What do Wes Moss, Lowell Miller, and Benjamin Graham teach us about crafting a dream retirement? From the compounding machine that builds wealth steadily to the balanced wisdom of owning your age in bonds or income, these legends offer timeless strategies for financial freedom. Add inspiring tales of globetrotting retirees like Marilyn Noble and Ryan Pepper, and you have the blueprint for a retirement filled with joy, purpose, and adventure.

You Can Retire Sooner Than You Think

Retirement is a word that evokes mixed feelings—freedom from work, but also the end of a career. It's not just about stopping work; it's about having the option to retire happily. Wes Moss, who conducted a survey of over 1,350 retirees, found that happy retirees are those who strike a balance in their lives—financially and socially. 

They aren't necessarily the wealthiest, but they've made smart financial choices and have busy social schedules. They drive cars that offer comfort, like a Lexus, and avoid luxury brands like BMW, which are popular among unhappy retirees seeking status.

One inspiring story is that of Nick and Katie Benjamin, who managed to retire early despite their parents’ shattered retirements. By living below their means, saving rigorously, and investing wisely, they are set to retire comfortably in their mid-fifties. Their keys to success include living on one income, paying off their mortgage early, and investing in rental properties for additional income.

Wes emphasizes the concept of the Rich Ratio—the amount you have versus what you need. A ratio above 1 means you're rich in retirement. Planning is crucial, and Wes encourages retirees to think not just about accumulating wealth, but also about the purpose and happiness that money can facilitate. The Affordable Care Act has changed the retirement landscape by making healthcare more accessible, allowing retirees to focus on financial planning without the looming fear of healthcare costs.

The plateau effect reveals that after a certain point, both income and spending have diminishing returns on happiness. Finding a balance in spending and saving is essential, and happy retirees often live in the “middle,” enjoying life without extravagant spending.

Wes introduces the five money secrets: purpose, savings, mortgage, income, and income investing. These principles guide retirees to live fulfilling lives by focusing on what matters. Whether it's traveling, spending time with family, or pursuing hobbies, retirees can find happiness by planning wisely and living intentionally.

In essence, retirement can be a time of joy and purpose if approached with the right mindset and financial strategy. By making smart choices and understanding the true value of money, you can retire earlier and happier than you might think.

Can You Retire Happily Like Nick and Katie Benjamin by Mastering Wes Moss's Money Secrets?

Marilyn Noble was a force of nature. At 62, her zest for life was unmatched, and her energy contagious. She was not the kind to settle quietly into retirement; she had plans, dreams, and a vision that could rival any CEO's ambitions. But, like most people approaching retirement, Marilyn had questions—chief among them was whether she could afford to retire this year or would need to wait.

Marilyn and her husband Jerry had saved diligently, investing in their future with the kind of purpose that made them stand out. Their retirement assets totaled $690,000, a blend of Marilyn’s teacher’s 403(b) and Jerry’s 401(k). But Marilyn was clear; she needed more than the $4,935 a month their investments promised. To live the life she envisioned—maintaining two small houses, traveling, engaging in her beloved music competitions—she calculated she needed $6,500 a month.

Their financial advisor knew well the secrets to turning dreams into reality, and it began with understanding purpose. Marilyn and Jerry's purpose was crystal clear, and their financial advisor helped them craft a plan that would allow them to live it. By becoming income investors, Marilyn could draw 4.5 percent from their retirement pot, bridging the gap to her needs with an additional $2,600 a month. Suddenly, Marilyn’s dreams were not only possible—they were imminent.

The next money secret Marilyn mastered was eliminating her mortgage. With their primary home valued at $450,000 and only $100,000 owed, selling it was the key. After clearing the debt, they had $350,000 to play with. Marilyn bought a lovely condo outside Atlanta, paid for in cash, and invested the remainder in their dream cabin on Lake Fontana. No mortgage meant flexibility and freedom, and Marilyn was free to savor life's adventures without the burden of debt.

Income streams were a critical piece of the puzzle. Marilyn had multiple sources: her pension, Jerry's social security, and investment income. These streams ensured a steady flow, a financial safety net crafted from their years of diligent savings and smart investments.

Finally, income investing was their financial advisor’s golden rule. Rather than seeking high-risk growth, Marilyn focused on stable, consistent returns from dividends, interest, and distributions. This approach was not just about financial security; it was about peace of mind—a steady, reliable income that supported their purpose.

Marilyn’s story is a testament to the power of understanding your financial purpose and strategically planning to achieve it. By focusing on savings, eliminating debt, diversifying income streams, and embracing income investing, Marilyn and Jerry stepped into a retirement filled with adventure, passion, and happiness. Their journey is an inspiration, a blueprint for anyone seeking the freedom to retire not just happily, but vibrantly.

