Mikey Taylor told Newsweek that ‘traveling, partying or having a nice work/life balance will have to wait until after 40.’
Many Americans might not consider retiring until they’re in their sixties. But what if there was a possibility of retiring at 40 instead?Mikey Taylor, president of Commune Capital has recently shared his multi-step process that could allow workers to retire at the age of 40—but only if they’re willing to commit wholly to the goal.Although it might seem like an impossible dream to some, Taylor told Newsweek that retiring at 40 is doable, but ‘you will be investing a lot of time to get there fast.’Undoubtedly, there will be many sacrifices made, but it’s all about the reward after.’Traveling, partying or having a nice work/life balance will have to wait until after 40,’ Taylor said. ‘Like anything, you will be making a sacrifice. The question I think everyone needs to answer is, whether it’s worth saying no to these things in order to have the choice of having to work in your forties.’The idea of retiring early might sound like the dream for many, and that may be all it will be. A 2021 survey by YouGov found that 27 percent of adults in the United States don’t think it’s possible for them to retire comfortably.When the 15,000 participants were asked when they think they could realistically retire, 20 percent said between the ages of 60 and 65, which is the national average. However, only 9 percent of participants think it’s feasible to retire before the age of 60.The first tip that Taylor, from California, shared includes learning a new skill that can be monetized. This could be through higher education or online courses—anything that helps broaden knowledge in that field.He told Newsweek: ‘Start by investing in yourself. What skill can you learn or increase to give yourself more earning potential? You can also invest in your network by going to conferences, local meet-ups or professional associations.’Taylor’s second piece of advice is to begin investing young, or as soon as you start earning. He encourages people to look into using ROTH IRA accounts, which allow tax-free withdrawals only once they’ve retired.’Although you will not be withdrawing from this until you’re in your sixties, it can become very sizable and the gains are tax-free. Compound investment loves time, so it’s important to start investing young,’ he said.While getting onto the property ladder is a huge achievement regardless of age, Taylor recommends ‘house hacking before buying.”As a first-time buyer, you can qualify for some cool financing options which require lower down payments,’ he said. ‘The loans also work for multiplex apartments, up to four units, and the only requirement is that you live in one of the units for a year. So, by living in one of the units and renting the other three out, you can potentially live for free or at a reduced cost, while building equity in your property.’When you’re ready to move out, you can have a cash-flowing asset,’ he added.Taylor acknowledges that building investments is going to be easier in certain occupations over others depending on the salary earned. However, he doesn’t want that to discourage people from trying.’Certain occupations give you more earning potential, but that doesn’t mean that this can’t be done with an average job,’ he said. ‘It may just be more difficult, and the reason I say that is because it’s easier to make an extra $10,000 than it is to save an extra $10,000. You will need to be more disciplined on the saving side.’Retiring at the age of 40 is a huge commitment to make, and it’s not going to be easy. When Taylor shared the advice on his TikTok page (@mikeytaylor) on May 25, he added that people must be ‘laser-focused on the objective.’This lifestyle might not be for everyone, but Taylor insists that it is possible for those who are willing to make the sacrifices, telling Newsweek that ‘it really depends on your goals.’Taylor’s TikTok video, demanding ‘tenacity, resilience and unwavering commitment’ has already generated over 10,000 views online and garnered plenty of fascination.One person commented on the post: ‘Investing in yourself first is key!’Although not everyone was in agreement, as another person wrote: ‘Never waste your youth on old age. Nobody in their 50s wishes they did less to enjoy their life.’Do you have a monetary query? Let us know via [email protected]. We can ask experts for advice, and your story could be featured on Newsweek.