THANK YOU, HEATHER.
IF YOU HAVE A GOOD QUESTION
YOU CAN EMAIL IT BY GOING TO
WCCO.COM/LINKS.
FOR SOME IT SOUNDS LIKE A
FANTASY.
RETIRING EARLY.
I REALLY DON'T THINK IT'S
THAT COMPLICATED.
IT REALLY ISN'T.
FOR SOME MINNESOTANS HAVE
LEFT WORK LONG BEFORE THE AGE
OF 65, THEY TOLD US IT'S
POSSIBLE IF YOU STICK TO A
PLAN.
TONIGHT MS. COLLINS SHARES
THEIR SECRETS TO MAKING EARLY
RETIREMENT A REALITY.
THIS LIFE DOESN'T LOOK ALL
THAT DIFFERENT THAN MOST, A
WIFE, TWO KIDS, AND A SUBURBAN
HOME.
THIS IS SOMETHING I LOOK AT
EVERYDAY.
BUT WHEN YOU SEE WHAT HE
DOES TO TRACK EVERY DOLLAR
THERE'S A DEFINITE DISTINCTION.
I LOVE EVERY DAY OF IT.
HE RETIRED THREE YEARS AGO
AT THE AGE OF 55.
SHE LEFT HER WORK AT AGE 51, A
PLAN HE HATCHED IN HIS LATE 20s
.
YOU HAVE TO GET TIME ON YOUR
SIDE.
HE STARTED HIS CAREER IN
FINANCE BEFORE MOVING INTO
TALENT RECRUITING.
HE'S OKAY WITH US REVEALING HE
EVENTUALLY MADE A SIX-FIGURE
SALARY, BUT IT TOOK HIM YEARS
TO CLIMB THE CORPORATE LADDER.
WHEN I MADE MY MONEY I
SIMPLY INVESTED MORE MONEY.
HE AND HIS WIFE MAXIMIZE
THEIR COMPANY'S 401(K) PLANS,
NEVER HAD CREDIT CARD DEBT, AND
PAID CASH FOR THEIR CARS.
THEY SHOP SALES AND TOOK
ADVANTAGE OF REWARDS PROGRAMS.
THEY LIVE BELOW THEIR MEANS TO
PAY OFF THEIR MORTGAGE AND 12
YEARS, ALL WHILE INVESTMENTS
DELIVERED IN A PERCENT RATE OF
RETURN, ESSENTIALLY DOUBLING
THEIR MONEY EVERY NINE YEARS.
IT REALLY ISN'T THAT HARD.
IT'S JUST ABOUT DISCIPLINE AND
TIME.
IF YOU REALLY WANT TO RETIRE
EARLY, YOU CAN DO IT.
SHE SAYS MOST OF HER PEOPLE
ON TRACK MAKE BETWEEN 60,000
AND $100,000 PER YEAR.
THEY ARE USED TO LIVING A
BUDGET.
IT DOESN'T MATTER HOW MUCH
YOU MAKE.
A COMPLETELY MATTERS HOW MUCH
YOU SPEND.
SHE TELLS PEOPLE THEY WILL
NEED AT LEAST 25 TIMES THEIR
ANNUAL BUDGET BY RETIREMENT.
AND IF CLIENTS WANT TO WALK
AWAY EARLY, STARTING EARLY, IS
CRUCIAL.
IF YOU ARE WAITING UNTIL
YOUR 40th MUCH MORE DIFFICULT.
[LAUGHTER]
IN ADDITION TO MAXIMIZING
YOUR COMPANY'S 401(K) MATCH,
SHE RECOMMENDS A ROTH IRA, BOTH
EARNINGS AND WITHDRAWALS ON THE
ACCOUNT AFTER 59 ARE TAX-FREE.
I'VE GOT A COUPLE PLANS.
38-YEAR-OLD JIM ROBERGE
MAKES ABOUT $100,000 PER YEAR
AND HOPES TO RETIRE AT 55. THE
OWNER OF A DOCK INSTALLATION
BUSINESS, HE DOESN'T THINK HIS
BODY CAN HANDLE WORKING MUCH
PAST THAT.
HE'S INVESTING IN IT -- RENTAL
PROPERTIES AS PART OF HIS PLAN.
I DIDN'T WANT TO BE IN MY
50s OR 60s AND NOT HAVE ANYTHING
.
THEIR MORTGAGES THEIR ONLY
DEBT.
THEY SHOP AT GOODWILL AND DRIVE
USED CARS AND ONCE THERE ARE
FOUR-YEAR-OLD STARTS
KINDERGARTEN THEY WILL PUT THE
$1100 THEY SPENT ON CHILDCARE
EACH MONTH DIRECTLY INTO
RETIREMENT.
YOU ARE HERE TO SAY THIS IS
POSSIBLE.
IT'S TOTALLY POSSIBLE.
BACK AT THE SHUBATTS, BOB
LEAVES US WITH ONE MORE MATH
LESSON.
TAKE A YOUNG COUPLE WHO TREATS
THEMSELVES TO A FOUR DOLLAR CUP
OF COFFEE EVERY DAY FOR 40 YEARS
.
IF YOU HAD TAKEN THAT SAME
AMOUNT OF MONEY THAT YOU SPEND
ON COFFEE AND YOU INVESTED IT
AND I'M A PERCENT RATE OF
RETURN, YOU WOULD HAVE OVER
$837,000 MORE IN YOUR
RETIREMENT ACCOUNT.
FINANCIAL EXPERTS SAY THAT
HEALTHCARE COSTS ARE THE
BIGGEST FACTOR TO CONSIDER TO
-- WHEN DECIDING WHETHER TO
RETIRE EARLY.
YOU NEED TO SAVE MORE THAN THE
STANDARD IF YOU WANT TO LEAVE