hey tackle it here and welcome back to
coffee time with your host the X Google
tech lead now today what we're going to
be talking about is early retirement and
how I manage to retire just a few weeks
ago actually now you may be wondering
where I am today and this is actually my
parents retirement home over in Santa
Cruz and I'll show you around a bit but
I think that retirement is an
interesting concept and it needs a
little bit of defining because
retirement means different things to
many people so the first thing to
understand this what is it retirement
could mean downsizing your house eating
cold cereal every day doing nothing no
activities and just watching TV every
single day waiting to die really that's
what some people do another version of
it is people are going out on cruise
ships
golfing traveling around having a great
time so what we're really talking about
here is standard of living right what
standard of living do you want when you
retire and what do you want that picture
to look like so for myself I pretty much
went into retirement when I was forced
to leave my company Facebook a few weeks
ago and I think this is pretty much how
retirement happens you could be laid off
there may be some situation at work and
sure you can always go back and pick up
another job I could go pick up another
job as well but at some point you just
take a look at it and think maybe not
you know maybe you're good maybe you're
fine I like to think of it like there's
ten dollar bills all around you and you
can go keep picking them up but at some
point you just say you know what you're
not gonna pick them up anymore you're
good so how do you reach this stage
right and I think that this is really
when your time becomes more valuable
than the money around you sorry I was
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parents worked in Silicon Valley many
years and so their retirement plan which
may be interesting to hear about is that
they plan to get rid of their big
Silicon Valley expensive house maybe
sell it or rent it out and then
downgrade into this beach cottage
there's not many good schools in the
area there's not many good companies to
work for but it's good for a retirement
can't believe how successful I am we can
actually take a look at what this place
looks like there's a living room over
here and this is essentially like a
mobile home actually the great thing
about it is actually not because it's
luxurious or anything like that it's the
location which you have to be on the
wait list in order to get here's a
bedroom and you can always swap out the
entire mobile home for a brand new
mobile home if you really want to you
don't really need a good commute anymore
to work you don't really need good
school districts anymore you just need
like a pleasant recreational type of
town that is fun
so I have a few tips here to help you on
your way the first is to understand what
your goal is I see a lot of people
they're not actually working towards
retirement okay so they're working their
job and then in order to make money they
have to spend money they may be buying
cars status symbols on the weekends they
have to go do something to keep
themselves occupied and it's not
necessarily even something that they
really want to be doing learning about
whisky and wines right just because
that's an activity that's local in the
city that can help keep themselves
occupied one example I've heard about is
sometimes you have these illegal
immigrants they come in to California do
some low wage labor and then what they
do is they're supposed to send that
money back home right that's the goal to
take care of their families but because
they are so lonely here they end up
spending that money on prostitutes or
something and you know that's all part
of the cost of living and working here
and it doesn't bring anybody closer to
retirement it doesn't bring anybody any
real joy you pretty much lose sight of
your goal this is why I do not buy a mid
to upper tier seven
Premium status symbols I'm talking about
Banana Republic Jaguar infinity cars
these are cars that nobody actually
dreams about nobody actually really
wants clothes that nobody actually wants
to wear they're not really functional
they don't look that great
they're just work clothes right there
work cars and it's to impress your
coworkers and in my mind they really
take you in the opposite direction of
retirement you know close Eponine or
republic are really more like business
expenses except you don't get a tax
deduction when you buy things like that
now the other thing you want to keep in
mind is lifestyle inflation where the
more money you make people actually
usually end up spending more and more
maybe you get 100k job you go blow half
of that on a brand new car maybe you
increase your living standards maybe you
get a bigger apartment what happens in
the end is you take a look at how much
you're saving right how much you're
actually putting into the bank and you
realize that you're saving like less
than 10% of your actual income and the
fact is none of that is really
sustainable when you retired you're
going to go back to eating peanut butter
and jelly sandwiches even though right
now you're going out every night eating
