A Financial Discussion with a Reader

Q&A with a Reader

Hi Billy and Akaisha,

Hope all is well!  We traded emails in the past but it’s been a while.

I bought your ebook years ago and have ready many articles since (among many other books).  They inspire me to produce more now to prepare for an early retirement.

I am 38 now with a healthy nest egg and income outside of my W2.  I feel financially free which gives me a better attitude about my work because it’s a choice.  It allows me to be more bold and actually produce better. So in a nutshell I’m doing well and feel great knowing at any moment I could hang it up.

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So, here’s my question:  I have 3 kids from 5 months to age 4.  We plan to homeschool them up to High School.  At what point is a safe point to call it quits and focus on family?  Should my goal be a nest egg plus a certain level of passive income?  I don’t plan on funding college for them but would like to help out a bit if needed.  After my mortgage college seems to be the next biggest upcoming expense.

Thoughts?  Any simple spreadsheets you can share?


Hi Andy,

You certainly are in the sweet spot…congratulations. Yes,it cannot hurt to have other streams of income…right? I am sure you’ve thought about any tax issues regarding this.

Regarding your children, here’s a couple of thoughts. You could open a Uniform Gifts to Minors account for each of them and contribute annually. The bad news is that they have control of the funds at the age of 18 and may or may not be responsible enough to handle them.

Another option is to create a trust for each of them. Put 10K in today and forget about it. You could set it up so that they do not receive the accounts until they are ….say 35….by then those accounts should be worth a tidy sum and by not letting them have access before that age, you skip the “wild years,” “first marriage” – yes it happens – and other irresponsible behavior.

But first check with your tax adviser and attorney before taking my word on these suggestions.



Thanks Billy,

I suppose it doesn’t hurt to put a chunk away for each kid now and stick it in some index EFTs.  Can’t image what 30 years would do to 10k in today’s money.

So as far as a nest egg and passive income goals…what do you think there?  I estimate we spend about 60k a year as a family today.  So as long as my passive income is above that I should be solid?

And what to do with the nest egg, a combo of index EFTs?  I’m sure you shy away from specific advice (totally understandable) but maybe you have something like a goal range or broader strategy to share?



My guess is that 10K invested in SPY or VTI would create well over $1 million. Never know but based on historic returns that’s about right.

Yes…as long as you have more income than outflow you should be fine.

I use a combination of DVY, SPY, VTI and DIA. Being 30 you have a ton of time on your side to ride out the never ending market cycles. My being 63 is a little different as long term is getting shorter by the day for me. But I believe these ETF‘s are solid holdings.


About Retire Early Lifestyle

Billy and Akaisha Kaderli retired three decades ago at the age of 38 and began traveling the world. As recognized retirement experts and internationally published authors on topics of finance and world travel, they have been interviewed about retirement issues by The Wall Street Journal, Kiplinger's Personal Finance Magazine, The Motley Fool Rule Your Retirement newsletter, nationally syndicated radio talk shows and countless newspapers and TV shows nationally and worldwide. They wrote the popular books The Adventurer's Guide to Early Retirement (Your Simple Path to FIRE) and Your Retirement Dream IS Possible.
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