Tournedos of Beef au Poivre with a Creamy Tequila sauce

Many of you have been asking about my cooking skills and how I became a chef. It’s a two-hour lunch story, but the short answer is that I wanted to eat the way the customers I was serving as a waiter were dining.

The chef of the three-star restaurant where I worked was very talented—truly a gifted, passionate chef. I was in awe of the food coming out of the kitchen. At one point, I told the manager I would work in the kitchen for free so that I could learn to cook. “Free” was his middle name, and I went from Tuxedo to Toque and moved into the kitchen with no clue what I was doing.

After one month, the manager came to me and said he had to start paying me. Meanwhile, the chef took me under his wing and taught me well. When you have a passion for something, nothing can stop you from learning. I eventually became the sous chef of that restaurant, and the chef and I bonded further. So much so that we started traveling to distressed or remodeled restaurants and returning them to profitability.

After working a gig in Los Angeles, I wasn’t into the big-city life and parted ways with the chef, returning to my hometown of Cincinnati, where I was hired at La Maisonette. La Maisonette was one of only nine five-star restaurants in the United States. It was truly an honor to work there, and I continued my training.

Meanwhile, I stayed in touch with my mentor chef, who had now moved north to Central California and was sending me newspaper clippings from the local Santa Cruz paper about Cooper Street, with outdoor restaurants and afternoon jazz bands playing. La Maisonette closed for the entire month of August, which is typical for a French restaurant. At one point in July, the chef pulled me aside and told me that I was talented but would never become the chef there because Marcel had been there for 19 years and was next in line. He told me to get out and work in as many restaurants as I could and “steal with my eyes.” What he was telling me was to get out, travel, and continue my culinary education.

I used the month-long closure as an excuse to move on—in this case, to Santa Cruz, California. It wasn’t a month later when the chef of La Maisonette sent me a telegram—I’m dating myself here—in Santa Cruz asking me to return. Sorry—I had already moved on.

Like I said, this is a two-hour lunch conversation to tell the whole story, but this is how I ended up meeting Akaisha, which took us to France where I continued my training. The rest is history.

In reference to the photo above, this was my recent lunch at what my friends refer to as Cafe Billy: Tournedos of Beef au Poivre with a creamy tequila sauce. Small filet mignons with crushed black pepper embedded, seared in a hot pan and deglazed with tequila and beef stock. I let this reduce, then added Dijon mustard and cream. Normally I would use brandy or cognac, but I am in tequila country.

My chef friend instructed me to work with what you’ve got, and I dislike wasting food, so everything gets used—including the bones for stock. In the restaurant business, consistency is the key. No matter what the delivered ingredients are—even when they’re fresh—they still vary, and you have to make the dish the same as it was yesterday. Sometimes they vary enough that you need workarounds. This lesson has stuck with me.

I eat this way four or five times a week, depending on what else is going on, and I do like to have a cheese course after my meal. I enjoy going out for the sociability, but in this town I can cook as well as any chef here. I have adopted the Mexican custom of eating my heavy meal midday and usually just a simple salad at night.

I was trained in classic French cuisine, which I have modified for today’s health concerns with lighter but still fortified sauces. I have to admit, though, that Akaisha taught me to love Italian cooking. I love it. High-quality, simple ingredients make for a great Italian dish. French cooking takes preparation—stock reduction, butter, cream—it can get complicated. Italian is easier, but it’s all about the ingredients. And once the sauces are made, they can be frozen for future use. The crossover was easy for me.

I rarely know in advance what I am making unless I have friends over. This Tournedos of Beef dish was pretty much made on the fly. Tomorrow? No clue.

I really enjoy long lunches with stimulating conversation—and even, in this case, by myself.

This is my story, and I’m sticking to it.

Billy

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Sunset Lake Chapala

I’m a numbers guy. Numbers are fun. I am constantly playing with “what if” scenarios on a calculator or computer.

One thing Akaisha’s passing taught me is that at my age, we’re all skating on ice in the spring.

Are you feeling lucky?

Dolly Parton made it a year and a half after her husband died, which got me thinking about my own future. Being the primary caretaker takes more out of you than you realize. I know I gave my all to Akaisha, and I am happy and proud to have done so.

So I asked Doc Grok what I can statistically expect in the years I have left:

When a spouse of 48 years passes, what is the statistical number of years a 73-year-old husband lives?

“A 73-year-old man in the United States currently has a remaining life expectancy of about 13.7–13.9 years according to the latest CDC period life tables (2024 data).

Because he is newly widowed, that figure is reduced. Studies that separate marital status show:

Married men age 73: ~12.8 additional years

Widowed men age 73: ~11.7 additional years

The difference is roughly 1–1.5 years.

The extra mortality risk is highest in the first 3–6 months after the wife’s death and then declines, but a modest elevation persists. Bottom line: After a 48-year marriage that ends when both partners are 73, the statistical expectation for the surviving husband is approximately 11–12 more years, with the first year carrying the greatest risk. Individual health, support, and lifestyle can shift that number substantially in either direction.”

I’m not sure I have a lot of confidence in the CDC numbers, but they are way better than I expected.

The key is taking good care of myself in these first years. I’m determined to beat those odds, but I know math doesn’t lie. Which is why I’m trying to get back on the bike as soon as possible, with confidence.

As you know, I am still making simple mistakes with everyday living, but I am moving ahead each day.

I’m looking forward to once again chasing the sun. Not that Chapala is a bad place to land—I just have more places to go.

Now I just have to watch out for the bus—or, in my case, an e-bike that recently hit me going the wrong way in a bike lane.

Running out of time or money. In the end, it’s the same.

Billy

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

The view that keeps bringing me back

As many of you know, Akaisha and I first came to Chapala, Mexico in 1993. Not many of the people we met back then are still here. In the tropics, people come and they go.

In Mesa, Arizona, friends asked me, “Are you going to sell?” Here, they ask, “Are you staying?” The answer is no to the first and yes to the second. I am not going to make any major decisions at this time in my life, especially with the recent passing of Akaisha. I have enough on my plate simply trying to get through each day. I do not need more disruption.

Besides, I like both locations, and both are only thirty minutes from an international airport.

Chapala is full of life. Young mothers with their children are everywhere on the streets—shopping, talking, and eating. It’s hard to see these children and not feel optimistic. Older couples walk hand in hand, stopping to chat. It’s alive here, and you see many of the same people and shop owners daily. Sure, there are people in cars, but in Chapala Centro most people walk. And you can walk everywhere. We’ve never owned a car here, nor cared to. There’s no need.

The climate is fantastic year-round. At 20° latitude and 5,000 feet elevation, winters are mild and summer days are warm with cool nights. We say here you can tell the season by which side of the street you walk on—the sunny side in winter, the shady side in summer. Either way, the weather suits my clothes: shorts and shirts. There’s a reason so many expats live here.

Chapala has certainly gone through a lot of changes since the early ’90s. In my opinion, most have been for the better. Traffic is an issue, as there is basically one east-west road that feeds the many villages along the north shore of Lake Chapala, and it can get choked. Another reason I prefer to walk.