four star Michelin restaurants and
having sushi so yeah you can live
without now but it's going to be pretty
funny when you have to downgrade your
lifestyle and that's going to be painful
so I would recommend that you think
about having a lifestyle and gradually
bringing it up such is the sustainable
such that you never have to downgrade
your lifestyle backwards and in order to
retire like let's pretend you're
retiring at age 50 you could live until
age 80 90 you need like 30 to 40 years
of buffer I think the reality is that
there is no true retirement in the
traditional sense that you may be
thinking about it because very few
people can actually generate that
massive amount of net worth no I don't I
don't think so I I wouldn't say that I
don't think you're right about that
point like for example myself several
years ago actually I retired and I was
traveling around going to Hawaii the
Caribbean and I got kind of bored
because I had lost all social status and
you know there's still things I would
like to buy for fun right and I don't
really want to spend my own money on
that stuff so I thought okay I'm gonna
go find another job and just do it for
some kicks and giggles and then what
happened for me actually was I meant
wife we had the kid and it dawned on me
that my time was not valuable anymore
when you have a kid you're pretty much
locked to that kid's schedule if they
need to do some sleeping maybe they're
crying they're learning to read
they got go go through preschool and
then school and high school and all of
that time I would just be sitting around
waiting for the kid to grow up it
occurred to me that well since I'm not
going to really be able to do much
traveling I might as well just pick up a
job and just be doing that and so that's
why I had come back out of retirement
and decided that you might I don't know
what else I'm gonna do I'm just sitting
around waiting for this kid to grow up
might as well pick up a job and get some
health insurance for everybody while I'm
at it there but recently since my wife
and kid left again and then I lost my
job over at Facebook when it came time
for me here to think about another job I
started thinking well why why would I go
pick up another job right my time is
actually starting to feel more valuable
now there's nothing really locking me
down here anymore
and so that's why I'm considering
retirement again now the other thing
that I think you need to understand is
that many people never enter retirement
simply because they do not ever value at
their own time so it doesn't really
matter how much money you have I know
people who are generating tons of income
and money and I'm sure you know people
like this too it must be so common where
people get so caught up and working
making money that they lose all of their
hobbies and interests I won't go back
though to the issue about money and I
think that the true way to attain
retirement is that you need a side
business side hustle some passive income
and that is the only way I think that
you are able to sustain yourself for
like 30 40 50 years however long you may
be living and still be able to have a
decent quality of life because if you
were to just try to save that all that
much I think it would be incredibly
difficult to do without the time value
of being able to generate some more
income as you go so if you take a look
at my parents what they've done is
they've invested in a number of real
estate homes and houses including this
one and they go around doing the handy
work on it renting stuff out managing it
it's essentially a side job that they've
picked up
it's like house management and it's a
real job but the great thing about it is
that you don't have to devote 100%
your time to be doing this you can still
do it on the side and sure if they
caught themselves retired but it's more
like half retired they don't quite go
into a company they're not employed but
it's not like their income has come to a
grinding halt
and so my message for you is maybe you
have a job now maybe you're employed and
you're feeling pretty good about
yourself but I don't think that that
excuses you from having to come up with
your own business your own side income
right like all of your other unemployed
friends have to do you still got to do
that everybody has to do that because
that's kind of one of the true sources
of wealth which is why it kind of annoys
me when I see people who are employed
and they just burn all of their weekends
and evenings watching TV going out to
restaurants and just burning the entire
afternoons like they are all set you
know I don't think you're set by any
means because your retirement is
entirely not planned for developing
these other sources of income is going
to help you reach your time and goes
faster such that you're really enjoying
your life you want to have a good
retirement the type where you can be
still going out on cruises still going
around traveling maybe doing some golf
having a good time while you're doing
that and the only way to really do that
is to have that additional income on the
side let me know what your plans for a
retirement are if you liked the video
give the likes and subscribe and I'll
see you next time thanks bye