I Want To Retire At 40 So I Don't Have To Work - YouTube

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Jennifer is in Houston, TX.

Hi Jennifer, how are you?

[Jennifer] Hi Dave, I'm great how are you?

Better than I deserve, what's up?

[Jennifer] I have a question, um, I want to retire early. I am 24 years old and have about $26,000 in retirement.

[Jennifer] and I want to retire before the age of 40. I want to ask, like, where can I put my money so I can

[Jennfier] withdraw it early without penalty? And what are your thoughts on the best ways to retire early?

What does it mean to retire early for you?

[Jennifer] To stop working, [laugh] at 40.

At 40, you're not going to ever work again, for the rest of your life?

[Jennifer] I won't go, you know, to a regular day job. I might like, travel or do my own thing on the side.

[Jennifer] But I don't want to go to, like, a workplace everyday.

Mmkay. Well I will tell you, I have a friend that sold his business at 31 years old,

for millions of dollars, and basically he... all he did was play golf, and fish, and after about 2 years, he almost died.

[Jennifer laughs shortly]

Because he got fat, and uh, he got completely out of control and, um, it was not a blessing...

..to, to not have anything to do with his life.

So, I always challenge folks. I want you to be financially independent, so I'm with your goal.

But I would have a goal of doing something.

Uh, at some point. [Jennifer makes a noise of agreement] & maybe it is you start something on the side, that you want to start now,

before you actually have the money to quit your job, and you, you know, you grow your business.

That might be the way to go at this.

So .... But, but, what would I invest in well, you obviously cannot use 401Ks and Roth IRAs because

you don't have access to them without penalty until 59 1/2.

[Jennifer] Right.

And so I would use those as part of my wealth building just the same, uh...

but the portion that you're going to live out of, starting at 40, if you are not going to earn much of an income,

uh, I would just go to good mutual funds.

[Jennifer] Okay.

And uh, just good Growth Stock type mutual funds that you are going to buy, and hold, long-term. You're going to pay taxes on them as they earn

some portions of the income, the dividends, and anything they sell.

So, I'm probably going to lean towards what's called a low turnover mutual fund.

[Jennifer] Okay.

A good way to get that is just an S&P 500 Index Fund.

'Low turnover' means they don't sell the stocks inside of the fund very often...

not much turnover of the portfolio. Does that make sense?

[Jennifer] Yes.

And if they don't sell the stocks, then there's no taxes on it,

until you cash it out.

[Jennifer] Right.

So you'll have very little taxation on the low turnover as you go along, until you start using the money, after age 40.

So, what would my plan look like if I were you? It would be 3 pronged: Prong number 1 is

I'm probably going to start looking for that thing I want to do with my life. I don't want to wait til 40.

I'm going to start working on it now

[Jennifer] Okay.

as my side deal and start to have a small business on the side

and move towards, you know, what I want to do with my life.

Something that's filling and that, that gives me energy, and so forth.

And um, that, that, you know, I'm going to make some money with that. Prong 2 is

I am gonna do 401Ks and Roth IRAs,

for the longer term, but not for the 40-year-old retirement plan.

[Jennifer makes a noise of agreement.]

And them I'm going to do low turnover mutual funds in Prong 3,

something like an S&P 500. Uh, which

you know, if you save substantially into that, then you should have a little bit of a nest egg

to live out of, while you earn some other income, doing some other things,

beginning at age 40.

But, uh, I want you to stop.. I mean, I don't know why you work from age 24 to age 40 at something you hate.

I wouldn't.

Uh, and my point being that I'm 56, I have no desire to retire.

I'm financially set for life, times 25, I mean, you know...

uh, it's no issue but I have absolutely no desire to retire.

And uh, uh I'm gonna work,

until I don't make sense here on the air.

You know, which some people say is already happening

but, um, you know, I'm not... I don't have any.. I don't want to quit

I'm, I'm having fun.

Um, now, I...what I do may change, in terms of I run this company as a CEO everyday.

and that, that won't be happening when I'm 80, but I may very well be speaking, and hanging out, or

you know, Kelly and me will still be arguing, you know, it could still happen. [background music]

And, uh, so as long as we're both making sense, right?

And even James, we might let him hang around. What do you think?

Now, we'll be back with you before you know it.

Folks, in the meantime, remember, there's ultimately only one way to Financial Peace,

and that's to walk, daily, with the Prince of Peace, Christ Jesus.

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