Most financial experts say you need millions to retire comfortably. Some, like Suze Orman, have floated numbers as high as $10 million. But one Indiana couple is proving that early retirement is possible on far less.
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Low Costs, Big Freedom
One couple on the r/leanfire subreddit shared how they retired at 39 with just over $1 million in assets. They now live on about $1,241 per month, or around $15,000 per year. FIRE stands for financial independence, retire early. LeanFIRE is a version of that focused on extreme frugality and minimalism to achieve early retirement with a modest nest egg.
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“We’re living proof that leanFIRE actually works,” he wrote. “We’re free, we travel half the year, and we’re not stressed about money.”
The couple lives just outside Indianapolis, a low cost of living area they chose intentionally. Their expenses are low in part because they’ve made some big financial decisions: their house is fully paid off, they drive a 2005 Toyota with over 200,000 miles, and they have zero debt.
Despite the tight budget, they don’t stay home all year. They spend 4 to 6 months annually overseas in countries like Thailand, where they rent fully furnished apartments for as little as $400 per month and eat street food for less than the cost of cooking at home.
“Street food in Thailand beats cooking at home cost-wise,” he said.
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Health insurance costs? Also zero. The husband qualifies for Medicaid because Indiana doesn’t test assets, just income, and they keep their modified adjusted gross income low on purpose. His wife, who isn’t a U.S. citizen yet, uses an Affordable Care Act-subsidized plan.
“Medicaid in 41 states is based on MAGI. No asset testing. It’s literally how our overlords designed it,” he explained.
Keeping Costs And Desires Down
The couple’s monthly expenses break down like this:
- $500 on food and household goods
- $275 in property taxes
- $120 for electricity
- $97 for home insurance
- The rest goes to small costs like gas, gym membership, and internet
They avoid spending by not caring about lifestyle inflation. “Don’t give a damn what the neighbors think,” he said. “’Stuff’ is the enemy of FIRE.”
Their income comes from a combination of selling short-term Treasury ETFs, dividends, an online side hustle, and occasional bank account signup bonuses. They say their IRA accounts continue to grow untouched.
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Critics Question The Medicaid Angle
Some Reddit users were skeptical of the couple’s access to Medicaid with over $1 million in net worth. But the husband maintained that their eligibility is fully legal.
“Nothing unethical about it,” he said. “They set the rules of the game. It’s our job to know and play by the rules.”
No Kids, No Problem
They say not having children makes this lifestyle possible, and many in the comments agreed. “No kids, no fancy cars, no keeping up with anyone,” he wrote. “But we’re free.”
While many FIRE enthusiasts plan for 4% withdrawal rates, the couple spends closer to 1.5% of their net worth per year. “You just have to actually want it more than you want stuff,” he said.
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