Mike Rosehart, 27, enjoys a life of leisure. Having amassed a fortune of more than AU$1 million, he has been retired since the tender age of 24.

The former IT business analyst saved aggressively, lived frugally, and bought his first home when he was just 19 years old.

Watch the video above

Now a dad of two and married to wife, Alyse, 28, the money-maker is convinced anyone can achieve financial independence and retire early - otherwise known as FIRE - with a little financial wizardry.

'Most of us cant resist the Starbucks, the trip abroad or the new cellphone.'

The secret to retiring early is: spend less, earn more and maximize the returns on the difference," Mike, who is Canadian, says.

The hard part is executing it. Most of us cant resist the Starbucks, the trip abroad or the new cellphone.

Delayed gratification is the secret to FIRE.

Mike hit upon the idea of retiring early when he was studying at the Ivey Business School in Ontario, Canada, in 2010.

He came across Early Retirement Extreme, a book about becoming financially independent on a median salary by Danish astrophysicist Jacob Lund Fisker.

I was in my first year at university and I was working on a project about the psychology of happiness," he explains. "I went deep into a wormhole on the internet and I came across Jacob Lund Fisker. He started the spark for me.

'I realised that what makes you happy is freedom and the ability to do what you want in your life'

His thesis was that anyone can retire in five years. I thought: Hey, Im 17, Im young and eager.

I realised that what makes you happy is freedom and the ability to do what you want in your life.

Mike had a hard time persuading his girlfriend and future wife, Alyse, to share his early retirement ambition.

I wouldnt say shes a crazy spender but she likes her Starbucks," he says. She wanted to have kids young so I explained that if we were able to retire early we could be there for our kids. I told her we just had to cut our spending in half.

It took me over a year to get her on board. Every time she bought Starbucks, I said: That cost us two more days away from our kids.

Throughout university, Mike worked full time while also studying full time.

He said: I grew up really poor with a single mother on the poverty line so I didnt have family money to rely on. I got scholarships to go to college.

When I first started going after FIRE, I was working at Tim Hortons, earning slightly above minimum wage. I got a better job the following summer at border services. I saved aggressively.

In my second year of university, I rented a bedroom for AU$330 [299 CAD] when the market rent would have been AU$607 [550 CAD].

It was 7ft by 8.5ft but it was perfect for me. I just needed a place to sleep. Then I got a tiny apartment with my girlfriend for just AU$663 [600 CAD] a month.

We even shared the internet with the neighbors and gave them AU$5.50 [5 CAD] a month. I cycled everywhere instead of getting a vehicle. I found a bike that someone was giving away on the Craigslist of Canada.

'We graduated debt-free and with money in the bank'

At 19, Mike bought a AU$221,000 [200,000 CAD] cottage with Alyse.

It was a tiny little cottage, the cheapest house I could find in London. We put down AU$43,000 [39,000 CAD] - half of that was money we had saved and half of it was our student line of credit. We rented every room in it and so it was earning money for us. We had four other roommates. The guy in our basement apartment was paying our mortgage.

We graduated debt-free and with money in the bank.

The couple married in 2014 and were keen to keep wedding costs down, with the big day setting them back AU$5500 [5,000 CAD].

We found a venue that were offering a deal where you could have the wedding for free as long as you invited enough guests," Mike explains. Initially we wanted 150 guests but to keep costs down we whittled our guest list to just 80 people.

People give a gift when they come to a wedding and so we actually made a profit on our wedding if you think about it like that.

For our honeymoon, I used the points on my credit card to go to Brazil so it didnt cost anything. We had a friend who hosted us in Brazil so our accommodation was free.

'I got off work at 6pm and Id bike over to my property and Id do it up until midnight'

After college, Mike took a AU$60k-a-year [55,000 CAD] job in consulting. Alyse, who had graduated a year before, in 2013, took a graphic designer job, making AU$39,000-a-year [35,000 CAD].

Mike adds: My salary was not exorbitantly high but I took the proceeds from that salary and bought rental properties and reinvested the rent. I was able to convince the bank to lend me 80 per cent of a house price.

I got off work at 6pm and Id bike over to my property and Id do it up until midnight. We lived on slightly less than half of Alyses salary.

We were saving 100 per cent of my salary, every single dollar. I kept reinvesting every profit from rental property. It kept snowballing."

The frugal approach allowed the pair to buy ten properties in three years. In 2017, Mike was able to hand in his notice and Alyse also retired later that year.

More on 7NEWS.com.au

Mike sold 11 properties and he knew that he had hit his FIRE number - 25 times his yearly living expenses.

I went into my bosss office and he told me that my job would be there when I came back in six months time," Mike explains.

He thought I was having a quarter-life crisis.

Mike admitted that retirement, at 24, did take some getting used to.

Its a bit jarring at first. You find a way to cope by filling time with hobbies, and at first for me, it was gaming. But then I started a group here in London called London on Fire, for people who are also pursuing FIRE.

We do a monthly meet up. One of my passions is looking up properties. I love going and looking at houses and thinking about how we can redesign this. Thats what generates income by accident.

I made AU$66,000 [60,000 CAD] this year without even trying."

Mike teaches others how to achieve FIRE on his Youtube channel, named Mike Rosehart, and he has also established his own mentorship program.

"Its free and some coaches charge 50 grand a year for something like this," he says.

But its not about the money for me."

See original here:

How to retire young: Canadian 24-year-old who amassed fortune of more than $1 million shares secrets - 7NEWS.com.au

As the end of the year approaches, you can count on a few things. Those with use-it-or-lose-it flexible spending accounts will be stocking up on bandages, contact-lens-cleaning solution, and sunscreen. Parents with school-age children will be planning how to fill the two-week break. And publishers and media outlets will be subjecting us to a barrage of year-end top 10 lists.

This year, Morningstar will contribute to the barrage. Over the coming week, some of our columnists and researchers--including Russ Kinnel, Ben Johnson, Christine Benz, and Jon Hale--will share their top 10 lists for the year. We'll also share the most popular content for the year, as well as funds, exchange-traded funds, and stocks.

We kick things off with todays list: 10 things you mightve missed on Morningstar.com this year. While wed like to think youre visiting us daily, we know life can get in the way of that goal. So here are some noteworthy ratings, reports, research, and trends for the year.

New Ratings and Methodology Changes 2019 was a busy year for methodology sticklers.

In April, we made some changes to our Morningstar Categories--most notably, retiring the once-giant intermediate-term bond category and introducing two new categories: intermediate core bond and intermediate core-plus bond. Both types of funds invest primarily in U.S. investment-grade bonds, but those of the plus ilk have more freedom: They can invest a greater portion of assets in junk bonds and nondollar debt. Those who revel in detail can learn more about the changes here.

We also revamped the methodology behind our Morningstar Analyst Ratings--that qualitative, forward-looking rating that can help you find mutual funds and ETFs best positioned to outperform over a full market cycle. The rating still follows a Gold, Silver, Bronze, Neutral, and Negative scale. But weve collapsed the number of pillars on which we evaluate funds from five to three--People, Process, and Parent. Weve also put more weight on fees, tailoring ratings by share class. Well continue to roll out the enhanced approach over the coming year; you can find more details here.

Weve made some changes to the Morningstar Sustainability Rating, too. The rating continues to use company environmental, social, and governance assessments from Sustainalytics and rate funds on a 5-globe scale. However, the new Sustainability Rating scores the overall ESG risk in a fund portfolio--the degree to which the holdings of a particular fund may face risks from ESG issues--regardless of industry. We think this will be more useful for users who seek to understand and manage the ESG implications of their investments. Dig into the change here.

And as in years past, weve updated our annual ratings for 529 plans; four plans earn our top rating of Gold. We've also updated our annual HSA rankings; interestingly, this years best HSA for saving is the best HSA for investing, too.

The Long View Podcast Morningstar director of personal finance Christine Benz and global head of manager research Jeff Ptak joined forces this year on a new weekly podcast, The Long View. The duo has interviewed financial pioneers (Bill Bernstein, Sheryl Garrett), advice gurus (Michael Kitces, Harold Evensky), respected financial writers (Jonathan Clements, Mark Miller), retirement specialists (David Blanchett, Maria Bruno and Joel Dickson), and investment managers (Bill Nygren, Dan Ivascyn), to name just a few. Peruse The Long View podcast page to see all of the insightful conversations Christine and Jeff have had so far, and be sure to subscribe so you dont miss an episode. The podcast is available in Apple Podcasts, Google Podcasts, Spotify, and Stitcher. (And while youre at it, subscribe to our weekly Investing Insights podcast, too!)

Christines Latest Batches of New Portfolios Evidently launching a new weekly podcast wasnt enough new for Christine in 2019. She also launched two new series of portfolios this year.

The first collection focuses on portfolios for minimalists. The retirement bucket portfolios for minimalists, the tax-efficient retirement bucket portfolios for minimalists, the retirement saver portfolios for minimalists, and the tax-efficient retirement saver portfolios for minimalists all share a common thread: taking a streamlined approach to the investments you choose so that you can focus on the big picture, such as your asset mix, savings rate, and progress against your goals.

With fewer accounts and holdings, you can better focus on the really big determinants of your financial success: your asset allocation, your savings or spending rate, and your proximity to reaching your goals, Christine says. You won't risk getting bogged down in small-bore jobs like assessing your portfolio's value/growth exposure or paying attention to earnings reports related to stocks that you own.

The second new collection of portfolios--launched just this week--is ESG-focused. Christines ESG portfolio series includes portfolios focused on mutual funds for retirees, ETFs for retirees, mutual funds for savers, and ETFs for savers. The time is certainly right for these new entrants: ESG-related funds are on track to have their best year in terms of asset growth.

New Columnists Morningstar.com welcomed several columnists to the fold in 2019.

Sarah Newcomb is a behavioral economist with Morningstar. In her column, Sarah focuses on what she calls smart shortcuts: those rules of thumb that get us where we need to go without bogging us down in too many details. But some shortcuts arent smart; instead, theyre mental booby traps. Armed with that Ph.D. in behavioral economics--and an accessible, conversational writing style--Sarah has outlined a simple plan for financial independence and explains why the market isnt due for a downturn. Her work is available on her author page.

Two portfolio specialists joined the columnist ranks this past year. Josh Charlson is a director with Morningstar Research Services, LLC, a wholly owned subsidiary of Morningstar. With many years under my belt working in Morningstar's manager research group and on our workplace retirement products, I intend to raise dilemmas and distill concepts that we wrestle with on a daily basis, in ways that I hope will be beneficial to a wide range of investors and readers," Josh explains. So far, Josh has tackled the question of how many funds you really need, pitfalls to avoid when putting together a portfolio, and when to sell a fund. Tap into Joshsinsights.

