<< 1 >>
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: 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.
Rating:
Summary: A MUST READ book
Review: paul's book has been a life saver. when i first read it, i was a successful dentist with $500,000+ debt. we sold the big house(big mortgage), mercedes, rolexes,and dropped out of the country club. we had helped all three kids get their first college degrees, but further education would be their responsiblity. once out of debt(5 years later) we had a whole new perspective. we sold out of expensive austin. now,we live in west texas and enjoy going back to college for fun!!!last year we spent a month in spain and this year a month in japan. as a dentist, a week out of the office was the max! i am happy being unemployed and living cheaply.
Rating: 
Summary: An Outdated Book for the Rich and Healthy
Review: The author shows you that it is possible to get out of the rat race at an age much younger than the norm; all it takes is an idea, a goal and the commitment to not listen to the din of consumerism. His book is a bit dated in 2002, CDs aren't paying as much and houses in most parts of the country aren't appreciating like they once were. But it's the idea that you can escape that makes the book such an interesting read. I would also recommend Possum Living, Your Money or Your Life, and Rental Houses for the Successful Small Investor. All three touch on the same subject though on different aspects of it. Some people are happy with the traditional "9 to 5 'til you're 65" routine, and that's OK. But in poll after poll something like 70 - 90 percent of us would leave our present job given the opportunity. I think that fact is a function of the nature of the beast; I don't think we were evolved to end up living within the constraints of most typical employment. Financial independence is not a pipe dream it is simply a goal that requires planning and execution the likes of which is simply beyond the attention span of most of us caught-up in the pleasures of immediate gratification at the expense of life-long servitude. Our financial lives have failed to evolve. We spend our money, percentage-wise, almost exactly like people did 50 years ago. What is up with that? But I keep the faith, as we are a nation of pioneers. If we are ever to cash-in on the promise of our increased productivity (in the 50s they thought we'd only be working 24 hours a week by now), we need people with the fortitude to figure it out and pass it on. Good luck if you're one of the pathfinders, I hope to hear from you.
Rating:
Summary: Fifteen Years Later, He's Still Retired
Review: This book, along with Your Money or Your Life, changed our lives. By following the advice outlined in these two books, we were able to quit our jobs in our forties and pursue other interests. We have been free of the daily grind for over four years now, thanks in part to Paul Terhorst, Vicki Robin and Joe Dominguez (authors of YMOYL). In a conversational style, Terhorst explains how he realized his job was sapping the life out of him, and how he used his skills as an accountant to devise a plan that would enable him to retire at 39 years of age. Unfortunately, the specific financial advice he gives (invest in high-yield certificates of deposit) is no longer possible. But number-crunching is not the most important message that Terhorst has. Cashing in on the American Dream advocates a no-nonsense approach to determining just what you want in life. Do you want to be free of working for others? Then it might mean giving up your car and dinners out. But it doesn't have to mean giving up what you really love (or need). Terhorst and his wife, Vicki, have been retired almost twenty years now and have spent much of it traveling the world. They have health insurance abroad, because it's cheaper than U.S. insurance, and better. The Terhorsts have their own website and I like to check in on them once or twice a year. The fact that they have made their plan work all these years is more important than any advice they have. Cashing in on The American Dream is an inspiring book. If they could do it, why can't you?
Rating:
Summary: A Classic on Early Retirement
Review: Tired of life on the corporate treadmill, Paul Terhorst retired from his Accounting career at age 35. The main premise of this book is that by tapping into equity you may already have (like your house), and keeping your expenses at a reasonable level, you may find that you are closer to retirement than you think. A key component of Mr. Terhorst's philosophy is appropriately entitled "Don't work for your Assets". When you consider the amount of money that many of us spend on property taxes, car payments, car insurance, expensive toys, swimming pools, etc., who are we really working for? Are we working for ourselves or simply supporting our assets? His solution to this situation is to calculate how much those assets would be worth if they were converted to cash. When he went through the exercise for himself, he realized he had enough money to retire at age 35. Many years after retiring and writing this book, Mr. Terhorst and his wife are still retired, doing what they want each day, instead of slaving away from 9 to 5 for someone else, which is a testament to the effectiveness of his early retirement philosophy. An excellent book. Highly recommended. John L. White, author "I'm in Debt, Over 40, With No Retirement Savings, HELP!"
<< 1 >>
| 
