Young retiree shared strategy
London Community News
By Mallory Clarkson/London Community News/Twitter: @MalloryClarkson
Derek Foster accomplished something at the age of 34 that most people only dream about — he retired.
Around the ripe age of 18 or 19, Foster began investing in stocks and about 15 years later, his dividends — quarterly payments made by a company to its shareholders out of its profits — grew to a point that would sustain a lifestyle Foster and his family could enjoy.
While it’s more frugal rather than frivolous, Foster said he and his family are comfortable.
“Spend less than you earn, invest the difference, buy good quality stocks ... and keep collecting the dividends,” Foster said. “It is easy.”
Now at the age of 42, Foster, along with his wife and five kids, is travelling across North America for a year in a 31-foot trailer to share about how he was able to retire so young. One of those talks took place Wednesday evening (July 25) at the London Public Library’s Masonville Branch.
As for how he was able to retire nearly 30 years before the average Joe, Foster explained that when he was in his early-30s, he began looking into how much money he would need to bring in through dividends to cover his expenses. Once he reached that magic number, he no longer needed to work.
This journey was detailed in Foster’s first book entitled Stop Working. But, despite writing a total of six financial books, Foster still doesn’t consider himself a financial expert.
“I’m an idiot, but in spite of that fact, I was able to retire at 34,” Foster said. “I don’t know of anyone else who’s done that, so I think that’s unique.”
Foster said what sets his books apart from other financial help literature is he penned his experiences rather than basic theories.
“I find a lot of the ‘quote-unquote gurus,’ try to sell the idea that they’re all-knowing investors and they try to sell the idea that they know these answers,” Foster said. “I don’t know the answers and I’m not going to try to hold myself out there as some guru because I’m not.
“But, what I do is I buy idiot-proof stocks, I rely on the fact that hypothetically, if I buy Colgate, I’m relying on the fact that you’re going to continue to brush your teeth.”
He added when using that approach, you don’t have to be smart, but patience is necessary. Rather than realizing it does take time and effort, Foster said most people want to win the $10 million-jackpot tomorrow.
“We live in a society, the minute the Lotto 649 goes up, there’s people lined up to buy tickets,” he said. “People want instant results, they’re not willing to wait a couple of decades to see something happen.”
All of Foster’s books can be bought through his website at www.stopworking.ca, where you can also get more information or sign up for an e-letter. His books can also be purchased at Chapters Indigo locations.
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