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Moneywise

The Realities of Retiring Early

Moneywise

Hampton

Business, Entrepreneurship, Investing

4.8674 Ratings

🗓️ 9 April 2024

⏱️ 39 minutes

🧾️ Download transcript

Summary

The point of money is to make life easier. To give you security, comfort, and the ability to do the things that make you happy. So if you’ve made enough to take care of that for life, you can just stop making more… right? Retiring early is a dream for many, but what happens when you actually do it? In this episode we explore the story of two guests who did just that, though they came about it in different ways. Our first guest, “Ryan”, made over $20 million after selling his business, then decided to step away from working and enjoy his money. “Jeff” however, made his money in a series of smaller sales and soon realized he had accumulated enough where his investments outperformed his work income. Since retiring, both “Ryan” and “Jeff” have gone through similar stages of appreciation, loss, and rediscovering purpose in their lives.  In this episode, we explore the ups and downs of retiring early, how much money they have that allows them to live off their investments and what they do with it. They’ll tell us about the external pressure to start something new, how they dealt with the feelings of loss, and what they do with their time now. Check out Ryan’s blog After The Exit. This is Moneywise, a podcast where host Sam Parr is joined by high-net-worth guests to explore exclusive insights into personal finance and lifestyle tailored for other high-net-worth people, or those on their way. They'll get radically transparent about the numbers, revealing things like their burn rates, portfolios, and spending habits. Who is Sam Parr? Sam is a serial entrepreneur and the co-founder of The Hustle, which he sold to HubSpot in 2021. He's also the co-host of one of the world's top podcasts for entrepreneurs, My First Million. Known for his insightful business acumen and candid communication style, Sam Parr continues to be a prominent figure in the world of media and entrepreneurship. Sam's newest and biggest venture yet is Hampton, which he co-founded in 2022. This podcast was made for the Hampton community, a private, highly-vetted, peer membership community for founders and CEOs of fast-growing, tech-enabled startups. Chapters: How Ryan and Jeff made their money (3:30) Why they decided to step away (8:13) The feeling of loss (11:25) Facing the “what’s next” pressure (16:50) The importance of finding a new passion (18:45) Ryan’s take on financial advisors (21:50) Stock market anxiety (26:25) Will they go back to work in the future? (30:19) This podcast was produced in partnership with Lower Street and distributed by Morning Brew.

Transcript

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0:00.0

There's something sad about that a little bit that I'm going to save all this money for when I'm like 70 years old, and that's when I'm going to start to enjoy it.

0:14.1

Versus now I'm like, man, I can do anything. My body works great. I have awesome friends. How would my life be if I started to spend some of that

0:22.1

now and didn't wait until the very end to try to enjoy it? One of my favorite business people to

0:28.2

read about is Warren Buffett. The reason I like him is he's full of wisdom and in particular I've

0:32.8

always enjoyed what he had to say about patience. He's got this one quote that says,

0:39.3

Someone is sitting in the shade today because someone planted a tree a long time ago.

0:41.3

In other words, have patience.

0:43.3

That's something Warren Buffett preaches constantly, and frankly, I dig it.

0:47.3

However, Warren Buffett's in his 90s.

0:49.3

How much more patience does he need?

0:51.3

Retire, spend your money, be crazy, do what you want.

0:56.2

At what point in your life should you stop delaying gratification and just do exactly what you want

1:00.3

when you want? I mean, the point of making money is to do whatever you want. And at times,

1:04.9

if you don't want to work on this thing anymore and you have money, why not just stop? Just do whatever you want. In today's episode, I want to talk

1:11.4

about people who made a bunch of money at a young age and did the one thing that most everyone I know

1:16.1

in that category doesn't do. They walked away. They retired early. You see, building something great

1:22.9

is hard. It takes commitment. It takes so much time. It takes a lot of stress and you're totally

1:28.2

bought in and it becomes your life. And a lot of people, whether they're in that position or

1:33.0

they're not in that position, what they say is when they get to the end and they're able to sell

1:35.9

and cash out, they want to do one thing. They want to retire early. But I'm curious, what happens

1:41.5

to those people when they actually do that, when they stop?

1:45.1

My self-worth was based in how hard I worked on something.

...

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