I vividly remember my 40th birthday. I was in Okinawa, Japan, on a two-year unaccompanied tour away from my family. I was working hard to establish my writing and book publishing business.
I had been in the Marine Corps for 22 years at the time. The last three years were the hardest because stress levels were at their highest.
I remember thinking, “They want me to work another 25 years until I reach 65? No freakin’ way!”
Art Edition- The Biggest Book on Passive Income 3
Soon after that day, I wrote the first article in the “No Freaking Way” series. Every year, I write another article documenting my progress away from the workforce.
- No Freaking Way Am I Working Another 25 Years—April 23, 2021
- No Freaking Way Am I Working Another 25 Years part 2—March 26, 2022
- No Freaking Way Am I Working Another 25 Years part 3—February 22, 2023
This year is different. As I write this article today, it is much different from that first year in 2021. I am completely retired from the Marine Corps and the workforce.
I have been retired for eight months, and life has been grand. Our net worth and cash flow have increased, even though we don’t earn any income from a W-2 job.
But why is everyone convinced that they must work until they reach 65 or 70 years? How did they persuade us to exchange our time for money for over 40 years?
Web Edition- The Biggest Book on Passive Income 3
Why did we sign up for the 40-40-40 plan—40 hours a week for 40 years, to receive 40% during retirement? Let’s dive into the great American lie.
Hard work versus being productive. Most people cannot tell the difference between hard work and being productive. The media has taught people that they will die as soon as they retire because they will stop being productive.
However, wealthy people know the difference between working for someone else and building something themselves.
The key to retiring earlier is creating a dream for yourself and working toward it. I had my first dream in the summer of 2019.
I dreamed about being on the white sand beaches of Pensacola, Florida, with all of my family—my parents, wife, kids, grandkids, and friends.
Every Day Is Saturday: Living a Happy Cash Flow Retirement
The critical element of the dream is that none of us would have to work. We could all stay on the beach for as long as we desired.
From there, I would have to reverse-engineer my dream to build multiple streams of passive income that would support us while we enjoyed the sun.
In fact, that is why all of the cover art for the “No Freakin’ Way” series features a sun on them. I was hellbent on making my dream come true, and it did.
Working for yourself. Working for yourself doesn’t mean you have to start a business. In fact, It’s quite the opposite.
Working for yourself means you need something productive to occupy your time and energy. This could be gardening, woodworking, birdwatching, or refurbishing cars.
Welcome to the Elite Savers of America
The key is to do something you genuinely love. However, if you stay consistent with your hobby, new financial opportunities will open up.
You must keep your mind open to the possibilities as they present themselves. I created my dream job as a writer; however, it only pays me $200 a month.
The good part is that I use other passive income streams to supplement my retirement, including military pension, dividends, rents, options trading, and the GI Bill.
We also live on a strict budget to ensure we can reinvest more into our dividend portfolio. This ensures we continue to outpace inflation, even in retirement.
Fighting the earned income lie. The toughest part of retiring early is convincing yourself you can live on less money. However, you will quickly realize you can live on far less as you retire.
Dividend Investing vs. Options Trading
Robert Kiyosaki says that earned income is the highest-taxed income source compared to passive (rental) and portfolio (royalties, dividends) income. He is right.
I make more money in retirement than I would as an active duty Marine E-9 with 24 years of service living in Pensacola. This is because my tax rate decreased from 24% to 12%, and I don’t have to pay Social Security and Medicare taxes.
Also, I do much less “stress spending” in retirement. My wife and I used to work on the same base. She was a civilian, and I was a Marine.
We would meet at the base gas station, spend $10, and eat under a tree. It was a fun distraction from an otherwise stressful day.
Series “I” Bonds vs. Treasury Inflation-Protected Securities
Now, we can eat lunch on our beautiful three-acre property in Pensacola. We save so much money on gas, eating, and shopping.
The central lie is when you consider reducing your paycheck from, say, $10,000 per month to $5,000. Yes, you may take a pay cut, but you get a time increase.
What to do with your time. When you retire, you have nothing but time to build income streams. This is how you can slowly build your $5,000 income stream back to $10,000.
For example, let’s say you have $5,000 from a pension or investments. You can add a roommate ($1,000), a car rental business ($1,000), an ATM ($1,000), selling crafts ($1,000), and a YouTube channel about crafts ($1,000).
How to Become an Income Investor
Now, you earn $10,000 monthly but are doing what you love. Even better, your income streams will continue to rise much faster than the annual 3% raise you got at work.
You must see the vision. If you want to retire completely without having any hobbies, you would have to invest heavily in dividends.
A dividend portfolio is the lifeblood of any retirement. My wife and I earn $2,000 monthly from dividends, and we add to this every month.
If you want to become a digital nomad and travel the world, dividends are the key to living that life. I recommend climbing the corporate ladder, earning a lot of money, living far below your means, and investing in dividends.
You can become an income investor and generate $100,000 annually from a $1 million income-investing portfolio. You must learn the ropes and mitigate risk, but it is possible.
Tips for Buying T.I.P.S.
Conclusion. Having the initial dream is the key to building a Happy Cash Flow Retirement. I talk to many adults who have no retirement dream.
That’s akin to hopping in a car without knowing your destination. However, you will arrive much faster if you type your destination into your map program.
I worked for 20+ years before I came up with a plan. Once I had a plan, I retired in four years. My purpose is to ensure my kids and grandkids have a plan before entering the workforce.
Five Takeaways from “Mean Reversion Trading”
They have no reason to languish in the workforce longer than necessary. Now, it’s time to start thinking about your retirement dream.
Where do you want to live? How much will it cost? What can you do now to expedite your escape from the rat race?
Each year, the workplace becomes more toxic and less friendly. The robots are coming for our jobs, leaving us out in the cold.
Now is the time to create a new vision for your life. Anyone can earn money doing what they love; however, it takes five years to build a strong business. Are you ready to convert? Good Luck!
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