For me, it still feels a bit like going back in time. When I first arrived, there were men tying up their horses at the local cantinas. These days they are slowly replacing the cobblestone roads with pavement, and of course everyone’s on their phones. Still, the church bells are rung numerous times a day by men pulling long ropes.

The restaurant scene has greatly improved, including a recently opened French restaurant, Bistro du Lac, that is now my favorite. Of course, local Mexican food is everywhere, along with Chinese, Japanese, Italian, and plenty of tacos. For me, the best tacos are a two-minute walk from my door.

It’s like stepping back in time. The people are friendly, they respect their elders, and the cost of living—though rising—still offers excellent value.

Do I stay or do I go?

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Learning who I am… one café at a time.

I guess some guys and gals would relish my position — financially independent and single — but so far I don’t. The grass isn’t always greener, and I miss my partner dearly.

It just doesn’t feel right for me.

I’m used to sharing experiences with Akaisha. We had so many that we could tell stories about “that time we were in… Saint Somewhere” for hours.

Memories that will never fade.

I’m at the age when all the pretty girls call me “sir.”

Finding a like-minded lady who interests me is probably not going to happen easily. People are often too set in their ways at this stage of life — myself included — and many carry more baggage than I’m willing to deal with. Still, I’m definitely not ruling anything out.

Then there’s the sugar-daddy thing. Nope, not going there… though it could be fun for a short while. Most wouldn’t have anything in common with a 1963 Volkswagen bus or Woodstock. Not that I went to Woodstock, but I did attend the Summer Jam at Watkins Glen in 1973 with the Allman Brothers Band, the Grateful Dead, and The Band. I’ll leave it at that.

I also know I’m not going to find a fellow traveler at the local library or grocery store. I need to get back out on the road and let fate take its course. Sitting in a café in Paris or Thailand feels much more likely if that’s where my future leads me.

Here in Mexico there are plenty of mature ladies who are kind, passionate, and fun, but most are not seasoned travelers. Many probably don’t even have a passport. Maybe when I’m old and gray… wait a minute, I’m already there. Still, I feel like I have more global traveling left to do. Something about going to new places, meeting locals, and eating different cuisines still attracts me. Maybe I’m weird. Maybe I’m growing older but not up. I just don’t know. I guess now is my time to learn who I am without Akaisha.

It’s all a new path for me, and my world is what I make it.

I can’t be the first guy from the pre-FIRE movement who has gone through something similar, so I’m open to any and all suggestions or recommendations.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

I had another photo ready for this piece… then I opened my fortune cookie.

For a man used to being in control, I found myself lost and lacking confidence. This is not who I am. I couldn’t even bring myself to climb an 8-foot ladder for fear of falling. What was happening to me?

I felt constantly beaten down, even though looking back I was still getting things done. Simple tasks like going to the store, buying a plant, and planting it felt surprisingly difficult. It seems almost childish now, but at the time it was very real. When that plant started growing, it brought a genuine smile to my face. Growing anything in the desert is a challenge, so this small success felt like a real win. And right now, I’m taking every win I can get.

A couple of days ago I finally felt like I was starting to regain control. Yesterday was the first day I truly felt productive. The deep exhaustion from the last seven months is slowly giving way to hope and a little joy.

I finished the necessary business in Arizona and spent a couple of days catching up on replies to all of you who have been so kind and supportive during this time of grieving. I’ve also been trying to make new friends outside my development. Progress has been slow, but I’m confident it will come with time.

There’s a noticeable difference between the U.S. and Mexico when it comes to connecting with people. In Chapala, it’s easy — people stop and chat as you walk around. In the States, people tend to be more guarded. I can only speak from my own experience.

I’ve returned to Chapala from the desert heat and plan to stay for a month or so while I arrange an Asia trip for early to mid-October. Having a completely open calendar is still an adjustment. Two very comfortable home bases with good kitchens and outdoor grills are tempting, but I need new stimulus and new stories.

While here, I hope to rebuild more confidence. Then I’ll return to Arizona for a few cooler weeks before flying one-way to Asia. After a couple of months on the road I usually miss cooking my own meals, so I’ll likely come back. Looking further ahead, there’s the Caribbean in winter and Europe next year.

I was even offered a chance to sail on a 204-foot sailboat from the Canary Islands to the Caribbean in November, but I can’t make that commitment yet. I’m still rebuilding.

All in all, I am making progress — slowly regaining my life, even if it looks different than before.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

I don’t know if this is part of my grieving process, but I do know that part of grieving is being exhausted. And I am. Therefore I have little patience for incompetence and for low-level people working in credit card fraud departments who have never left their zip code.

I’m tired of this bullshit. My credit rating is excellent. I don’t like debt, so I pay my cards in full every week. Yet I still have to jump through insane verification hoops just to open a new card—or in one case, simply to purchase a $106 item. I don’t use points or whatever else these cards are offering. So I’m asking myself why I even need them.

I monitor my accounts regularly. I’ll spot any issues well before the card companies do. It seems they want to annoy people who pay their balances in full and never carry a balance. Maybe that’s their model. I honestly don’t know. But I’m tired of being treated like an abused spouse when I’m not the problem. I’ve been with one card company for decades and would think that loyalty goes both ways, but I believe I’m mistaken.

Why did we give up so much power to these card companies when we are the consumers? Without us, they wouldn’t be in business. One new card wanted me to upload my passport and a selfie. When I explained that I have a high credit score and no debt, the rep said I was “lucky.” No—I worked my ass off with discipline and responsible spending habits. I thought that was what I was supposed to do. If they can’t figure out who I am with the information I provided and my credit history, I’m questioning whether I even want to deal with them. I’m passing on their offer.

I’m concluding that these credit card fraud departments are self-fulfilling annuities. The more people they harass, the more important their jobs appear to the company. Instead, they’re driving responsible customers away. I’m tired of this bullshit. They need me. I don’t need them.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Billy Kaderli

114°F and the paperwork keeps coming.

Akaisha was my personal secretary for decades. We always shared the duties and used to say it takes two of us to live one life. That pretty much sums it up. We worked well together. Now sorting through everything on my own is a real challenge.

It’s a maze. Each time I think I’m finished, something else pops up. Yesterday I received notice that Social Security wants her July deposit returned. Okay… how? I’m not sitting on hold with Social Security for hours. Been there, done that. Hopefully the estate specialist at Fidelity who has been helping me can figure it out, since her account is already closed. Returning the money isn’t the problem—the question is how to do it cleanly.

I’m also entitled to the $255 Social Security death benefit. This is not automatic—you have to apply for it. I spent an hour on the phone waiting and speaking with a representative, only to be told I need a scheduled appointment. The earliest available phone appointment is late September. I have no idea if I’ll even be in the States then. The timing is frustrating. For $255… is it even worth it?

