BC #14: "Cashing in on the American Dream: How to Retire at 35" by Paul Terhorst
Posted: Sat Aug 01, 2015 3:32 am
From the blurb: "In our society, it's considered normal to work during the best years of our lives. You work when you're young, healthy and vital. You work when your mental powers are sharp, your mind inquisitive. You work when you still have a family at home and your kids need you the most. You give the best years of your life to a career and the last few years to yourself. Are we crazy or what? You don't have to resign yourself to that fate. With my plan you can live the rest of your life without earning another dime. You let your equity sweat for you. And this book tells you how to do it now" - Paul Terhorst.
Review/summary: Cashing in on the American Dream: How to retire at 35 is divided into two sections: Part 1 - Retirement at Age 35 is for Real, and Part 2 - How to Get Started. It covers much of the same ground as ERE or YMOYL, with some key differences: a) the Terhorsts retired 30 years ago and have stayed retired by most people's traditional definition (you can catch up on Paul and wife Vicki's world travels here: https://sites.google.com/site/paulvicgroup/), b) it outlines both an early retirement with a $400k stash and a bare-bones $100k stash, c) it has a focus on travel, and d) it is the first book I have seen to address the question of retiring with kids.
I was drawn to selecting this book because I am interested in how the Terhorsts’ model of living on $50 a day might operate in today’s economy, and whether it is applicable to people (such as myself) outside of America.
It's a pity that it hasn't been updated in the last quarter of a century, but I suppose the authors are too busy being adventurous! As the book was written for the top 20% of earners, to me, many of the figures in this book actually appear modern - $100-$200k per year being considered a very good wage, $50 per day for personal costs excluding housing, and so on.
I would definitely recommend this book to those who love to travel, and/or to those with kids, which I think are both unique points of this book. I would also commend this book for those who would like to aim for early retirement but aren't sure that they'd be able to afford it - it gives a lot of hints and new ways of considering things. However, I could not recommend it as an investment guide, as sadly it suffers the same issues as YMOYL.
I’ll add some more detailed comments on each of the sections individually below, based on a review I wrote for another forum.
Discussion: If you've already read the book or checked out the website, please feel free to discuss anything below.
Here are some ideas to start:
Review/summary: Cashing in on the American Dream: How to retire at 35 is divided into two sections: Part 1 - Retirement at Age 35 is for Real, and Part 2 - How to Get Started. It covers much of the same ground as ERE or YMOYL, with some key differences: a) the Terhorsts retired 30 years ago and have stayed retired by most people's traditional definition (you can catch up on Paul and wife Vicki's world travels here: https://sites.google.com/site/paulvicgroup/), b) it outlines both an early retirement with a $400k stash and a bare-bones $100k stash, c) it has a focus on travel, and d) it is the first book I have seen to address the question of retiring with kids.
I was drawn to selecting this book because I am interested in how the Terhorsts’ model of living on $50 a day might operate in today’s economy, and whether it is applicable to people (such as myself) outside of America.
It's a pity that it hasn't been updated in the last quarter of a century, but I suppose the authors are too busy being adventurous! As the book was written for the top 20% of earners, to me, many of the figures in this book actually appear modern - $100-$200k per year being considered a very good wage, $50 per day for personal costs excluding housing, and so on.
I would definitely recommend this book to those who love to travel, and/or to those with kids, which I think are both unique points of this book. I would also commend this book for those who would like to aim for early retirement but aren't sure that they'd be able to afford it - it gives a lot of hints and new ways of considering things. However, I could not recommend it as an investment guide, as sadly it suffers the same issues as YMOYL.
I’ll add some more detailed comments on each of the sections individually below, based on a review I wrote for another forum.
Discussion: If you've already read the book or checked out the website, please feel free to discuss anything below.
Here are some ideas to start:
- 1. What are the similarities/differences between Cashing in on the American Dream and other books such as ERE, YMOYL etc?
2. What do you think the "American Dream" represents (to Terhorst, to people generally in the 1980s, today, and to those outside of America)?
3. How do Terhorst's numbers stack up today? Have you done any calculations for your situation? How do they compare?
4. If you are interested in or are traveling retired, how do you think technology has changed remote investment options since the 1980s?
5. Terhorst, and others, have attributed at least part of their success to the era in which they were born. How important do you think this is in your own case/today?