A young engineer has shared his secret tips on how he plans to retire at just 35 years old.
Sydneysider Pat Seyrak, 30, has saved more than $300,000 so far, but instead of buying a house he has decided to put it all in the stock market.
He hopes to reach a $1 million goal in five years, retire, and live off the interest of $40,000 a year.
Engineer Pay Seyrak has shared his secret tips on how he plans to retire at just 35 years old
Pat Seyrak, 30, has saved more than $300,000 so far, but instead of buying a house he has decided to put it all in the stock market
‘By saving aggressively and investing aggressively in exchange-traded funds, I plan to have $1,000,000 by the time I am 35. This will produce an income of about $40,000 per year for the rest of my life,’ he wrote in an article for ABC.
‘My colleague Matt nearly choked on his coffee when I told him I had $250,000 in the share market.
‘But I’ll tell you what I think is crazy: spending 30 years of servitude paying off a mortgage, just to own a very expensive material possession, when I could be doing other things like spending time with my friends and family.’
Mr Seyrak has a long-term girlfriend who supports his ambitious plan of financial independence.
While $40,000 might not sound like enough, Mr Seyrak believes they will be able to live comfortably.
Living in Sydney is too expensive, so he and his partner plan to move to a cheaper city such as Cairns, Adelaide, Ballarat or Hobart.
He hopes to reach a $1million goal in five years, retire, and live off the interest of $40,000 a year
Mr Seyrak said he and his partner budgeted much like any other young couple (he is pictured cutting his hair)
Mr Seyrak said he and his partner budget much like any other young couple.
‘Yearly upgrades to the latest iPhone and smashed avocado at the local cafe several times a week are out, while lots of outdoor time with friends and beautiful home cooked meals are in,’ he wrote.
Mr Seyrak said he was honest about his saving aspirations with his friends and family so they understood how he was spending his money and didn’t constantly question him.
All his techniques, including a yearly spending chart, can be found on his blog Life Long Shuffle
Mr Seyrak said he and his partner budget much like any other young couple
He said he would continue these saving techniques well into retirement.
Mr Seyrak said he would be happy to work for a little longer than five years in a low stress job, or casual position if he needs to give his investments more time to grow.
By retiring early Mr Seyrak hopes to spend more time with his family, travel, learn a language and play music.
Mr Seyrak documents his financial independence on his blog, Life Long Shuffle.
By retiring early Mr Seyrak hopes to spend more time with his family, travel, learn a language and play music
Mr Seyrak said he was honest about his saving aspirations with his friends and family so they understood how he was spending his money and didn’t constantly question him