How we Retired at 40..💰7 tips to succeed for Early Retirement💰

Updated : Sep 05, 2019 in Articles

How we Retired at 40..💰7 tips to succeed for Early Retirement💰


hey guys retired at 40 I’m going on a
little road trip today just me and Murph and last week I reached a milestone on
my channel and I hit a million views total and 10,000 subscribers in the same
week since I’ve been getting requests for quite a long time about how I
retired at 40 and I’m on a long road trip right now I figured what better
time to share the story so without further ado here’s the retired at 40
story so before I get started I want to say that this is not in any way a brag
story in fact I’m definitely not a showy type guy I enjoy very simple things in
life and money to me is more of just a vehicle to be able to retire young and
have my family live a comfortable and an easy life and to be able to enjoy lots
of life experiences and be comfortable in life before I’m old and gray so
really the journey began in about 2002 graduated from Iowa State University
with a degree in marketing and business and by that point I have met my wife
Kelly she had already graduated from school and she was kind of waiting for
me and we wanted to move west out of the Midwest to move west see some new
territory and get closer to the outdoors so I grabbed my degree ran out the door
packed up my 1987 Ranger fully equipped with eight foot hay racks full of all of
my personal belongings and we drove to Littleton Colorado and at this point in
my life I had $200 in my pocket and Kelly had about the same so being
completely naive and basically completely broke but with a degree I was on the search for the best suit and tie job that I could possibly find
so I bounced around for a couple months just working some kind of halfway jobs
and I quickly realized that I did not want to wear a suit and tie and I wanted
nothing to do with the man and working a nine-to-five job well Kelly had found a
job in a real estate office working the front desk and she had become friends
with a couple of the big-time Realtors there one of which you caught wind that
I had some handyman type skills but he made me a deal that if he paid cash for
a house and I fixed it up that he would split the profit with us 50/50 and at
this point in my life all I saw was dollar signs if I was completely blown
away that there was someone that could pay cash for a house
this is coming from a guy who had less than $200 in his pocket at this point it
was pretty much scraping by I tried to hold back my excitement to him but
naturally I said yes please let’s do that I was working the graveyard shift
at Target stocking shelves I’d worked for 10 hours I would go home grab a
little bit of breakfast and I’d head over to the property and work on it for
another five or six hours I try and catch a few hours of sleep and then I
would rinse and repeat it was at this point in my life that I learned a few
different things one you really have to dig deep to reach your goals in life
because I was not getting paid by the hour and at this point I didn’t know how
much money I was gonna make I didn’t know if I would make $500 when this was
all done or if I was going to make $5,000 when this is all done so I
learned that a lot of things that can benefit you financially you have to put
in the work upfront without knowing what your final outcome is going to be
after about three months which seemed like an eternity of working seven days a
week for sometimes 15 sometimes 20 hours a day on this house the house was ready
to go on the market and it was all finished it looked great and then before
you knew it it’s sold and then the house closed and at this
point I still didn’t know what we were gonna make off it but for me it didn’t
matter the hard part was done I didn’t have any of my own money into it I just
had my time basically so the guy we were doing the investment with hands me an
envelope and I opened it up and at $8,000 being twenty-two years old and having
$8,000 I might as well have hit the lottery and that brings me to my second
valuable lesson that I learned and that is being responsible with money so when you have $8,000 and you’re 22
years old a lot of people would go buy a new car they’d go buy some flashy
things some pretty things but to me I had realized that if I can make $8,000
once I can make $8,000 again and again and again and again so I can either go
p*&% the $8,000 away that I had worked my a#* off for or I can take that $8,000 and do exactly
what he did but do it myself and potentially make twice or three times as
much money so my wife being in a real estate office we became acquainted with
quite a few smart people financially smart people we learned a lot about real
estate very quickly because we were willing to learn which is my next
valuable life lesson is that you never stop learning so we
took our $8,000 we put a small down payment on a condo in Littleton
because we realized that giving someone else our money was you might as well be
throwing it away we wanted to be working towards something and it own something
on our own so we took our other four or five thousand dollars and we started our
search for a real estate investment that we could do all of our all on her own
and get a hundred percent of the profits so after some searching we did find a
place we found a small town home it was not in as nice of area as we were living
it was smaller it needed lots of work but that takes us to our next light life
lesson that we learned and that is to sacrifice for a greater payoff in the
future so we had only lived in our condo for a very short time but we realized
that if we moved into the real estate investment that we could rent out the
place that we are living at and move into the place that we were fixing up
that we’d have to be paying a mortgage on anyway we had our first real estate
investment and we had our first rental so being 22 years old and owning two
properties and carrying two mortgages and at this point I’m still working at
Target was a pretty scary proposition in life but all I could see was that $8,000
check they had started to change our lives I also want to point out and kind
of give a shout-out to my parents and to my wife’s parents because
neither one of our parents ever handed us anything in life they
always made us work for what we achieved in fact when we move we tried to
convince my parents to co-sign on our mortgage for the condo that we bought
and they said no way at the time I was very very mad at them and I thought I
would never forgive them in hindsight it was one of the best
things they’ve ever done for me because it just made me have that fire
in my belly and really just want to work to get what I wanted so back to having
two mortgages that was a completely scary thing in my life I was making
something like 10 dollars an hour at Target
I think Kelly was making $13 an hour at the real estate office she was working
at we could barely afford the condo we had but now he had two. God bless the
banks lending money to anyone at that point on the very plus side of that we
learned that someone else can pay our mortgage and we’re basically getting
that money for free and then later we figured out that there are many many
many tax benefits and huge benefits of owning a rental property so we quickly learned that trying to pay
for materials and the things needed to fix up an investment property on just
barely over minimum wage is not easy to do the thing that happened next couldn’t
have come at a more perfect time so all of a sudden I had money to spend to fix
up this house and it would just get me to that next
big paycheck that much quicker so that’s what we did we fixed up the house we
