J David Stein of Money For the Rest of Us visits for our ongoing Better Know A Millionaire series.
David went to work as an institutional investment advisor at the age of 30 after spending years in corporate finance. David retired at 40, already a millionaire.
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David tells us that most millionaires, as in The Millionaire Next Door, live a frugal lifestyle. And the best way to become a millionaire in the United States is to start and own your own business. David lives in Idaho and drives a used BMW with a cracked windshield.
What does a retired millionaire do to bring money in? The bulk of David’s income now comes from investing. He is more cautious now than he was when he was still working. He reiterates some ideas we have discussed in the past. Keep your fees low and be greedy when others are fearful and fearful when others are greedy.
When the fear is out there, there is more opportunity.Tweet This
David’s greatest pleasure now that he’s retired is travel. He travels as he lives, frugally. Taking advantage of sites like Airbnb for cheap and comfortable accommodations. David has found that travel has teaches us to “be amazed at how many ways there are in the world to live.”
Another lesson that David reinforces for us is that the best mind’s best ideas did not out perform the market. The average person can match or beat the best money managers out there and without the fees.
But I think David’s greatest wisdom is that living frugally and investing wisely so that we can retire at the young age he was able to are worth the trade off for complete freedom. We all want to be David when we grow up.
JDavidStein.com: David’s personal finance blog.
SilenceLikeThunder.com: David’s site devoted to his personal writings.