Millennials: It’s Not Too Late to Plan for an Early Retirement

Beach pic

Your beach body will look far better at 33 than 73…

The alarm buzzes. You hit snooze a few times before stumbling your way into the bathroom, wishing you could do something — anything — other than go in to work. Pasting a smile on your face and mumbling “good morning” to your coworkers, you settle into your desk for yet another day of gazing at the computer. Don’t worry, millennials; only about 50 more years until you can retire. Thanks to an average student loan debt of $23,300, our generation’s predicted retirement age has been pushed back a decade to 73.

But what if your sentence didn’t have to be 50-plus years? What if you could put in your two weeks’ notice at 33 and embrace an early retirement?

That’s exactly what Justin McCurry did.

Read the rest of the story on DailyFinance (featuring Root of Good, Johnny Moneyseed, 1500 Days to Freedom and Green Money Stream)!

[Image taken from Flickr]

Posted in DailyFinance Tagged with: ,
13 comments on “Millennials: It’s Not Too Late to Plan for an Early Retirement
  1. Looking forward to reading the rest of the post, but wanted to say that was an excellent intro!
    DC @ Young Adult Money recently posted…Why You Shouldn’t Skimp on Personal DevelopmentMy Profile

  2. Paul says:

    Average student loan of $23,300? That doesn’t sound so bad. That’s about the price of a new car.

    Median income for a college graduate is $43,000 ($51,000 for men):

    http://en.wikipedia.org/wiki/Household_income_in_the_United_States

    So…. Assuming no inflation or raises (highly unlikely): $43,000 * 30 year career = $1.3 million. $23,000/$1.3 million = 1.8% of a career of income. Not a bad deal!

    • Broke Millennial says:

      Talk about the gender gap in paychecks if the median income is that different!

      Frankly, the debt number seems a tad low. I understand how I (debt free) help reduce that number, but so many of my peers talk about much more debt that $23k.

      The issue is also the interest you pay and the negated income that should’ve gone towards retirement or be invested. If you go to the DailyFinance article and click the hyperlink, it has a great break down.

      • Paul says:

        It’s a good article…… Young people need to relocate to opportunities in cities with a lower cost of living. Your long term wealth depends on obtaining reasonable housing costs.

        Here’s the thing: without low housing costs, you will never be able to enjoy all these exciting evenings out and save for a early retirement at the same time.

        You want to live in a geographic location, where you can party every weekend and still put at least 10% of your income away in a 401k or IRA or whatever. And you need to make the decision about moving while you are still young enough to actually be open to moving (your twenties!).

        My suggestion: if you like slightly warmer weather, perhaps a Dallas or a Houston. If cooler weather doesn’t bother you, then a Minneapolis or maybe a Chicago (which is very NYC like in many respects, including weather in my opinion).

  3. Erin nice article. There are always negative naysayers that says it can’t be done. Everyone needs their pile of FU money ready in case something doesn’t work out.
    Charles@gettingarichlife recently posted…What I Learned From Growing Up In Government HousingMy Profile

  4. Broke Millennial says:

    Haha, FU money? I’ve never heard that expression. I presume that’s a more fun way to say emergency fund? And yes, I agree. You need an e-fund even if you retire early.

  5. I really enjoyed the article. I’ve been really interested in early retirement after finding Mr. Money Mustache and reading his blog. I also enjoy Justin’s story as we share many similarities. It seems like the recipe is more or less, earning a good (but not necessarily great) income, living frugally, investing/saving and living in a lower cost area. I don’t want to be negative but I think he third factor is what I think will prevent me from early retirement (depending on what you consider early…I’m going with 30s to 40s). With the housing costs in NYC, it really is difficult to achieve early retirement unless you have a high income.
    Andrew@LivingRichCheaply recently posted…Black Friday: The Epitome of Consumer ExcessMy Profile

    • Broke Millennial says:

      I absolutely agree. If I stay living in NYC and decide to get married and have a family, early retirement is not a possibility. Unless I do invent the next SnapChat.

  6. I really enjoyed the article! For any of the ‘millennials’ in their 20s and even early 30s, now is the time to start saving!! The magic of compounding is truly amazing, and the earlier you start the more likely you are to reach your goals.

    I have a pertinent article on compound interest that you might enjoy: http://www.richmondsavers.com/the-miracle-of-compound-interest/
    Brad @ RichmondSavers.com recently posted…Stress-Free Cooking Installment 1: Soy Chicken RecipeMy Profile

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