doubled our money we rolled it into the next one so we kept bouncing from house
to house quite a few times and that sacrifice of from going from a nice
house to live in to going to a crappy house to live in to fix up to making it
nice again to going to another crappy house to fix up it became pretty
stressful but we always had our eyes on the prize “are you still with me Murph?”
after doing this two or three times I remember getting a check for the last
one and the check was forty one thousand dollars
so at that point it didn’t make sense to work at Target anymore so I just started
doing it full-time but we never took the big proceeds from the real estate and
put it into our actual living we always rolled it into the next property and
that kind of gave us the baseline of even how we live today we always live
well below our means we take the money that we make and we put it into things
that will make us an income not into something that will lose us money but
you do have to treat yourself every once in a while otherwise there’s no reason
to make the money in the first place Kelly saw many of the high producing
Realtors making large amounts of money so she decided to get a real estate
license and she created her own real estate business so now we really felt
like we had the world by the balls because we were getting paid a
commission to buy the property and then we were saving half of the Commission
when we sold the property and I was fixing him up so we just get rolling our
profits in rolling our profits in rolling our profits in until family we
were able to buy a house and now that we could get a house we were playing with
the big boys the profits were much larger but so was the risk and we really
didn’t want to lose all the way it worked for for the last couple of years
so we did a few houses and we made some great money but instead of selling them
and pulling out our profits we kept them as rentals and it was at this point that we really
started building up our rental inventory at this point it was about 2006 or 2007
and real estate was starting to slow down a little bit but we have purchased
a large house I’m a courage that was really a big risk for us it was a large
house to fix up it was our biggest project for sure it took us the most
money to fix it up and we had the most money into it so we lived in this house
for about 8 months while we were fixing it up and we kind of decided after doing
about 12 properties that the moving all the time was starting to get kind of old
and we were kind of getting older ourselves and we decided that we wanted
to have kids and kind of settle down a little bit Murph are you with me? sometimes I feel like I’m just talking to myself so after the eight months was up we
finished the house we sold it and shortly after the real estate market
completely crashed the bubble had burst and Colorado was one of the hardest hit
States we got out of the house just in the nick of time and not only did the
real-estate market bubble burst we found out that we couldn’t have kids and it
seemed like a real low point in our lives but around 2007 when all this
happened we realized our next lesson with every negative there is a big
positive that can be gained from it and you can just use it as fuel for your
fire so the recession was tough we thought
our great life had come to an end we thought we were gonna have to get
regular jobs you know people were losing their jobs left and right people were
losing their houses Colorado was hit very very hard one of the worst states
during the recession and we learned that what goes up must come down
and in this case it came down hard in many cases not just real estate when
things are bad that’s the time to invest and if you’re smart with your money and
you’ve been saving while everyone else spending that’s the time to benefit
though from about 2008 to 2012 we were buying rentals so we were able to adapt I started doing
contracting because that’s pretty much what I was doing before but now I had to
be doing work for someone else and Kelly’s always been a mover and a shaker
and even a bad real estate market she was able to keep her business moving we
were buying things for pennies on a dollar and even though we were not
making great money and in some cases losing a little bit of money on rentals
we were able to stick it out and after lots of lots of years of lots of lots of
heartache and lots of lots of doctors we were able to have two boys so about 2014/2015 real estate started
creeping back up again prices kept going through the roof and just when he
thought it was the peak they just kept going up stuff was flying off the
shelves you could list a house and it would have multiple offers within 24
hours so we had about age 35 we were
completely debt-free we had several rentals that we were cash flowing we
didn’t owe any money on the rentals so all that money was just rolling into a
bank account when you have no bills and you have an income coming in your net
worth starts to grow very quickly so we rode out the storm Kelly’s business was
doing great my contracting business was doing great
we have liquidated a lot of our real estate in Colorado we had capital to
play with we had two beautiful young boys and then I fell to my knees crying
like a little baby I had herniated a disc in my back and I
was on a walker for about a month contracting for me was out of the
question I didn’t even want to think about picking something up so I took
some time off and I raised our kids which at first I thought would just be for a few
months and then a year passed and then another year passed and I decided that I
kind of liked it we had rental income coming in Kelley’s business was doing
better than it had ever been in fact she had started her own she had several
people working for her and just as a little side income I got to do what I
love to do which is antiques I was just buying and selling antiques so we were
trying to be very strategic at this point because we owned a fair amount of
property in Colorado but we knew that our ultimate goal was to retire at 40
and at the rate things were going up we didn’t want to sell too early because we
didn’t want to miss out on that upside but we didn’t want to sell too late
because we didn’t want to risk the chance of taking a step back so as some
regret we sold the majority of our properties in around 2017
but this was a game-changer because we were able to make cash for every rental
that we purchased so we loaded up on rentals in Iowa we actually purchased
our property that we’re going to move into which is actually where I’m headed
now and that kind of brings us up to speed
to current date I take care of our 10 rentals which keep which keeps me pretty
busy just in itself i buy and sell antiques i get to see my kids all the
time we have a good rental income coming in now we do youtube oh yeah we also do
a couple fix and flips every year Kelly has her real estate team with about 10 employees
and in June of 2020 we’re going to retire at 40 so all in all life is great
I have a wonderful family I have enough assets and passive income to live a
comfortable life I don’t need Ferraris and yachts to make
me happy in fact for me it’s quite the opposite so if you’re new to the channel
take a moment to subscribe click the bell to get notifications and new videos
we like to live life simple on this channel if you like the content we
provide give us a thumbs up I’m almost always available to answer questions and
I love hearing from you guys I’m glad you were able to enjoy my roadtrip with
me I’m just pulling into the house right now in the meantime this is retired at
40 remember to live life simple I’ll catch next week