As Marilyn texted Jerry to share the news of their imminent retirement, one can only imagine the joy that lit up the screen: “WE CAN RETIRE IN 2014!” It was a victory, a testament to years of thoughtful planning, and a reminder that with the right secrets, anyone can retire sooner than they think—living a life filled with purpose and joy.

Marilyn Noble's Vibrant Retirement: A Blueprint for Living with Purpose

In the world of investing, finding the right balance between risk and reward is crucial. Lowell Miller's idea of a "compounding machine" highlights how steady gains can lead to significant wealth over time, allowing your principal to "bounce" within acceptable limits. It's about harnessing time and growth, rather than constantly playing the market. John Bogle's rule of "own your age in bonds" reflects a conservative approach that has worked well for decades, especially as bonds offered stable returns. 

However, as interest rates shift, it might be time to adjust our thinking—perhaps to "own your age in income," which includes diverse income-generating investments like stocks with dividends and alternative investments.

Benjamin Graham's 50-50 approach—equal parts stocks and bonds—offers a straightforward method to manage risk and reward. As you age, adjusting the mix in your portfolio to prioritize income over growth can help shield against market volatility. Target date retirement funds automatically adjust this balance for you, becoming more conservative as you approach retirement.

Understanding the historical performance of various asset classes can guide decisions. Despite the ups and downs, stocks have historically outperformed inflation significantly. Yet, individual investors often fall short due to emotional market timing, as illustrated by the DALBAR study. To avoid this pitfall, maintain a balanced mix of stable and volatile assets, smoothing out the financial journey.

The Wes Moss Risk Continuum offers a visual guide to find your comfort zone between conservative and aggressive investments. Younger investors might lean toward growth, while older investors prioritize stable income. Balancing cash, income, growth, and alternative investments helps achieve long-term financial goals.

In your 401(k), reinvest dividends to ensure continued growth. For accumulators, a moderate risk approach between 6 and 9 on the continuum is advisable. Distributors, those near retirement, might prefer staying between 2.5 and 7.5, focusing on predictable income.

The balance between yield and capital appreciation determines your overall investment return. Adjusting your portfolio mix affects risk and return. Inside the growth bucket, choosing between large, stable noncyclicals and smaller, volatile cyclicals impacts potential gains and losses. Similarly, selecting the right bonds—corporate, high-yield, municipal, or TIPS—affects income predictability and risk.

Diversification within each asset class is key, whether through ETFs, mutual funds, or individual securities. Balancing between risk, safety, and reward is essential. Success in investing takes time and patience, akin to running a marathon rather than sprinting. Find your pace, balance your investments, and it might just lead to a comfortable and early retirement.

Is It Time to Rethink John Bogle's Age-Old Bond Strategy for Modern Investment Success?

At 64, Ryan Pepper was one of the most vibrant retirees, living life with gusto. His spreadsheet dated back to 1997, showing an initial savings of $32,000. Fast forward 16 years and Ryan, along with his wife Allie, had grown that modest sum into a whopping $1.35 million. How? By dodging the pitfalls of bad investing through smart, disciplined strategies.

Ryan and Allie didn't always have it figured out. In the early days, they spent frivolously, ignoring the need to save. But a pivotal moment arrived when Allie noticed their meager savings, sparking a lifestyle overhaul. They prioritized saving, maxed out retirement accounts, and embraced income investing. Ryan even pursued a part-time consulting gig to boost their income streams further, understanding the power of extra earnings towards a secure retirement.

Their story is one of transformation. From a shaky financial start, they became role models, illustrating how strategic planning can lead to financial freedom. This wasn't just about the money—they lived a purposeful, energetic life, with Ryan finishing the grueling Louisiana Ironman and Allie fully engaged in their adventures.

Investing wisely means sidestepping common psychological traps like fear and greed, which can lead to hasty, poor decisions. The Peppers avoided these pitfalls, sticking to a balanced investment plan that included dividend stocks, bonds, and steady income sources. They managed to steer clear of excessive fees, which eat away at profits, and embraced a bucket approach—a simple yet effective method to understand and manage investments.

Beyond financial savvy, Ryan and Allie kept their marriage intact, avoiding the costly financial hit of divorce. They also maintained liquidity in their investments, ensuring access to funds when needed, steering clear of restrictive options like annuities.

Their journey underscores the importance of starting now, no matter past mistakes. In a world where many aren't saving enough, the Peppers' success serves as a beacon of hope and a call to action. With discipline, strategic planning, and a bit of courage, you too can defy the odds and build the retirement of your dreams. Start today, and let their story inspire you to live not just longer, but fuller.

