How to Retire Early in Your 40s by Supercharging Your Savings

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 8 November 2024

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

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Summary

Yes, it’s possible to retire early, even if you’re just now diving into the FIRE movement. Early retirement could be within reach whether you’re in your twenties, thirties, forties, or fifties. Imagine having complete freedom in a decade or less: no office politics, no boss, and, best of all, no spreadsheets! That’s the life Arik Peterson built when he retired early at forty-four, leaving behind a demanding career in corporate investing. After reading Mr. Money Mustache’s unmatched FIRE blog, Arik drastically changed his saving and investing habits, increasing his savings rate to seventy percent and redirecting his money into simple, steady investments many overlook. Today, his life looks vastly different—he spends his days fishing, biking, creating art, and working on DIY projects instead of staring at a computer screen, crunching numbers. In this episode, Arik shares his complete strategy for reaching financial independence, why he’s skeptical of the 4% rule, his current investment choices, and how an unexpected layoff turned into his golden opportunity. Ready to ditch corporate America? Follow Arik’s plan! In This Episode We Cover Why you must increase your savings rate if you want to reach FIRE fast The simple, low-cost investment Arik has in his early retirement portfolio Why you don’t need to follow the 4% rule to finally quit your job and retire Making money in retirement and living off of side income streams Arik’s killer advice for Roth investing that could make you tax-free millions And So Much More! Links from the Show Mindy on BiggerPockets Scott on BiggerPockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Join BiggerPockets for FREE Email Mindy: [email protected] Email Scott: [email protected] BiggerPockets Money Facebook Group Live Long Live Often Support Today’s Show Sponsor, Connect Invest, the Alternative Way to Earn Passive Income Through Real Estate Get to FIRE Faster “Set for Life” Find an Investor-Friendly Agent in Your Area What to Do Before You Quit the High-Pay & Benefits of Corporate World (00:00) Intro (00:58) Discovering FIRE (02:11) A VERY Stressful Job (04:58) Secret to Get to FIRE Faster (08:35) “Obsessing” Over Money (10:16) What He Invests In (12:44) Ignore the 4% Rule? (14:22) FIRE at 44! (17:07) Connect with Arik! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-579 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hello, hello, hello, and welcome to the Bigger Pockets Money podcast. My name is Mindy Jensen,
0:04.0	and today I have a very special episode for you, my dear listeners. Today we're going to share
0:09.7	another episode from the YouTube series on the Bigger Pockets Money YouTube channel that I host
0:16.1	that features stories of people that are either on their way to or have already achieved fire.
0:22.6	Today, we're featuring my friend Eric Peterson's financial journey.
0:26.7	Eric was able to reach financial independence and retire early in just a decade.
0:31.0	After reading Mr. Money Mustache's famous fire blog, Eric quadrupled his savings overnight
0:36.9	and started investing all the money he
0:39.2	had into those boring investments most Americans don't pay attention to. Don't miss this episode to
0:46.0	find out how. Before we get in the show, we want to thank our sponsor. This episode is brought
0:51.2	to you by Connect Invest, Real Estate Investing simplified and within your reach.
0:56.1	Now, back to the show.
0:57.3	Eric, I am so excited to talk to you today.
0:59.8	I am super happy to be here.
1:01.5	So, Eric, how did you discover the concept of financial independence?
1:05.1	That's probably like a decade old journey.
1:07.5	I was in the investment management side of things.
1:10.2	So I made mutual funds in my
1:12.4	corporate job. And one day I was just scrolling through doing some research on something.
1:16.8	And I came across an article. And I want to say it was in Barron's that there's this guy
1:22.1	that retired when he was 29. And his name is Mr. Money Mustache. And read the article. I'm like,
1:27.4	wow, this guy's got to figure it out.
	...

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