100 Comments

  • I have a friend who has the same story. He had a big job though and live cheap and bought fixer uppers and then rented them.
    At 48 he retired with 31 homes that he and his boys worked on. All my old friends from the Greatest Generation had real estate.
    I just sent this video to all my adult grand kids……part of the plan is for one to work in the Real Estate business.

  • You think you’re retired, but when you have kids, you have to start again because you worry about them.

  • Congrats on retiring early! Great achievement, and I've watched a few similar testimonials, however most people have made their money on either property or stocks when they've been pretty much a one-way bet, and they've been able to turn a small amount of money into a lot. Starting out now though – 2019 – I'm not sure it would work. Asset prices are crazy high, stocks are crazy high both thanks to central banks printing money. Right now you could buy property and/or stocks and soon see the values decline for a long period, wiping out any gains in rental or dividends. Difficult to know how to achieve this all if you start from now.

  • Preciate the enlightenment you've shared with everyone, you're steering people in the right direction by simply sharing your accomplishments. We have similar philosophies/ practice's I derived from your video and I'm estactic your trying to better other life's when and where you can.
    Keep up the tremendous teachings and enjoy y'all's well earned retirement.

  • You were lucky to be able to go up with the real estate bubble and then have money to buy when it hit bottom. Luck plays a major part in these things. Going up the real estate ladder with little money requires a good market, but once money is obtained there is advantage in a falling market. It's the old adage; buy low, sell high.

  • Tip #1 – don’t live in California. Mortgage on the average home around here is over $600K w/ property taxes adding roughly $12K+ per year in the nicer areas too.

  • So you came to my state and took advantage of people when the rental market shot up so high..many had to leave their home towns. Because of yuppies just like this …keep filming while your driving!

  • I wanted to buy a used duplex and live in one side and rent the other but I cannot find any for sale around me so now I wonder if having one built would be worth while.

  • That is amazing, I'm happy for you and your family 😁 subscribed 👍🏿

  • congrats! How did you manage all of those rental properties? did you just manage them yourself as far as repairs needed and what not?

  • Good stuff! Hard work, delayed gratification, using money to make more money. And if you have a partner in life, both having the same outlook and goals. Bottom line is that you make more money buying and selling than working at a job.

