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.