Every time I feel like I’m gaining ground, another issue shows up. Still, I keep going. I know this is what Akaisha wanted, and I’m determined to see it through for her.

A reader recently wrote: “I have so often seen that just when we are hurting the most, are the most overwhelmed, are vulnerable and wish to curl up and process what has happened, we are instead called to engage in paperwork.”

That’s exactly how it feels. My natural instinct is to push through and get things done, but some of these hurdles are higher than expected. I’m still determined to take care of business. At the same time, every piece of mail that arrives with Akaisha’s name on it stops me for a moment. I’m learning to expect the unexpected.

I’m an optimist by nature. I wake up most mornings feeling reasonably good, but as the day wears on I get worn down. It could be the physical and emotional work of moving her belongings, the constant stream of paperwork, the desert heat—or all of it combined. By 7:00 p.m. I’m usually done. Then I find myself wide awake at 4:00 a.m.

The process continues. One step at a time.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Boggy Boarding Phuket, Thailand

Our good friends Jim and Kathy produced this touching tribute to Akaisha.

Thanks so much my friends.

Billy

Click on link below:

https://retireearlylifestyle.com/Videos/jim-video-Akaisha.mp4

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com

Our Shack in AZ.

Thank you for being genuine, raw, and caring at the same time, one reader wrote.

Raw is the right word. It doesn’t take much to rip the scab off the wound, and then my emotions take over, leading me to make numerous mistakes on routine tasks.

I mentioned earlier that I would give you an update on the account transfers and related matters.

We both had TOD (Transfer on Death) designations on our brokerage accounts, as well as primary beneficiaries. That helped and simplified things. BUT! There are so many smaller details tied to those accounts. One of them I only just learned about and caught before her closed accounts were billed. There were also small monthly charges I didn’t know existed, so those had to be dealt with. It’s all been surreal and overwhelming.

Brokerage Accounts

Akaisha had three brokerage accounts. I went to all of their offices last week to discuss and sign the necessary paperwork. One was easy—they handled everything for me right there. The others are requesting more documentation, so another trip to the office is necessary. This keeps reopening the wound, and it’s emotionally draining.

It has been my experience that death certificates are now handled as PDF files. I made ten copies… and I still have ten copies. The firms either copied my copy and returned mine, or I simply uploaded the PDF. I guess the days of physical, stamped death certificates are over.

Fortunately, I was able to figure out Schwab without visiting their office. Between the two, Fidelity was by far more professional and efficient. Schwab was more DIY.

Tax Planning

As I mentioned in an earlier post, I wanted Akaisha to manage her own accounts. We were the same age, and I assumed I would most likely depart this planet first. I didn’t want her to be taken advantage of by a brokerage salesperson. So we each had individual accounts at both Fidelity and Schwab.

When I inherited her accounts, I received a stepped-up cost basis. This means that no matter how much gain she had in an investment, I received the value as of her date of death. As an example, assuming the markets stayed flat (which I do not anticipate), I could sell her assets with zero long-term capital gains.

Beginning next year I will be filing as a single taxpayer with a lower standard deduction. This stepped-up basis is a helpful way to lower my overall tax liability.

Credit Cards

Closing the credit card tied to her Fidelity account was easy and professional. The debit card closed automatically with her account.

Her Discover card was also fast and efficient.

Citi, on the other hand, is a pain in the ass. I’m still trying to unwind things there. Numerous phone calls have wasted hours and gotten me nowhere. We’ve both had those cards for four decades, and these customer service people are the worst—no compassion, no respect, and no alternative ways of handling things. They’re sending me a letter… via snail mail!

I’m pretty sure I’ll be terminating my own Citi account once everything is sorted. Their customer service is terrible.

I’m the kind of guy who wants to get things done and move on. But I’ve noticed I’ve been making many mistakes while plowing through this maze, so I needed to slow down and “be here now.” Still, that’s not easy for me as things continue to pile up.

But I’m trying.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Billy in Arizona

I’m a beach guy in the desert, where this time of year nothing moves fast — if it moves at all. It’s HOT!

This is a huge adjustment for me, being here alone at our Arizona shack without Akaisha. There are only a few people around — maybe five or six — and they have enough sense to stay indoors. It’s been years since we lived here year-round, and even then we always traveled to escape the hottest months. Now it’s just sagebrush, cactus, and bunnies rolling through the complex.

I need the water. I grew up swimming competitively year-round in the Midwest, so I’ve been going to the pool in the afternoons — something Akaisha and I shared — trying to get my rhythm of life back in motion. It seems like I’m having a lot of false starts and making mistakes that just aren’t me.

For weeks I’ve been trying to make sense of this all. What the heck happened? How did I get here? Why? I will never have those answers. I have to make peace with the fact that I did everything I could along the way. I know I certainly gave Akaisha all of me.

Life still feels surreal. How do I unwind all the memories, experiences, and joy of the last decades with her? It’s going to take time. Her passing showed me that I have a limited amount of it.

Each morning I get up ready to take on the day, and then… bam. It hits me.

Hopefully soon I can plan a more extended trip. I’m not trying to run away from anything. I just need the stimulus of new adventures of my own — meeting new people and hearing their stories.

And every person has them, if you listen.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Billy and Akaisha in Thailand

The recent passing of Akaisha just illustrated our point on taking Social Security at 62. She was 73 with she left her body. Had she waited to 67 or 70 her payout would have been much less, and we would not have had the benefit of using that money for travel expenses, nor would I have inherited those assets. Five years of income from 62 to 67 was five years of fun. By 73, it was a nice cushion.

We decided to take Social Security at age 62. We know there are as many ways to consider this decision as there are days in a year. And many experts advise against taking social security “early” so that you get a bigger check at full retirement age. It is hard to argue against that.

We have always lived an unconventional lifestyle and the fact that so many experts agree on waiting for payment gives us pause for thought. Here is our logic.

First, the S&P 500 index has averaged over 8% per year, plus dividends, since we retired in 1991. If we take social security early and invest it, we won’t be losing the 8% per year the experts claim is the annual increase of waiting - although one is guaranteed and the other is not. Maybe the markets will trend sideways or go down or even up, no one knows. For the last 33 years we have lived off of our investments through up and down markets, so investing the monthly check is definitely an option. More likely, we will just not spend our stash and look for opportunities in the markets as our cash positions grow. Plus we have control of the money at this point, adding to our net worth.

Next let’s look at some numbers.

For easy math, say at 62 you are going to receive $1000.00 per month in benefits, but if you wait until you are 66, your payment will be $1360 ($1000 x 8% for the four years you have waited). Sounds great, right? However, you would have missed receiving $48,000 dollars in payments from the previous 48 months. How long is it before you make that money back? Using this example it would take 133 months or a little over 11 years ($48,000 divided by $360) and that would put us at 77 years of age, just to break even. In that time frame, the Social Security we are receiving plus our investments should grow far outpacing the extra money received by waiting.

If you’ve been denied SSD benefits and don’t know what to do next, speaking with an experienced Social Security lawyer in Lansing could be your best move.