  • Love the story brother, i've been retired for 3 years now and living the similar dream in Arvada CO! Cheers to ya, stay simple!

  • If he has enough money saved so that he can pay himself a 'salary', for example 50k a year, to live simply over the next 40 years equals about 2million dollars in his bank account for him and his wife to retire and live modestly. The side businesses such as this youtube channel is just bonus

  • Easiest way and can be most rewarding , join Military or Leo or another career with 20 yr , 22 yr or 25 yrs, leave below your means by a home , pay it off , don’t buy expensive shit u don’t need , invest in retirement program while your working and boom at 45 yrs latest retire good pension , medical , dental ,eyes, no mortgage and 401 k matures 59 1/2 , Social Security kicks in 62 , boom , your gonna get bored so could start a business or work part time kill time and extra income , it’s not hard , just be discipline , work hard for that 20 or 25 yrs and you’ll be chillin for the rest of your life

  • The Diomio is exactly right, I am exactly like this guy,. EXACTLY!!
    40 AND RETIRED FROM REALESTATE, BUT MY WIFE FILED FOR DIVORCE AND IT COULD ALL BE TAKEN!!!

  • im 34 years old im near 1 million in bank account not counting assets but in my mind im far away from retiring 1 million is not a lot in todays market i will never retire unless im dead or im incapacitated i just love and enjoy what i do

  • Great story, I live in Colorado myself. Why did you guys pack up and move back to Iowa? After kids did you stop enjoying the “Colorado lifestyle/Outdoors” and perhaps the high cost of living was no longer worth it? I myself own property in Denver and often think how far the $ would go somewhere else…but for me the weather and access to outdoors keeps me around

  • Loved your story. We have a similar story as well. Only ours just began 2013. Its been tough. We’ve moved from nice house to crappy house just like you 4 times. Still not financially free but will get there sooner than later. People call us crazy. Why all the moving they say!? But regardless of the stress, body aches, and sleepless nights, its all worth it in the end. I only hope someday soon we can climb even half way up the mountain you’ve climbed. Thank you so much for making this video.

    Working a 9-5 for this system is not living. Its just being not dead.

  • I was so sad when you said you couldn't have kids, then when you said you had 2 boys I was filled with joy.

    I'm so happy for you, cool story.
    And congratulations.

  • You dont need to bleep out the swearing. Kids are not going to watch this. Its annoying in an otherwise good video

  • Great video but i like how ur destiny just kind of transpired on its own…and keeping things simple makes things even more clear, good job.

    Mogul…very inspiring.

  • Loved the story. My wife and I are working towards something similar. I’m not quite as handy, but definitely looking at debt free real estate to create cash flowing income. We’re still looking to minimize our lifestyle and want to house hack for our first property. Nice to know it can happen.

  • You understand the concept of buying under valued assets and then selling them after they have gone up. You should seriously learn to swing trade FOREX or Cryptocurrencies! Massive Liquidity allows you to get in and out of trades quickly. It's the perfect business with little over head that can be done from anywhere. ALSO your inventory is CASH!

  • That's incredible, dude! You bust ass and really came out strong. I wish the same could be said for everyone, but you really played your cards right & had the best mindset starting out.
    Watching my parents lose everything in 07-08 made me a little jaded towards the concept of "hard work" but I look forward to using these tips to hopefully live a life as beautiful & simple as your own. Keep up the good work!

  • You're lucky that you don't work at Target anymore. They are going to pay $15 per hour by 2020, but they didn't mention that they are cutting jobs, hours, and eliminating benefits for non-leadership positions.

  • I just updated my $111,000 Dividend portfolio dripping $4707 I plan on FIRE by 35-40!!! come check me out!!!!!!

  • it nice to have a dream i to had a dream come true mine started at 16 when i started working i wanted to millionaire so i bought cheap house 5000 cash and bought cheap cars 500 .and i whent to bank because they deal with money and they told invest just 500 month s&p 500 in 35 yrs il be richso i did next step i increst my income driving truck live on 500 month invest even more money now 32yrs later im mult milionaire .and i treyed tell my co workes they need buy cheap house in 02that i read in money magazen that crash was coming in 08 or 09 they just lol at me said what do i know i live in that little crad shack .well in 07 i sold all my stocks upped my money out waited and at low point stocks wear dirt cheap i bought every thang waited and it did go up .now who laughing ..i just tryed to help them .