Amy Arnott is a portfolio strategist at Morningstar who began writing a portfolio-focused column for us in November. Amy has revisited the case for international investing and examined the industrys inability to crack the retirement-income code. Bookmark Amysarchive.

Morningstar.com Special Reports As in years past, we developed a series of special reports this year, covering retirement, college savings, and bonds and ETFs, among other topics. Heres a sampling (and be sure to watch for our 2020 Portfolio Tuneup in late January 2020).

Morningstars 2019 Portfolio Tuneup Well coach you on the steps to take to ensure that your portfolio is in fighting shape for the years ahead.

2019 Morningstar Investment Conference Follow our annual investment conference with Morningstar.com's reports and one-on-one interviews with some of the industry's best investing minds.

Weekend Money Projects With Christine Benz Use this summer series to cross some financial tasks off your list before fall.

Morningstars Guide to 401(k)s We share our strategies for making the most of your company's retirement plan.

Morningstars Guide to Fixed-Income Investing Tips, strategies, and picks for better bond investing. Morningstars Guide to College Savings What you need to know about college savings options, from 529 plans to Roth IRAs.

Morningstars Guide to ETFs Heres what you need to know about these popular funds that trade like stocks.

Portfolio Makeover Week Christine Benz helps investors check their progress, assess allocations, target holes and overlap, and upgrade their holdings. Morningstars Guide to Charitable Giving 'Tis the season for giving. Here are some smart charitable-giving strategies.

Updates to Morningstar Research Classics Just like that favorite restaurant you keep going back to, Morningstar frequently revisits and updates some of its most-embraced research.

We kicked off the year with an update to our annual Buy the Unloved strategy, our contrarian tactical approach that suggests buying funds from categories that are in outflows at the fringes of your portfolio.

Director of manager research Russ Kinnel updated his terrific funds series and annual Mind the Gap research, which examines what impact mistimed investments has on investor returns.

And director of global exchange-traded fund research Ben Johnson reported on Morningstars latest Active/Passive Barometer, which measures the performance of active fund managers against their passive peers.

Commentary on Investing Trends No single investing trend grabbed all the headlines this year. The ongoing dominance of U.S. growth stocks is of course notable, as is the continued migration away from actively managed funds to passive choices.

One investing trend that we covered in depth during the year: the interest in and potential opportunity with cannabis stocks. We expect the cannabis industry to grow by 9 times through 2030 amid widening legalization and increased participation for the U.S., Canadian, and international markets, says director Kris Inton.

For the United States, recreational cannabis and medicinal cannabis have penetrated just 8% and 21% of their estimated markets, leading to our expectation for 25% and 15% compound annual growth rates through 2030, respectively, he adds.

Our work on the topic included: Covering Cannabis We see some values, although we dont think any of the companies have moats.

2 Top Picks in the Cannabis Industry With cannabis' popularity already growing, widening legalization will further catalyze demand.

Canopy Has Global Potential Amid Foggy U.S. Market The cannabis company took a hit on second-quarter earnings, but consumer demand is expected to increase.

Cannabis Faces Significant ESG Risks Industry would be wise to adopt sustainable practices from the beginning.

Another investing topic we cornered: the growing interest in environmental, social and governance issues. Morningstars head of sustainability research Jon Hale addressed the topic from a variety of angles, including gauging the popularity of funds focused on ESG strategies, discussing intriguing new funds, addressing myths, and revealing how funds cast their proxy votes on key ESG issues. Access Jons archive here.

Moreover, our equity analysts have begun to examine their industries through the lens of ESG issues. For instance, theyve examined which utilities stand to benefit from the greening of the U.S. and will be producing more research along these lines in 2020. Stay tuned!

Guidance During Market Volatility Barring catastrophe during the last few weeks of the year, 2019 will go down as a banner year for U.S. stocks: As of this writing, the S&P 500 is up more than 27% for the year.

That said, the market wasn't on a straight upward march all year; volatility was ever-present. Christine Benz addressed that volatility over the course of the year--and offered some ideas for what to do in its wake. Bookmark her insights--they're great sanity checks when volatility comes around.

Simple, Effective Ways to De-Risk a Portfolio What is it, who should do it, and why?

Retirees: Avoid These Traps in Turbulent Markets Recent volatility provides a good reason for retirees to check up on their portfolios--but don't overdo it.

A Down-Market Survival Guide for Your 20s, 30s, and 40s When you have many years until retirement, market volatility should be easy to shrug off, but it isn't always. A step-by-step guide to taking control.

A Down-Market Survival Guide for Pre-Retirees If you're within 10 years of retirement, this eight-step review can help you improve your situation--and your peace of mind.

A Down-Market Survival Guide for Retirees These six steps can help you take back control in uncertain times.

When Market Volatility Meets Your Retirement Portfolio How to make sure your portfolio and plan can ride out the storm.

Our Take on Top Stories in Our Industry Two stories took center stage in the financial-services industry in 2019: the passing of Regulation Best Interest and the ongoing fee wars.

Director of policy research Aron Szapiro addressed the long-awaited regulation in"What Should We Make of Regulation Best Interest?" Our take: The SEC has taken some important steps to provide better investor protections--though it hasnt gone far enough for some.

Investors still cannot assume that the advice they get is conflict-free," concludes Szapiro. But they will have protection from the most indefensible conflicts of interest and disclosures to help them understand how their advisor makes money. Its not a radical shift, but its a real change.

On the fee front, asset managers of some of the largest index funds and ETFs reduced their expense ratios early in the year, while financial-services upstart SoFi filed for the first zero-fee ETF. Later in the year, the largest online brokerages reduced their online trading fees to zero. No-commission trades are of course good news for investors--but "free is never free, reminds Ben Johnson.

As more and more of the real cost of doing business with these platforms begins to seep into different dark corners, it's important that these firms be transparent about how they're monetizing your business, how they're taking your assets and turning that into revenue for their organization," he argues.

Jack Bogles Death This top-10 list wouldnt be complete without a mention of Vanguard founder Jack Bogle death in January 2019. Inventor of the first retail index fund, advocate for investors, and relentless promoter of simple and low-cost investing, Bogle changed the fund industry. As Morningstars Dan Culloton and Alec Lucas noted in their commentary shortly after Bogles death, There was nothing passive about the father of passive investing.

Remembrances poured out after Bogles passing, including those from Morningstars Russ Kinnel, John Rekenthaler,and Jeff Ptak--as well as other Morningstar researchers included in this video. We also assembled more than a decades worth of video interviews that weve done with Jack.

Jack is certainly missed; the investing world is a better place because of him.

More:

10 Things You Might've Missed on Morningstar.com in 2019 - Morningstar.com

FALLBROOK Why do you invest? For many people, here's the answer: "I invest because I want to enjoy a comfortable retirement." And that's certainly a great reason, because all of us should regularly put money away for when we're retired. But you can also benefit by investing in your family and your community.

Let's start with your family members, particularly the younger ones. How can you invest in their future? One of the best ways is to help send them to college. A college degree is still a pretty good investment: The average lifetime earnings of a college graduate are nearly $1 million higher than those of someone with a high school degree, according to a study by the U.S. Census Bureau.

To help your children or grandchildren pay for any college, university, vocational school or other postsecondary education, you may want to open a 529 savings plan. With this account, withdrawals are federally tax free, as long as the money is used for qualified higher education expenses, including those from trade and vocational schools.

(However, if you withdraw some of the earnings on your account, and you don't use the money for qualified expenses, it will be taxable and can also incur a 10% federal tax penalty.) Plus, you retain control of the funds until it's time for them to be used for school, so if your original beneficiary chooses not to pursue some type of higher education, you can name a different eligible beneficiary.

Another way to invest in your family is to help your adult children avoid feeling obligated to provide financial assistance to you. For example, if you ever require some type of long-term care, such as an extended stay in a nursing home, could you afford it? The average cost for a private room in a nursing home is more than $100,000 per year, according to a study by Genworth, an insurance company.

And Medicare typically pays very few of these expenses. So, to avoid burdening your adult children while also preserving your own financial independence you may want to consider some type of long-term care insurance. A financial advisor can help you determine what coverage may be appropriate.

Moving beyond your family, you may want to invest in the social fabric of your community by contributing to local charitable, civic, educational or cultural groups. Of course, now that we're in the holiday season, it's the perfect time for such gifts. Furthermore, your gift will be more appreciated than in years past because one of the chief incentives for charitable giving a tax deduction was lost for many people due to tax law changes, which raised the standard deduction so significantly that far fewer people chose to itemize deductions.

Brian Schrock is a local financial advisor with Edward Jones.

However, you might still be able to gain some tax benefits from your charitable gifts. To name one possibility, you could donate financial assets, such as stocks that have risen in value, freeing you of potential capital gains taxes. In any case, contact your tax advisor if you're considering sizable charitable gifts.

Saving for your retirement will always be important. But don't forget about investing in your family and your community because these investments can provide satisfying returns.

Edward Jones financial adviser Brian Schrock is located at 1434 S. Mission Road, Suite B, in Fallbrook. For more information, call (760) 731-3234.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

Original post:

Invest in your family and community - Fallbrook / Bonsall Villlage News

A DAD has revealed how he retired at the age of 24 - after banning his wife from Starbucks and cutting their overall spending in half.

Mike Rosehart, now 27, enjoys a life of leisure with his wife Alyse, 28, and their two children after working for just seven years.

5

The former IT business analyst amassed an impressive $760,000 (578,000) after saving aggressively and making a profit from their own wedding.

Mike, from Ontario, Canada, initially had a hard time persuading Alyse to share his early retirement ambition.

I wouldnt say shes a crazy spender but she likes her Starbucks, he told SunOnline.

She wanted to have kids young so I explained that if we were able to retire early we could be there for our kids.

I told her we just had to cut our spending in half.

5

It took me over a year to get her on board.

Everytime she bought Starbucks, I said: That cost us two more days away from our kids.

The couple married in 2014 and were keen to keep wedding costs down.

They pulled off the celebration for $3,800, which is well below the cost of an average wedding.

We found a venue that were offering a deal where you could have the wedding for free as long as you invited enough guests, he said.

Initially we wanted 150 guests but to keep costs down we whittled our guestlist to just 80 people.

People give a gift when they come to a wedding and so we actually made a profit on our wedding if you think about it like that.

For our honeymoon, I used the points on my credit card to go to Brazil so it didnt cost anything.

We had a friend who hosted us in Brazil so our accommodation was free.

5

5

The dad-of-two is convinced that anyone can achieve financial independence and retire early, known as FIRE, with a little financial wizardry.

