Meet the couple who retired in their 30s. Yes, you read that right. Two relatively ordinary people, with relatively ordinary jobs, who made a decision to save all their pennies to quit working – for ever – and travel the world.
Now, they have a baby along for the ride, but they’re still going.
It may sound like a glamorous fantasy that only a Kardashian could aspire to. But Jeremy Jacobson and Winnie Tseng retired at 38 and 34, and now they’re on Mamamia’s This Glorious Mess podcast talking about it. So, how on earth did they do it?
The not-so-glamorous reality is that they worked their behinds off for 10 years and saved 70 per cent of their combined yearly wage of around US$135,000 ($187,690).
That meant no trips to the movies, no eating out and scrimping like a Depression-era housewife. It was challenging admits Winnie, who is now a mum to 11-month-old Julian, but surprisingly do-able. “After a few years we realised early retirement was possible if we tried really, really extra hard to reach our target,” she says.
By 2012 they’d reached that target. A whopping $1 million purely in savings. What’s more, they made another $1 million buying US and international stocks investing in Vanguard index funds. They also cheerfully ditched the American/Australian/world dream of owning a house. They chose to rent and invest instead and say they’re proof the strategy works.
For the last four years Jeremy and Winnie have been on a permanent holiday, travelling the world – yes even with a newborn – visiting places such as Mexico, Central America, Malaysia and Thailand. They’re able to live off the dividends from investments – about $4000 a month.
The pair reckon most people can retire in their 30s as long as they’re on a reasonable combined wage and save around 50 per cent of it. But the key is to start early when you’re in your 20s, before kids and other expenses weigh you down and make sure you’re debt-free. “From the time you start you’ll be able to retire in about 15 years’ time if you invest as well,” says Jeremy. “However the majority of people who can save 50 per cent, won’t. They don’t want to wait for a car or more furniture.”
Top Comments
So easy. Just two 'average people', each earning $95k a year when they're in the twenties! Yeah, right!
I get the point that you're making but you've missed one vital point this couple isn't just disciplined, they're lucky.
How? Well, from the counts of it, they're both highly educated and well paid. There's no mention of layoffs or health scares that require medical bills or time off work. There's no mention of elder care that require a commitment of time or money. They're lucky to be able to live in a city where they can bike to work and save by not having a car. They happened to have a perfectly healthy child who doesn't need medical or other care that requires them to outlay huge amounts of cash or stay in the same city. And finally, they hit the jackpot because they happened to invest their savings at just the right time to double their investment.
So, in short, if you save hard, live in the right place, are able to get into and afford Uni wraith, never get laid off or sick, marry a high earning partner and find an investment that ensure you'll double your money, you too can be just like them. IT'S SO EASY ANYONE CAN DO IT. Give me a break.