For some people deferring until their full retirement age could make sense, especially if they do not have the assets to support themselves, are poor at handling money or if they are still working. However this is not our situation and therefore we decided to take the money and run.

It’s really a question of who you think can handle your money better; You or Uncle Sam?

Update: Below is the return of the S&P 500 Index since we took Social Security at 62.

What’s Your Number? - How much money do you need to retire?

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I received Akaisha’s Death Certificate from the U.S. Consulate.

I completely broke down while reading it. Something about seeing it finalized hit me harder than I expected. I guess that’s a healthy part of the process?

Now that I have the certificate, I can move forward with the account transfers. I took a deep dive into the procedures for transferring her assets to me. Easy, right?

Not quite. The more I read, the more I realized how important it is to properly handle her “stepped-up cost basis” on her regular accounts. There’s a tax opportunity here and I don’t want to blow it. I need to discuss this with the brokers. How will those shares appear on my account page? Do they need to go into a separate beneficiary account, or can they be merged into my regular account? These are big questions I still need answered.

Akaisha was the main shopper on Amazon and the recipient of all proceeds from our website, RetireEarlyLifestyle.com. Even after her passing, the payments and business matters still need attention.

Then I discovered she had several recurring charges that I now have to either transfer to my name and credit cards or cancel. All of a sudden I felt stuck in a sticky wicket. Some are quarterly, so they may not have hit yet.

I realized I needed to think everything through carefully before notifying the brokers of her passing. Once I do that, her accounts will likely be locked down, and I could lose access for weeks. If a bill hits during that time, how would it get paid?

Things quickly became complicated. Adding to the pressure, I’ve already booked a flight to the States. I feel much more confident handling these matters in person rather than online.

My mind is spinning — not only with grief, but with this tangled web of accounts, payments, and deposits I hadn’t fully considered. It’s been a month since her passing, and I’m still being hit by unexpected emotional waves. I never know when or where they’ll come. I’m sure this is all part of a healthy process, but that doesn’t make the sorrow any easier.

A kind reader wrote and reminded me to be good to myself — that I’m going to make mistakes. That’s very true. There are so many small details to handle, and dwelling on them in the middle of the night doesn’t help my sleep. I wake up remembering something else I need to do and start making lists. Meanwhile, I still have to cook, shop, and take care of daily life, which eats up much of the day.

On a positive note, I received all the documents and travel papers needed to bring her remains back to the States, if that’s what I decide. That part, at least, seemed straightforward compared to the financial maze.

My main reason for writing this is to share what I’m working through right now. Three married friends who have followed my situation have already started calculating their own “what if” scenarios and wondering if their spouse could navigate these financial accounts.

Remember, our plan was always that I would go first. That’s why I had Akaisha open and manage her own accounts — so she would be familiar with trading, payments, dividends, and capital gains. More importantly, I wanted to make sure she wouldn’t be taken advantage of by some financial “shark” once she was alone. I saw it happen many times during my years in the brokerage business. Some people actually scan the obituaries. You’ve been warned.

I’ll follow up once I know how everything is handled. We’ve lived in Mexico long enough to know how the bureaucracy works — or doesn’t. I’m hoping the process in the States goes smoothly so I can focus on grieving and honoring my lost soul mate.

The main reason we retired early was to travel the world, and we did exactly that. At 73, Akaisha outlived both of her parents, but according to actuarial tables, she didn’t quite make it to par. This is an important lesson for those of you around similar ages: be kind to each other and help your spouse prepare for what eventually comes to all of us. Fortunately, we had time to get most things sorted out — but apparently not everything.

I can’t imagine the stress I would be under if we hadn’t done this preparation. It’s been hard enough just dealing with her loss.

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Beer. Beach. Sunset.

But we’re here to tell you, yes, there is a learning curve.

2 Carib lagers

When we first arrived on Sint Maarten’s, we took a walk down the beautiful malecon to check out the restaurants, bars, mini-marts and music.

Since we needed a few supplies right away, we stopped at this small seaside market that sold a little of this and a little of that.

We bought some cheese, a piece of fruit or two, and observed that they had pastries and cappuccinos for the mornings, and sandwiches for lunch.

We noticed that they had Carib beer for a decent price, so we thought we’d return later, grab a few and watch the sun set.

Which is just what we did!

A stunning Caribbean sunset

Here we are on this rock called Earth, spinning around the sun.

It’s another Caribbean sunset with golden hues.

We never get tired of them!

We are sitting just outside the mini-mart watching this glorious nature event, enjoying our Caribs.

Cruise ships come here several times a week!

One of the busiest cruise ports in the Caribbean, Sint Maarten handles over two million cruise passengers annually.

On this malecon where we are standing and on the main street behind us, are shops selling diamonds and gold one after another after another.

Cruise passengers come here in hordes to purchase duty-free jewelry at a super price.

Liquors are duty-free too!

The market where we have been shopping

So day after day we’d shop here for incidentals, and night after night, we’d drink a Carib beer, sitting at the umbrella’d table on the left and watch the sunset.

Then...

Duh.

As you can see - right next door - is a bar with a happy hour special of craft beers and appetizers, salads and full meals.

What took us so long?

Well, in all fairness, we were jet-lagging from our trip to this island from Paris, France.

Our bodies were here, but our minds hadn’t fully arrived yet!

The menu at Sea View Hotel

We began enjoying happy hour here at this trendy Sea View Hotel after our late afternoon swim in the sea... ordering typical bar food.

Then we discovered the Jerk Chicken Salad.

That was a winner.

What better place to eat Jerk Chicken than in the Caribbean?

The salad had such DELICIOUS flavors with so much chicken that we shared the salad and had a couple of Pelikaan Pints.

Pricing on the menu is in USD.

Seating at the bar

This bar with indoor/outdoor seating is attached to a hotel as well.

A small but convenient swimming pool is to the right, and from here as well as from the swimming pool, one can view the blazing sunset every evening.

Our Pelikaan Beers

Delicious draft craft local beers.

What a beauty!

A young native Caribbean waitress serves us some cheese fritters with dunking dips.

The women on Sint Maarten have style.

Our bill for 2

As you can see, our bill is listed in both Dutch Guilders and in US Dollars.

The SeaView Hotel was established in 1947.

After swimming in the sea

Here I am all salty from the sea and windblown.

The fire you see on the lower left is a glass and gas fireplace.

Just mesmerizing.

Bar and pool brightly lit up

Here is the pool I mentioned previously.

Often we have observed people sitting here in the pool with loungers holding their plastic cup from the bar, cooling off in the water.

With the lights and colors, the scene is eye-catching at evening.

Would we recommend coming here for happy hour?

Absolutely!

And try the Jerk Chicken Salad!

__________

Seaview Beach Hotel

85 C, Front St

Philipsburg, Sint Maarten, Caribbean

Website:

https://www.seaviewbeachhotelstmaarten.com/

Tele: +17215422323

For more stories, photos and videos of Sint Maarten, click here.