He has even taken in three mentees to teach them his money-making and saving ways.

Mike said: The secret to retiring early is: spend less, earn more and maximise the returns on the difference.

The hard part is executing it.

Most of us cant resist the Starbucks, the trip abroad or the new cellphone.

Delayed gratification is the secret to FIRE.

Mike hit upon the idea of retiring early when he was studying at the Ivey Business School in Ontario, Canada, in 2010.

He came across Early Retirement Extreme, a book about becoming financially independent on a median salary by Danish astrophysicist Jacob Lund Fisker.

He said: I was in my first year at university and I was working on a project about the psychology of happiness.

I went deep into a wormhole on the internet and I came across Jacob Lund Fisker.

He started the spark for me.

Throughout university, Mike worked full time while also studying full time.

He said: I grew up really poor with a single mother on the poverty line so I didnt have family money to rely on.

I got scholarships to go to college.

In his second year of university, he rented a bedroom for $262-a-month which was just 7ft by 8.5ft.

He later lived in a tiny apartment with Alyse for $455 a month - and saved money by cycling everywhere.

At 19, Mike bought a $152,000 cottage with Alyse.

It was a tiny little cottage, the cheapest house I could find, he said.

They put down $29,600 - half of that was money they had saved and half of it was their student line of credit.

The couple rented every room and made money off the property.

We graduated debt-free and with money in the bank, he said.

After college, Mike took a $42k-a-year job in consulting.

Alyse, who had graduated a year before, in 2013, took a graphic designer job, making $26,500-a-year.

Mike took the proceeds from the salary and bought rental properties - then reinvested the rent.

They lived on slightly less than half of Alyses salary and were saving 100 per cent of Mikes.

I kept reinvesting every profit from rental property. It kept snowballing.

We bought 10 properties in three years.

In February 2017, Mike handed in his notice at his job and Alyse also retired later that year.

He sold 11 properties and he knew that he had hit his FIRE number - 25 times his yearly living expenses.

He said: I knew I needed $485,000 to retire and I had, in equity of my property, just under $760,000.

I went into my bosss office and he told me that my job would be there when I came back in six months time.

He thought I was having a quarter-life crisis.

Mike admitted that retirement, at 24, did take some getting used to.

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Its a bit jarring at first. You find a way to cope by filling time with hobbies, and at first for me, it was gaming.

Mike teaches others how to achieve FIRE on his Youtube channel, named Mike Rosehart and he has also established his own mentorship programme.

He coaches four men, who live in his rental properties, how to achieve their own financial independence.

5

Excerpt from:

Dad-of-two retires at 24 after banning his wife from Starbucks and making a profit from their WEDDING - The Sun

A private engineering services company will build 150 disaster-resilient houses for people affected by cyclone Fani in Odisha's Puri district and will also provide skill development training to them, officials said on Friday.

Puri District Collector Balwant Singh along with CEO & Managing Director of L&T Technology Services Limited (LTTS) Keshab Panda laid the foundation stone for construction of the dwelling units under project Neelachala on Thursday, they said.

As a part of the Project Neelachala, LTTS will also provide skill development programmes for residents in various construction activities. The training provided by LTTS will ensure the affected people have an additional means of livelihood in the longer run, Panda said.

"The people of Odisha have shown immense strength and resilience in recovering from the after-effects of cyclone Fani. This initiative undertaken by L&T Technology Services is a welcome step since rebounding from such a massive natural calamity requires a contribution from all including the business community," said the Puri collector.

Panda said: "As a leading engineering enterprise, contribution to the betterment of the society is in our DNA. What makes Project Neelachala a unique CSR initiative is that in addition to providing shelters to those in need, the training that L&T Technology Services imparts as a part of this program enables the beneficiaries to attain financial independence."

Habitat for Humanity India is L&T Technology Services construction partner for the Project Neelachala.

Cyclone Fani made landfall near Puri in Odisha on May 3 as an extremely severe cyclonic storm. At least 64 people died and 5,56,000 houses and huts were damaged and 148,663 hectare of cropland affected by the storm.

Photo by PTI

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People affected in cyclone Fani to get 150 houses - Deccan Herald

ETHIOPIA-GERMANY

Some of the key questions it raised included: How are partners selected? Which partnership models are preferred? What are the strategies partner countries and institutions often refer to?

In this article, we focus on German transnational education (TNE) and draw from an Ethiopian example to showcase achievements, perspectives and challenges typical of such cooperation. The alignment with existing policy frameworks will also be discussed briefly.

Top-down or bottom-up?

It goes without saying that in Germany, as well as in many other countries, the political agenda can play a decisive role in shaping partnerships in higher education and research largely manifestations of what is generally referred to as knowledge diplomacy. In most cases, this implies a top-down approach which defines partner countries and articulates overall strategies.

The traditional and predominant approach though is different, especially in TNE where activities, such as the design and implementation of a joint study programme, are usually based on existing cooperation in teaching and research which have already proven their success.

This bottom-up approach allows a balance of interest between the foreign and the German higher education institution and is likely to build up a sustainable partnership due to shared visions and objectives. Mutual benefits lie, for instance, in the internationalisation of the partnering higher education institutions, the support for young scientists, as well as other forms of joint capacity building.

Long-time partners beyond HE

The TNE project we are focusing on is built on an already existing town-twinning relationship between the cities of Addis Ababa (Ethiopia) and Leipzig (Germany) as well as between the two universities. This long-term relationship has been instrumental in promoting mutual trust, which paves the way for a deeper cooperation.

The collaboration between Addis Ababa University and the University of Leipzig began as a medical partnership. Subsequently, this university cooperation enabled the implementation of two social science study courses in Addis Ababa, as discussed later. Based on this successful experience, both universities are currently developing interdisciplinary programmes collaboratively.

Addis Ababa University and the University of Leipzig offer a joint masters and doctoral programme in global and area studies in Addis Ababa, with a special emphasis on peace and security in Africa. The programmes are based on independently implemented courses of study at the respective universities.

In comparison with the regular programme, the cooperative programmes are substantially supported by blended learning, a semester stay at the University of Leipzig, and the special focus on issues of peace and conflict on the African continent.

The study programme combines social, cultural and historical perspectives on current globalisation processes and includes comparisons of different world regions in order to investigate causes of conflict at different levels. Besides the international orientation of the topics and the transnational orientation of the teaching, the programme has a strong local anchoring.

With the introduction of a pre-doctoral phase and a post-doctoral programme, the extent of this university cooperation is currently being scaled up. The regional orientation, the international character, the local embedding and networking, and the connection to Germany create a broad spectrum of job opportunities for the graduates. Its appeal is proven by the constant demand from students, the vast majority of whom come from the East African region.

Major challenges: equal access and focus on STEM

Regardless of the projects undeniable success, one aspect raises concern: the tuition fees are based on comparable international offshore study programmes in Eastern Africa, but are significantly higher than national programmes in this field of study.

The requisite high tuition fees, to ensure financial independence and to maintain the high quality of teaching, often result in discrimination of students of a certain social class. The balancing act between equal access and the establishment of excellent educational opportunities for high-performing students remains one of the main challenges of such a project.

A second challenge, more general, lies in the disciplinary scope of TNE projects. Even if university cooperation across all academic disciplines can engage in transnational education, there is a relatively strong focus on science, technology, engineering and mathematics (STEM) in German TNE. This tendency is perfectly understandable with regard to questions of employability, innovation and economic growth, but bears the risk of marginalising other disciplines.

The example of the Addis-Leipzig cooperation, however, clearly shows the potential and importance of cooperation in social science and humanities in African countries. A strategic focus on specific local or regional subjects need not exclude international contexts, but rather opens up fruitful synergies.

Policy frameworks as a guideline

Ideally, continental or national policy frameworks such as the Continental Education Strategy for Africa (CESA 16-25) or the Ethiopian Education Development Roadmap serve as guidelines to help (re-)define the thematic orientation and the general objectives of co-operation. Moreover, they help create the sense of ownership for the partnering countries in the Global South.

For instance, in the case of CESAs Strategic Objective 9 which stipulates Revitalise and expand tertiary education, research and innovation to address continental challenges and promote global competitiveness, the specific context and implications for Ethiopia, which is home to a large number of international organisations such as the African Union and different UN agencies, are evident.

This local anchorage does not only provide interesting job opportunities for graduates, but also allows a practice-oriented exchange in relevant research fields between the university and local stakeholders. The aim of enhancing community services of higher education, as defined in Ethiopias Education Development Roadmap, could hence be supported in the field of peace and security, taking the Leipzig-Addis research partnership as a nucleus.

The long-term success of such an endeavour remains to be seen, but it can at least be considered as a first step towards a more integrated vision of research, society and global challenges.

Benjamin Schmling is head of German transnational education projects in the Middle East, Africa and Latin America at the German Academic Exchange Service (DAAD). E-mail: schmaeling@daad.de. Hanna Odenbach is programme officer for German transnational education projects in the Middle East, Africa and Latin America at DAAD. E-mail: odenbach@daad.de.

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Sustainable partnerships through bottom-up projects? - University World News

Want to retire early? Learn the difference between being frugal and being cheap? Get over embarrassing money matters, and apply practical money rules to your own life? I've got some off-the-beaten path podcasts for you.

Want to cue up a brand new podcast, but not sure where to start? Most best of lists for financial podcasts tend to feature the same well-known shows over and over again, which isnt all that helpful for those of us who want to branch out and discover something we never knew we needed.

This list is different, and features some of my favorite financial and retirement podcasts that can help you better plan, prepare and enjoy your money today and in the future.

Whether youre getting ready for retirement or are only about halfway there, each of these shows provides you with the kind of insight, wisdom, tools and strategies you can use to make your financial life better, your net worth bigger and your ideal vision for your future a reality.

Our common understanding of what retirement looks like, when it starts and how you experience it has changed dramatically over the last decade or so and the idea of retirement continues to evolve today.

Some of the changes are due to the fact that pensions are almost nonexistent, and most employees dont get much help beyond their own savings power during their careers to fund their life after work. But other changes to what it means to retire today have emerged as more and more people realize going from full-time work to full-time leisure isnt always a good thing, and some workers opt to take on second-act careers, part-time work or a new position in a different industry instead of fully retiring and kicking back to do nothing at all.

Regardless of what your ideal retirement looks like, Retirement Starts Today Radio can help you achieve it. Benjamin Brandt covers what any soon-to-be-retiree needs to understand, from the expected (including protecting yourself against Social Security scams) to the downright strange-yet-downright-entertaining (like Benjamins take on what a mullet hairdo can teach us about portfolio distribution).

