:08 am

Hi Peter,

We are definitely being pro-active in our retirement years when we are “creating permanent and recurring cash flows from our own home businesses”. A great way to raise our standard of living; stop worrying about not having enough money to survive; and instead be looking forward to the joy of living.
Loren’s latest post Anchor Text For SEO

#14 by Samuel@Outdoor Kitchen Equipment on August 25, 2011 - 6:00 am

Hey Peter,
I really admire and appreciate your firm and well fabricated thoughts,The same excellent thoughts on early retirements i have read in book “Millionaire Fastlane by MJ DeMarco”,I do agree with it and it is very true that time never waits for anyone,so it is much better to plan now when we are able to do something,if now when we are healthy enough and we can trade our time with some good plannings and process,then why should not…….Thank you for sharing such a great,valuable,considerable and interesting content with us.

Good Luck and God Bless!!

With Regards!
Samuel Joshua.
Samuel@Outdoor Kitchen Equipment’s latest post Outdoor Kitchen Equipment

#15 by Vernon on August 25, 2011 - 1:10 am

I’m too young to think like this but this post really helps when it comes in saving and to maintain my lifestyle. I read a book about “Million Dollar Dad”. This post encourage me not to waste my money will in this period so that when the time I got old money will work for me and I will just tour the world.
Vernon’s latest post Aviator

#16 by Debi Talbert on August 24, 2011 - 5:46 pm

Short, simple, mind blowing post here Peter. Especially for those of us who thought we had some form of retirement from working at once place since our 20s.

We do have a choice. We can either keep our head in the sand and hope for “something” to save us.

We can do as you suggest, put in some extra time, be proactive and learn how to create our own cash flow outside of our jobs so we will have a continuous cash flow when we decide retire from our job.

Looking forward to the next post – Debi
Debi Talbert’s latest post September is National Menopause Awareness Month

#17 by Rick Lelchuk on August 24, 2011 - 2:31 pm

Peter,

One small correction. The only thing you cannot avoid is death. Taxes, on the other hand, well there are loop- holes.

I think many of the boomers will be working late in their lives and it’s not for lack of planning, it’s for lack of a clear crystal ball. This turn in the economy has alter the steady course of time. But, hope never dies!

Thanks for your insights.

RICK
Rick Lelchuk’s latest post Happiness Is The Key

#18 by Peter Fuller on August 25, 2011 - 11:04 am

Hey Rick, true enough

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#19 by Ana Hoffman on August 24, 2011 - 2:09 pm

Just thought I’d stop by to say Hello, Peter – long time no see.

Even if I am financially stable (whatever it means), I am not sure I’d be able to retire. Workaholic, you know…

Ana
Ana Hoffman’s latest post Thesis Theme Giveaway: SEO in a Box?

#20 by Peter Fuller on August 25, 2011 - 11:03 am

Yes Ana you are a workaholic However you are young so there will come a time where your business will produce more than enough cash flow and all you have to do is tweak it. Personally I will always work, not the 9 to 5 but just a few hours here and there.

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#21 by David Paul@network marketing leader on August 23, 2011 - 3:23 pm

Great post, Peter. You have me hanging on the edge of my seat “Stay Tuned”…..

I love the idea of framing up a home based business as the vehicle to create Cash Flow for funding our retirement. It makes sense. I know what my cash flow vehicle is, and it is coming along nicely. Of course I probably invest just a bit more time and passion into it than most are willing and/or able to do. But, that is my choice.

Can’t wait to see what you use for your vehicle

Peace,
David H. Paul
David Paul@network marketing leader’s latest post Your “Why”: Be Someone’s Miracle

#22 by Lily on August 23, 2011 - 10:06 am

I can’t imagine myself as a retired senior citizen and starving. That will be the worst part of my life it that happens. Hopefully it won’t. Any tips you can share to us with the cash flow? Thanks Mr. Fuller. I really appreciate it.
Lily’s latest post angry birds game online

#23 by Andrew Walker on August 23, 2011 - 4:41 am

Hi Peter. Thanks for sharing this. Well…. That’s really nice of you to share this, really, but I don’t think I’m planning to retire early,not yet at least.
Andrew Walker’s latest post Wallpaper For Windows Coupon Code

#24 by Peter Fuller on August 23, 2011 - 9:11 am

Andrew, consider this, this is exactly the time to plan for retirement.

