How a couple achieved financial independence retire early at mid 40s

how-a-couple-managed-to-get-out-of-debt-at-mid-40s

As per a recent report of the American Bankruptcy Institute, bankruptcy cases have increased in the past few years. More people aged 45 and 64 are now tapping their 401(k) accounts to combat  an emergency. Thus, they are falling in the risk of debt in their retirement. Many of them are working even after their retirement to make the ends meet. Some of them are already in debt due to no savings for the retirement days.

Every day baby boomers are struggling with many financial issues due to lack of sufficient retirement fund.

But it is also true that some people are living happily in their retirement. They are also inspired by the FIRE movement (Financial Independence Retire Early). They have proved that by following proper strategy, planning, and incorporating good financial habits, people can secure the post-retirement days.

Just like Angela Peterson and Philip Peterson did. This power couple have already achieved financial freedom.

They have proved that achieving Financial Independence Retire Early is possible.

Today, I am going to share a success story of this power couple who have won financial independence and early retirement in their mid-40s.

Angela Peterson and Philip Peterson are married for 37 years and have no children. Both of them are geotechnical engineers and happily married. They decided to announce early retirement 5 years ago. By the age of 40, they had paid off their mortgage and student loan debt. After that, they decided to achieve Financial Independence Retire Early as their top priority.

What was the couple’s motivation behind achieving financial independence?

Angela and Philip Peterson always wanted to secure their financial future. They didn’t want to work even after their retirement. Both of them wanted to enjoy world tour; they didn’t want to continue their 9-5 work life until retirement.

Thus, they had started their journey to win Financial Independence Retire Early.

Now they believe that retiring early was totally worthy. They don’t commit any mistake because they are enjoying their life without just worrying about the money.

The couple warn people about the future of social security and pension

Angela and Philip are skeptical about the future of Social Security and pension system in America. They say that people should get out of the conventional thought i,e. “Social Security benefit is the sole retirement asset”.

As they had decided their priority  “Winning fire”, every people should secure their financial future. If they don’t want to stretch their working life, they should start preparing earlier.

They further said that if a person wants to announce retire at the conventional age, then no problem. But, the person should have enough savings to live happily even after retirement.

Strategies that the couple followed to achieve Financial Independence Retire Early

The power couple want that more people should start saving at their early age to achieve Financial Independence Retire Early. Thus they have shared some tips to grow money fast.

The couple knew that investment is the key

Angela Philip took advantages of investment to grow their money. Once they had saved a good amount, they started investing money in a various way. They said that people should make the right investment to allow their money to grow.

They have accumulated more shares

The couple said that accumulating shares is an important part of an investment. According to them, instead of using the remaining balance on your account, if you concentrate more on buying shares from companies that are going to grow over time, you’ll be on the safer side. With time, you need to think about your future too. Try to keep accumulating your shares for your 401(k) account. It’ll be more than 30 to 40 years before you’ll be selling off your shares. So, if you get shares for a lower price from good companies, why not buy them and invest in the future?

The couple started living a smart and simple frugal life  

The couple agreed that they were successful in saving more money by making changes in their lifestyle.

They said that you should try to live on less so that you can save money aggressively. Suppose, you buy a car or invest in any electronic gadget, remember the long-lasting effect you’re going to have. If anything gets you better returns in the future, you’ll surely profit more. This is one of the smart decisions that can take you ahead in life, financially.

When you don’t have much to spend on, try to lead a frugal life. Try to invest in such things that’ll appreciate with time and not those that have a depreciating nature. When you have ample money to spare, you can afford the luxury.

They also advised young people to make smart decisions so that they can save money in their day-to-day life.

The power couple have gone nostalgic while sharing the story

The couple also shared the story of their immense patience in the journey of achieving Financial Independence Retire Early.

They said that just buying the shares is not enough, you have to wait for the right time to sell the shares. You need to hold the stocks or shares as long as possible so that you can sell the stocks or shares when the profits rise.

They said that patience really does pay off if you want to get better returns on your investment. Buying long is anytime better than selling short. Short selling is like a gamble and a wager doesn’t really pay off in the long term.

The couple advised people to acquire knowledge regarding the shares to know the profits they are going to incur and if there is any possibility of a loss.

Angela and Philip worked hard to get rid of their debts

Before saving money, the couple got out of their debt first. Because they knew, debt can be a barrier for them in achieving financial independence.

Thus they started paying off their debts and never accumulated debt in the journey of winning financial independence.

They paid off their mortgage sooner by saving money and also got out of the private student loan debts by consolidating them.

They said that you shouldn’t ignore your debt. You should pay them off as soon as possible by following the right debt repayment method.

Also, make sure you stay away from further debts. Otherwise, you will not be able to achieve Financial Independence Retire Early. Do whatever you want to stay away from debt.

  • It can be reducing credit card usage
  • Living on less
  • Eating homemade food
  • Buying fewer clothes
  • Getting rid of junks

The couple agreed that most Americans forget to plan their retirement as they’re far busier with planning their vacations. As a financially responsible citizen, it is your duty to plan your retirement so that your finances do not go out of control when you have no mainstream income.

They say, if you truly want to enjoy your life, then secure your financial future fast. This is the ultimate key to achieve Financial Independence Retire Early.

Those who don’t want to retire early also need to secure their financial future. Otherwise, they may have to work till their death or live a poor life in their golden age.

However, Angela and Philip Peterson are also happy for the people who are inspired by the FIRE movement and working hard to achieve their goal.