Thinking about retirement and want to cut back on your expenses before you leave your job behind? Been feeling a little too spendy lately and want to understand how you can rein things in (without becoming a complete cheapskate)? The Frugal Friends Podcast might have a few ideas for you to try.

Even if you dont identify as someone who is (or likes being) frugal, co-host Jen points out that their show is not full of tips on reverting to your broke college kid days. Being frugal [is about] being a better steward of your time and resources.

Jen Smith, Jill Sirianni and their guests generally talk about not just spending less, but spending with more intention and purpose. From simple plans to hack your travel and reduce trip expenses to frank discussions on where the line between being frugal and just being cheap is, these friends know how to help you spend less, save more and actually enjoy doing it.

Most people dont love to talk about money. Its usually a taboo topic when youre trying to keep polite company, and even in spaces where were supposed to divulge the details of our finances (think, in the office of a financial planner, for example), it can be hard to have financial conversations.

Thats because personal finance is never just about numbers, and there are a lot of emotions and feelings that can stop us from understanding the right money moves to make or reaching out for help when we need it most.

Dropping in on the open and honest conversations that take place on Beyond The Dollar with Sarah Li Cain, however, can help you understand how to better navigate really tough topics. My favorite thing about this podcast is that the episodes help to normalize issues that might feel embarrassing, overwhelming or impossible to figure out if youre going through them.

Whether its knowing how to have the talk about money with your parents or getting real about how infertility can impact a familys finances, Beyond The Dollar helps listeners realize theyre not alone and that there are solutions to even the toughest money challenges that we might face in our lives.

Not interested in waiting until age 67 to retire? You might consider joining the growing crowd of financial independence/retire early devotees, or FIRE enthusiasts. Whether you just want to be financially independent at any age or want to commit hardcore to the idea of retiring as early as possible, youll need to know how to maximize your income, manage your investments and cut down on expenses to help you get there.

The FI Show can help you do all this and more, as they feature real people who have managed to retire early, become financially independent or both. Podcast hosts Cody Berman and Justin Taylor share the stories of people whose experiences run a wide spectrum, from those who chased financial independence on as little as $10.75 an hour to entrepreneurs with million-dollar businesses they started from scratch.

This podcast highlights the seemingly countless ways you can successfully achieve financial freedom or retire early regardless of where you are in your life right now.

OK, Ill admit: Im biased on this one, as I host this podcast with my wife, Kali. But I think that dynamic is part of the reason listeners have deeply resonated with the show, and why it deserves a turn on your favorite podcast app.

Beyond Finances aims to provide real-life context to the practical money rules and the theory of financial advice that youve probably heard before but just arent sure how to best apply in your own life. Common themes range from using your money as a tool to get more value from every dollar to learning how to zoom out and look at the big picture of your financial life to increase your odds of long-term financial success.

If youre interested in the intersection of self-awareness, personal development and financial success, Beyond Finances will help you make a meaningful impact on not just your finances, but your life in general.

Eric Roberge, CFP, is the founder of Beyond Your Hammock, a virtual financial planning firm that helps professionals in their 30s and 40s make mindful decisions with their money and strategically use their incomes to achieve financial freedom.

Eric is one of Investopedia's Top 100 most influential financial advisers and is a member of "Investment News' " exclusive 40 Under 40 class of 2016.

Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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The 5 Best Money and Retirement Podcasts You Haven't Heard of Yet - Kiplinger's Personal Finance

A TD Ameritrade survey finds that most people believe $1 million is enough to retire. FOX Business Lauren Simonetti with more.

Even though Shang Saavedra and her husband have been financially independent for about three years, Saavedra only recently stopped working so she could take a year-longmaternity leave for her first child.

The couple lives in Manhattan and are followers of the F.I.R.E. Movement -- which means Financial Independence, Retire Early. However, Saavedra and her husband have slightly different goals than the name suggests.

The approach that my husband and I have taken is, financial independence, retire optional, Saavedra, 34, told FOX Business. So its creating optionality and freedom.

MILLENNIAL MILLIONAIRE WHO RETIRED AT 30 EXPLAINS THE SACRIFICES HE MADE TO GET THERE

One of those options is for Saavedra -- a strategy consultant and author of the blog Save My Cents -- to be able to take her maternity leave for a full year.

But we have much bigger goals in mind,including philanthropy and helping other people, which is really motivating us to not stop working and continue to grow our wealth for the benefit of others, she added.

Shang Saavedra, 34, and her husband became financially independent three years ago. (Courtesy of Shang Saavedra)

The couple started their extreme saving by living off just the lower of their two incomes, but it wasnt easy for Saavedra at first.

I spent a greater proportion of my income before coming into marriage than my husband did, she said. And its a sacrifice.

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She eventually had a breakthrough, though, about a year after they started.

I realized that if I focused on what felt like deprivation, then this is not going to work, Saavedra said. And in grappling with the emotions of feeling like, 'Oh, Im missing out on life or Im missing a former life, I used to do all these things,' I realized, what if I turned all of that on its head and recognized everything that I was able to do.

She added that having a more positive mindset helped her recognize how much she used discretionary spending to fill a hole in her heart.

If Im able to self-soothe and say I get to or Im grateful for, then Ive psychologically solved the pain in my heart and then I no longer need to pursue consumerism to plug that hole, she explained. Once this happened, suddenly everything became so much easier.

THESE ARE THE BEST-PAYING CITIES FOR YOUNG PEOPLE: REPORT

By the time Saavedra was 31, she and her husband were financially independent. It was then that they realized they could set much bigger goals than just saving for themselves.

We were like, 'Wow -- now its no longer about ourselves, who else can benefit?' Saavedra said, adding: A huge part of our value system is dont just live for yourself.

Saavedra and her husband lived frugally so they could have more flexibility in their schedule, including taking parental leave for their children. (Courtesy of Shang Saavedra)

In part, the couples value system comes from their faith, which inspires them to tithe 10 percent of their income. However, they are also saving much more, which they may use to set up scholarships for higher education -- though theyre still deciding exactly how they want to give away their money.

Weve already been in the habit of giving our money away for a really long time and this is just challenging ourselves to do even more, Saavedra said.

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That selfless motivation is what keeps Saavedra and her husband going, she said. Its also what makes following the F.I.R.E. Movement so fulfilling.

Even though Saavedra and her husband are financially independent, they have chosen to continue working so they can use their money for philanthropy. (Courtesy of Shang Saavedra)

Theres a misconception among a lot of people that being frugal is miserable, and I would say thats not true,"Saavedrasaid. "We do have some of our own creature comforts. We travel, we eat decent."

The bottom line for individuals wanting to achieve financial security is finding a balance between saving and spending that works in their unique situations, she said.

Everyone has different tolerances," Saavedra added. "Not everyone can save to the extent that we save. Not everyone wants to do what we do Take everything that you hear and come up with something that youre comfortable with, because personal finance is personal.

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Extreme saver wants to skip retirement so she can give her money away - Fox Business

Financial independence is one of the many markers used to designate the crossover from childhood into young adulthood, and its a milestone most Americans (64%) think young adults should reach by the age of 22, according to a new Pew Research Center study. But thats not the reality for most young adults whove reached this age.

The share of young adults who could be considered financially independent from their parents by their early 20san assessment based on their annual incomehas gone down somewhat in recent decades. A new analysis of Census Bureau data finds that, in 2018, 24% of young adults were financially independent by age 22 or younger, compared with 32% in 1980.

Looking more broadly at young adults ages 18 to 29, the share who are financially independent has been largely stable in recent decades. Overall, young men are more likely than young women to be financially independent, but this gender gap has diminished significantly.

The surveys findings underscore the extent to which many young adults are financially reliant on their parents. Some 45% of adults ages 18 to 29 (with at least one living parent) say they have received a lot of or some financial help from their parents in the past 12 months.

According to parents of young adults, those shares may be even higher. About six-in-10 parents with children ages 18 to 29 (59%) say they have given their kids at least some financial help in the past year. The study is based on two nationally representative surveys.

A majority of young adults who have received financial help from their parents say at least some of it was for recurring expenses. Six-in-ten say the money went toward household expenses such as groceries or bills, and significant shares used it to pay their tuition, rent or mortgage.

Read the full report from Pew.

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Fewer than one in four young adults are financially independent - Greater Baton Rouge Business Report

(Image via Getty)

A few weeks ago, I read the story about Daniel, a 36-year-old lawyer who was living a very, very frugal lifestyle. He eats only rice and beans, lives in a small apartment in New Jersey, and buys his clothes from thrift shops. His goal was to retire early and he has saved up a six-figure retirement account and $400,000 in cash.

Daniel is a believer in the FIRE philosophy which is short for Financial Independence Retire Early. This goes beyond the sensible basic financial advice of spending less than you earn. The idea is to work like crazy and save as much money as possible. FIRE also recommends diversifying income sources, generating passive income, and monetizing everything you do. Once you save enough money, you can then quit your job in your 30s or 40s. You can then spend the best years and the rest of your life living happily ever after doing whatever you want to do.

I can relate to Daniel in some ways as I prefer being a minimalist. When I am not with clients or friends, I dont like to spend a lot of money eating out. And when I do eat out, it usually coincides with a restaurants special discount promotions like Taco Tuesdays. I make my own coffee, which I concede tastes slightly better than sewage. At the moment, I have no desire to live in a McMansion. And I generally do not like having a lot of stuff which ends up gathering dust or gets thrown away unused.

But after learning more about the FIRE lifestyle, I dont think I am crazy or disciplined enough for it. There are drawbacks to the FIRE lifestyle that make me wonder whether it is worth the sacrifice. Now I understand people have different priorities in life so you can take my thoughts below with a grain of salt.

You will pay more taxes. Unfortunately, the tax laws do not give incentives to save. Before you can legitimately claim an income deduction or a tax credit, you have to spend money on certain things. So if you save, a big chunk of those savings will go to the government.

That early retirement savings cannot be touched for a long time. So you have a sizeable retirement account because you maxed out your IRA or 401K contributions for many years? Thats super. But you cannot withdraw from it until you reach the age of 59 1/2 or you will have to pay a 10 percent early withdrawal penalty and possibly income taxes on the withdrawn amount. The tax laws did not have FIRE in mind.

You will give up a lot of things. Many personal finance gurus advise delayed gratification where you hold off on enjoyment now in exchange for greater enjoyment later or avoiding unnecessary debt. But the FIRE lifestyle goes beyond simple fiscal discipline. They advocate making substantial and permanent lifestyle changes.

For example, it is not enough to buy a used car to save a few thousand dollars. Some FIRE blogs tell you to learn how to fix and maintain your car by yourself. If you buy a house or rent, you are encouraged to get roommates to save costs. A few even tell you what to eat and where to buy the ingredients in order to save on grocery costs.

