Musings about early retirement with no fixed address

Category: Money (Page 7 of 7)

Finding the Courage to Quit

Deciding to embark upon retirement in our early 40s can be a scary prospect. As many, many people like to point out, there are numerous risks associated with that decision. The stock market is due for a crash. Our money may have to last 60 years. Economic signs point to a recession. The uncertainty of self-inflicted trade wars, foreign policy, government dysfunction, and [insert current event here] means that the future is bleak. We could be forced to go back to work with a huge resume gap or work a crappy job when we’re old. Quitting in our peak earning years means we’re giving up money and safety when it’s the easiest to amass both. And that’s just the tip of the iceberg.

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It’s Not Enough to Just Save Money

Which would you rather have: $1,000,000 or $.01 that doubles everyday for a month?  It seems like a silly question, right? The obvious answer is to take the cool million.  A penny is nothing! But that’s the wrong choice. Your $.01 is only $.02 on day 2 and $163.84 on day 15, but by the time day 30 rolls around, you’re holding $5,368,709.12.  That’s the power of compound growth in a nutshell.

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Saving Money Through Lifestyle Design

I recently heard that I could register my vehicle as farm equipment and get a tax break.  Do you know if that’s true? That’s what the doctor asked me while making conversation after learning I was an accountant.  I told him that I was not a CPA and therefore not qualified to give tax advice.  He continued anyway. He had his eye on an Audi. Another doctor friend had told him if he bought a full-sized SUV, that because of the weight of the vehicle, it could be classified as farm equipment in order to save on taxes. That was news to me, and while I was skeptical about the legality of this method, it seemed like a terrible idea with or without it.  I told him as much.

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Living Small in Silicon Valley

I’ve spent the last 8 years living in Silicon Valley. It’s a sprawling urban area with beautiful year-round weather consisting of about 10 cities that feel like one big suburb.  It sits in a bowl surrounded by mountains and dotted with palm trees. Add in a bunch of tech companies, clogged highways, and houses starting at $1MM, and you’ll have a general idea of the place if you’ve never had the pleasure of visiting.

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