I want to tell you a bit about me so you’re aware of my perspective when approaching financial issues.
Let’s start with as much personal information as I’m willing to share, then we’ll get into a bit of my life history.
I think it’s valuable for you to know something about my financial journey, especially that I wasn’t born with a silver spoon in my mouth and at one point was poorer than most Americans.
So here’s a bit about me. Remember, this information is accurate as of the posting date. If you’re reading this three years from now, it will be different. About me:
- I am a male in my early 50’s.
- I have been married for over 20 years. You will hear a lot about my wife because she’s one of the big reasons our wealth has grown as much as it has.
- I have two children, both closing in on college.
- I have lived in many cities across the US, but mostly in the midwest. I currently live in a mountain state.
- My hobbies include growing roses, soccer, real estate, and volunteering.
Early Years
My parents were divorced when I was in the third grade, which started a rough financial patch for my mom and me. She didn’t have an education beyond high school and had no vocational training, so she worked miscellaneous office jobs at minimum wage most of my young adult life. I grew up on free lunches at school and “making due.” But it was a great life for a kid. I didn’t have much, but I didn’t need much. My mom and I were together, we had enough to eat, and that was fine with me. I’m sure it was very stressful for my mom as she probably wondered if our money would last until the next paycheck.
Things improved significantly when my mom got remarried, and we moved up to the lower-middle class. As my stepdad’s business did well, we moved into the middle class. Life was still simple, but there were a lot more “extras”.
College
Even as a youngster I knew I would to go to college. It was just an assumed fact in my mind. I first wanted to be a veterinarian and then a lawyer — anything, really, that made a lot of money.
My mom tells a story where she had a parent-teacher conference with my 10th grade math teacher. “He told me he wants to make a lot of money,” the teacher told my mom. “And I think he’s going to do it.”
Yes, making a good income was a goal I wanted to achieve from the time I realized there was income to be made. I had seen the struggles we had as a family and, while I loved my life growing up, I didn’t want to be so stretched money-wise.
I felt like education would be my ticket to wealth. As a result, I worked hard to be a successful student. I was one of the top students in my high school and later at my undergraduate college. I wasn’t the brightest kid, but I was determined — and studied many hours a day each and every day (at college). I also worked all the way through college and earned scholarships, and borrowed some money from my grandmother to make up the difference.
Graduate School
During my junior year in college I had an internship with a local lawyer. It proved to be a turning point in my life. I saw what lawyers did day in and day out and discovered that I hated it. After some soul searching and wondering what I should do next (my plan had been to go on to law school), I got some good advice from a mentor and took some business classes. I loved them!!!
When I graduated, there were no business-related jobs available that paid a decent wage. (Let’s just say that business wasn’t the strong suit of my undergraduate college.) So I applied to a few graduate schools, was accepted by a couple of them, and picked the one that offered me a full-time graduate assistantship and still had great companies recruiting there. I worked every Friday and Saturday night the entire two years I was in grad school, but I left with an MBA, only $5,000 owed to my grandmother (which I paid off a few years later), and a job with a Fortune 100 company that paid more than my parents earned.
Career
My early career was characterized by 60-hour (or more!) weeks as I worked to climb the corporate ladder. I had some mis-steps along the way, but mostly made forward progress. I transferred between companies and within divisions in the same company, each time working my way up the food chain. At 30 I finally earned over six figures (a goal I had set for myself). And from there, my career has progressed at a nice pace.
I don’t think my history has been particularly stellar or noteworthy. I did what millions of others have done before me and will do after. I think that’s what makes the story so compelling — I did it and anyone else can too!
We’ll talk more about my experiences, failures, and triumphs as time goes on, but for now this post will serve as background so you know where I’m coming from. If you like, share your story in the comments below. I’d love to hear it.
Wow, it sounds like you are no longer in Oklahoma. I hope we find out what precipitated your move to a mountain state.
I am 55+
I live in the Mid-Atlantic region with my husband of 25+ years. Our daughter lives with us while she is in college (her choice of university and living accommodations) but she pretty much has her own life.
