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Make your Money Last FOREVER!
Mary Beth Franklin
EXTREME early retirement
Billy and Akaisha Kaderli are
old hands at retirement--ask them anything about saving, spending or traveling.
But one thing may surprise you: their age. Sixteen years after they retired,
they were both 54--almost old enough to satisfy
the minimum age requirements of the
active-adult
community in Mesa,
Arizona, where they still call home (when they're not traveling around the world).
When they were in their late thirties, Billy, a stockbroker, and
Akaisha, a restaurant owner-turned-office manager, decided they were
working too hard and paying too much in taxes. They vowed to save enough
to quit in two years. "Every time I looked at a latte or a new pair of
shoes, I decided I didn't need them," says Akaisha. "If you are clear
about what you want, it becomes easier. You can either buy this or be
days closer to your goal."
By 1991, they had accumulated about
$500,000, including a $100,000 profit from the sale of their home. They
put their belongings in storage and set out to see the world. After six
months on a Caribbean island, they headed for South America. Returning
to California a year and a half later, they bought an RV and wandered
around the western states for two
years. Then it was off to Mexico. They had planned to visit the Lake Chapala area for a few months and ended up staying four years. Since
then, they've returned home from time to time to care for their parents,
but have spent the rest of their time in Asia and the South Pacific.
What's their secret? This might sound like an extravagant lifestyle, but
Billy and Akaisha limit their expenses to
around
$35,000 a year. They eat
well and enjoy themselves but don't buy much "stuff." Their few big
expenses include Akaisha's extensive dental care in Thailand and a
laptop computer they use to update their Web site (www.retireearlylifestyle.com),
which attracts 10,000 visitors daily.
Billy and Akaisha on the tennis
courts
photo by Justin Steele
The couple invest mainly in low-cost index funds, withdrawing about 3%
of the balance each year. They pay little in taxes because most of their
income is from capital gains and dividends, which are taxed at a maximum
of 15%. They haven't had to touch their IRAs, which would still cost
them early-withdrawal penalties. "At this point in our lives, we are
less worried about running out of money and more concerned about not
having enough time to enjoy it," says Billy.
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HOW TO DO IT
Simplify
A complicated lifestyle
costs more.
Look beyond
the border
An attractive lifestyle
can cost much less in
many countries
outside the U.S.
Track your
spending and figure out where
to cut. This is your life
now, not a vacation.
Pursue low-cost
entertainment such as hiking, bicycling
and reading.
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About the Authors
Billy and Akaisha Kaderli are
recognized retirement experts and internationally published authors on
topics of finance, medical tourism and world travel. With the wealth of
information they share on their award winning website RetireEarlyLifestyle.com,
they have been helping people achieve their own retirement dreams since
1991. They wrote the popular books, The
Adventurer’s Guide to Early Retirement and Your
Retirement Dream IS Possible available on their website
bookstore or
on Amazon.com.
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
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