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Billy in Panajachel, Guatemala

Returned from the beach, I sat quietly with a pour of G4 reposado premium tequila — one of our favorites — reflecting on everything. That’s when it hit me: this isn’t just about me. Yes, I’m grieving the loss of Akaisha, but the far greater truth is that she is no longer trapped in her body. She has moved on to a better place. Once that perspective settled in, I felt a heavy weight lift from my shoulders.

Akaisha and I shared an extraordinary life together — nearly five decades. We owned businesses together, traveled throughout the Western U.S. in our fifth-wheel trailer, and explored the globe for extended periods. Few couples can say that today. We squeezed every drop of joy from our time, making the most of every opportunity and learning quickly from our mistakes.

It was a beautiful run. She was the best thing that ever happened to me, and she will always be part of who I am. As they say, no one can take away the dance we danced.

Now, at 73, I find myself at a crossroads once again. Many of you have faced similar turning points in life, so perhaps some of these questions will feel familiar: Do I settle down and simply enjoy the good life here in Mexico? Do I dip my toes back into the dating scene? Or do I return permanently to the States?

The answer, at least for now, is none of the above. The spirit of adventure still burns in me, along with my endless curiosity about the art of cooking and new dishes — I just can’t seem to keep a lid on that one.

If I meet a lady who shares that same sense of adventure, values, and food curiosity, it would be wonderful to explore the world together. But I also know how rare and special Akaisha was. Finding someone like her isn’t realistic — though I’ve learned never to say never.

I’m not the “Love Boat” cruise type. I prefer the feeling of a sailing ship, even if I don’t want to own one. I go where the weather suits my clothes — shorts, shirts, and sandals. I haven’t owned a tie in decades. While I love the beach, I no longer want to live right on it. Chapala’s climate is one of the best in the world, and I always seem to return here, but that doesn’t stop me from seeking out the next “undiscovered” beach, town, or bohemian corner of the world.

Food remains one of life’s great pleasures for me. Whether it’s fine dining or authentic street food, I want to experience it all. A chef once told me to visit as many restaurants as possible and “steal with your eyes.” I still do that today — so I can recreate those dishes at home, sometimes even better than the original, and always with joy.

That’s the best way I can describe my journey: it’s a lifestyle, not a vacation. I’m endlessly curious about people, technology, other cultures, and new experiences. The learning never stops. I rarely watch TV, and when I do catch a movie, I’m usually more fascinated by the camera angles, backdrops, and scenery than the plot itself.

Everything going forward is a new reference point. I started with that short beach trip to shake off the cobwebs, and now I’m watching the weather, planning my next journey.

What about you? Where is your sense of adventure leading you these days? I’d love to hear your thoughts in the comments.

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Billy at his favorite place - Beaching it around the world!

Just because you retire, your money doesn’t have to.

In the words of Gordon Gecko from the 1987 movie Wall Street, “money never sleeps.” And your money definitely won’t once you leave your job.

Many people are shocked to learn that since we left the conventional work force over thirty years ago our net worth has actually increased, significantly out-pacing inflation and spending. Reading financial articles about what if retirees run out of money, I get the impression that the authors do not understand that once retired, your money can - and should - continue to work for you.

Working smart not hard

Once you clock out or walk out of the office for the last time, that doesn’t mean your investments are frozen at that point. The stock market is still functioning and now your “job” is to become your own personal financial manager. Actually, you should have been doing this all along, but if not, start now.

You need to get control of your expenses by tracking your spending daily, as well as annually. This is so easy - only taking minutes a day - and this will open your eyes as to where your money is going. Not only that, but it will give you great confidence to manage your financial future. Every business tracks expenses and you need to do the same. You are the Chief Financial Officer of your retirement.

Income is important, but…

Many people structure their investments for income knowing they need $4000 or more per month to cover their lifestyle. Which is fine, but inflation will be eating away at those numbers and most likely taxes will do the same. Over time your expenses will rise and your purchasing power will drop. You need protection to cover the increases.

Stocks provide that protection and there is an added bonus; when you sell, capital gains are taxed at a lower rate than ordinary income. Therefore, tilting your investments for growth as compared to income will help protect yourself against future inflation. Plus it will minimize your tax liability.

The day we retired the S&P 500 index closed at 312.49. This equates to a better than 10% annual return including dividends.

Chart of S&P Market Returns January, 1991 to January, 2024

That’s pretty good for sitting on the beach working on my tan.

Making 10% on our portfolio annually while spending less than 4% of our net worth has allowed our finances to grow out-pacing inflation, while we continue to run around the globe searching for unique and unusual places.

The key is to start as young as you can with as much as you can and let the markets work in your favor. Time is the greatest asset with investing and younger people can utilize this to their advantage.

But what if you’re fifty?

You need to take stock of your assets and determine what your net worth is, with and without the equity in your home. Selling the house and downsizing may be a windfall for you, again utilizing the tax code to your benefit.

Social Security will play a role with your asset allocation, “like a bond.” You can figure out what your annual payments will be by checking SocialSecurity.gov. Then through simple math, calculate using the Vanguard Ginnie Mae fund yield (VFIIX), currently yielding 3.64%, and figure how much you would need to place into that fund to equal your projected SS income.

An example

The average social security benefit for 2024 is about $1976.00 per month, or $23,712.00 per year. Using that figure, at a 3.64% yield, you would need roughly $650,000 invested into the GNMA fund to give you the same amount of monthly income.

For asset allocation purposes, you can put the $650,000 figure on the bond side of your portfolio, which allows you to increase equity exposure for growing your nest egg and still keep a balanced portfolio.

Note: the yield on the GNMA fund changes with interest rates therefore I check it monthly to keep our numbers in balance.

Keeping your spending 4% or less in the early years - as well as having a few years of cash in reserve - should allow you to ride out market downturns which absolutely will happen. Having the cash reserves will prevent you from having to sell in a down market.

Just because you retire from your career, hang up the work boots, put away the ties, suits and shoes - for shorts, flip flops and Hawaiian shirts - doesn’t mean your financial work is over. Invest early and often and let the market work for you.

Remember, “Money never sleeps.”

What’s Your Number? - How much money do you need to retire?

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Billy Kaderli

I spent six days at our favorite beach, doing some body surfing but mostly just sitting alone, watching the waves and currents while quietly pondering my future without Akaisha. Normally I would have reasons to rush back to Chapala to reunite with her, but all of a sudden I realized I no longer needed to hurry home.

A friend invited me to stay at his place in Guadalajara, and I spent a night there before heading back. That small detour from my plans helped me more than I expected as I move forward.

I never dreamed I would be alone with no boundaries at my age. Our plan had always been that I would go first, and Akaisha would enjoy the money with a new boyfriend—a running joke between us that wasn’t far from the truth.

Obviously, that’s not how it turned out. Now I find myself on an entirely new road with few plans and little preparation.