I can rent rooms in my house but that means I am giving up privacy and I run the risk of having bad roommates. Todays cars have so many electrical and computer controlled components that it is nearly impossible to fix them on your own. And some of the foods recommended I just dont care for.

I appreciate what they are trying to do, but I personally cannot live a life that is so micromanaged and requires me to do so many things on my own.

Your family life could be a difficult one. You might embrace the hyper-frugal FIRE lifestyle but good luck finding a significant other who shares the same philosophy while you are together. Even if you do, at some point, you and your significant other might end up being frugal about different and incompatible things. Or one of you might get sick and tired of the FIRE lifestyle altogether.

And of course, it costs money to raise children properly. Especially for the unexpected expenses that comes with parenthood such as preschool, after school activities, weekend golf lessons, or in some cases, bail money.

From the stories I read, the FIRE lifestyle is best for single people since there is no one to argue with and no one to take care of.

I wont name any names but one of the most prominent voices of the FIRE movement recently got divorced. He stated that the FIRE lifestyle was not the cause and I want to believe him. But considering that most married couples split due to finances (or lack of it), I am inclined to believe that finances played at least a part in the separation.

You might not be able to deal with financial catastrophes or opportunities. Many of the FIRE supporters assume that once people retire at some obscenely young age, they will not have major financial problems in the future. Instead, they think that everyone will live happily ever after and they will have money to pay a doctor for a checkup.

Before you quit your day job, you will need to save a substantial amount of money for a major financial catastrophe. You or a family member could suffer from a serious medical condition. Or you might be sued.

Or it may not be catastrophe but instead a potentially lucrative but expensive investment opportunity that interests you.

And if you retire at young age, it can be more problematic because there will be more time for potential catastrophes. Especially if you plan to spend your free time pursuing hobbies such as parkour, rock climbing, or whatever these people are doing.

You might be unemployable. Finally, lets just say that at some point, the FIRE lifestyle does not work out and you want to (or need to) go back to work. Well, your absence from the job market could make that difficult. How are you going to spin your early retirement in an interview? It is very likely you wont be welcomed back to your old senior management position. Instead, you may end up starting in the bottom in a different field.

The FIRE lifestyle sounds very appealing, especially to the significant number of people who hate their current jobs. For some people, like Daniel above, if it means living like an ascetic monk for a few years, in exchange for freedom, then thats what he will do. But with the money he has saved so far, Daniel will not live lavishly. He will live a barely middle class lifestyle in a low cost-of-living area.

But I just dont see it working for me. It means I will have to live a lower quality of life during my prime years while a chuck of the money I save goes towards taxes. If I put the money into a tax-advantaged retirement account, I wont see that money for another 17 years. Not only that, I will have to save another nest egg for potential financial catastrophes or something else.

Whenever I hear testimonials about those who followed the FIRE lifestyle and achieved significant financial freedom, I think most of them are not telling us everything. Some of these people might have cashed out large stock options after leaving their firm. Or they may have a spouse who is still working. Or they have a secret golden goose that they wont share with others. Or they may live a life that is much poorer than what people think.

It is generally a good idea to spend less than you make if you want to save money to retire. But if you want to play with FIRE, be careful because you could get burned.

Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at sachimalbe@excite.com. Or you can connect with him on Twitter (@stevenchung) and connect with him onLinkedIn.

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The Hyper-Frugal FIRE Lifestyle Could Be More Pitiful Than It's Worth - Above the Law

Financial Freedom

By Alexander Green

Originally posted November 4, 2019 on Liberty Through Wealth

In my last column, I discussed National Geographic Fellow Dan Buettners exciting new research on the Blue Zones, home to the worlds happiest and longest-living people.

And while money doesnt always lead to a longer and more satisfying life, it certainly doesnt hurt.

For example, in a Gallup-Sharecare study, nearly 90% of people who were managing their finances well said their relationship with their spouse or partner was strong.

Yet when finances were cited as a sore point in the household, the number of happy relationships plunged to just 60%.

Moreover, it didnt matter whether the couples were affluent or not. Money troubles create relationship troubles.

Ive seen plenty of couples, for instance, where one was an avid shopper and the other a dedicated saver. Thats a bad combo.

I knew another where one wanted to tap into retirement savings to get a new boat or remodel the kitchen and the other felt strongly otherwise.

Things went decidedly south from there.

Financial compatibility or at least peacemaking compromise seems to be a prerequisite for connubial bliss.

Arguing and worrying about money is toxic. It creates stress and conflict.

Yet when a households finances are managed smartly, relationships improve.

Studies show there is even an inverse relationship between wealth and obesity. Financial well-being, it turns out, even helps keep you slim.

(An important consideration since obesity is highly correlated with hypertension, heart disease, diabetes, stroke, dementia and some forms of cancer.)

Yet in the 2019 Retirement Confidence Survey, the longest-running survey of its kind, only 23% of workers said they were very confident theyd have enough for a comfortable retirement.

(In fact, only 35% of current retirees are very confident they have enough.)

This isnt terribly surprising when you consider that 32% of Americans have no savings and 58% have less than $1,000 set aside.

This is a national tragedy, one that will have serious ramifications down the road when nonsavers petition their elected representatives to redistribute the incomes of those who have saved and invested.

Dont get me wrong. Some people are poor due to bad genes, bad luck or circumstances beyond their control.

But can this possibly describe the nearly two-thirds of Americans who havent saved for a rainy day much less up to three decades of retirement?

Especially when financial independence requires only three things:

Heres an example

Up until youre 25, your need for a home, transportation, healthcare and other expenses may take every penny you earn.

But starting at age 25, lets say you invest $190 a month in an S&P 500 index fund and earn nothing more or less than the markets long-term average annual return of 10%.

With dividends reinvested, that would turn into $1.02 million by age 65.

Thats right. Just $190 a month is all it takes to go from flat broke to millionaire status.

According to the U.S. Census Bureau, the median household income in this country in 2018 was $61,937.

So $190 requires the average household to save just 3.6% of its income or less than 5% post-tax to hit the seven-figure mark in 40 years.

Even if a household could save only $95 a month, it would still turn into a half-million dollars in 40 years.

(And if they bought a home and didnt pull out and spend the equity along the way that would likely get them the rest of the way to millionaire status.)

Saving. Investing. Compounding. Building equity.

Its so simple. Yet many Americans never get out of the starting blocks.

Why?

A major reason is too many people decide theyll start saving after all their wants and needs are met.

That doesnt work.

We live in a wonderful free market system where companies knock themselves out to bring us a constant array of exciting new products and services.

If you plan to start saving after all your familys desires are met well, good luck with that.

Heres the bottom line: Financial freedom doesnt just provide you with security and peace of mind.

As Dans research reveals, your health and happiness may depend on it as well.

Incidentally, Dan and I as well as several other nationally renowned business and investment experts will be speaking at The Oxford Clubs 22nd Annual Investment U Conference at the beautiful Park Hyatt Aviara in Carlsbad, California, April 16-18, 2020.

This promises to be one of our very best conferences ever. For more information, click here.

Good investing,

Alex

An expert on momentum investing, value investing and investing based on insider activity, Alex worked as an investment advisor, research analyst and portfolio manager on Wall Street for 16 years. He now runs the wildly successful Oxford Communiqu, ranked as one of the top investment newsletters by Hulbert Digest for more than a decade. He is also the author of four national best-sellers: The Gone Fishin Portfolio, The Secret of Shelter Island, Beyond Wealth and An Embarrassment of Riches. He shares his wisdom in his free daily e-letter, Liberty Through Wealth.

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Rich Life: The Blue Zone of Financial Well-Being - Investment U

It's easy to dismiss the super savers who embrace the FIRE movement as starry-eyed dreamers. Financial Independence, Retire Early followers -- many of whom are millennials who consider working 9 to 5 to be drudgery -- often save 50 percent to 70 percent of their annual income with the goal of retiring in 10 to 15 years. The aggressive "Lean FIRE" savers share tips online on how they manage on less than $40,000 a year -- for example, by Dumpster diving, living in a van, not having children or subsisting largely on a diet of rice and beans.But FIRE is much more than that. FIRE followers track their money, invest in low-cost funds, avoid high-interest debt and focus their spending on what's important to them, rather than buying things just because they can afford them. Adapting some of these FIRE principles to fit your less-austere lifestyle can go a long way toward helping you achieve your retirement goals. If you're not ready to go full-blown FIRE, here's how to be FIRE-ish:Boosting savings gives you more money to invest. But more important, "every time you increase your savings rate, you are decreasing your lifestyle," says Whitney Morrison, principal financial planner with LegalZoom. That means you won't need to accumulate as much to maintain your lifestyle in retirement. FIRE folks typically watch every penny. You don't have to be that precise, but you should have an idea of your cash flow so you can find extra dollars to put toward savings. Some expenses, such as a car loan or kids' extracurricular activities, disappear over time, freeing up money that you can redirect into investments, says Melissa Sotudeh, a certified financial planner in Rockville, Md. "If you're at the point that you've got the kids launched, that's a big pay raise there," she says.Or boost savings by cutting expenses. "There is a lot of low-hanging fruit that won't force you into depriving yourself," says Brad Barrett, cofounder of the ChooseFI website. You don't have to give up your lattes. Look to housing and transportation, the largest expenses for consumers. If the kids are grown and you no longer need a four-bedroom house, consider downsizing.

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Retirement: The benefits of being FIRE-ish - Chicago Tribune

Over 20 years the registered charity has successfully helped over 35,000 women in the Lower Mainland transition into the professional workforce

VANCOUVER, British Columbia, Nov. 04, 2019 (GLOBE NEWSWIRE) -- Dress for Success Vancouver (DFSV), last week, celebrated 20 years of empowering women in the workforce with The Success Luncheon 2019 at the Fairmont Waterfront Hotel. The event brought together 400 business executives and senior leaders from some of BCs most profitable and influential sectors, and featured a keynote by CEO of Dress for Success Worldwide, Joi Gordon. Through insightful presentations, discussions, and networking opportunities, attendees celebrated the impact the organization has had on Vancouvers changing workforce over the last 20 years.

The Dress for Success Vancouver team and I are honoured to be part of the driving force that advocates for the empowerment of women and their unmatched contributions to Vancouvers workforce, said Amy Robichaud, Executive Director of Dress for Success Vancouver. We are committed to making the necessary resources and services available to women who are entering the Canadian job market for the first time accounting for roughly 80 percent of our DFSV clients and ensuring their transition into the professional workforce, BC economy, and local community.

