Best retirement investments, Early retirement in 9 years, how this can be done?

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Best retirement investments, Early retirement in 9 years, how this can be done?

Improve your financial intelligence and be able to retire early in 9 years, yes it is possible. 





Are you saving only 10% of your earnings ?

If yes then forget about early retirement.


The most optimal way for you is to save half of your earnings. Are you able to do it?


You need to save high percent of your earnings and as much as you can.


Specialists in saving are saying that it is necessary to save at least 10% of earnings.

For those of you that are more inclined into it raise this rate to 20%. This is still not going to be enough to retire very early.


Count the amount which you will be needing in the moment of the retirement, in order for you to be able to live from interest on the level which you can regard as satisfactory.

Lets simplify it.

There is gigantic impact on the possibility of the earlier retirement a rate of the frugality has, that is indeed what per cent of your earnings you are saving.

You will also learn how much you really need to save in 9 years and to be able to stop working.



It is not important how much you are earning, important is how much you are saving!

What Early Retirement Looks Like

What Early Retirement Looks Like

Technically speaking it does not matter whether you are earning much or little. It matters how much is going to be left for you in the pocket.

The fact is that person being a low earner and spending little is in the better initial situation than the one which is earning much and is spending much. The one first can keep costs on the rock bottom level because he or she simply must do it. The second person along with an increase in earnings has experienced the inflation of costs of the life, loosened of belt and “often fritters away” most of the earnings. In the event of loss of the work he will get into hot water as high costs can plunge him. It is possible to be in the worse situation as high earner than the little earner.

In the business everyone understands that it is important to have good profit margin.


The very same thing is the principle in force with your personal funds. 

Lets change our thinking way of savings.


You need to start saving and inspire others to give yourself more motivation.

Making people aware of the straight thing is very effective.

Did you know that when saving 20% of your earnings you could afford one year leave after four years of work?

Do you know what will happen if you are saving half of your earnings? You will be able to work for half of the year and for the next year rest from the work while incurring the same living costs.



The interesting thing here is that this does not depends on how much your earnings are.


A person who is earning $4000 and spending $2000 is having identical chances to the person who is earning $20000 monthly and spending $10000 as costs monthly.

Even if we will take into account no interest on raised capital, it is a situation that will look as follow:

  • Saving  of 10% of your earnings means that for 9 working years you will save enough to not have to work for the whole year. 
  • Saving  of 20% of your earnings for the next 4 working years will save enough to not have to work for the whole year.
  • Saving  of 40% of your earnings for the next 2 working years will save enough to not have to work for the whole year. 
  • Saving  of 50% of your earnings for the next year will save enough to not have to work for the whole year.  
  • Saving  of 75% of your earnings for the next year will save enough to not have to work for three years. 

Seemingly everything is obvious, but such an awareness is able to change optics and the attempt at saving. If we are ready to devote the current consumerism for spending money in the future then great alternatives are going to open for you. For the brightness: I am not talking here about the fact that we are supposed to live as ascetics. We are simply rescheduling spending money in the time.

If we add competent investing to it, gradually we will be aspiring to the financial freedom, in which we will free ourselves from the need to work. If instead of spending money on the new car you will invest it  achieving a few per cent above the inflation you can then save very much of the way to your retirement. How much that can be?

For example: if you are earning $6500 monthly and you are spending every month $5500, it can be $1000, rate of the frugality amount to your income is 1000 / 6500 = 15.38%.

For how long you need to save up for the retirement?


Above I described the ideal model but in reality how often is possible to take time off work without affecting life to much. However there is another scenario which is more typical, you work constantly while in a young age in order to  accumulate the wealth to have enough to cease paid work and be able to live from interest.

This model is based on few assumptions

  • The higher the rate of our savings the quicker we will save more. 
  • If we are able to invest, our savings will be making capital gains for us, e.g. in the form of interest, dividends and profits from capital markets or income from the lease.
  • Along with the increase in the saved amount we will achieve the moment in which capital gains in whole will be enough to cover our life expenses. We will become rentiers who are people that do not have to have a paid job in order to have enough money to live.
  • In this model we assume the same level of monthly costs for the entire period, now and on the retirement pension. 
  • Only the best savers that are able to save 75% of their income for 7 years will be able to retire very early. 



If we add competent investing to it gradually we will be aspiring to the financial freedom in which we will free ourselves from the need to work to live.


For example if instead of buying new car we will invest the money achieving few per cent above the inflation which can bring us much closer to early retirement. 

How could you improved these results and to make road to retirement shorter?

I know that in even this very simple model is more complicated than it looks like. Nobody has promised us that it would be easy. We also cannot be assured that while on pension we will be living in the luxury. It rather is the opposite you are responsible for developing the better future for yourself.

Saving is not a whim but it is a need.



You are creating your future here and now.


Saving needs to be treated seriously.

10% is an absolute minimum to save to not have to work all your life.



Be aware that every dollar spent is money which could possibly start doing ‘the work’ for you. 


You need to understand that spending money every day for the consumerism simultaneously we are forcing ourselves to work.

Sit down and think how can you start making more money or what can you do to start saving more money.

If you start investing the clever way you will improve the average investment result about only 1% every year the number of required years to work will shorten for 9 consecutive years and you will be able to retire after only 38 years of work. Some small modifications as you see can make a big difference, this should give you to think about it.



The above scenario is not the only right way to early retirement.


The ideal way does not exist. Everyone must work things out for themselves.



It is extremely important to keep up with your finances and keep learning more about it and constantly improve our financial intelligence.


You need to keep analyzing various alternatives that will bring you closer to financial independence.   

I would love to hear your thoughts and opinions about early retirement.

Tell me what you think.


Don’t forget to share this post using social share buttons available below. 


Believe in yourself!

By |2017-07-16T01:02:48+01:00July 9th, 2016|Saving, Self development|2 Comments

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  1. Heidi September 14, 2016 at 10:11 AM - Reply

    This sounds like a good plan – for people who earn enough to be able to live well when they set aside up to 40% of their earnings. I guess this is the case for only a few people. But those can surely use your suggestions and analysis of how things go.

    I live in Italy and should have gone into retirement 3 years ago, but the state decided that the retirement age gets up for 7 years. SO I have to wait other 4 years – and I surely don’t have the possibility for an early retirement any more….

    • Marek September 14, 2016 at 2:50 PM - Reply

      You are right, it’s not so easy for most people to set aside that big chunk of their income. I see this retirement age might be going higher in other countries too, it really is a big worry for many of us. To offset that we need to work harder on our businesses so we have extra income coming from it in the future. Thanks for your comment, all the best. Marek.

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