I wasn’t planning to write a Debrief article anytime soon but I like to use them for special circumstances. Some interesting pop-up events occurred this week that I want to address.
Perspective
When you work at a large company, there is always lots of people movement. People leave, are promoted, and die. I received word yesterday that someone I knew had just passed away from a heart attack.
He retired 2 1/2 years ago and he was only 63 years old. I didn’t know his medical situation or history but he appeared to be in decent shape. His death seemed to be a surprise to everyone. He was a good guy.
But it just strengthened my resolve of why I want (need) to retire no later than 62. Life is too short and you never know when your time is up. Last year, I wrote one of my favorite articles called FOMO on Life. If I could retire today at age 57 I’d do it in an instant.
I keep telling my kids to be financially independent by 50 years old and then make your own decisions. If you choose to retire then great. If you choose to keep working then great. But at least you get to choose.
I was on a daily walk with my youngest daughter today and she asked what do I mean by being “financially independent.” I told her when she has enough assets and passive income to replace her working income then she is independent from her work income. That is being financially independent and that should be everyone’s goal by 50.
I’ve chronicled my mistakes multiple times on this site and it’s very likely that I could have retired by now. But that’s life and we live with our choices. So folks, reduce (eliminate) your debt and increase your savings rate. We were not put on this earth to work for a large company (or whatever you do for someone else) until we die.
We need to take our lives back. Choose to be financially independent. You have to want it bad enough that you change your consumer spending behaviors. Spending money doesn’t equal quality of life and the sooner you get that the faster you’ll be financially independent.
RIP NM …. you were a good guy and deserved better.
Promotion
On a positive note, I got a promotion today. This means I’ll likely make another $35,000 per year that I can put into my investment portfolio. And almost more importantly, my company pension will increase too.
Even though I just wrote an article on covering my essential retirement expenses, it appears I’ll be writing another one next year. This is a great “problem” to have.
It’s possible that I use the extra yearly funds to buy my travel trailer, fix the house up, and buy that hot tub we always wanted. We had hoped to do this anyways but this might have just given us the extra funds to execute on that desire. I’ve already got a plan for my investment portfolio so this might allow me to do some fun things without touching the plan.
Again, a good “problem” to have. It’s funny though, I don’t hate my job and they pay me very well. Why am I hell bent to retire at 62? Because I want to finish my life the way I want to finish, whether that is 2 years or 30 years after retirement. My life, my plan, my choices, no regrets.
Tech Stocks
The other day, I read a blog article about a normal guy that was saving $20,000-$30,000 per year and chipping away at his retirement. Suddenly, his portfolio increased $1,200,000 last year.
You guessed it, he put a large bet on Tesla and hit it big. This is a company that has a 1,389 PE. The only thought I had was did he take the gain? That stock is up over 1,100% from its 52-week low.
What amazed me was he was doing things the right way and he suddenly put all his eggs into Tesla. Those are the kind of moves that got me into trouble earlier in my life. I tried to hit home runs and I’m not a home run hitter.
I’m sure others out there have made millions on other tech stocks too. Me? I’m buying Johnson & Johnson, Coca-Cola, Aflac, and other high quality dividend paying companies. Sure, once I’ve got my portfolio in the right place then I might place a small “wager” on a high-flyer too but not until my ducks are in a row.
I’m buying income that I’ll use in about 4 years. I suspect that by the time I retire, my dividend stocks will be producing $15,000-$18,000 annually. I focus on stocks that raise or maintain their dividend during these COVID quarters.
Thanks for reading!
Mr. TLR