How to Retire with no Money

By accounting trickery, by a matter of perspective change, call it what you will, but I shall show you how to retire with no money in your retirement account at all. Short info? Spend less, pay off your house, have side recurring income from a source that you will work on even if you won the lottery. This then displaces the need for investment dividends and gains and eventually needing zero investment income.

How’s it going everybody this is beat the bush today i’m gonna talk about how you can retire without any money in your investment portfolio now i made a previous video where i outlined ten levels of financial independence now at level seven it’s when you actually paid off all your debts and you’re still kind of working at a job or whatnot and you’re saving money

Enough for retirement now within that level seven you can be in different positions you could be working for a job and saving enough money for retirement or you can change that job to something that you love or want to do or maybe you already have that job already then you can kind of feel like hey you know you’re gonna be doing this anyway even if you’re retired

Then essentially you are already retired now i estimate about 10 to 20 percent of all people actually love their job to test if you actually do love your job think about if you have enough money to retire let’s say all of a sudden one day you want a lottery will you stay at that job because you essentially have enough money for the rest of your life if the answer

Is yes you will stay at that job because you like the people and you just like working you don’t really care about the money then yes you are indeed already retired because you know you would do that anyway but my argument here is that whenever someone wins their lottery they have so much money that they essentially would not keep on working at whatever they’re

Doing now i’m only using the lottery as an example here i’m not suggesting to go by the lawyer to try to win the lottery it’s such a big windfall that when someone gets this large amount of money it sort of changes their mentality they go i don’t need to do this i don’t need to you know put up with this i don’t need to have a boss that tells me what to do i can

Essentially go out there and just do what i want the third phase of retirement is that yeah maybe you can absolutely retire you have enough money to do it it completely satisfy your current standard of living so this essentially means you don’t have to work but somehow you want to keep yourself busy i for one do you think that people should keep themselves busy

And just do what they love so when you’re in this situation you can retire and however you don’t retire so in a way this is kind of like phase two because you’re working anyway except you don’t have the complete option to completely say hey you know i’m not going to work at all even if it’s something that i do love so in essence in phase three physically you’re

Actually doing the same thing as phase two so why not just try to wedge yourself in the face too and you know live the life as if you’re retired already however you cannot financially really retire just yet you’re just kind of mimicking what a retired person would do my youtube channel in relation to all this is that i try to keep it to only things i actually want

To do sometimes i would get sponsorships and i reject about eight out of ten of them and if it’s not absolutely something that’s in line with what i want to do then i can reject it because as soon as you do something just for the money it becomes like a job the fourth phase is absolute retirement it means you have enough money to retire it for your current standard

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Of living and you actually do it you actually go you know what i’m not going to do anything that you really love anyway you’re not going to do actual work because when you’re doing work you know it takes up time it takes up mental energy maybe you just want to lounge around and you have the ability to when you actually really have the financial assets to retire you

Actually go and do it and then you go lay around on the cruise ship or maybe you go to maui or something and you lay on the beach for a couple of weeks yeah you can do that so that is absolute retirement to me i think there is time for people to do this maybe they want to just travel for a year or something however i do think that someone that is absolutely retire

Yes they can enjoy in something like this but i do not think someone should just just continually do this until you know the day they die because i feel like as soon as you have enough vacation you sort of get bored you kind of want to work on something sort of express yourself artistically or you know just whatever ideas that you have you just kind of make them

Come to life so what i think here is that you can actually pretend that you’re in phase three but you’re actually in phase two because you’re doing something that you love therefore it’s kind of like you’re cheating life a little bit here so somehow you’re able to earn just enough so that you can sustain yourself however you like what you do so much you would you

Know rather not do anything else and you know no one is telling you what to do therefore it becomes a very high satisfaction so when you’re in phase 2 is this not just a frame of reference you’re sort of retired but then you’re not really but then physically every single day you’re acting as if you’re retired so i’d like to go back to the argument where people say

They love their job my biggest gripe with jobs in general is that whenever a company hires you you actually have to produce goods and services that essentially is more than what you’re paid in your salary and oftentimes if you are a good employee most employees would be generating enough revenue for the company in excess of what they pay you otherwise they won’t be

In business what i’ve noticed in my engineering career and basically any salary job it’s gonna be like this you’re essentially going to receive a certain salary and then it’s essentially gonna go up especially for engineering it’s gonna go up very rapidly at first it’s front-end loaded you’re gonna get paid a lot initially and then it starts to taper off sort of

Like a logarithm plot it kind of goes up like this and then it’s sorta tapers off and i think about when you’re 30 or 40 years old you essentially hit a plateau you’re at your maximum salary and you’re not increasing it by all that much from year-to-year however in terms of productivity and the value that you generate it’s likely gonna be in excess of what you’re

Getting paid so there’s my biggest gripe because you’re not paying in proportion to the value that you’re generating therefore i don’t know how people can be happy with that working at a job yes it’s a stable income however when you’re not getting paid for the value that you’re generating and also the fact that people are always telling you what to do you cannot