I grew up in a (barely) middle class family of seven. We always had food, shelter, clothes (a few outfits and one pair of shoes each) but no extras.
My parents did pay for me to attend a state university. I worked full time after college until our daughter was born fifteen years later. I have been “at home” since then.
No, no longer in OK. It’s a looooong story full of lots of learning. And yes, I’ll eventually get to it for all of you to digest.
Great to hear your background! People’s stories are always so fascinating to me.
I read your article some months ago. I myself and considering early retirement. 20 years in the advertising industry I have an agency and enough money to retire. Ready to pull the trigger but I’m curious if you have anyregrets
The only regret I have is that I should have done it sooner!
I likewise am looking forward to hearing about your career transition bringing you out of OK.
I’m early 30’s but have enjoyed your writing, tips, and advice. Probably nostalgic for the old blog, I am excited to hear what’s next.
Thanks, Ben. I appreciate it!
Add me to the list of people interested to have you fill in the gaps of the last 1.5 years.
Look for something in April that should give all the juicy details. 🙂
Wow… I look forward to hear more of your story since your last post.
So happy to see your new blog, thanks for sharing your knowledge and wisdom with us. Your other site helped me a lot and I am sure ESI will do the same. Thanks again!!
I feel like I dodged the law school bullet as well! I have a family member that’s a successful attorney and I wanted her lifestyle. To achieve that my plan was to follow her same career path. I got as far and completing the LSAT prep courses. I was scoring above what I needed to for my target school (which I went to visit. Twice.). But something about the whole decision just didn’t feel right to me, so without any logical explanation I simply shut down the law school dream one day and focused on my business career.
ESI
Congratulations on having a goal and achieving it. I will be 52 next year and I will retire too. It is a plan I had ever since college and I am glad to say that I am ready (financially, still working on the emotional part quite frankly). Today is my first time on your site so I have a lot to catch up on in terms of your approach.
I have a net worth north of yours all invested in equities and I have been reluctant to go the income property route though I am warming to the idea. My wife of 27 years and I do plan to put some of that into the “dream home” and fill our days with most of the same things you fill yours with. After next year my youngest will have only 2 more years of college (already “paid” for via my 529 account) so we have no big annual expenses (two weddings though are in the cards)
As I start to follow your advice I am interested mostly in estate planning, buying healthcare and investing. What I see so far looks good and it is nice to know there is life after work! The few people who know of my plans outside of my family think I am nuts. I intend to prove them wrong!
I look forward to learning more
Sincerely
Phil
Great to have you here — welcome!
I have posts coming up on healthcare (a 3-part series in June) and will be doing one on estate planning this fall after we get our documents updated.
Stay tuned!
ESI
Thanks for the quick response. I look forward to your healthcare posts and your thoughts on the subject should the ACA be repealed.
I noticed that you mentioned that you have a funding gap between now and when you plan to tap your IRA/401k accouns. I presume the potential penalty is the reason. However the penalty can be avoided under rule 72T. I used this to help my father in law retire at 55. It’s a great option. I do not believe I will need it because my taxable accounts should carry me well beyond 59.5 but it might be a tool your followers could use.
Best of luck
Phil
Hey, Phil.
Yes, I’m aware of rule 72T, just think it’s more of a pain to deal with than what I’d get out of it.
But for now, we’re actually at the point that we don’t need access to any of those funds, so we’ll just let them ride for now.
I’ll do a budget update towards the end of the year to let everyone know how it turns out, but we’re spending way less in retirement than I thought we would.
ESI
Nice to hear you are spending less, I know I have overestimated intentionally on the discretionary portion of our expenses knowing that in a pinch we can scale back without giving up the basics and a few fun things.
As for the extra 529 money, either save it for grandkids or send yourself away to school for a semester. I hear they have great post grad schools in Aruba where you can fine tune your culinary skills
I am working my way through your site. You should thank your last boss for holding up the “now is the time to retire” sign. I hope whoever took your old job can choose the same option, it doesn’t sound like anyone could stay long.
