Early Retirement Where The Money Came From - The Retirement Secret

It's another Teen Saturday - Yes, it is and today we're going to talk about

early

retirement

. Where do we get the

money

from? Norm. That's a very good question. Where the hell did we find that

money

? And many people ask us. that too   and if you are new to our channel we would really appreciate it if you could subscribe   and give us a thumbs up, it really helps our channel grow - Norms T-shirt of the day   - Ooh you got the doors Today Norm - Great band. I'm running out of t-shirts, so they will start recycling soon. - You are forming a huge fan club by looking at your large collection of t-shirts.

Basically, they ask us how can we retire at 55 and

where

did we get the money to do it? Here's the Coles Notes version: We arrived in Canada in 1992 with a very small amount of money due to a housing crisis that occurred in the late 80s in the UK. And believe it or not, home prices can go up or down in value. Yes, and in fact, that has happened to us a couple of times, hasn't it? Norm. It happened once in the UK and again in Canada,

where

I actually lost, so even though there is a housing boom at the moment, houses can still go down.

So we committed to buying a house in Canada. We had owned a house in England and that was the way to go for us, so we looked at our house. as a safe place to raise a family, but it was also going to fund our

retirement

because we didn't have company pensions. So even though we only had a small amount of money when we arrived, we actually bought a modest house, not We Norm, the first house in Canada was a really nice but modest house and at the same time, we bought this house and then rented it for a year while it was being built, so it was very exciting to see it built, right?

It was and around that time the book "Wealthy Barber"

came

out, it's a personal finance book by David Chilton and I don't know how we got a copy, but... I didn't either, I don't remember, but we did. No? And we read it cover to cover, we both did and it really stood out to us, it was a simple but very powerful message, especially because we had no money. the message we needed to hear wasn't that - It really was - There's no money to start over and hey, if this book can do it, we can do it - And I was 38, so to put it in context, we were starting over and So what did David Chilton tell us to do?

Well, he basically said pay yourself first and we thought, oh, that sounds like a really good idea. Quite easy. Yes, that's what we did, we set up a standing order for payment and sent We took away 10% of our monthly money, so that's what we did, we paid that first and then we learned to live with what was left and the funny thing was that after a while we don't really miss it. We never missed the money afterwards. 2 or 3 months, yeah, I didn't even know I was saving because it was taken automatically. It was great. So we put it in mutual funds, so it was paid every month into mutual funds in cash and then we bought units in the mutual funds and initially they were doing pretty well until they stopped doing pretty well (yeah), and then they weren't making any money. for us and management expense ratios were very high, this was in the mid to late 90's, so we decided to get rid of mutual funds, so what we did was open a discount brokerage for an RRSP and I had the mutual funds sold all the units in their funds and sent the cash to the discount brokerage and then we bought good quality dividend stocks mainly some US stocks to maximize the foreign content that is allowed to be done in those days and the rest in Canadian stocks.

And while we were very busy doing that, we had actually been looking at a subdivision very close to where we lived and low and behold, our dream house

came

up at that moment, right? - It did, but even better was the price - Oh, it was because the house was actually a power of sale, so we got it at an incredible price, right? - We got it. It had a big discount because... Now it really needed work. It was a bit of a mess inside and the people who had it had disappeared in the middle of the night.

Yeah, so we had to spend quite a bit of money on it. Over a period of time, right? But we were handy, we could paint and lay floors. We did a lot of things, right? - So we got the house of our dreams, which is what we felt we owed to the children who came to Canada. It's a beautiful house and we knew it would eventually be sold to fund our retirement, yes, so instead of contributing to the RRSP, what did we do with the money? We put it on the house, so we were basically making biweekly mortgage payments, increasing the payments that much.

As we were able to each year, each year we were allowed to put in an additional 10% at the end of the year. I think we decided that all our money would go towards the house. We will continue to increase the payments until we have the house paid off as soon as we could, so each year we were allowed to increase the mortgage payment by 10% and then eventually we went to 15% and we continue to increase each year we never had capital to be able to pay it. but   we had good cash flow - Yes, because we lived paycheck to paycheck, we didn't have good jobs, but?

We had middle income jobs (yes), but we were financing college   - Yes, to put our two kids up to - And we were trying to increase the benefit of those RRSP payments, we put them into the mortgage to get rid of the mortgage, so Yes, we didn't have a vacation abroad, all we were doing was driving to Myrtle Beach in March. But we had some amazing trips, didn't we? Those driving there with the kids took two days to get there, it was fantastic, it was fun, but that's where the vacation came from, right? So, like I said, I was 38 years old.

By the time I was 55, tired of working, we were able to restore our wealth from what we had in the UK and more (yes), just by buying that house at the right price, the price increased substantially. Yes. That's how it was, right? And we basically had the cash in the house, so we sold it and moved to a cheaper city and invested the money to the maximum of the TFSA. And at the same time we pay all our debts, no. us too which was - Because having had the house over the years (yes), it needs constant maintenance and we replaced a lot of things in it (yes), they all went to lines of credit - Yes, because we put in decks and roofs and the No windows, we all had to come from somewhere, right?

So the decision was to pay off the line of credit when we sold the house and we came out debt free with a smaller amount of money, but we've invested that and it's been great - It has been - And that's why we've traveled so much because we missed out on traveling to Canada at the age we were and have the additional expenses of rebuilding a life and putting their children through university or helping them. They also helped us by contributing, but that was always our plan, right? The plan was to have the kids and then we would start traveling and that's really what we've done, right?

And it has been fantastic. so far - So we encourage anyone between the ages of 30 and 40 to do this (yes), if you're not already doing it, there's still time for you to start paying yourself first to buy a house and build some wealth if you can. We can't afford a house, buy an apartment (yes), and climb the housing ladder, and this is how we did it. It was in real estate, buying and selling houses, moving up the ladder that we were able to create a retirement fund that We were able to retire

early

, so that's our story.

It is and we hope everyone enjoyed our story and everyone is safe and well. Thanks for watching and until next time, bye, bye.