How to Retire Early (10x Faster)
By Matt Theriault
Hi folks. Matt here. Look, I’ve been thinking a lot about work, why we do it, and what it’s all supposed to be about.
I think I’m doing exactly what I should be doing. And I know I have a trajectory. I’m lucky in that nothing held me back from finding my focus. But I think a lot of people out there are drifting. And it gets me right in my comfort zone. I wanna help.
If you’re like most people I’ve ever known, even if your job is fantastic and you really enjoy it, you’re probably working under a faint cloud of uncertainty on the drive to work each morning. Am I right?
Maybe you try not to think about it. Every day at work, maybe it’s coming back from lunch, or maybe it’s on the drive home, but it probably passes through your mind like a background blip.
Retirement…why can’t it happen faster?
So, I just had to share this “dirty little secret” for my blog followers. Why? Because I know people have it in the back of their minds doing the same old 9-5. I know the thought they sometimes have.
It’s a very private, perhaps somewhat of a guilty tiny thought: “Why do I do it?” or maybe even worse, “When can I finally get off this rat wheel and…?”.
Maybe what comes after the “and” is the heart of who you are. Maybe the rest is just a means to an end.
Obviously, these thoughts are not just about how to retire early and merely get by, but to plan the life of freedom they can’t normally live in the here and now.
Is it just a pipe dream?
What happened to the American Dream?
The dream is certainly still there. My star clients and myself are all proof of that. Just the path to get there has re-routed a bit for the average working person since the booming 1950’s and 60’s.
The typical middle-class saver believes that, like clockwork, his hard work will still be magically repaid.
Not just repaid, but even repaid with all of the comfort he anticipates would be required to be happy in retirement.
He believes that inflation won’t drive up the cost of good healthcare insurance or medical bills. He believes that nothing monumental will hit him or his spouse unexpectedly.
In short, he hopes for the best.
…But guess what?
The American Dream isn’t happening as retirees planned…
That sad truth is most people don’t truly hit the financial comfort zone by retirement at 62 or even 65. The statistics prove that. More and more, people are seeing that their goals were too low, based on past projections that didn’t factor in too many unpredictable variables.
In fact, today’s biggest fear for most retirement-age folks today…is running out of money.
The data shows that the majority of today’s 65-year-olds are not yet prepared to retire, even if they think they’re on track. They can’t do it on their own resources. They’re dependent on the church, on family, the state – in short, on somebody else.
Well, many investments are not truly asset investments. That means the value isn’t actually ensured to go up over the longer term. Stocks? Nope! They bounce like a rubber ball. Even blue-chip company stocks can decline, get spliced up, or just fade in the background. And that 401K?
A good manager will sweat over it for you and should keep your money growing slowly over time, if they’re good. But they can’t stop fortune from taking a hunk out of your main holdings. IRAs are just retirement 401Ks. They can go down, too.
So, in the end, saving in 401K or IRA is not a sure thing. That money can stagnate or even lose money before retirement.
There’s a smarter retirement plan for those that hustle.
When you shift your mindset from a saver to an investor in cashflow vehicles and you focus on building additional streams of income, your early retirement age draws nearer, and you find the confidence to build more.
What’s the biggest challenge?
Patience and determination.
You probably already know what it’s like to work too hard for too little. That can be your driving motivation to stick it out and follow through with your plan.
That means even if that first small added revenue stream doesn’t feel impressive on its own, don’t settle into that false, very short-term perspective.
This is the real estate investor’s mantra:
Crawl, then baby steps, then walk, jog, and then…run!
Ever wondered how you could retire early?
Everyone does, don’t they? I mean, you hear about it. You read about it. You probably dream about it. But are you a little puzzled how to actually pull it off for yourself?
Seriously. Ever wondered how it’s possible to stop working for an employer at just say 35, 40, or 45 without winning the lottery?
Not only are some people out there actually doing it, but you could, too.
Okay. How do I do it, Matt?
Sound too good to be true? It’s really not.
In fact, it’s not even really a complicated thing to do. Not at all! It’s actually a very simple equation.
To retire, whether later or sooner, all you need is more monthly income than monthly expenses.
Already sound ambitious? It probably does if you’re in zombie commute mode. But you’ve got to snap out of it and see your goals clearly now and then to make them happen, right?
Well, I’m going show you to how to pull this off – and up to 10 times faster than the average person.
But I won’t leave it there. Then I’ll give you access to some of the tools, some of the resources, to make it happen, starting now.
Shift the mindset to fit the goal
So, first thing you’ll have to do: shift into a new way of seeing the world and yourself.
I’m not talking about positive thinking or anything Pollyanna – nothing like that. But you will need a shift in mindset to think differently about money…as capital.
What do I mean? I just mean rather than focusing on saving money – like most people do – shift your focus to creating streams of money, and here’s why.
