Self-Made Millionaire Retiring At 35 Revealed Reasons For Not Flipping
Instead of flipping to quickly get rich, Steve Adcock believes that slow but steady wins the race.
Steve Adcock is a former software engineer, financial expert, and well-known personal finance writer. He is famous for his story of early retirement at the age of 35 with his wife with nearly $1 million in savings. To date, the Adcock couple's fortune has reached 1.2 million, and most of them come from investments.
Currently, many people are getting rich by identifying when the market is successful and selling them quickly. Of course, buying individual stocks hoping their price to increase then turn to profit can be very lucrative. However, Steve Adcock thinks it could be a recipe for disaster. "None of us can predict the future. People are very poor at timing the market," he said.
In addition, this self-made millionaire thinks that he does not want to invest, especially in stocks, because he and his wife do not have many other sources of income to help them support if they lose. Instead, they choose to keep their money in target retirement funds. The funds that Steve Adcock invests in are diversified to reduce risk. Not to mention, they're set to automatically shift his portfolio balance from stocks to bonds, which are less risky, over the years.
"We don't have to look at it all that often. We don't have to re-diversify because it happens automatically. So for current costs, we manage our money by spending at most 1 hour/month reviewing them and making sure everything is still going smoothly," said the financial expert.
Of course, the couple doesn't completely forget about their investments, as they still sell them if the market stabilizes and increases in price. They are very careful not to withdraw more than 4% from their retirement portfolio each year, says Steve Adcock, and try to only sell enough to keep their checking accounts covered for two years.
Steve Adcock is a former software engineer, financial expert, and well-known personal finance writer. He is famous for his story of early retirement at the age of 35 with his wife with nearly $1 million in savings. To date, the Adcock couple's fortune has reached 1.2 million, and most of them come from investments.
Slow but steady
Source: CNBC
Currently, many people are getting rich by identifying when the market is successful and selling them quickly. Of course, buying individual stocks hoping their price to increase then turn to profit can be very lucrative. However, Steve Adcock thinks it could be a recipe for disaster. "None of us can predict the future. People are very poor at timing the market," he said.
In addition, this self-made millionaire thinks that he does not want to invest, especially in stocks, because he and his wife do not have many other sources of income to help them support if they lose. Instead, they choose to keep their money in target retirement funds. The funds that Steve Adcock invests in are diversified to reduce risk. Not to mention, they're set to automatically shift his portfolio balance from stocks to bonds, which are less risky, over the years.
A time-saving strategy
Source: LinkedIn
"We don't have to look at it all that often. We don't have to re-diversify because it happens automatically. So for current costs, we manage our money by spending at most 1 hour/month reviewing them and making sure everything is still going smoothly," said the financial expert.
Of course, the couple doesn't completely forget about their investments, as they still sell them if the market stabilizes and increases in price. They are very careful not to withdraw more than 4% from their retirement portfolio each year, says Steve Adcock, and try to only sell enough to keep their checking accounts covered for two years.
Source: Business Insider
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