Have a great Monday
Phil
Ha! LOVE the Aruba idea!!!!! 😉
My old boss appointed someone under me to take my job as well as keep his old job. The guy is probably ready to kill himself by now.
ESI
Give him some FIRE advice and help him salvage what little is left of his soul. Remember the life you save, may not be your own.
Enjoying digging into your blog
Phil
ESI,
Great site – I really enjoy your articles and they have given me the courage seriously consider retirement next year at 57. My financial situation is very similar to yours and I feel very confident I can generate enough income from my assets to live comfortably. However, one of the things that concerns me with early retirement is healthcare coverage. I would appreciate any information or advise you have on this topic. I certainly realize this topic is being hotly debated as I write this but your thoughts (and strategies) are greatly appreciated.
Regards,
Fred
Stay tuned. I have a three-part series on retirement healthcare coming up in June. 😉
Please tell me more about you.
It’s so refreshing to read your articles.
If you’re really interested in learning more about me, you can read my posts that are in the “about” category. They all have a personal angle of some sort in them and can be found here:
https://esimoney.com/category/about/
Great story. I am 58 years old and moved down to Florida with my wife of 33 years after I quit my last job. My wife works as a medical professional at a local hospital and we are doing well. Unfortunately I never planned this move as a permanent retirement and have been struggling to find a suitable position for the last 6 months. Some of us gave been so defined by going to work every day that we find it difficult to transition into retirement. My wife and do well financially and “money” isn’t the motivating factor for me. But I struggle to stay home in a quiet environment (which I relished during my working days) – I lose focus while reading, cooking, etc. and feel like the time is passing me by.
Yes, I go for walks 3 times a day to get 18000+ steps a day. But the pace of life is killing me…..
I wish I could enjoy my time more!!
Sorry to hear that!
I am the opposite — loving retirement and wish I had done it sooner.
Kannan
My first bit of advice isn’t that you should find a job, but that your wife should either go to part time or quit hers. If being together and enjoying life together was the goal, you are suffering because you two haven’t fully committed to that plan. If she won’t do it (for rationale reasons I am sure) then you have to do something because sitting around now sounds like it is crushing your soul.
Since money isn’t an issue go volunteer somewhere. Food bank, homeless shelter, church,, humane society, or visit nursing homes and brighten someone’s day.
ESI knows that I plan to retire soon and I used to think I would suffer like you (though my wife has been retired from the official workforce for 21 years so it is possible to fill your days) because I was non stop go for 30 years plus and i feared that sudden stop. But I have spent the last year transitioning mentally by developing the plan for my next life and now I cannot wait.
I encourage you to get out, enjoy your early retirement, spend as much time as you can with your bride and don’t regret your decision. ESI is living proof that the grass can / is greener on the other side.
Good luck
Phil
Phil,
I very much appreciate your taking the time to respond to my post. I have begun the process to engage with the American Red Cross for volunteer work as well as trying to get involved with local technology innovation centers in the Tampa Bay area. I am hoping these and other physical activities such as resuming my half-marathon training and basic swimming skills will help give purpose and structure to my days.
I guess I am a slow learner and will adapt over time to the new normal and eventually see enjoyment in the benefits !!
I believe your approach of mentally preparing for the transition into retirement is critical and that lack of detailed planning has been one of biggest obstacles to overcome.
Thanks again
Kannan
I am eager to learn how you would guide my career. I’m a current federal employee in my late 30s in Atlanta, GA. My job pays me well, but I have wanted to be an entrepreneur for years now. However my work culture is full of risk risk adverse people and being around them keeps me comfortable with the stability and makes me complacent. I want to challenge myself to accrue enough wealth to retire before my Government retirement age. I would love to learn how to achieve that.
Send me an email and we’ll see what we can do.
What’s your email address sir?
https://esimoney.com/contact/
My favorite quote regarding frugality leading to wealth is, “Most American millionaires wear Timexs not Rolexs.” Author unknow.