See the obstacle clearly
Look, if you want to retire early, most people simply don’t make enough.
Because of that, they can’t save enough. So, they can’t outpace that traditional 40- to 50-year retirement plan. They can’t get ahead of it.
If you know any retirees, you may have even heard them say that healthcare becomes a drain, even if they’re taking care of themselves. Then there’s those little unexpected expenses they just didn’t see coming.
So, what to do?
Shift into a higher gear
You heard me. Yes, a higher gear.
You’ve got to shift your life-focus to creating passive streams of money to go from being just another wage saver to becoming a passive revenue owner, even if it’s to be on top of whatever you earn now.
Would you believe that just this simple shift in priorities, and following your new thoughts up with correlated action, is enough for most people to cut their road to retirement in half?
You’re probably skeptical.
Look, I don’t blame you. I wasn’t a believer myself at first, either! Really!
So here. This is what I mean. This is what I call… the Now or Later Creator.
Don’t worry, this is going to be step-by-step:
It’s basic math!
Really, this is so simple a 3-year old could understand it.
- Take your current income number
That’s your new total monthly cash flow.
- Now multiply that by your current projected time at your working career
This is just how long you have to attain your target income required for your retirement income goal. This includes whatever raises, bonuses, pay-in on 401K, etc. that gets you there, so think carefully and be realistic.
- Level that gradual arc off at your target retirement age
So, let’s say this is 62, the traditional retirement age for most folks.
Look. This is not rocket science. The aim here is just to get your retirement income (let’s call it RI) to a comfortable early retirement age (ERA), with an upward curve along the way to that goal (UC).
So, this can be a simple, but mind-blowing equation:
Early Retirement Age = the Retirement Income times the Upward Curve at which you are raising the income needed to retire early. Simple, wasn’t it? I didn’t lie. But sometimes it has to be spelled out to break out of the 9-5 rut mind.
I bet you could even memorize it:
ERA = RI x UC
Even if you are just using this simple formula to top off your current retirement vehicles (such as a 401K, IRA, etc.), this formula works.
I and my top clients are living proof. But hey, you don’t have to go all in to get your feet wet!
Want safety and just a little risk?
Maybe you need the safety of your steady course and prefer to just add a bit on top of that, without going too deep into real estate.
Want to hear some good news?
You can! You can work your job to retirement age or just a few years shy of that. Then, at retirement, add it to the retirement income as a bonus! A way to eat out more often and go on a special vacation every few years you wouldn’t be doing otherwise.
I call this…
The Now or Later Creator
Why? Because you get to decide, do you want to live now, or later? If you’re young and feel you have a little time to ride the fence, and you’re exploring many things in life, maybe just finishing college, well, this is for you.
Once you are gaining momentum in real estate investing and decide to, you can take it up a notch or two along the way.
Or you can just comfortably use your existing stash to build confidence at a slower initial pace. This lets you go just that little bit outside your comfort zone. Just enough to feel you’re doing something, but not enough to feel you’re being too risky.
Nerves and emotions about money are why most folks never venture outside the rat race investment savings account trap. But with building confidence step by step…comes daring. It’s no crime to use your gete and not go beyond that line. It’s human nature.
It’s just that now, with this new mindset, you can educate your gut instincts and grow your human nature out of bondage to a set framework you didn’t originally choose to limit.
You can break the mold. You can be the first in your family line to become an owner. Or maybe it’s just returning to owner status from a stretch of wage servitude.
You can do something beyond what the people around you do. All you need is the mindset, the gradual education, the initial deals, and the support. This is why we’re here, actually.
“How do I start?”
Getting yourself in gear to begin your early retirement planning is an easy 2-step:
1. Define your target retirement income.
You’ve just got to identify it “how much monthly income do I need to retire early?”
Just add up your monthly expenses, and pad it with a little bit of safety cushion, and now you’ve got an acceptable target, right? At the very least, you’ll be good with this number. That number.
So, let’s just say, if you did 5K a month until retirement. Guess what? That puts you right at about the median household income in America.
And what did we say about retirees today? That’s right. They’re finding they’re short after running into higher healthcare expenses, inflation, stock market dips, and other unexpected things.
What about housing market dips? They can be rough too…but they bounce back. And it’s these dips that you’ll be using to your advantage, actually.
So set the number a little higher than your peers are but take heart in that you’re actually doing it the preferred way the wealthy investor class know to do.
2. Start your passive revenue plan.
Choose your income producing asset and start building that upward.
How? The number one high-performing financial vehicle that stacks the odds in favor of the average person is income-producing real estate.
But you’ll need a plan…
A workable plan for the average Joe
This is going to be a little bit different from what you may have considered previously, but you can still make it happen.