Playa Chacala

Shake-out

The “shake-out” trip to the beach was good for me. I used it to reorganize my travel gear, discovering what I had forgotten and what I no longer need traveling solo. Watching the young children play on the beach—building sandcastles only for the surf to wash them away—reminded me of the circle of life and how precious our time here truly is.

There are life lessons everywhere if you stop long enough to relax and remain open to them.

I still have more of Akaisha’s affairs to handle, but I’m forming a clearer idea of what needs to be done and how to accomplish it. Most tasks I can manage from here, but a few will require me to return to our place in the States.

After that, I’m considering spending a few months in Asia to completely shake up my life, and possibly heading to the Caribbean for some downtime during the colder months. As I’ve said before, I need to take things one day at a time—but with each passing day, I’m beginning to see more opportunities ahead.

Akaisha’s spirit of adventure still lives in me, and I know she would want me to keep exploring, learning, and embracing whatever comes next. For the first time in months, I feel a quiet excitement about the unknown road in front of me. The future feels open, full of possibility, and I’m finally ready to step into it.

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Akaisha and Billy at a baseball game in Osaka, Japan

Before the “FIRE” (“financial independence, retire early”) movement invaded the U.S., before there were iPhones, before there was even the internet (gasp), Billy and Akaisha Kaderli retired at the ripe ages of 38. Now entering their 35th year of retirement, the Kaderlis have more money than ever.

“For us, it was a bit of a leap of faith because we didn’t have anybody to mentor us or to follow,” says Billy Kaderli, who was the vice president of investments and a branch manager at Dean Witter Reynolds before retiring in 1991. “Today there’s so many more apps and online calculators to help you with your finances that it’s gotten much easier to retire early.” Their blog, RetireEarlyLifestyle.com, offers articles on how to get your financial house in order based on their experiences and includes links to over 100 financial tools and calculators on its “preferred links” page.

While early retirement may be easier today than in the ’90s, it’s still not “easy.”

“It’s important to think about the FIRE concept through the lens of 2023,” says Rich Guerrini, president and CEO of PNC Investments. “If your goal is really to retire at 40, you are certainly facing more headwinds than you were even just a few years ago.”

From high inflation to market volatility, compounded by the global pandemic and now the possibility of an impending recession, FIRE-ees may face a lot of obstacles in 2023.

To retire by 40, you need to be prepared to make sacrifices today that will allow you to provide for your future. And even then, that future likely won’t be shrouded in luxury.

FIRE early retirement isn’t about accumulating mass wealth. It’s about “buying back your time,” Akaisha Kaderli says.

If you want your time back, here are tips on how to retire by 40, according to people who have made it happen:

— Choose if you’ll LeanFIRE or FatFIRE.

— Calculate how much you need to save to retire.

— Don’t forget health care.

— Save 50% or more of your salary.

— Avoid lifestyle creep.

— Invest aggressively and economically.

— Have a contingency plan.

— How the SECURE Act 2.0 affects early retirement.

— Early retirement in times of COVID-19.

LeanFIRE Versus FatFIRE

The first step to retiring by 40 is choosing your FIRE style. There are two forms of FIRE early retirement: LeanFIRE focuses on keeping retirement expenses low (according to the LeanFIRE Reddit community, that’s under $50,000 per year) so you can retire with less in savings.

FatFIRE, on the other hand, is for early retirees who want a more cushy retirement lifestyle (think an annual expense budget of $150,000 and up) and are willing to save up to provide for it.

“LeanFIRE types would benefit more from setting up side-hustle income streams before retirement,” says LeanFIRE-ee Steve Adcock, who retired at 35 and started Think Save Retire and now writes about personal finance and lifestyle on steveadcock.us.

But while the larger financial cushion of FatFIRE means you’re less likely to need supplemental income in retirement, you may have a higher hill to climb pre-retirement to build up your savings.

How Much Do I Need to Retire by 40?

Two factors go into how much you need to retire early: your anticipated annual retirement expenses and the percentage of your portfolio those expenses make up.

According to the Trinity Study, retirees can withdraw up to 4% (adjusted for inflation) each year in retirement without depleting their portfolio over a 30-year period. If you’re planning to retire by 40, however, you may be looking at a lot more than 30 years of retirement.

To compensate for a longer retirement, some early retirees target a 3% withdrawal rate, or an even more conservative 2% annual withdrawal rate. The Kaderlis withdraw 1% to 2% on average each year and have successfully grown their portfolio throughout retirement after spending and inflation.

“Between Social Security and dividends, we do not need to withdraw anything from our current portfolio, thus letting it grow,” Akaisha Kaderli says.

To calculate how much you need to retire, Akaisha Kaderli says to start with your gross wages then subtract your payroll taxes and work-related expenses. “This should give you a rough idea of what your current lifestyle is costing you,” she says. Then multiply that number by 25 to get the amount of invested capital you’d need to maintain your lifestyle.

Another way is to take your anticipated annual expenses and divide it by your target withdrawal rate. For example, if you plan to spend $50,000 per year in retirement and want to withdraw 2%, you’d need $50,000 divided by 0.02, or $2.5 million, to retire.

Don’t Forget Health Care

When calculating how much you need to retire, it’s important to include a line item in your anticipated budget for health care. If you retire early, you’ll face more years of health care costs without employer-sponsored health insurance.

“Unexpected — and rising — medical expenses have always been a reality, but the COVID-19 pandemic really put a spotlight on it and illuminated just how quickly and drastically things can change,” Guerrini says. “If you’re eligible, a health savings account can help supplement or cover health care expenses, and it might be a good solution for some, but that’s more money that needs to be saved aggressively prior to retirement.”

Save 50% of Your Salary or More

Early retirees face a unique challenge to saving for retirement: Salaries for most college graduates peak in their 40s. If you retire at 40, you’ll be handicapping your savings by not contributing to your retirement accounts during your peak earning years and potentially missing out on employer match contributions.

Retiring at 40 also leaves you without access to Social Security or Medicare for 22 to 25 years into retirement, leaving you with one less source of retirement income and one more bill to foot.

And when you do reach full retirement age, your Social Security benefit will be reduced due to your lower average earnings. Billy Kaderli recommends creating a My Social Security account at ssa.gov to compare how much retiring early will reduce your Social Security benefit.

“When we did this 35 years ago, the difference between what we would receive if we continued our 9-to-5 (jobs) for another 25 years or if we pulled the plug then was not a large enough amount to make it worthwhile,” he says. “So, we decided to go for it.”

All these savings hurdles mean early retirees need to be saving 50% or more of their salaries each year. “It sounds hard and initially it is,” Adcock says, “but when you look at what you’re spending on, so much of it is stuff you either don’t need or don’t use.”

The last couple years before retirement, he and his wife saved 70% of their income.

To ramp up savings, “attack the biggest expenses first: housing, cars and food,” says Chris Mamula, who retired at age 41 after burning out in his career as a physical therapist. He now shares his FIRE retirement wisdom on the blog caniretireyet.com. “By optimizing those areas (of your budget), you can develop a high savings rate,” he says.

