This Couple Retired Before 40, Here’s Exactly How The Did It

retire before 40 investing

Want to retire before 40? Who doesn’t?!?

Not everyone wants to wait until they’re a senior citizen to stop working and live the retired life.

If you want to stop working sooner, decades before your peers, you need a plan for how much money you’ll need and a strategy to hit that number.

“Your plan should be to replace your salary with investment income,” explains retiree Bill Kaderli.

Kaderli and his wife and two other couples used these strategies to retire before the age of 40.

In this video from CNBC and Acorns, the Kaderli, McCurry, and Olson families explain how they planned, saved every penny, and retired long before friends and family.

Justin McCurry has been retired for seven years. The Raleigh, North Carolina native, owns a home with his wife and has three kids.

McCurry started investing just after college. At their peak earning years, the McCurry’s each earned about $70,000 in salary.

McCurry explains how he used the 4% rule for retirement but realized he’d need much more money to retire comfortably but that he wasn’t spending nearly as much money as he budgeted.

McCurry estimates the family was saving anywhere from 50-80% of their income each year, and he put that extra money into investing.

Bill Kaderli explains that he and his wife spent 2 years planning on saving for retirement and spent that time “trying to poke holes” in the plan.

The Kaderlis went back over their financials and tracked where they spent the most money over the years, not including mortgage, car payments, and food.

The Olson also planned and used a spreadsheet to track earnings vs. spending.

The couple made about $100K a year combined but only spent about $20K, so they just kept reinvesting the $80K in rentals and properties. Those rentals started generating their own incomes.

The Olson family now has 19 rental properties.

The Olson’s explain that the real key to success wasn’t about being frugal but more about optimizing what they spent and how and where they spent money.

“It was like a game to try and do things more efficiently and effectively,” explains Mr. Olson.

RELATED: 5 Biggest Warning Signs That You Will Run Out Of Money In Retirement

Watch all of the interviews in the video below.

Chris Illuminati

Chris Illuminati is the author of five books and has written about personal finance, wealth, debt management, and entrepreneurship for numerous outlets including Wise Bread, Grow or Die, and Bankrate.