1. Look for a deal.
By “deal”, I mean scout out a property with some equity in place. You’re going to buy below market, and a place that you wouldn’t mind living in yourself for a year or so.
2. Don’t get too picky.
Why? Because you’re not going to be there long. So just find that place that is workable in the shorter term. Once you find that, you’re going to use a nice little trick all the pros use…
3. Use an FHA loan to buy your chosen property.
Why? The reason is extremely simple and practical. An FHA loan is one of the easiest mortgage loans to qualify for. There, I told you it was simple.
The simple reason FHA loans are the way to go: it requires a low down payment, and you can even have a less than perfect credit score, and still qualify.
For most parts of the country, this first livable property purchase would take less than $10,000, and in many, many parts of the country, as little as $5,000 could make this happen for you.
4. Rent out the spare rooms.
Maybe you’ve seen others doing it. Maybe they were middle class, good job, nice car, etc., and yet here they are renting out spare rooms! Why?
Well, now you know. They know the secret. They’re on “the real estate ladder”.
Now, look. I understand. If you have a busy or very private family and have decided that’s just not for you, that’s okay, but just always keep in mind down the road that you can take it that route. It’s a sound, simple, easy, fail-safe plan.
It’s low-intensity financially, and it works as the initial step into a separate rental property. It’s so easy, in fact, that anyone could do it, if it’s comfortable for a year or two.
But if renting out rooms is just not for you, there’s always step five.
5. Wait, refi, then buy.
Because you’re buying this property at a discount, with some equity in place, after a year or so, you’ll be able to tap into that equity and use that toward a very small rental purchase.
Guess what? You can then use the profit from the first small rental to buy your next similar property. So, year one, you picked up your first property. Year two, you picked up your second of like value, and then you just keep going to grow your real estate investment.
After doing this a number of times, you’re going to have more capital to leverage into bigger properties, and then large houses, maybe even small businesses, if you keep it steady and patient.
Crawl. Walk. Run.
It took me just four years to make this happen for myself, to get my passive income from my rentals to exceed my monthly expenses. So, I personally know it works.
It took Epic Pro Academy member Ryan Bagley just 2 years
Ryan was in many respects, just an ordinary guy. Maybe just like yourself? And then a couple of my one on one coaching clients, Cory Kendig and Parker Styles, did it in just barely over one year each! Then, brand new REI Ace Clients, Jack and Josh, well, they hit each their target retirement number in less than year. But get this. With just one particular deal (I mean, they actually did a bunch of deals), but they have one deal in there that did the whole thing. All the heavy lifting. Bam! No kidding!
“So, how do I pull this off?”
First, to get started, you’ll need to find that special deal. One that cash flows, and if you can get one with equity, all the better. That’s a bonus.
But you’re going to need find more deals.
So, how do you find more deals?
- You’re going to need your asset investing plan.
Because a dream without a plan, it’s just a dream.
- Milestones (with deadlines).
Because with concrete milestones and realistic deadlines, your dream transforms into short-term action steps, and now you’ve got a real shot at making it happen.
- The tools and resources to execute your plan.
We’re providing these for you here today (you’re welcome).
- A team.
Because, as they say, to go fast, you can “DIY” (do it yourself). But only up to a point. But to go far? You need like-goaled others on your team.
Most people with a plan, resources and a team, well, they’re going to make some progress. They might even make some decent progress.
But at some point, or multiple points, people get stuck, and they need somewhere to turn. That’s what we do right here at Epic. We help provide all of these things, to help people build cash flow and practical real estate portfolios, so that they can retire early.
We exist to give the blueprint…and the support!
When people come to us for this type of help, they’ll fall one of three categories.
These are the hands-on people. Meaning, they want to all of the work themselves (I understand. I’m kind of one of those people, myself).
The other type is more of a hands-off person. Meaning, they would rather have someone else do all of that heavy lifting for them.
I guess I’ve been that person, too (in the past). But for those that are looking to be more hands on, and even build a part-time or a full-time business out of real estate, we have an answer.
What we do for the Type B investor is we direct them to reiace.com. We send them there for more information on exactly how to do a type plan realistically.
Not quite at the Type B level?
That’s actually okay. For those that are too busy, or don’t really want to get their hands dirty, and rather than just sit back and call the shots, what we do is direct them to cashflowsavvy.com, where it’s all about getting direction for who you are and where you’re at, not about trying to become something you’re just not.
So, contrary to popular opinion, retiring early is not a pipedream.
With the right plan, the right resources and the support, it’s well within anyone’s grasp that applies themselves, and just follows through this very simple plan. We provide the support they need to set that plan and follow through.
If you have any questions about your specific situation, go ahead and post them below. That’s right, just post your comment below. I’m utterly and completely happy to answer them all! In fact, I’m looking forward to it (I really enjoy that part).