Having expanded well beyond its humble church basement beginnings 20 years ago, DFSV has helped guide more than 35,000 women in the Lower Mainland towards financial independence and economic inclusion through workforce development programs and services including offering interview-appropriate clothing for those seeking employment. With a strong focus on growing the female workforce, DFSV has had a significant impact on the local economy, successfully generating a potential economic engine of over $1 billion CAD.

Boughton Law is thrilled to be the presenting sponsor of the Success Luncheon for a third consecutive year and to continue our ongoing partnership with Dress for Success Vancouver, said Luca Citton, Managing Director and Chair of the Community Action Committee at Boughton Law. As a society, it is our collective responsibility to empower women by equipping them with the tools they need to not only enter the workforce but thrive and succeed in it.

We are so pleased to have been involved in this years Success Luncheon, and to further the empowerment of women in our local economy, said DFSV partner Jacqui MacNeill, CEO and Founder of Escents Aromatherapy. Escents entire workforce is comprised of strong and highly-proficient women, and being part of this event could not have aligned more closely with our values and beliefs.

This year, the Success Luncheon 2019 raised $118,000 CAD, which will go towards furthering the mission of Dress for Success Vancouver and their commitment to empowering women as they enter the local job market. Sponsors of this years event included Presenting Sponsor Boughton Law; Platinum Sponsors David Yurman, Smart Savvy + Associates, and Aritzia; Gold Sponsors Grosvenor, Cargill, and EWOS; and more - with goodies provided by Escents for guests to take home.

About Dress For Success Vancouver

Dress for Success Vancouver (DFSV) is proud to celebrate 20 years in 2019, established in 1999 as the first International affiliate of Dress for Success Worldwide. The organization is an independent registered charity committed to empowering women into the workforce by providing professional attire, career development tools and a career advancement program. DFSV serves over 2000 clients per year and works with over 80 referral agencies: from Work BC and immigration services, to hospitals, colleges, and youth programs. For more info visithttps://www.dfsvancouver.org.

Media ContactSasha YeomansTalk Shop Media604 690 3509sasha@talkshopmedia.com

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Dress for Success Vancouver Raises $118,000 at 20th Anniversary Success Luncheon - Yahoo Finance

The eventual separation of church and state is inevitable, writes Minister of Justice slaug Arna Sigurbjrnsdttir in an op-ed in Morgunblai this morning. The Church of Iceland is fully capable of executing its duties independent of the state.

Icelands 1874 constitution guarantees religious freedom, but also specifies that the Evangelical Lutheran Church is a national church and as such it is protected and supported by the State. This provision was retained in the constitution of the Republic of Iceland of 1944.

According to slaug, the demand for equality among religious organisations has become increasingly salient. An autonomous church independent of the government better accords with the ideals of freedom of religion and opinion, but the Church of Iceland (The Evangelical Lutheran Church) has enjoyed special status within Icelandic governance, she writes. According to slaug, more and more people are now convinced that the financing of religious organisations should not fall within the governments purview. Many will continue to follow the church, she writes, even if a complete separation of church and state becomes a reality.

A new agreement between the government and the Church of Iceland stipulates that the latter will no longer function as another state institution. Rather, the church will come to resemble an independent religious organisation, responsible for its own operations and finances. These changes are a significant improvement. Heading in the direction of full separation of church and state is inevitable. Until then and despite this agreement the Church of Iceland will, in accordance with the constitution, continue to enjoy the support and guardianship of the Icelandic government.

The above-mentioned agreement, signed in September, specifies the increased financial independence of the Church of Iceland. From January 1st onward, the Church of Iceland will process its own wages and manage its own books. Furthermore, a special law on Church-managed funds will be revoked.

According to slaug, the teachings of the Church continue to be significant and meaningful to the everyday lives of Icelandic citizens. If citizens continue to trust the church, the Evangelical Lutheran Church will continue to be Icelands national church, irrespective of its legal or governmental status.

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Separation of Church and State Inevitable - IcelandReview

When Naseema McElroy completed her Masters in nursing in her early 30s, she was set to make a good living in the Bay area, where nurse salaries can reach well into the six figures. She also expected her remaining balance of her $186,000 in student loans to be paid off in a decade, under a student loan forgiveness program.

Fast-forward three years to 2015, and she couldnt seem to get ahead. Something clicked, she said, it is this $1,900 a month [Im] paying to student loans.

She came to the realization that she would have to put her life on hold for the seven remaining years before the loan forgiveness program kicked in. Even then, it mostly would have just covered interest, based on the peak of her payback plan. The pay off didnt add up.

McElroy paid off nearly $1 million in debt in just over two years by figuring out what she could ... [+] live without.

This thought set her down a path to pay off all of her debt, which at the time reached nearly $1 million if you include her mortgage, in just over two years. Using a mix of her real estate, the flexibility with her job as a nurse and some tactical strategies to reduce her costs, she has managed to free herself from the debt.

With nearly 45 million Americans living in student loan debt and the average person having $38,000 in any kind of debt, excluding mortgages, the pull to rid oneself of the monthly payments is strong. But its more than that. In a survey, TIAA and the MIT Lab found that 73% of respondents said that the student loan impact has forced them to put off maximizing their retirement savings, while one-in-four arent saving at all due to the debt load.

For those that seek financial independence (FI) or want to retire early, the ability to get rid of the debt as fast as possible, in order to start funneling cash into savings is step number one. For McElroy, her debt strategy has allowed her to save nearly $200,000 in the two years since she became debt free. Heres how she did it.

Unloading Her Inconvenient Home

Living in the Bay area will naturally come with some large expenses. Among McElroys debt load, more than half came from the $575,000 she owed on her mortgage. Not many would be willing to give up the home in order to pay off the debt and it wasnt originally part of the plan, she said.

But then she started to evaluate her experience with the house. It wasnt in a convenient location, creating an almost hour commute. On top of that, it wasnt close to her family, making it difficult to see them on a regular basis. Not to mention, all the extra costs that come with keeping up a home. In the end, she felt it made more sense for her to list the house, use the proceeds to pay off the rest of the student loans, and then rent elsewhere.

After selling the house with about a $100,000 profit, she paid off the remaining student loan debt. Between selling her condo that she rented out in L.A. in 2015 and listing her home, she was able to reduce her real estate debt exposure by nearly $650,000 while earning about $200,000 in profit.

As for housing, she eventually settled in Oakland, renting a house. But she convinced her landlord to allow them to sublease the basement, cutting her rent by 36%.

The Pay-Down Plan

The student loans, however, were the last piece of her debt that McElroy paid off. She had taken out a 403b loan in order to afford the initial down payment on her house, along with a car, which she still owed about $25,000 on and some other personal debt.

McElroy paid off her smallest debts first, finally finishing off her student loan debt after the ... [+] sale of her home.

When she sold her condo, it was these payments she first paid off. She chose to go that route, before attacking the student loans, for two reasons. First, shes an acolyte of the snowball method to pay back debt, attacking the smallest one first. But she also struggled with the notion of the student loans, since she was part of the loan forgiveness program.

What changed her mind? In 2016 and 2017, her income kept growing higher, which meant her payments had to increase. I only saw the payment getting higher and it felt stifling, McElroy said.

With basic math, she realized her average payment would mean the program would only forgive the interest. She could avoid the interest by simply paying back the loan. From 2015 to 2017, every extra penny went to the loan. By the time she sold her house, she only had a little more than $19,000 left to repay on the student loans.

Nursing Provides Her FI Flexibility

Since paying off her debt, McElroy has launched a podcast, Nurses on FIRE, where she explains tricks and tactics that nurses can use to expedite their financial independence. Shes taken her own savings efforts to the next level, increasing her total savings to about 10% of her $2 million FI goal.

But she also explains that her career allows her a level of flexibility to increase or decrease how much she wants to work, depending on whats needed at the time.

There are so many ways to maximize my income, she said, by either increasing her shifts or adding another job, like filling in for nurses that have left on maternity leave.

Working three days a week, it also allows her ample time to grow what she hopes becomes bigger revenue streams with her blog, Financially Intentional, and podcast. But she doesnt worry about the retire early notion of FIRE.

Instead shes tackling ways that she can scale back, increase her hours, travel abroad or other tactics open to nurses.

Theyre strategies shes testing and pursuing, since she doesnt have to worry about a large payment accruing interest due at the end of each month.

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Heres How This Nurse Paid Off $1M Of Debt In Just Over 2 Years - Forbes

Randall Lane with Serena Williams at Forbes Under 30 Summit 2019.

In a time machine, where would historys greatest female athlete travel? I would go see what Jesus was up to or Moses part the Red Sea.

How many more years will Serena Williams compete at tennis? However much longer Roger Federer plans on playing.

If not tennis, what sport would she pursue? Golf. I can hit it really far; it just doesnt go in a straight line.

The same applies to Serena Williams career, as in recent years the 38-year-old, 23-time Grand Slam winner made career moves off the path that built her a $225 million fortune over the past two decades. Keynoting the Forbes Under 30 Summit in Detroit on October 28, Williams discussed the motivations and lessons behind her forays into fashion, investing and advocacyand indulged the young entrepreneurial audience in rapid Q&A, akin to rallying at the net.

Williams revealed a few of her favorite investments since she entered the venture capital game five years ago and has dropped money into 34 companies. Meal-prep subscription service Gobble and Alchemy 43, a Drybar-like destination for Botox and filler treatments, to name two, exhibit Serena Ventures focus on underfunded demographics: Only 2.3% of funding went to women-led startups in 2018, according to Pitchbook.

If Im the boss, Im going to give other people opportunities that normally wouldn't have had opportunities. Because I know what its like, she said. Or the narrative is never going to change.

The first athlete to make Forbes annual list of Richest Self-Made Women, Williams also discussed financial independence before a crowd of nearly 5,000 20- and 30-something professionals at Detroits Masonic Temple and a partnership aimed at reframing another narrative. A partnership with the Allstate Foundation, the Purple Purse initiative promotes financial empowerment as a rescue for victims of domestic violence. Research indicates that financial abuse occurs in 99% of domestic violence cases and is a primary reason victims stay in unsafe, unhealthy relationshipsperhaps one individual is preventing the other person from working or from accessing bank accounts.

We have to make those uncomfortable topics comfortable in order to make change, she said onstage with Forbes Chief Content Officer Randall Lane as National Domestic Violence Awareness Month draws to a close, an occasion for which Williams designed a handbag and a backpack for Purple Purse.

Serena Williams and Randall Lane in the at Forbes Under 30 Summit 2019, held in Detroit's Masonic ... [+] Temple.

