Cashing in on the American Dream: How to Retire at 35

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?

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 fu

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.

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.

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!