Avoid Lifestyle Creep

Essential to keeping your expenses down, and by extension your savings rate up, is keeping your lifestyle in check. Most people let their lifestyles and spending be defined by their income. If they earn $70,000, they spend $70,000. And when they get a $5,000 raise, they find $5,000 worth of additional things to spend it on.

“Once you inflate your lifestyle it’s hard to go back,” Mamula says. “Dissociate spending and earning. What you need to live has nothing to do with what you earn.”

He and his wife (neither of whom made a six-figure salary) always lived off only one salary and “never felt like we were sacrificing.”

“Lifestyle creep is very deceiving because you don’t know it’s happening until it gets to be too much,” Adcock says. If you want to retire early, you need to be living well below your means and investing every bonus and raise.

How to Invest to Retire by 40

Investing is essential to retiring by 40. Early retirees need the compound long-term growth that these investments provide. Without it, they’re likely to run out of money in retirement, or never reach their retirement savings goals.

In general, be as aggressive with your investments as you can tolerate before retirement. A “50-50, stock-to-bond portfolio probably won’t work because you have such a long time frame and need to account for inflation,” Mamula says.

That said, he believes bonds are still an “integral part of most people’s portfolios most of the time.” When rates were near zero, they didn’t make much sense, but now that rates are back to within historical norms — where bonds can provide some income and potential for price appreciation if rates drop again — they make sense again, he says.

The key is to keep bonds within the right proportion for your current situation. And, most important of all, to not panic and pull out of the market, he adds. If you can’t tolerate the choppiness of a 100% equity portfolio, don’t use one.

This highlights an important facet of early retirement: It’s not for the risk averse. The stock market historically returns about 7% per year after inflation.

“It doesn’t go up in a straight line,” Billy Kaderli says. To accommodate for this, he tells early retirees to keep a couple years’ worth of expenses in cash so you don’t have to sell in a down market.

“Through our three decades of retirement, we have weathered four bear markets.” he says. “It is through these periods that you need to have the confidence that times like these will pass and that folks who are investing today may well become millionaires in the next bull market.”

The Kaderlis had their entire portfolio in Vanguard’s S&P 500 index fund (ticker: VFINX) when they retired. Today, at 73 years of age, they’ve shifted to a 60-40 stock-bond/cash allocation, with the majority split between the following exchange-traded funds, or ETFs, to create what they call a “growth/dividend-growth portfolio:”

— Vanguard Total Stock Market ETF (VTI)

— SPDR S&P 500 ETF (SPY)

— Vanguard Information Technology ETF (VGT)

— iShares Select Dividend ETF (DVY)

— Schwab U.S. Dividend Equity ETF (SCHD)

The key is to start investing as early as possible. The longer you give your investments to grow, the more likely they are to match the stock market’s long-term average return. Looking back, the Kaderlis both wish they had started investing earlier.

Minimize Your Investment Expenses

Investing is another area to pay close attention to cost. Every dollar that goes toward investment fees is a dollar not being used to grow your retirement savings.

If your mutual funds charge a 1% expense ratio and your financial advisor charges an additional 1%, you’re already spending 2% per year on investment fees alone, Mamula says. Going back to the 4% rule, “if you have to pay 2% just to manage your money, you’re down to only 2%” left to spend in retirement.

If you’re investing in passive index funds, aim to keep your expense ratios at 0.1% or lower. Of course, the lower the better.

Have a Contingency Plan

Perhaps the best thing you can do for your early retirement is to have a contingency plan. Mamula recently began working 10 hours per week with an advice-only, virtual financial advisory firm after becoming a certified financial planner last year.

Adcock and his wife built flexibility into their retirement budget by keeping discretionary spending their largest expense. “Initially you might think we’re just wasting money on things we don’t need, but the benefit of increasing your discretionary money is you could also cut that stuff back when you have to,” he says.

Having a buffer in your retirement spending habits is key, he says, especially during times like the current environment of high inflation and heightened market uncertainty. “It’s nice to cut back on spending to help strengthen your cash flow position,” he says. He and his wife cut their spending by about 20% since the beginning of last year.

“My advice during the 2021 boom market wasn’t to spend but to save and invest because we knew the bull market wouldn’t last forever,” he says. “Those who heeded that advice are sitting pretty right now even though the market has been down.”

The Kaderlis minimize expenses by utilizing “geographic arbitrage,” living in areas with low costs of living like Mesa, Arizona, and Lake Chapala, Mexico, their current balmy residence. “The idea of living in a lower-cost country with a favorable currency exchange while our investments are in the States earning dollars was a no-brainer for us,” Billy says. “This by itself has been a remarkable benefit to our lifestyle and finances.”

While they’ve also monetized their blog, it’s really a labor of love. “If we stopped it tomorrow, it wouldn’t affect our lifestyle one bit,” Billy says. “However, we would not have met many of our wonderful readers.”

How the SECURE Act 2.0 Affects Early Retirement

Effective as of January 2020, the Setting Every Community Up for Retirement Enhancement, or SECURE, Act is impacting the way some Americans save for and live in retirement. While these changes will affect conventional retirees more than early retirees, there are a couple points to be aware of if you want to retire early.

First, the act increased the required minimum distribution, or RMD, age to 73 as of Jan. 1, 2023, and will increase the age to 75 in 2033. It also enables you to contribute to a traditional individual retirement account even after RMD age, as long as you have earned income.

The act also makes it easier to maximize your retirement savings while minimizing your working hours. Employers are now required to give part-time employees access to the company 401(k) plan. This is good news if part of your early retirement plan is to phase out of working or to work part time in “retirement.”

Early Retirement in Times of COVID-19

While the SECURE Act 2.0 was a boon to retirees, COVID-19 likely was not. And yet, the early retirees interviewed for this story all weathered the storm fairly well.

The Kaderlis took advantage of half-off pricing on hotels and empty planes and buses to travel throughout their home country of Mexico. “We made the best of a bad situation,” Akaisha says. “Our finances cratered along with everyone else’s, but because of the way we receive dividends, it didn’t affect our lifestyle.”

For Mamula and his wife, their lifestyle made things easier for them than for most. “We were positioned well to take on homeschooling duties with two stay-at-home parents,” he says. They also live in an area where they’re surrounded by their favorite outdoor activities.

“Likewise, the market events didn’t really impact our lifestyle, though our account values went down just like everyone else’s,” he adds. “We were aware of the potential for everything to go south at once” and planned accordingly.

Adcock reports that COVID-19 didn’t impact his and his wife’s retirement at all. “Yes, the value of our stocks is down — about $400,000 since the beginning of 2022 — but it doesn’t matter,” he says. They live in an area with a low cost of living, which helps keep expenses low. “We’re in the market for the long haul,” he says.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

Beach, Saint Somewhere

Once again, I want to thank each and every one of you from the bottom of my heart for the incredible outpouring of condolences, kind words, and loving support. Your messages have meant more to me than I can possibly express. I hope to reply to all of them personally, but it’s going to take me some time. Please know that I have read every single one, often through tears, and I am deeply touched by your love and compassion.

