Rating: 
Summary: An Outdated Book for the Rich and Healthy
Review: An interesting book, but really only workable if you have $400K--$500K in assets. What's worse, Terhorst assumes you'd be living off the interest generated by investing your assets in CDs earning a currently unheard of 8% interest. In addition, the book doesn't touch on health insurance. I'm guessing that when he wrote the book almost 15 years ago, health insurance was far more affordable than it is now. Either that, or he was assuming that you could self-insure if your assets were so high. I'd like to see this book updated for the 21st century--i.e. how to "live off your assets" when interests rates are 2% or less, and how to live on "$50 a day" (Terhorst's mantra) while still securing health care.
Rating: 
Summary: A MUST READ book
Review: I bought this book in about 1986. Although I had already figured out most of what this book talks about, having the book that summarizes the ideas has been an invaluable help to me. I refer to it and re-read parts of it often. The 5 stages of a project is critical. They are: 1. Enthusiasm and commitment 2. Disappointment and Disillusionment 3. Search for the Guilty 4. Punishment of the few 5. Distinguishment of the uninvolved. In 1999 I was able to, for the most part, do what the book describes. I still work a little, but not that much. The experience has been truly great! The publisher should bring this book back in print. If you have a copy of this book, guard it with your life!
Rating:
Summary: Although he has no kids, Paul Terhorst's advice "hits home".
Review: I first read this book about six or seven years ago (1991-1992), and to say it "hit home" with me would be an understatement. It is practically my BIBLE for mapping out my retirement plan! I especially enjoyed Paul's four areas to focus on in your life to accelerate you to where you want to be. He does exceedingly well at helping the reader visualize not only where he was and where he is now --- enjoying life more fully --- but ALSO helps you create your own vision given your own circumstances. Furthermore, some hard numbers are provided to see how he was able to turn what some might deem a fantasy into reality. One final comment: although the 8% rates he uses for bank CD's no longer exist, he *does* specify contingency plans, daily support amount necessary per child, and geographical/travel considerations. (Note: I have found the "Morningstar Search" on AOL, searching for low risk/high return funds, to be an excellent "alternative" to Paul's CDs.) All in all, it is a book I do not want to be without while planning (and heading) for early retirement!
Rating:
Summary: Although he has no kids, Paul Terhorst's advice "hits home".
Review: I first read this book about six or seven years ago (1991-1992), and to say it "hit home" with me would be an understatement. It is practically my BIBLE for mapping out my retirement plan! I especially enjoyed Paul's four areas to focus on in your life to accelerate you to where you want to be. He does exceedingly well at helping the reader visualize not only where he was and where he is now --- enjoying life more fully --- but ALSO helps you create your own vision given your own circumstances. Furthermore, some hard numbers are provided to see how he was able to turn what some might deem a fantasy into reality. One final comment: although the 8% rates he uses for bank CD's no longer exist, he *does* specify contingency plans, daily support amount necessary per child, and geographical/travel considerations. (Note: I have found the "Morningstar Search" on AOL, searching for low risk/high return funds, to be an excellent "alternative" to Paul's CDs.) All in all, it is a book I do not want to be without while planning (and heading) for early retirement!
Rating:
Summary: It took me 7 years but this book changed my life
Review: I followed advice in this book. I am now living at the beach and have escaped the rat trap. I think the most powerful areas of the book are where he talks about alternatives to the creature comfort traps society makes you think you need. I planned a structured financially to accomplish living at the beach and working at a job I like to work at without tons of pressure. Get this book.
Rating: 
Summary: A must for all those who want to learn about money!