Thats but one avenue where her professional portfolio beyond sport has ventured into fashion. Serena apparel line debuted in 2018 with affordable items ranging from dresses to denim to blazers, inspired by early sewing skills she and sister Venus learned from their mother in their Compton, California upbringing.

I think people definitely underestimate me, but thats what makes me most dangerous.

Originally posted here:

Playing Net Game With Serena Williams: Rapid Replies On Success, Investing And Business - Forbes

Half of all middle-class Singaporeans dont have enough savings to cover six months of expenses if they lose their job and onein five say they wont even last a month, according to a report by financial comparison site GoBear.

The report, published on Friday (Nov 1), surveyed1,028 middle-class Singaporeans aged between 18 and 65 on their attitudes toward personal finance. It did not define what middle-class meant.

The survey found that local respondents top three financial priorities weresaving money, achievingfinancial independence, and creating an emergency fund.

Read also:Half of Singapore is in the worlds richest 10% and 226,000 people are among the elite 1%

However, 45 per cent of respondents admitted they did not have enough savings to cover half a years worth of expenses, with 21 per cent adding they couldnt live beyond a month if they lost their main source of income.

Stashing away six months worth of salary in an emergency fund is a common piece of financial advice to guard against retrenchment or sudden expenses such as medical bills.

GoBear citedfinancial risk management expert Wong Kon How as saying this was because most Singaporeans assets were locked away inproperty and CPF accounts.

Wong added that this monthly expenditure could have been influenced by pressure to keep up appearances and becoming accustomed to a certain quality of life.

The report also found that found thatSingaporean respondents owned about nine financial products on average higher than respondents of similar surveys in Hong Kong, Thailand, and Indonesia.

Respondents here also hadhigher levels of financial knowledge compared to their Asian counterparts.

Despite this, almost half the Singapore respondents werepessimistic about their financial future, and feltfinancially insecure.About 55 per cent of respondents said the rising cost of living in Singapore outpaced their earnings.

When asked about growing their wealth, one in three said they did not know how to do so.A quarter said they believed investing was risky, and one in five still keptcash at home in piggy banks.

Read also:

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1 in 5 middle-class Singaporeans wont survive a month if they lose their jobs, survey finds - Business Insider

When David and Stephen Baughier took on part-time jobs in high school, they remember their dad telling them to save 80% of the money they made, spending only 20% of it. At the time, they saved for big-ticket items, like buying or maintaining a car, but the concept stuck.

Since leaving the childhood home, the identical twins have gone down far different paths. David will reach 20 years of service in the Navy in early 2021, while Stephen worked as an accountant after his Naval service ended in 2002 (he also spent six years as an Air Force reservist). And their personalities differ as well David, the more Type-A one while Stephen more laid back. Yet, theyve both become acolytes and even voices within the FIRE (financial independence, retire early) movement. Despite their similarities, their strategies, tactics and goals for extreme early retirement were far different.

Identical twins, Stephen and David Baughier lean on each other when questions arise about navigating extreme early retirement.

Our spending habits are fueled both by our environment and genetics. Studies have found, for instance, that twins, even when raised in different homes, invest similarly. But as we move out into the world, were also greatly impacted by those around us. Researchers, using a real financial firm offering, found that if presented with the investment, there was a 42% signup rate. When social groups were told their friends invested, the success rate rose to nearly 93%.

Were motivated by those around us which is why having a social group thats pursuing the same purpose, whether youre seeking FIRE or just typical-aged retirement, helps in the quest since it takes years to achieve. The community allows for a safe place to ask questions while in the process of super-saving.

While you dont need an identical twin to find this advice, for David, founder of the FIRE education platform Fiology, and Stephen, founder of the retreat CampFI, having a brother pursuing the same end goal - financial independence - has provided them with someone to lean on when concerns or questions arise.

Stephen Escapes The 9-to-5 For Now

Working as an accountant within a defense contractor, Stephen understood what it looked like to make more money. Yet, he couldnt ever seem to get ahead in his own finances.

With two kids, a wife and a mortgage, much of his financial thoughts went into just figuring out how to pay the credit cards, he said. The debt always took a front seat to retirement planning. It took a divorce in 2014 for him to really hone in on why he couldnt get ahead.

Around that time, David had come across the notion of financial independence (FI). With two kids and a wife of his own, he began to engineer his own FIRE mark. Through regular conversations with his brother, David mentioned the FI concepts, and a light bulb went off for Stephen as well.

Soon after, Stephen moved into a smaller home, one that could still hold his two children but it wasnt nearly as expensive as his previous house. He also became much more aware of what he spent his extra funds on. His expenses plummeted to less than $20,000 a year and magically, money started piling up, he said.

After two years, he had saved enough to step away from the day-job, at least for a couple of years. He helped out with peoples taxes during the tax season that first year, but covers the majority of his expenses with a rental property and CampFI. Its not the independence that most people seek, but for him he wanted the freedom to spend time with his kids, since he had less time with them due to the divorce.

Yet, in three years of his mini-retirement, hes never struggled to pay the bills and couldnt imagine living life differently, even if his portfolio reached the millions.

David Realigns With Stephens Advice

Davids likely retirement looks much more traditional for service members that seek to give up a career. After he reaches 20 years of service, he will have the pension for part of his income, as well rental properties and a Roth IRA. The combined amount should give him a little more than $100,000 a year in retirement income.

But theres some nervousness around stepping away from the workforce in your early 40s, preparing for a potential 50-year retirement horizon. Because of that, David has struggled with the notion of whether to pay off all of the rental property debt before he steps away from the job or to continue to funnel money into his retirement funds.

After battling with the decision, he went to Stephen for advice. While Stephen understood Davids concerns, he also recognized that David didnt have much downside either way. Stephen essentially said, dont worry about it, do what you want to do, said David, depending on where you want to be on the tightwad-spectrum.

For David, whos the ultimate planner, he needed to hear that to realize he was overthinking it. He eventually decided to cut back some on the savings, so he could pay down more properties.

I call him and talk to him about stuff, said David, and it helps to realign why hes pursuing FI in the first place.

Developing Extra Income Streams

Stephen built CampFI, which now hosts a number of retreats a year to discuss FIRE.

Maybe highlighting the differences in how the two have reached their version of financial independence, more than anything else, is in the development of income streams. David began building a portfolio of rental properties in 2011, and now owns seven homes, providing about half of his soon-to-be retirement income.

While Stephen has the one rental property, his path to CampFI was far different. After he quit the day job, with the free time, he wanted a way to connect with others that live life in a similar vein to him. In 2016, he attended a Camp Mustache excursion and enjoyed it so much that he ran his own Camp Mustache in Florida. After that experience, he realized he could build something, and changed the name to CampFI. He will host seven such retreats across the country this year, with a higher-end goal of ten in 2020.

He never thought it would turn into a moneymaking enterprise, but now he recognizesit could be a meaningful business, Stephen said, one that pays the bills, potentially extending that mini-retirement further.

And just because they make money differently, doesnt mean they also cant help each other.

We understand the decisions to be made in the context of each other's life, said David. This makes us better able to support each other as we talk through the pros and cons of a potential course of action.

See original here:

These Identical Twins Seek Financial Independence In Very Different Ways, Together - Forbes

A TD Ameritrade survey finds that most people believe $1 million is enough to retire. FOX Business Lauren Simonetti with more.

Would you be willing to save 75 percent of your income in order to retire by the age of 30?

Thats the premise of the F.I.R.E. movement,which stands for Financial Independence, Retire Early.

Participants in the movement save up huge percentages of their paychecks for several years in order to retire much earlier than the typical retirement age.

The trend has become particularly popular among millennials, who are fed up with demanding, high-stress jobs and want to devote their time to more fulfilling pursuits.

However, its not an easy trend to follow. According to Forbes, there are essentially three steps to pursuing F.I.R.E., which include significantly cutting down on expenses and saving 75%(ideally) of your income in investments.

The F.I.R.E. movement -- which stands for Financial Independence, Retire Early -- has become popular with millennials in recent years. (iStock)

The third step is to retire once youve saved 25 to 40 times your annual expenses -- depending on how old you are.

To find out more about the trend, here are five things to know about the F.I.R.E. movement:

Even though the F.I.R.E. movement has picked up steam in the last few years, one of the greatest inspirations for the F.I.R.E. Movement is the book Your Money or Your Life, by Vicki Robin and Joe Dominguez, according to Money. The book was published in 1992 and Robin, who is now in her 70s, hasnt worked since she was in her 20s, the magazine reported.

The 1992 book "Your Money or Your Life" by Vicki Robin and Joe Dominguez has greatly influenced the F.I.R.E. movement in recent years, according to Money. (Photo: Penguin Random House)

However, Robin didnt necessarily intend for her book to have the impact that it has.

Our aim was not just to have a whole bunch of people quit their jobs, Robin told The New York Times last year. Our aim was to lower consumption to save the planet. We attracted longtime simple-living people, religious people, environmentalists.

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The 2010 book Early Retirement Extreme, by Jacob Lund Fisker also greatly inspired the movement, according to Forbes. Fisker also started a blog with the same name, on which he promises to give you the tools to become financially independent in 5 years.

The F.I.R.E. blog "Physician on FIRE"explains that there are two kinds of FIRE: leanF.I.R.E. and fatF.I.R.E.

If someone is following a leanF.I.R.E. lifestyle, theyre living extremely frugally. According to the blog, thats the approach that Fisker took to retire in just 5 years.

Meanwhile, someone whos following fatF.I.R.E. spends a bit more than a typical early retiree, the blog says.

Along with the difficulty in saving so much money, the F.I.R.E. movement can have a negative impact on participants social lives, according to The New York Post.

Friends and relatives can misunderstand the motivations of F.I.R.E., and significant others can struggle to conform.

One of the bigger issues with the F.I.R.E. movement is that it isnt available to people with small incomes, according to money management expert Dave Ramsey.

In order to gain financial independence and retire early, participants have to live radically frugally for many years before they can retire. However, they have to continue to live the frugal lifestyle they adopted in order to save. (iStock)

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Many proponents of F.I.R.E. agree that no matter how much you cut down your lifestyle, its going to take a large income probably somewhere in the six-figure range to have the ability to save enough to retire before your 40th birthday. Keep in mind, youre trying to out-save a lot of inflation and non-working years the earlier you retire, Ramsey says on his blog.

After years of saving at extreme levels, young retirees still have to live frugally once theyve retired. According to The Times, many people who adhere to F.I.R.E. take out just 4% from their portfolio accounts. So if someone has saved $1 million for retirement, they should only take out about $40,000 a year, increasing it only by inflation.

Excerpt from:

F.I.R.E. Movement: What to know about the extreme-savings trend - Fox Business

Welcome to Money Talks, a new series in which we interview people about their relationships with money, their relationships with each other, and how those relationships inform one another.

