Retired at 34 to live off passive income—Why he wished he had worked a few more years
Sam Dogen retired at 34, but later questioned the decision. He urges early retirees to seek advice and consider long-term financial impacts.
While it might feel like a nightmare for many workers to retire only to reenter the workforce due to deteriorating financial circumstances, the situation may not be so bleak if you’re confident enough to retire at 34.
Sam Dogen, founder of Financial Samurai, did just that—retiring at 34 after his company’s success gave him the confidence to live comfortably without a traditional job. A decade later, he told Business Insider that although his passive income in retirement wasn’t as high as he’d hoped, it wasn’t low enough to make him regret leaving the workforce so early.
What is passive income?
Passive income is a term commonly used in financial circles to describe income generated from non-labor sources—or sources that require minimal ongoing effort. Common examples include investment properties that are rented out for a profit, meaning the rental income exceeds any mortgage payments, allowing the owner to live off the money paid by tenants.
However, in this example, the passive income is ultimately generated through the labor of others. The tenant likely works to earn the money used to pay rent, which the landlord then uses to support themselves through property ownership. This setup raises ethical questions about turning housing into a commodity, as renters are placed in a financial position where they effectively become a source of income for someone else.
Dogen’s advice to those thinking about retiring early
In his interview with Business Insider, Dogen said that if he could have a conversation with his 34-year-old self, he would have worked another five years. “I’m 48 now, and if I were to talk to my 34-year-old self, I’d say stick it out for another five years and try to find a different work environment,” said the financial writer and investor.
Dogen reflected on his career and explained that had he stayed in the investment world, he could have earned an additional $1 million—an amount that would have had meaningful implications for his current financial situation. “That decision could’ve generated $40,000 more in passive income at a 4% return rate, and I would maybe be more financially secure now,” he speculated.
His advice for those considering early retirement: talk to someone who’s already done it. “Before anyone considers retiring early, I would suggest they speak to someone who has already done it and ask them what they would’ve done differently,” advised Dogen.
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