To the many friends, acquaintances, and even kind strangers here in Chapala who have wrapped me in hugs and held me up during these difficult days — I am truly honored and grateful to be part of this caring community. Your physical presence and warm embraces have been a lifeline when I needed it most.

In my efforts to honor Akaisha’s wishes, I will soon be taking some of her ashes to our favorite beach. I desperately need some vitamin Sea and the healing sound of the waves where we shared so many happy memories. This will be my first real trip as I begin the long journey of healing and learning to live in a world without her by my side.

Meanwhile, I wanted to share a song we wrote together that captures the spirit of our lifestyle and adventures. It brings back so many beautiful memories: https://retireearlylifestyle.com/Videos/REL-Music-video-a.mp4

Thank you again for walking beside us through decades of financial independence, wild adventures, laughter, and now this deep sorrow. Your friendship across the years has been one of the greatest gifts of our lives.

With gratitude and a heavy heart,

Billy

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Lake Chapala, Mexico

We read a piece by Dan Barnabic giving 5 Reasons Not to Retire Abroad.

In all fairness, we believe there are two solidly different camps: those who could easily move abroad and thrive and those for whom that decision would be a disaster. I doubt that the twain will ever meet and they don’t need to do so. Given that, we thought the reasons Mr. Barnabic gave were tired and bordered on fear mongering, which is silly.

The Adventurer’s Guide to Chapala Living, 3rd Edition

No one is pushing people to move overseas in their retirement and there is nothing wrong with someone who decides to stay in the States or Canada during their Golden Years. There are valid reasons for each side of the coin and plenty of room in retirement communities for everyone to have their place.

All that being said, here are Our 5 Reasons Why We Love Living Abroad:

Better weather

Some people enjoy having four seasons but we haven’t spent time in snow country for decades. If we want snow or freezing temperatures, we can always visit mountains or the U.S. or Canada in the winter for a couple of weeks, though we’d probably need to invest in a comfy heated jacket for such trips. We definitely don’t want months on end of frigid wonderlands and prefer the gentleness of tropical breezes. It’s easier on the wardrobe as well, and since we carry everything with us, it makes for lighter travel. One of our home bases is Chapala, Mexico, and National Geographic claims this town has the second best climate on the planet! And with the largest expat community in the world, mostly US and Canadian, residents tend to agree.

Affordable and more accessible healthcare

Sure, we live in countries where language could be an issue, but it isn’t. Doctors in Latin America and Asia are often U.S. trained and speak English and are able to communicate about health issues. To be able to walk in without an appointment is a huge benefit and we often do so and have same-day or next day service. From Thailand to Mexico to Guatemala we have had our share of medical experiences with highly positive outcomes.

Better cost of living

There are many reasons that foreign countries can offer better cost of living. Less regulation, insurances and government intrusion are just some of them. It is not uncommon to be able to afford maids and gardeners for your home whereas in the States the cost might be prohibitive. Dining out, entertainment options, even travel to the beach are all low cost compared to similar choices in the States. In Thailand for example a plate of stir fry veggies with chicken, pork or tofu cost $1.50, in Chapala, Mexico a fine dinner out for two at an Argentine steakhouse might set you back $25.00 and even less in Antigua, Guatemala. Public transportation and taxis are readily available so you may be able to get around without owning a car – another major savings.

The Adventurer’s Guide to Destination Choices

Camaraderie and Community

When people move overseas, often times social stereotypes and cliques are dropped in favor of less pretentious friendships and community goals in the new location. Common interests and values replace judging a person by the address where they live or the name brands they wear. It’s freer, friendlier and much more open. Volunteer opportunities are everywhere and often there are dozens of special interest groups - from bridge clubs, golf, tennis, to animal rescue - which bring Expats together. There are celebrations and festivals constantly.

Personal adventure and sense of freedom

Every day is not the same ol’ same ol’ because even simple errands are being done in a foreign country and can be an adventure. There is an overall new flavor to daily events. Regulation is noticeably less than North of the Border and that has its appeal. There are more choices and less taxes. Buying most prescription drugs is as easy as walking into a pharmacy and asking. No need for a script from a doctor. Having an adult beverage on the beach while watching the sunset is morally acceptable. Even smoking is permissible in common sense locations.

While living in a foreign country is definitely not for everyone, there are plenty of reasons why living overseas makes for a rewarding retirement lifestyle. The only way you will know is to try it for yourself. Don’t let anyone else decide for you.

What’s Your Number? - How much money do you need to retire?

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Northern Thailand

The tremendous outpouring of love and support for me after Akaisha’s passing is beyond words.

I am truly honored and don’t know what to say other than thank you to all of you.

The last seven months have been filled with tremendously difficult, life-altering decisions—none of which I took lightly. Fortunately, Akaisha and I had discussed many of these hard topics beforehand. Her strength and clarity helped guide me, but there is a vast difference between talking about someone’s departure and actually carrying it out.

As things progressed, there were times I felt weak, but I could never let her see that side of me. I had to be the captain of her ship and her guiding light.

The letters and emails I’ve received from so many of you have been beautiful and heartwarming. It means everything to know that Akaisha touched so many lives in ways we never imagined.

It is truly an honor.

The bond I feel with all of you makes me want to continue writing and sharing our adventures. I’m not sure yet what direction the website or blog will take—this is still too early for those decisions. I know Akaisha wanted me to keep traveling, but the detailed note-taking, photography, and storytelling were very much a two-person effort that we shared and loved.

Tracking where we stayed, what we paid for transportation, meals, and everything else was our passion. Sharing how that kind of financial awareness builds confidence in lifestyle choices helped not only us but apparently thousands of you as well.

I understand that videos are extremely popular these days, but having grown up around TV production (my uncle was a producer), I know how much work goes into creating high-quality video content—even with today’s tools. I always reminded Akaisha that we were “One Take Productions,” and that suited us perfectly. Having a film crew follow me around would feel too artificial for me.

Photography is more my style. Every picture tells a story. The question now is whether I can recapture those moments without Akaisha by my side. I want to believe I can, but I’m once again walking a path I’ve never traveled before. She did so much of the research to ensure accuracy in our articles, and we both learned and grew from the process. It was never work for us—it was enjoyable, educational, and fun.

Where all of this leads, I haven’t a clue—which is pretty much how we lived our lives. Meeting so many of you, learning new technology, and always taking the road less traveled was exciting and bold.

A good friend once said, “I used to be indecisive, now I’m not so sure.” That pretty much sums up where I am right now.

For now, I’ll take things one day at a time, just as Akaisha and I always did. I will keep writing when the words come, sharing photos when they feel right, and honoring the beautiful life we built together. Thank you for walking this next chapter with me. Your kindness and support give me strength I didn’t know I still had.

With deep gratitude,

Billy

For more on Retirement Topics, click here and here and don’t forget to signup for our free Newsletter.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.