Review: I found this book simple and easy to understand the author does a wonderful job in giving examples on how to live a simple lifestyle. It reminds me of some of the concepts which are prevalent in downshifting. The approach really tests what our beliefs, values, attitudes that exist in our society and what other ways we can deal with them! The example of Nancy not controlling her spending seemed extreme; however it is a lesson to be learned which you can learn from others. This country spends millions of pounds on academic research every year which is not helpful to the average person in this country; moreover this book gives ideas which can transcend the norm in a practical way. I managed to get hold of the book when I was on holiday in the USA so the availability and title are not european in format. I would like a European copy of this book perhaps titled " Cashing in on the European Dream " the only difficulty is that we dont have a " Dream "! . The content is first rate and can help anyone improve if they want to. It is a book I would read again and learn something new every time.
Rating:
Summary: This book helped me set up my early retirement plan.
Review: I got this book when it first came out in hard cover. At that time it was one of the few books out that had information on how to retire early. Interest rates being what they are for CD's now you need to invest in stocks to build your nest egg, but his 50.00 dollar a day retirement budget still holds true. The rules are simple: NO CREDIT CARD DEBIT, LIVE SIMPLE, SAVE YOUR MONEY, and ENJOY LIFE. Remember there is more to life than a job
Rating:
Summary: This book is The Best, A dream realized
Review: I know this book is out of print but if you get an opportunity to buy or read this book I would recommend it. And maybe, just maybe the author will update the book for this new century. I certainly hope so. "Cashing in on the American Dream" the title says it all, financial independence and early retirement.
It may not be for everybody, but it appeals to many. This book is a little dated when it refers to 8% CDs, but the concept is one which is timeless. The author, Paul Terhorst was featured in "Money" magazine several times and has a web site http://www..../. The author retired from his CPA job at KPMG to live the life of world travel and financial freedom. When he retired in 1984 he was making in excess of $125,000 a year. The concept works best where you have a high priced personal residence in a hot real estate market. The premise is that you sell your high priced house and your status car. Then you take the proceeds and invest it in a SAFE, CONSERVATIVE investment living off the interest and never touch the principle. You move to a lower priced area, either in the US or outside. A friend of mine spends much of his time in Costa Rica and tells me that one can still live there for $10,000 to $20,000 a year. I have been to Lake Chapala in Mexico where many Americans live a comfortable low cost life in a moderate temperate climate. A major consideration is health insurance and health care. Some people will be able to get continued coverage from their former employers or the employer of their spouse. For many people this does not work. One of the basic concepts of the book is that you have money to begin with. If you have no money this process just won't work. But the author does have a chapter entitled "It takes less money than you think". People living in coastal/metropolitan US cities are used to high priced houses costing $500,000 and up. And this is not just Bill Gates type mansions. Regular middle class houses can cost that much in parts of the US. But at the exact same time there are places where houses are extraordinary inexpensive. In rural areas outside the commuting area of the big cities there are houses that sell for $25,000. Just think about how much less you could live on if you didn't have a huge mortgage payment and a huge car payment. Terhorst talks about either not having a car or having a "station" car. That would be the kind of car that you could leave parked at the train station and have no worries about dents. Scratches, and scraps. There are plenty of older, some with low mileage cars around for low prices. Something like a Chevy Station wagon from 15 years ago or a Chrysler Cordoba. The purpose of the these cars is not to imress but just your basic cheap transportation. And if the repair bill gets too high you sell the car and buy another cheap car to replace it. According to the author he has moved out of CDs when the interest rates fell and has a more traditional portfolio of low costs index funds. While living in Argentina him and his wife had an HMO, but currently are self insured and avail themselves of cheaper medical care outside of the US. And while there are places where $50 a day doesn't cut anymore like Paris, the author is still able to live with that self imposed budget in many places. The author writes about a life of traveling to different places around the world but always living on $50 a day. That figure may need to be adjusted for inflation. This book provides one blueprint for independence that though dated should be thought provoking in the reader and your dreams and creative juices flowing. By looking at the author's website you can get a current update on their travels. In January 2003 they were in Bangkok, photos on website. This is a favorite book fo mine along with "Your Money or Your Like" by Joe Dominquez and Vicki Robin.
