This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Justin Bieber's Extreme Early Retirement: Never Say Never

By Hal M. Bundrick

NEW YORK (MainStreet) He looks like he hasn't even had his first shave, but 19-year-old Justin Bieber is already talking about retiring, fueling rumors with tweets on Christmas Eve. With a reported income pushing close to $60 million this year, why not? And now that his new documentary "Believe" has opened with dismal box office revenue of less than $5 million in 5 days, he may want to hide under the covers and trigger that after-work income after 5 grueling years of boosting Beliebers.

So let's say you've posted some music videos on YouTube and scored a talent manager. Like the Biebs, you've invested in some tech startups like Spotify and have recurring income from music royalties. What's next? According to CelebrityNetWorth.com, Justin Bieber has a net worth of some $130 million, so the heavy lifting has been done.

But if you're young and ready to retire, other than international stardom, what should be your strategy?

Jacob Fisker, blogger at EarlyRetirementExtreme.com, says the key to an "extreme" early retirement -- in your 20s or early 30s -- is to live on less than 3% of your invested savings. With $500,000 socked away, you'll need to live on only $15,000 per year. That means living "on a cruise sail boat or in an RV," Fisker says. Or maybe by renting a single room or living with your family. It could also mean no car and no cable. It's not a Bieber lifestyle, but it's not working a daily 9 to 5, either.

Extreme early retirement is not about telling the tweens goodbye via social media and living on millions of dollars of royalties. It's about living far, far below your means and saving nearly every dollar of income.

Instead of setting aside the usually recommended 15% of income, Fisker recommends putting back 85%. He claims this super-frugality not only builds your savings faster, but trains you to live on less. Much less.

Fisker claims to live on $7,000 per year. That's possible in part because he splits all household expenses in half with his working wife. For a household of two, this is living just below the federal poverty level. Some would say that's not a retirement lifestyle to shoot for.

Perhaps it's best to go back to posting your music videos on YouTube.

Written by Hal M. Bundrick for MainStreet

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs