Faeez answers “what is the summary of this book?”

Kavin Nallasamy asked this question about Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required:

what is the summary of this book?

Faeez 1. Choose the right vocation, not what your heart tells you, but what pays the bills. (eg. be Software engg vs writer).
2. Annual Expenses x 25 = Savin…more1. Choose the right vocation, not what your heart tells you, but what pays the bills. (eg. be Software engg vs writer).
2. Annual Expenses x 25 = Savings you need to retire (assuming the 4% rule will work for you)
3. 4% rule says there is a 95% chance that your money will last for 30 years after you retire.
4. The first five years in retirement are crucial (sequence of returns). You don't want to lock in your losses in the first five years if the stock market tanks.
5. So if the stock market tanks right after you retire what do you do. Have a Safety Cushion (cash stashed away - emergency fund) and a Yield Shield. ie. have your portfolio generate dividends and instead of reinvesting those, you cash them out in the down years.
6. Cash harvesting ie. selling your stock (ETF) - good section on how to do it. Sell only that much for which you know there will be no tax. for eg. under $78K income won't be taxed (assuming your paychecks have stopped and you have no other income). So if your portfolio has grown with an unrealized P&L of say $100K, you could sell stock worth $78K and still pay no taxes.
7. You can withdraw money from 401K before 59 and half years without paying a 10% penalty using a technique called "Roth conversion ladder". Chapter 13 has a section that explains how that works. Its a bit of a hack though.
8. Investments in your tax-deferred (401K) account and tax-sheltered (Roth IRA) grow tax-free. Also, you don't report when you sell in these accounts.
9. Geographic arbitrage - earn money in a strong currency (USD) and travel and spend in weak currency (live and vacation in cheap countries like India, Thailand, etc)
10. House is the biggest expense. The govt screws you with a wealth tax disguised in the form of property tax. If possible don't lock your investment in your primary residence. Always good to own real estate and earn rent.(less)

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Quit Like a Millionaire

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