Rating:
Summary: This book is The Best, A dream realized
Review: I know this book is out of print but if you get an opportunity to buy or read this book I would recommend it. And maybe, just maybe the author will update the book for this new century. I certainly hope so. "Cashing in on the American Dream" the title says it all, financial independence and early retirement.
It may not be for everybody, but it appeals to many. This book is a little dated when it refers to 8% CDs, but the concept is one which is timeless. The author, Paul Terhorst was featured in "Money" magazine several times and has a web site http://www..../. The author retired from his CPA job at KPMG to live the life of world travel and financial freedom. When he retired in 1984 he was making in excess of $125,000 a year. The concept works best where you have a high priced personal residence in a hot real estate market. The premise is that you sell your high priced house and your status car. Then you take the proceeds and invest it in a SAFE, CONSERVATIVE investment living off the interest and never touch the principle. You move to a lower priced area, either in the US or outside. A friend of mine spends much of his time in Costa Rica and tells me that one can still live there for $10,000 to $20,000 a year. I have been to Lake Chapala in Mexico where many Americans live a comfortable low cost life in a moderate temperate climate. A major consideration is health insurance and health care. Some people will be able to get continued coverage from their former employers or the employer of their spouse. For many people this does not work. One of the basic concepts of the book is that you have money to begin with. If you have no money this process just won't work. But the author does have a chapter entitled "It takes less money than you think". People living in coastal/metropolitan US cities are used to high priced houses costing $500,000 and up. And this is not just Bill Gates type mansions. Regular middle class houses can cost that much in parts of the US. But at the exact same time there are places where houses are extraordinary inexpensive. In rural areas outside the commuting area of the big cities there are houses that sell for $25,000. Just think about how much less you could live on if you didn't have a huge mortgage payment and a huge car payment. Terhorst talks about either not having a car or having a "station" car. That would be the kind of car that you could leave parked at the train station and have no worries about dents. Scratches, and scraps. There are plenty of older, some with low mileage cars around for low prices. Something like a Chevy Station wagon from 15 years ago or a Chrysler Cordoba. The purpose of the these cars is not to imress but just your basic cheap transportation. And if the repair bill gets too high you sell the car and buy another cheap car to replace it. According to the author he has moved out of CDs when the interest rates fell and has a more traditional portfolio of low costs index funds. While living in Argentina him and his wife had an HMO, but currently are self insured and avail themselves of cheaper medical care outside of the US. And while there are places where $50 a day doesn't cut anymore like Paris, the author is still able to live with that self imposed budget in many places. The author writes about a life of traveling to different places around the world but always living on $50 a day. That figure may need to be adjusted for inflation. This book provides one blueprint for independence that though dated should be thought provoking in the reader and your dreams and creative juices flowing. By looking at the author's website you can get a current update on their travels. In January 2003 they were in Bangkok, photos on website. This is a favorite book fo mine along with "Your Money or Your Like" by Joe Dominquez and Vicki Robin.
Rating:
Summary: ITS GOOD
Review: I read this book after realizing that I didn't want to travel 100% as a computer science software consultant for the next 30 years and work 80 hours a week. My father still works a couple of projects and my mother worked as an occupational therapist for over 30 years. She just retired. I wanted to avoid the stress of a prestigious lifestyle and the constant need for money. I have curbed my desire for the new BMW & uptown condo. I have instead focused on saving at least 50% of my six figure income. I'm 25 and dedicated to retiring within the next 10 years. I will be married eventually and do plan to have kids. My plan is to retire with enough (500 - 750k) so that neither of us has to work, but rather work because we want to. I'm still trying to convince her it's the path to hapiness. It's definitely the road less taken...coming from a family of lawyers and doctors, it's tough to make people understand the true joy of living. May we celebrate the significance of birth and the joy of living. This book will teach you how. You'll always miss 100% of the shots you don't take.
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