Tanja Hester and Mark Bunge achieved financial independence and early retirement in 2017, when Tanja was 38 years old and Mark was 41. Prior to retirement, they were political and social cause consultants who went from entry-level salaries in the low five figures to six-figure salaries during their final earning years. They started saving for early retirement around 2011 and got really serious in 2013.

Theyve been chronicling their pre- and post-FIRE the movement focused on Financial Independence and Early Retirement journey at the popular Our Next Life blog, which includes plenty of tips and insights for people who want to follow a similar path. Tanjas book Work Optional: Retire Early the Non-Penny-Pinching Way, published earlier this year.

In this conversation, Tanja and Mark discuss how they learned how to talk about money, why they decided to retire early, how they achieved financial independence, and what its like to live a post-FIRE life of travel.

The following conversation is lightly condensed and edited for clarity.

Mark: We started talking finances pretty early.

Tanja: Mark asked me how much I earned on our very first date.

Mark: I dont remember if it was actually our first date, but it was pretty early on, and I probably initiated some finance conversations.

Tanja: We had a weekend-long date, and I was coming in thinking we were each paying our share. He was a couple years older and I was pretty close to entry-level, so at that point Mark earned about double what I did. So he was asking if he could pay, because he earned more than I did and I had debt. It was out of a spirit of trying to be more equitable based on our means.

In the early years, it was like a whole new world. I was used to eating at only cheap restaurants, and all of a sudden we were going to nicer places, and it was a very different cultural shift for me. I had only ever had friends who were broke, I never had friends who could afford to splurge on things. So we did that for a while until we decided to dial the splurges back and focus on some bigger goals.

Mark: By the time we got together I was willing to foot more of the living expenses so that Tanja could really be aggressive about paying down debt. But its not like I was dragging Tanja into these conversations. Most of the time were pretty much on the same page with financial goals.

Tanja: We were really lucky. I managed to find a way-below-market-price rent-controlled apartment in LA so our rent never exceeded $1,000. In LA, I think we should get an Olympic medal for that. We had one car, a little Honda Civic that we still have, so our base living expenses were very low relative to the market. We could splurge quite a bit and not be talking massive numbers, so we didnt run into trouble.

It was about having low fixed expenses and earning more than we needed, to tell you the truth. I dont want to act like we did this by being the most principled or the most virtuous with our money. We earned more than we needed and we didnt have kids, so that gives you a lot more freedom than other folks might have.

When we first got married, for a few years we used those how long do you think the allowances lasted? A year and a half, maybe?

Mark: A couple years. Not that long.

Tanja: We used our individual checking accounts and gave ourselves a monthly allowance because we each wanted to be able to spend without questions. We ultimately decided that wasnt necessary because we had enough trust in each other to say, Okay, I know that if youre going to splurge on something, its for a good reason. I may not always agree that Mark needs a new mountain bike and he might not always agree that I need a new pair of shoes for one presentation

Mark: Way to make those perfectly gendered, by the way.

Tanja: Theyre not always so gendered! But we respect that the other is not being capricious about those things, so it works out.

Mark: I think it gave us space to trust each other. Having his and her accounts gave us time to realize that we could trust each other without having to scrutinize each others spending. If we had been completely combined with no allowance from the beginning, maybe it wouldnt have worked.

Tanja: We both had careers that we got a lot out of and that were fulfilling in certain ways but they really just took such a big toll on us, on our health, on our happiness, and on our marriage. We were political consultants before, and its the kind of work that you do because you feel very invested in the cause, but its also just really relentless in terms of the pace and the pressure.

As we moved up the ranks, it was always more work, never less. It was always being more reachable, never less reachable. We started to get to a point where we couldnt even go out of cell range on our vacations. We felt like, Okay, we cant do this forever. If we have to do this for 30 more years, what will we even be when we get to the end of it?

That was our overall motivation for the two of us, and then for me in particular, I have a genetic health condition in my family that forced my dad to retire when he was 42 and I knew that could be in my future too. A lot of the stuff we like doing is outdoorsy stuff and travel, so I had a lot of motivation to hurry up and get to early retirement while I was still physically able to do all of the stuff that I wanted to do.

Mark: We were living in Los Angeles and spending as much free time as we could in the mountains. Then we moved to Tahoe and bought a house after the market crashed. We realized if we just shoved all the money that we had been spending in Los Angeles and just started saving and investing, we would have a lot of extra money. We jokingly started talking about a 10-year plan to retirement, but it wasnt a plan, it was just kind of a running joke. We hadnt put any numbers on paper. Then we did sit down and start making spreadsheets and realizing we could do it.

Tanja: Right before we got married, we fully combined all of our accounts. We have our own credit card accounts, which is really because we both had a lot of work travel when we were travelling, and we each have a separate checking account, but thats really where we park money to pay the separate credit card bills. We dont do anything separate otherwise. We have joint checking, joint savings, joint investment accounts, obviously legally your 401(k)s and IRAs have to be separate, but we have access to each others. Were fully combined in that sense and have always thought of the money as fully joint, not as we pay some share each.

When we first moved in together when we were first dating, I had some debt, almost $30,000. Considering that I was earning barely more than that, it felt huge. So we at that point decided that paying off my debt was the top priority, so Mark started paying for more stuff and I focused all of my money on the debt. By the time we started saving for early retirement, it didnt feel like a new thing. It just felt like the next progression in some habits that we had been building for a number of years. We were reaching for a bigger goal, but the process to get there was the same as it was for the other goals.

The truth is that I did have an extreme couponing phase, but that was short-lived, it was time-consuming and I dont recommend it. Really what we did [to save] was that we tried to get to a spending level that felt comfortable but not extravagant, and any new money we earned we automatically banked. New raises would go directly into savings, investments would come out of our checking account on payday so wed never see the money, it would come in and right away leave, and that was the strategy we used from my debt payoff all the way through saving for two places and retiring early.

As we earned more, we saved more, and we never really saw the money. It was all automated. It didnt take willpower, and I honestly think thats the most powerful way someone can save. Not every career path has the same ability to grow your earnings, but if youre in one where your pay can go up, if you just dont see raises as an excuse to spend more and you just spend the same and save it, that stuff really compounds quickly over time.

Tanja: Its kind of a new world. Were experimenting with giving ourselves more of what feels like a paycheck, a regular infusion into our checking account, but we havent totally figured out what feels right yet. Were still learning as we go.

Weve saved enough to not ever need to work again. To not need to write the book, to not need to have the blog though I dont make any money off the blog, I always want to be really clear about that but we did earn more in our first year than we expected because I did get a small book advance, Mark did a little client work that he felt really passionate about. So we spent more the first year since we earned a little more. Were calling it the gravy approach to budgeting. We have a fixed income floor, but if we earn a little extra, were allowed to spend that.

Mark: We did a lot more rigorous planning in terms of the saving and investing side and projecting the growth in our nest egg. When it comes to the spending side, our general approach has been a little less line-itemy

Tanja: A lot less line-itemy.

Mark: When we were working, we always did the pay-yourself-first approach, where we would put X amount [of your paychecks] in savings and X amount in investments and keep doing our 401(k) and the rest would go into our checking. We found that once we had been together for a while we naturally spent whatever was in our checking, so if we had a car repair, we would without discussing it just go out to eat less. Or if we went on a trip that month, we would not do XYZ when we got back home. We found a way to accidentally budget, but it wasnt like we would sit down and look at our spreadsheet this month and say, Whoops, we had this expense, so we cant do these other things wed planned. Im not advocating that method, its just what worked for us.

When we started making progress toward financial independence, we started ratcheting up our savings and tightening our spending. Wed still find ways without discussing to make it work.

Tanja: The bottom line is that we dont let money sit in our checking account that we are not allowed to spend. Now were experimenting with different accounts. We paid off our house so we dont have a mortgage payment, but if we hadnt we would set up an account for the mortgage payment and put the money there. Then whatevers in checking is discretionary, and we can spend it but if we spend a lot on groceries, we cant spend as much on everything else. As long as we dont run out by the end of the month, were fine. [Tanja and Mark have a life happens fund to cover any unexpected expenses that cant be funded through their checking account, and any money pulled from the life happens account is replenished in subsequent months.] Our tracking is really in our investments. How are our accounts doing and are we running through our money too quickly?

Mark: Now that were in this brave new world of fixed income, we might need to do a three-month analysis and actually scrutinize our spending a little bit. Be a little more deliberate about it than we have been.

Tanja: Were traveling so much that its hard to define what a normal month of spending looks like. It might be easier to define a normal year than a normal month.

We just got back from the UK, where we were for almost a month, and we did have a moment because Im laughing because we didnt throw money at a problem, but we did throw points at a problem. We had a bad hotel and we needed to find another, and I was able to quickly call Marriott and say, Hey, can I use some points to fix this? Its helped that we both travel a lot for work and stockpiled a lot of points during that time. Weve used credit cards for points for a number of years, so weve got a pretty good cushion there.

Mark: Thats one of the things, both when we were saving and ratcheting down our spending to save more, and now that were early retired and trying to spend on a modest budget, weve sort of had to get out of the mindset of throwing money at problems generally. So far weve been lucky and not really had to do that on travel. Were traveling at a pretty modest level these days, not staying in five-star hotels or anything like that. Were doing hostels and Airbnbs.

Tanja: This last trip I took was for my 40th birthday so I was pretty particular about what I wanted to do, but the other travel weve done has been pretty opportunistic. We went to France last fall for a month when we basically just put into Google Flight Search look at fares from San Francisco to Europe, or from San Francisco to Asia, we priced the whole world and found that France was the cheapest. That dictated that trip. Not being attached to a particular trip or a particular set of things also helps diffuse a lot of that stress.

Mark: After each trip we try to figure out when we were feeling stressed and what was it in the trip planning we could have changed. For example: not spending just one night in places. The quick turnaround doesnt give you time, you feel like youre rushed. We try to spend at least two nights in places, even small cities where theres not much to see.

I think when youre talking about money or life in general, most people think about where you want to go, and then life just starts happening. Your spending habits start getting engrained and you get a job and the career path often has a kind of inertia to it. For us, once we had this big and audacious goal of retiring early, it just got us thinking more deliberately about money, what its for, the life choices we were making and why. Realizing that you can do something different, to align with your goals, is the biggest thing.

If you have a compelling story about how money comes into play in one of your relationships whether with a partner, a friend, a sibling, a coworker, or what have you we want to hear about it! Email alanna.okun@vox.com and karen.turner@vox.com with a little about yourself.

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Retirement at 38 and 41: heres how this couple saved enough to retire early - Vox.com