Retiring Early On $870K In Arizona | Millennial Money

Courtney Adcock, 36, and Steve Adcock, 39, retired in their mid-30s with a combined net worth of $870,000. This FIRE couple lives off the grid in the Arizona desert and spends $40,000 a year.

This is an installment of CNBC Make It's Millennial Money series, which profiles people around the world and details how they earn, spend and save their money.

Steve Adcock wakes up at 6 a.m. every day. He starts his morning with a workout in his home gym before settling down at his desk to check emails and browse social media. By 10, when most of America’s other 39-year-olds have logged on for work, he’s getting ready to take his dog for a walk around his desert property in Pearce, Arizona. It’s a tried and true routine for Adcock, who has been retired for the past five years.

Adcock didn’t always have such a relaxed life though. He spent 14 years working in information technology, a career that “pays well, but tends to drain the life out of you,” he tells CNBC Make It. After more than a decade of work, he realized it was time for a switch.

“In my early 30s, I came to the realization that I just could not spend the rest of my life sitting in front of a computer, working 10 to 12 hours a day, writing computer code or fixing problems,” he says. “I just couldn’t do that.”

He approached his wife Courtney, now 36, with the idea to retire early. Though she was less sure about retiring than Steve, thanks in part to her fondness for her job as an engineer, she eventually came around to it. The couple formed a plan to cut their spending and save 70% of their combined income so they could quit their jobs and travel the country, living only off of the growth of their investment accounts.

Steve and Courtney retired in 2016 and 2017, respectively, with a combined net worth of $870,000. Despite not adding a penny to their investments in the ensuing half-decade, they are now worth about $1.2 million and don’t plan to head back to the office any time soon.

How the Adcocks retired in their 30s

In 2014, when Steve and Courtney decided to join the FIRE (financial independence, retire early) movement, their net worth was roughly $650,000, including the estimated equity in their home, which they planned to sell. They determined that they needed a total of $800,000 to $900,000 in order to retire in their 30s. They were bringing in around $230,000 combined each year.

Thanks to their high salaries, Steve and Courtney were able to max out their 401(k) contributions in the years leading up to their retirement. They also slashed their spending, eliminating monthly subscriptions and streamlining their grocery budget. “At one point we were saving 70% of our combined income,” Courtney says. They funneled all of the extra savings into a Roth IRA, brokerage account and savings account.

The couple also moved out of their 1,600-square-foot home in Tucson, complete with a swimming pool, and into a 2005 Airstream that they purchased for $42,000 in cash.

By August of 2015 their net worth was up to $775,000, and they eventually hit their goal in late 2016, a little less than three years since Steve decided he wanted to retire.

Courtney has always been more of a saver, Steve says, and even though retiring early was his idea, he had the harder time reigning in his spending habits. Perhaps the most drastic change they made was limiting their restaurant budget to $50 per month, a difficult task for Steve, a restaurant aficionado who says he once made a point to visit an eatery a day for a full year.

“Before we got married, I spent a lot of money. I had a supercharged Corvette convertible. I had a brand new Cadillac CTS. I had a Yamaha sportbike. I had all the toys,” he says, noting that they have all since been sold. Now, the couple shares one pickup truck, which they use to pull their Airstream when they travel around the country.

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Retiring Early Together With $870K In Arizona | Millennial Money

[Helen-tgtr]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[Hannahbenowitz]

I am currently burning through my 40s and This is no time to taper retirement savings. I want to max out my retirement funding and I also have another $200k in a savings account that i want to invest in a non-retirement account.Would it be better going to housing? Maybe own property and let it till im ready to move in at 65.

[JamieAlberto-pusi]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[patrickbrussels]

I’m glad I pulled through, despite the crises. I am retiring next yr at 55 with 3 houses paid off worth 4.5 million . One is my place of residence the other 2 properties will give me $80, 000per/yr rent . I will have an income stream of $20, 000 per yr through my super which gives me total $100, 000 a yr to live comfortably . I have no debts ... Stay Motivated!!

[graywilliams_.]

Financial books have been so helpful. >> I’m 54 and my wife 50 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.

[SamuelGarcia-rfth]

i like how these guys stay true to what sacrifices they were willing to make (i.e., no kids, far from the city, away from modern amenities) in order to enjoy their current lifestyle. May not be for everyone, but kudos to this couple for sharing another glimpse of how people can achieve FIRE and have all that they need.

