Can life truly be this good? I finally retired from the Marine Corps after 24 years, and yesterday was my first complete day away.
It was a fantastic day. I accomplished so many things that I’ll just list them instead of discussing them.
- I got one of my cars up and running (dead battery).
- We had a family dinner.
- I ate lunch with a military buddy.
- I published a book.
- I spent time with my wife.
I did all this at my own pace without any rushing or drama. Today, I want to reverse engineer how I got to the point where I retired at age 42.
Dividend Investing in Your 70s
Living below our means. The first step to retiring early is understanding how much you actually spend. You’ll be surprised how many people are clueless (or oblivious) about their own spending habits.
If you can’t live below your means, don’t expect to retire early, or perhaps, ever. You simply need to be able to live within a fixed amount of income.
My wife and I were in debt for over 13 years of marriage. In 2019, we decided to turn the tables and take control of our financial destiny.
We began keeping strict budgets to control what we were buying and consuming. It’s incredible how much you improve when you document everything.
Don’t Gamble with Retirement 8
We got out of debt about two years later, in 2021. I can’t describe the feeling of freedom I felt after becoming debt-free.
How much do you need for retirement? Once we got out of debt, we needed to determine how much we needed for retirement.
Our goal was to live far below our military pension amount. Our military pension should be roughly $8,000 per month.
To complete our mission, we needed to live comfortably under $8,000. Luckily, we bought our home in Pensacola in 2020 with a 2% interest rate.
What is Quiet Quitting?
Our mortgage is $1,900, which is a little expensive because the insurance in Florida is becoming ridiculous quite quickly.
That leaves us about $6,000/month to pay bills, buy food, and enjoy our personal spending. We are used to living below our means, so that amount is tremendous for us.
Adding passive income. But who wants to live on a fixed income for the rest of their lives? Yes, you want to survive under a fixed amount, but additional passive income can help you thrive.
Your life will become richer as you add more passive income streams. I’m always on the hunt for new ways to generate income while keeping control of my time.
The Magic of High-Yield Bond Reinvestment
Dividends. My favorite type of passive income is dividend investing. My wife and I receive about $1,500 monthly in dividends.
We reinvest most of the dividend income to create even more; however, we spend some on ourselves.
I went to Applebee’s yesterday with a buddy and paid for my meal with dividends. The true value of dividend investing is that it helps you enjoy the nicer things.
You must decide what type of dividend investor you will become and how fast you want to achieve your monthly goals. Having choices makes dividend investing much more fun than other types of passive income.
Series “I” Bonds vs. 30-Year Bonds
Rental income. It is nice receiving rental income from our two rental properties. It’s not so much dealing with tenants.
However, the actual objective is to keep our additional houses to give to our children. Receiving rental income is a nice bonus as we hold on to these properties.
The longer you hold a property, the more valuable it becomes to your passive income portfolio. The first few years don’t bear as much fruit as you’d like.
Options trading. New to my portfolio of passive income is trading options. Trading options on the stock market isn’t for everyone or even most people.
However, trading options is an extraordinary way to generate passive income if you can control your fear and greed.
Happy Cash Flow Retirement 8
With a few clicks, you can bring in $1,000 to $3,000, depending on how much capital you have in your account.
That’s right; I only trade options safely using my own capital. I don’t use leverage or margin because they can quickly get you in trouble.
My wife and I aim to earn $2,000 to $4,000 monthly in options, depending on premiums. The options market can be volatile, so you must watch it a couple of times a day. I love math, so this is right up my alley.
Creative writing. Finally, I use my writing career to generate passive income. More importantly, writing about passive income is my dream job.
What is Generational Wealth?
With no boss in sight, I can write and create whenever I want. I love having this freedom and the option to choose my topics.
Writing hasn’t been very lucrative yet, but these things take time. Luckily, I have all the time in the world.
You will want to incorporate something you love into your passive income streams. The goal isn’t to turn it into a 9-5 but a way to share your passion with the world.
Keep it moving. You should always aim to continue moving and growing. Too many people watch TV all day during retirement, slowly losing their grip on reality and happiness.
The 40-Year Interest-Only Mortgage
There is so much to learn and achieve. Start by reading books every day. Here, you will gather more information than you can handle.
Eventually, you’ll have so much information you’ll need to create something. I love how your creativity will compound and grow over time.
I’m sure I will have even more passive income by this time next year. I’m already considering buying some shipping containers to rent storage space to others.
Saving for a House Down Payment #2: Single Person, Big City
Conclusion. I love my retired life. My wife and I can maneuver without the threat of emails, PowerPoints, and spreadsheets.
We worked extremely hard over the last four years to reach this end state. But, more importantly, this isn’t the end; it is the beginning.
This is the start of something special, where family time is at the top of the list, not the bottom. However, we can never forget that we need income to live this life.
The minute you stop growing, inflation and interest rates catch up to you. You want to always stay ahead of the power curve by thinking critically about your current situation.
If you want to have the retirement of your dreams, you will have to build it. Nothing in this world comes free, but freedom comes to those who choose it. Good Luck!
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