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#25 by Dr. Erica Goodstone on August 22, 2011 - 10:30 pm

Peter,
I am on my second life. I have already taken an early retirement from my position as Professor of Health and Physical Education. Those last 5 years I worked day and night, summers, winters, building up my final average salary. I also saw my private clients in between evening classes or afterwards. And I commuted from New York to Connecticut.

It was hard work, especially in those last few years. But it certainly paid off in terms of providing me with the resources to now follow my new dream, to build a global Healing Through Love mentoring program to help men and women heal their relationships through love. Again, I find myself working hard, but in a different way now. Now I travel from my dining room to my computer and do a lot of writing online in addition to seeing clients, often in the midday instead of late at night.

Thanks for another good post.

Erica
Dr. Erica Goodstone’s latest post Cheating is a Dirty Word – Beware!

#26 by Holly on August 22, 2011 - 11:44 am

Oh how I see we get so conditioned into the JOB and family and , well you know!! Anyways I will be back to see more of what you have to say.. I quit my JOB cause I was tired of being in that vicious circle! I know too many people who lose that cash flow when retirement comes… I am working on what you are teaching. Thanks!
Holly’s latest post All Time Biggest Disadvantage to Missing a Work Out

#27 by Einar on August 22, 2011 - 11:10 am

Well Peter, few things beat buying a second house with cash. Rent it out for the rest of your life -> Boom, you have plenty of cash for retirement.
Einar’s latest post The power of listening

#28 by Peter Fuller on August 22, 2011 - 1:09 pm

True enough Einar, but how about renting out five houses

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#29 by Alex Marsh on August 22, 2011 - 3:21 am

You know i have the dream of retireing at the age of 35 and them go for a tour all over the world. It is very important to have passive income inlarge quanitity so that nothing harms you and you well in life without any problems.
Alex Marsh’s latest post The Benefits of Ayurvedic Hot Oil Massage

#30 by Kristina L. on August 20, 2011 - 8:21 pm

Hi, Peter,
huh, funny one…”nothing is certain but death and taxes”. Honestly, I am still not in position to save money and I am not even thinking that much of retirement. Nobody can guarantee me I will live until that time comes…so, I rather choose to enjoy the moment. And plus, it’s not still that much that I am earning to have enough to put aside for later. My generation totally does not believe in having retirement fund…it is so hard to find it real, if you are struggling to find a steady job at all.
Kristina L.’s latest post GreenCine Coupon Code

#31 by Peter Fuller on August 21, 2011 - 7:12 am

Kristina, you are falling into the retirement trap, that is it is too far away to think about. If you do not believe in retirement funds then work on your independent cash flow or you will be working until you drop

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#32 by Steve-Personal Success Factors on August 20, 2011 - 12:16 pm

Peter, I am grateful to have come across some of the early personal development mentors and financial teachers such as Robert Kiyosaki, Tony Robbins, and Brian Tracy years ago. Also, although I don’t agree with everything he has done, Robert Allen has been a good mentor via print. Building up income streams in a responsible, well thought out way, is the only option to retirement, as I see it. Social Insecurity is the only constant. I personally continue to work into retirement, but on my terms, and in my businesses.
Steve-Personal Success Factors’s latest post Here Are Five Success Factors To Make You A Better Life CEO

#33 by Peter Fuller on August 21, 2011 - 9:22 am

Good for you Steve. When you create your own cash flow you also create control.

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#34 by Andy Nathan on August 20, 2011 - 12:06 pm

Looking forward to finding out more! I am on the quest for cashflow as well!
Andy Nathan’s latest post The Surprising Resemblance between Christopher Columbus and Today’s Entrepreneurs

#35 by Marc Korn on August 20, 2011 - 1:25 am

Thanks for sharing this post and I will definitely stay tuned so I can learn how to create that elusive cash flow.

Life is definitely filled with many trade-offs and making sacrifices now, so that you will have funds in the future is very sound advice if we haven’t been able to save as we close in on our retirement years.

In this economy, it is getting increasingly more difficult to save, so you have to have your Plan B in place and take a pro-active position to create your own cash flow.

Once we lose time, it is gone…but, if we have a plan and are persistent and consistent and take daily action and we are able to create that added income, we can achieve the time freedom and financial freedom we are looking for.

Keep this information flowing,
Marc
Marc Korn’s latest post How Do You Develop A Great Character ?