Hi! I came across your retirement story on LinkedIn (a link to businessinsider.com).
I showed it to my wife and she asked if she worked or is also retired. I haven’t found the reference to what your wife does (although you do refer to her in your first About Me and you state that she is an important part of how you’ve decided on and reached retirement at 52.
We’re a couple in our mid-50s with three adult children who are well on their way to being independent (our legacy to them is that they will have completed their education without crushing student debt). Our careers and markets have been kind and we have enough to retire but recently we’ve found our selves restructured out of our jobs and having a difficult time to get back into our professions (ageism does exist). We’re unsure if we’re both ready to embrace (semi-)retirement. By the way, we’re in Canada so our taxes are higher but we have a semblance of universal healthcare.
My wife stayed home and homeschooled our kids while I worked. She hasn’t worked outside the home for 20 years or so.
Thanks. Great info; will continue to read and share what I can about our own journey.
Our net worth is over US$4mm. I have been in an institutional investor for ~25 years while my wife is a management accountant. Suffice it to say, our dual income has been a large part of our wealth although we live in one of Canada’s largest and most expensive cities and we’ve pretty much funded our three kids’ education through college and some post-grad. The other driver to our wealth is the markets, both financial, and for the last five years as I felt we needed to diversify away from financial assets, real estate, despite the huge bumps on the way (Tech Bust of 2001, Global Financial Crisis of 2009).
First $1mm is the longest to reach because you start from a low EARNING capacity in one’s youth plus the higher propensity to spend now that you can afford it. But what accelerates it is, as you put it correctly, is SAVING and INVESTING.
One key is to use/reduce debt wisely — don’t use credit card debt, pay down that home mortgage as soon as possible, borrow only to invest in assets with higher returns. Another key is to take advantage of free money, whether it’s a matched savings, share-ownership, pension from your employer, or a tax-advantaged plan.
The subsequent millions comes faster because money begets money, i.e., access to higher return opportunities as well as a higher appetite for risk (higher risk, high return if you believe the basic capital market trade-off).
While capital and real estate market valuations are high and have lifted our collective net worth, the opportunities to generate returns from these same markets are low without taking more risk. And especially since we’ve retired, where safety of capital becomes more prominence, we need to invest even more wisely.
We’ve earmarked $1mm for real estate investments and we’ve monetized some of our investments recently because the valuations are high. We’ve now split some of those R/E $$$ towards private mortgages, aka hard-money lending. We may not earn as much as equity investors but we’re happy enough to lend them money with the security of the property as collateral. Again, money begets money and we have access to these opportunities because we have larger $$$ to invest. The downside is that there is less diversification and therefore higher due diligence on the investment is required. Venture Cap/Angel Investing is also another avenue I’m looking into — smaller investments but potentially higher returns.
Looking forward to your posts and others’ comments, especially strategies to generate higher returns going forward. The other tact that requires guts is to be liquid and reduce market exposure, in expectation of a crisis that provides a better, lucrative entry point.
Good info ESI. I took the half-step, by taking a 6-months break to see what career trajectory I should take after working for few years. I am in late thirties but don’t have many liabilities (kids, mortgage, single income pressure). I believe even if you can’t fully retire with sizeable cushion, it’s worth re-visiting your career plans to see what would be the career path for the remaining years. I love reading & am learning to write on some in-depth topics (e.g., housing & finances). To keep the routine, I also post at least one chart from my reading every day, that helps me stay focused.
Thanks again for sharing your story.
HI….I recently found your website and love it. Better than MMM! I love your interviews with millionaires. I will keep up with your posts. Thanks.
There is one thing you have missed in your life to have a complete perspective. Do you know what it is? You have missed serving your country where you are not in control. You serve because you are proud of the the country and people you come from. You serve because this is your home, you are proud, and your parents or wife, husband, girlfriend, boyfriend– is watching. You serve also at great risk to your own person. You are willing to give your life for others. When you have done this, you will know complete happiness.
Happiness also comes from this!
I am 26 year old who found your site earlier this month and love every bit of it!