  • Hi : diversify your income streams or you are a walking dead…At the wym of the next financial crisis

  • Before everyone rushes out to buy a rental house, let me tell you the part conveniently neglected in the video – being a landlord absolutely SUCKS. You have whiny, nasty tenants who call you at midnight because something creaked in the attic, and then the next month they are two weeks late on the rent. You have neighbors calling you because your tenant refuses to mow the lawn. Trying to evict someone for non-payment of rent takes lawyers and almost an act of God in most states and often tenants will trash your house before they go. I had to take out loans and cash advances several times just to keep my rentals afloat and avoid defaulting. Ultimately, it was so stressful and such a headache and soul-sucking experience I sold my properties – but apparently my city wasn't experiencing the same boom because the money I made was most certainly not enough to retire on. Folks, be careful of videos like this…this guy is a self-promoting marketer making money off monetized youtube videos. The whole setup – including the dog in the car and the scruffy beard, is by design to make you think he's a regular joe. He's not. And it is NOT simple, nor is it easy to retire early, which is why so few people can do it. And ask yourself this question – is this dude REALLY retired? Seems to me like he's moved from real estate to hawking get-rich-quick schemes on the internet. I strongly urge you to think long and hard about anyone who tries to convince you that wealth, financial independence or early retirement is "simple" – it ain't.

  • Thanks for telling your story! The best part of FIRE is that there are so many ways to get there. I will be 48 when I retire this year!

  • Great story! My husband and I are doing the same thing, but got started much later than you! Does your wife have a channel too? I'd love to hear more about her business

  • Very cool stories my man, congrats on the early retirement! Now you can do what you want to do and maybe even help others on YouTube to follow your strategies 😁

  • Awesome, love the story very motivated, amazing adventure you had, as for me I'm about to be 40 and just got started on investing and my wife and I are getting ready to buy our first property. Keep up the great videos.

  • Great story Bro. I hope you dont get hit by the next house booble maybe next year. I am 40 one ish. In Swizerland. Dont sell to late, like you know bro. Gold is on 6 Year high 1500…. Everybody around me with a deacent Job and Fam is buyin a house or a overpriced appartment. & they pay it with there Penssion Fond and 50% saved money. so they are broke if they stop workin im 1 month. One more thing. dont buy Bitshit. Peace

  • Fine for you if you like renovation. I was graduate in 2002 also, Ecole Polytechnique in Engineering as my husband. We bought our house in in 2007 in prime location. Works, travel, do a master degree, have kids and enjoy life. I,m 41now and we are dept free. We paid the mortgage. All our cars are paid cash. Every month the credit card balance is 0. If you like your career and you working hours is below the standard 40h, you have good benefits, 5 weeks of vacation, and retirement pension at 55. What's the problem to be a coporate men or woman? But i agree with you, to achieve any goal in life you need dedication, hard working and invest time. I start working on my career goal when i start kindergarden. And there are many roads you can take to achieve your goals…just don't give up.

  • Congrats! I like the channel.
    Sounds like you did it the right way. I find people often get "lucky" when they work hard and always stacking new skills and are able to take risks.
    I do low cost paid for rentals near Dallas, including over a dozen mobiles on 23.5 acres I own, and they generate a six figure income as well as my six figure IT job. I went from 2-30 in the last 4 years adding 8 this year and you are so right that your net worth really starts taking off as you get paid for rentals. I also got a TX RE broker's license along the way I have kept current but I do not really sell homes.
    We do not plan to retire being in our early 50s now but could I suppose. I guess we will see what happens when the current corporate IT gig ends. (I work remotely at home currently.) We live frugally. I drive a chevy pickup with 428k miles. 🙂

  • Loved to hear your story! I just graduated from Iowa State University this Spring! I got my first real job this summer. I'm excited to get on my FIRE journey.

  • Property is the way to go! I am 34 and currently own 4 houses (1 I live in and 3 I rent out). I am hoping to buy 4 more houses over the next 4 years, then pay off most of my own mortgage in the 2 years after that then to retire at 40. A lot of people do seem jealous of what I am doing but the thing is that I am happy to work 12 hour days at the moment to make this happen, and to make other sacrifices along the way to achieve this. Others might be jealous but then they have the option of living the FIRE lifestyle too!

  • I just retired, 44 years old. Im healthy, in great shape, full pension and medical. Im VERY lucky but I earned every penny. Everyone tells me 2 things:
    1. "your going to have to work, your gonna be bored".
    2. They try to tell me what I should do with my time or what I should buy or go do.
    I am gathering everyone is an expert at retirement but me?
    So many haters.

  • Very random, but would you recommend buying rentals cash in countries you don't live? We are looking to immigrate in the next 4 years and will have the cash to buy about 2 rentals cash before then. But then they will be in a different country that we will be living in…

  • awesome story man wish you and yours a happy retirement that is my goal as well much rather spend time with wife and kiddos

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