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Essentially explore all the ideas that you want to apply to whatever project you have to stay within a certain boundary that the company has set forth for you so not being paid your full potential and also not being able to express your full creativity and any which way that you want those two are my biggest arguments against a salary job basically now how do you

Actually retire with no investable assets think of it this way as an engineer most engineer would spend about $60,000 a year or so this is in the silicon valley so you know spend rates are a little bit higher if you spend $60,000 a year and if you use the 4% you need $1,500,000 in your portfolio four percent of that which is what you can withdraw every single year

Without drawing down your principle so four percent of 1.5 million is actually $60,000 so you can take this $60,000 out every single year use it for your living expenses you know buy whatever with it and your 1.5 million will stay in your investment account and essentially it’s not guaranteed to never shrink but it has like about a 99% chance that it will stay at

That amount you will not draw down your principal if you invested wisely in a diversified portfolio between stocks and bonds now this is 1.5 million dollars of investment that you need this is hard to save even as an engineer let’s say you reduce your expenses by $20,000 all of a sudden you’re spending $40,000 all of sudden using the 4% rule you only need 1 million

Dollars instead of 1.5 million dollars all of a sudden wow you don’t have to save $500,000 anymore just so that it can sit there and have you collect the dividends out of it so that you can spend so going from an investable assets of 1.5 million dollars all the way down to 1 million dollars this is a pretty good improvement now let’s say you aggressively pay off

Your house which is something that i personally am doing all of a sudden your burn rate every single year reduces by $20,000 all of a sudden you only need $20,000 to live on which means that you only need $500,000 of investable assets wow from $1,000,000 of investable assets which is you know it’s really hard to save that much all of a sudden it goes from 1 million

To 500,000 this is a big improvement now after you pay off your house and you don’t have to do this necessarily in order is that if you somehow manage to get some side income recurring side income every single year it could be from anywhere maybe you have an online business maybe you have a website or something let’s say it brings you in ten thousand dollars every

Single year and it’s somewhat consistent it goes up and down and so but then you only need $10,000 more to sustain yourself that means now your $500,000 of investable assets that you need to sustain yourself on the 4% rule all this becomes $250,000 now this is starting to look sort of realistic now right because you have a little bit of side income you only need

$10,000 more to just save enough to sustain yourself wow you only need $250,000 now now let’s just go one tiny step further than this all of a sudden your online business does well maybe your youtube account as well and then instead of earning $10,000 every year you earn $20,000 a year you only spend $20,000 a year so what happens you essentially don’t need any


Investable assets to live from year to year of course this is not the most comfortable thing because if you make just enough to satisfy your burn rate then it’s somewhat uncomfortable because you’re not actually saving any money but you might ask why would you want to change your engineering job that earns i don’t know six figures or a lot more to something that

Earns only $20,000 the mentality here is sort of philosophical because when you switch over to earning something this little you are essentially not doing the bidding of other people you are actually doing something that you love something that you want to do so when you choose to make your side income be very careful of not just trying to make a dollar because

You know you can essentially make a dollar you can just go get a fast-food restaurant job and you can make twenty thousand dollars like that but the idea here is you need to make this money in something that you absolutely enjoy it needs to be a fulfilling job or you’re actually helping others it needs to pay you enough and you also need to be pretty good at it in

Order to start making money now this is indeed philosophical because some people might go hey you didn’t really retire you just switched one job for another you still have a job this is a really fine mentality point here because one is a job one is a thing where you’re commuting all the time you’re working for someone the other one is vastly different when you do

This your whole outlook on life changes because you’re actually doing something you love you know i can care less about how much i make as long as you’re doing something that you enjoy and you know you can kind of express your creativity any way that you want so how do you actually make this transition of going from needing a 1.5 million dollars of investments all

The way down to zero first reduce your spending so you can reduce your investable asset portfolio for retirement second you need to pay off your house so that you have somewhere to live and then you can further reduce your burn rate third when you’re working at your current job you need to start building some side income stream with things that you’re interested

In if you do not hustle and do this while you’re at your full-time job you’re essentially not going to build up this income stream therefore you cannot make the switch from having a job to having no job and just fully living off of your side income streams i hope this was educational because these various steps that brings you safely practically from one phase to

Another it’s just sort of what i had to go through don’t forget to give me a like on this video comment down below let me know what you think of these four phases are retiring if you’re interested in supporting my channel and helping me fully retire check out my ultimate link down in the video description below where you can get a free audio book and you don’t

Like this audio book artists service you can cancel it before disappearing expires and you don’t have to pay a thing and you can still keep this audio book for life i also have a patreon over here where i give perks such as password sheets that i’ve used in the past videos and as always don’t forget to subscribe to my channel over here and click that bell icon

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How to Retire with no Money By BeatTheBush

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