[gti]

Y’all didn’t mention you have that absolutely huge, enormous financial benefit.

NO KIDS!

[Riggsnic_co]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[JannyLuits]

what can I do? I have been disabled since 2009 and I am 58 years old at the verge of retirement. My portfoliio of $750k is down to $492k, How can I profit from the present market", I mean I've heard of people making upto $250k in couple weeks during this crash and I'd like to know how.

[mariac.]

Surprisingly, they look older than their age.

[rozchristopherson]

I'm 61. I used to work as a Financial Advisor/Stockbroker with Morgan Stanley. In our training, we were told to advise clients that they should anticipate living to 100 or well into their 90s. Therefore, they would need retirement funds which would last for approximately 40 more years after stopping working between age 60-65. To have retired mid-30s, that would add an additional 30 years. Therefore, retirement funds would need to last perhaps 70 years. This couple featured has no children so that is a savings. However, one of the things they did not talk about which is a real concern for most working people is healthcare costs. By retiring at such an early age, they have taken themselves out of eligibility for group plans through one's job. Group plans are a form of government subsidy since the premiums are paid in full or in part by the employer who gets a tax write-off for the amount contributed to the healthcare insurance premium. Many employers continue to receive a tax write-off by establishing Health Reimbursement Accounts (HRA) for their retirees which help with premium costs. The former employer, then, contributes either a lump sum of annual/monthly amount toward premiums and out-of-pocket expenses. Over time, this couple will have to pay higher and higher premiums as they age. Should they be hit with a catastrophic illness before age 65 when eligible for Medicare, they will have major healthcare costs which could wipeout their savings because of high premiums and no Medicare subsidy. To be eligible for Medicaid, they would have to spend down and not have a house, car, investment accounts, etc. Also, their dollars they have saved now will be worth considerably less over time even when adjusted for interest, dividends, and inflation. If something should happen to one or both of them which would end their ability to drive, they would need to move closer to a town or city, which would mean an increase in spending. Also, if they should wish to return to work later, in their 50s or 60s, they would find employers hesitant to hire them for any high-paying positions as they age. Therefore, I would not advise someone retiring so early unless they are independently wealthy (i.e., family wealthy or business) apart from their own investments and savings. If people wish to have more flexibility with their time, I advise working from home in some capacity, either for an employer or starting one's own business. Retiring before age 50 could prove very risky because of the many factors involved, chief among them being healthcare costs.

[marcrose]

I am fascinated by this. I don’t think I’d want to live such a spartan lifestyle in retirement, but I admire them for doing so and for the freedom they are enjoying at such a young age. Well done

[gilochoa]

At 63 and still working a great job, I find their story very inspiring and give them kudos for their planning and foresight. Awesome!

[emeraldcastle]

I guess not having kids really helps! Not to mention low cost of living area!!

[AyaanFarax]

I <<was r!ch by 32, and retired. I'm now 58, and even richer, but it isn't as fun as 32.If u aren't rich by 40, don't give up, but know it's not as fun. No one gives a fuck about old rich people. Do the right thing at the right time.

[usflin]

This is one of the few budgets in this series where it actually seems like all annual expenses are included within the monthly breakdown, glad to see it. Loving all the commenters saying this couple has a boring life, lol, please tell me...what are all of you doing that is so exciting? Watching youtube videos and leaving judgmental comments? Going to work, spending time with family and friends, doing chores, taking a vacation once in a while? Perhaps you missed the parts of the video where they talked about how much they travel and how they literally spend their time doing exactly whatever they want?

[donaldlocher]

Joined the Navy at 18 with 7k in the bank. I did janitorial and smoked a lot of pot in high school. Left the Navy after months with 40k in the bank. Invested 30k in the S&P stocks. Started working at UPS, Exide Battery and did concrete on Saturdays. Invested 1k a month every month into it with my Financial advisor James Fletcher Brennan, Cashed out 350k from the S&P Cashed out and Semi retired at 31. Took a year off. Traveled. Came home and started working part time just for the insurance, entertainment and pocket change and still investing in stocks with a 3 million net worth, Work isn't work when you don't have to work. Becoming wealthy can be done in few years. It feels like 60hr work weeks. Feel the pain of discipline early or feel the pain of regret later. I wish everyone well!

[LostMySauce]

How to retire early: Make over 250k combined and save a hefty portion of your already large income.

[frenchlearner]

This video really demonstrates the huge benefit of not having any kids LOL. Good for them!

[Veronicastyle-]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.