28 year old Woman retired in NYC with $2.25 million net worth

[Xennial]

What makes this story different than the usual non trust fund kid retired early story is usually they do it in Low Cost of living areas where as in this case NYC is a high cost living area. 

http://www.forbes.com/sites/mayakac...et-worth-of-more-than-2-million/#2bc75ed9491d

Cliff Notes:

She attended Harvard and spent a summer in a Buddhist Monastery in Taiwan where she first adopted minimalist lifestyle

First Job after Harvard was as a Horse Trekking Assistant to Nomads in Mongolia

Started working for an Investment Firm in NYC when she got back from Mongolia

Became a millionaire at 26

Lives in a 325 sq ft apartment with her husband and dog

Lived on a $24k or $2,000 a month budget her first couple years working at the investment firm

Sleeps on mattress on the floor to save money from buying bed frame

Estimates 60% of her $2.25 mil net worth is from saving and the other 40% from investing

 

[Xennial]

She's Jewish.

What is it about being Jewish that makes life so easy like this?

 

[cards93]

She's Jewish.

What is it about being Jewish that makes life so easy like this?

my wife is jewish, she has had anything but an easy life.

 

[RustyShackleford]

She's Jewish.

What is it about being Jewish that makes life so easy like this?

Yes, because Jewish people have a legacy of having it easy

 

[blakep267]

What makes this story different than the usual non trust fund kid retired early story is usually they do it in Low Cost of living areas where as in this case NYC is a high cost living area. 

http://www.forbes.com/sites/mayakac...et-worth-of-more-than-2-million/#2bc75ed9491d

Cliff Notes:

She attended Harvard and spent a summer in a Buddhist Monastery in Taiwan where she first adopted minimalist lifestyle

First Job after Harvard was as a Horse Trekking Assistant to Nomads in Mongolia

Started working for an Investment Firm in NYC when she got back from Mongolia

Became a millionaire at 26

Lives in a 325 sq ft apartment with her husband and dog

Lived on a $24k or $2,000 a month budget her first couple years working at the investment firm

Sleeps on mattress on the floor to save money from buying bed frame

Estimates 60% of her $2.25 mil net worth is from saving and the other 40% from investing

the thing is there are likely a few missing pieces in the story here. Not downplaying her accomplishments at all. But did she go to Harvard on scholarship? Was it completely paid for by her parents etc. how much savings did she previously have? Did her parents set up minor iras utma/Ugma for her etc

She comes back from abroad and immediately gets a position at an investment firm? Harvard or family connections?

 

[deleted]

She's Jewish.

What is it about being Jewish that makes life so easy like this?

Don't take the bait y'all

This is some high level trolling

 

[OBAMA]

the thing is there are likely a few missing pieces in the story here. Not downplaying her accomplishments at all. But didn't she go to Harvard on scholarship? Was it completely paid for by her parents etc. how much savings did she previously have? Did her parents set up minor iras for her etc

She comes back from abroad and immediately gets a position at an investment firm? Harvard or family connections?

Frfr

 

[atlsfinest]

the thing is there are likely a few missing pieces in the story here. Not downplaying her accomplishments at all. But didn't she go to Harvard on scholarship? Was it completely paid for by her parents etc. how much savings did she previously have? Did her parents set up minor iras for her etc

This. I know I-Banking is lucrative but not millionaire-in-2-years-lucrative unless she's got a real gift. Also her story about spending time at a Buddhist monastery and leading a minimalist lifestyle then becoming an I-Banker don't make much sense either.

 

[capital sb]

*Shrugs* she just subscribes to extreme frugality. Word to Mr Money Mustache and all the other frugality extremist.

The more you save and the lower you cut your expenses the faster you can retire with a relatively small amount of money.

Believe it or not anybody can retire early if they save 64% of their income for about 11 years.
[h1]The Shockingly Simple Math Behind Early Retirement[/h1]

 

[703 hwy]

She better go back to work

 

[titanium tea]

How to retire at 28 in high rent ny.

Go to harvard

Get a lottery win of a dream job

Become a millionaire by 26....

Budget to sleep on the floor for the rest of your life.

Seems simple enough

.

Seriously tho, you must love NY a whole lot to not just live more comfortably somewhere more affordable.  

 

[Xennial]

 
*Shrugs* she just subscribes to extreme frugality. Word to Mr Money Mustache and all the other frugality extremist.

The more you save and the lower you cut your expenses the faster you can retire with a relatively small amount of money.

Believe it or not anybody can retire early if they save 64% of their income for about 11 years.
[h1]The Shockingly Simple Math Behind Early Retirement[/h1]

 

[capital sb]

That's unfortunate for them.

 

[verbal kint]

Does she expect to live off her 2mil for the rest of her life? Im so confused here.  Did she just retire from her field? aka lost her job?

 

[Xennial]

 
Does she expect to live off her 2mil for the rest of her life? Im so confused here.  Did she just retire from her field? aka lost her job?

 

[blakep267]

Does she expect to live off her 2mil for the rest of her life? Im so confused here.  Did she just retire from her field? aka lost her job?

Her money that she has is making money for her basically. She's getting returns on the money she has invested. Plus her husband works

 

[capital sb]

 
Does she expect to live off her 2mil for the rest of her life? Im so confused here.  Did she just retire from her field? aka lost her job?

The 2.25M invested will net her 90K/yr with a 4% safe withdrawl rate .

Crazy thing about this is if she does her taxes right she can get away with paying $0 or very little in taxes.
[h1]Never Pay Taxes Again[/h1]

 

[atlsfinest]

This. Even if she's getting 4% interest back annually she's still pulling in $90k which is more than enough given her lifestyle, the issue she might face is if she wants kids or gets sick, etc. I'm gonna assume that she's thought of this. The thing I don't understand is why live in NYC, one of the most expensive cities in the world? If she truly is on her minimalist why not move someplace remote and secluded where you're money would even longer?

 

[Xennial]

This. Even if she's getting 4% interest back annually she's still pulling in $90k which is more than enough given her lifestyle, the issue she might face is if she wants kids or gets sick, etc. I'm gonna assume that she's thought of this. The thing I don't understand is why live in NYC, one of the most expensive cities in the world? If she truly is on her minimalist why not move someplace remote and secluded where you're money would even longer?

 

[luckyluchiano]

Most stories like this never talk about the persons personal background or family which is important. Like the one kid who travels the world for "free" on credit card points. Will they dont tell you his oarents paid all his expenses the first few years he did this.

 

[bendover]

Doing it 

 

[AZwildcats]

Does she expect to live off her 2mil for the rest of her life? Im so confused here.  Did she just retire from her field? aka lost her job?

Unrelated, but I just watched Usual Suspects and I am a fan of the username

 

[hankmoody]

This is such a ridiculous outlier. But it is possible on a smaller scale. Just takes intense focus and sacrifice for a very long time.

Spoiler

From jlcollinsnh.com (really good site)

So I've read about this stuff a lot and find it interesting just from the social aspect. It's worth noting that engineers and it folks are two of the most common professions in the financial independence subculture.

Introverts must be more prone to FI. It's almost a specific blend of value and distance from society at large. Smart enough to make it but no regard for the upper echelon, possibly c-level, fruits of 15+ years of work in a well-compensated field.

 

[Xennial]

 

 

[gwap]

 
Lives in a 325 sq ft apartment with her husband and dog

I'm gonna assume the husband isn't retired...