I am not really into any inspiration stories but when one comes around, can not resist it. I have been having lunch with a colleague of mine and we unexpectedly touched on subject of financial independence.
He intimated that his portfolio is up 6% since beginning of this year and he pays about $800 a year to manage it. His portfolio is worth about $7,5 million.
He and his wife have been living quite humble and frugal life style – 15 years ago he bought a piece of land 5/8 of an acre for $29K and built house for $150 K. Now just prior retirement he treated himself with a swimming pool in the back yard and design garden, cost all together additional $150 K.
He & his wife will have company pension combined worth about $5 K gross a month, while in his best year net salary is about $100 K a year, plus his wife's. She is a buyer in a local company, so can not be that high.
The bottom line – everything is possible. When the colleague went into retirement seminar, he was urged to start spending some of his money but he does not need to. His pension will cover all his needs and the nest egg is just for a rainy day.
Perhaps a prime example when on the way to financial independence people adjust their spending habits and way to look on the things. One of the first things he wants to do, once retired is to go with a trailer and see as many national parks and beautiful places all of over the country as possible.