Ryan Pepper's Million-Dollar Retirement: A Masterclass in Strategic Saving

Meri Murphy, at 67, embarks on an adventure-filled retirement, traveling the world on a modest budget, proving that dream retirements aren't reserved for the wealthy. Similarly, Nicole Walker, 62, with savvy savings and investments, enjoys her passion for globetrotting. Their stories embody the freedom and happiness that come with well-planned retirements. 

Happiness in retirement isn’t just about financial freedom; it’s about embracing passions and pursuits. Whether traveling like Steinbeck or finding joy in communities like The Villages in Florida, retirees like Larry and Gail Curcuru thrive by staying active and engaged. They relish their vibrant lifestyle, filled with golf, tennis, and adventures. 

Rick and Genevieve Harmon took bold steps toward a fulfilling retirement, prioritizing travel over settling down, choosing to invest in experiences rather than possessions. Their journey reflects the deep-seated human desire for exploration and adventure, echoing the sentiments of retirees who prioritize seeing the world.

Volunteering emerges as a key pursuit for happy retirees, fostering social connections and a sense of purpose. The happiest retirees are three times more likely to volunteer, seeing it as an opportunity to give back and socialize.

Retirement is about freedom and living life to the fullest. Whether it's traveling, volunteering, or indulging in a good steak, the happiest retirees find joy in social connections and engaging pursuits. Socializing, as highlighted in The Blue Zones, is linked to longevity and happiness, underscoring the importance of community and interaction.

Ultimately, retirement is the time to embrace passions, enjoy life, and seize freedom. Marjorie Acton and Moe exemplify this spirit, embracing new hobbies and staying active. By balancing health, money, and social life, retirees can unlock happiness. As you embark on your journey, remember: retirement is your time to explore, enjoy, and live your dreams.

Can You Live Your Dream Retirement Like Meri Murphy and Nicole Walker Without Breaking the Bank?

Retirement evokes a mix of emotions—freedom from work, but also the end of a career chapter. Wes Moss discovered through his study of retirees that happiness in retirement isn't about wealth, but rather a balance of smart financial choices and active social lives. Take Nick and Katie Benjamin, who retired early by living below their means and investing wisely. Their story shows that a fulfilling retirement is possible with intentional planning.

Marilyn Noble, an inspiring educator, demonstrates the power of purposeful retirement planning. With modest means, she crafted a strategy to bridge her income gap and live her dream lifestyle, focusing on travel, music, and owning two small homes. Her approach underscores the value of diverse income sources and core pursuits, like volunteering and exercising, for a balanced and joyful retirement.

Ryan Pepper's journey from financial instability to a robust retirement fund illustrates the transformative power of disciplined investing and strategic planning. By sidestepping common psychological traps and prioritizing savings, Ryan and his wife Allie navigated their way to financial freedom, living life with purpose and energy.

Meri Murphy and Nicole Walker prove that dream retirements aren't exclusive to the wealthy. Their adventures highlight the joy of well-planned retirements, focusing on passions and pursuits rather than mere financial freedom. Rick and Genevieve Harmon echo this sentiment, choosing experiences over possessions and illustrating the human desire for exploration.

Volunteering emerges as a key pursuit for happy retirees, fostering connections and purpose. The happiest retirees often engage in social activities, emphasizing the importance of community for happiness and longevity. Whether it's traveling, volunteering, or enjoying life’s simple pleasures, retirement is an opportunity to embrace passions and seize freedom.

Ultimately, retirement should be a time of joy and exploration. By balancing health, money, and social life, retirees can unlock happiness and live their dreams. As you embark on your journey, remember: retirement is your time to explore, enjoy, and live to the fullest.

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You Can Retire Sooner Than You Think

Wes Moss

6 Key ideas

16 MINS

4.5 (82)

What do Wes Moss, Lowell Miller, and Benjamin Graham teach us about crafting a dream retirement?

What do Wes Moss, Lowell Miller, and Benjamin Graham teach us about crafting a dream retirement?

Improve your Career, Health & Life with 15min insights from 9000+ non-fiction books

Key Ideas

#1

Can You Retire Happily Like Nick and Katie Benjamin by Mastering Wes Moss's Money Secrets?

#2

Marilyn Noble's Vibrant Retirement: A Blueprint for Living with Purpose

#3

Is It Time to Rethink John Bogle's Age-Old Bond Strategy for Modern Investment Success?

#4

Ryan Pepper's Million-Dollar Retirement: A Masterclass in Strategic Saving

#5

Can You Live Your Dream Retirement Like Meri Murphy and Nicole Walker Without Breaking the Bank?

#6

Final Recap

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