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

by Paul Terhorst

The author details how and why he retired, at age thirty-three, from a prestigious international accounting firm and presents, to those who do not want to spend the best years of their lives working, a blueprint for early retirement

Genres: Finance, Personal Finance, Business, Nonfiction, Self Help, Money

227 pages, Hardcover

First published July 1, 1988

Reviews

[Milford · Rating 5 out of 5]

Honestly, this book changed my life! Before I read it I spent money, like most people, to alleviate my job misery. Afterwards I started saving and investing money to get FREE. The investment strategy outlined in the book is defunct but the philosophy is still sound. (For current ideas see books by professor Zvi Bodie of Boston University.) In fact Paul and his wife are still traveling around the world some 25 years later in 2013. You can check his website to inspire you. So, for the philosophy involved this is a wonderful book. A way of looking at life that most people won't find themselves.
Do you want to spend your life accumulating things and mortgage payments and credit card bills? Or... do you want to live???

[Jacob · Rating 4 out of 5]

This book was written in the mid-eighties, but the concepts still hold 25 years later. One needs to correct the numbers in the book for inflation, essentially multiplying everything by a factor of two.

The author and his wife then retired at 35 with close to $1,000,000 in today's dollars in savings (for a couple). Obviously this is not an option for many people at that age. This was possible due to being a partner in an accounting firm. With $1M in the bank and not wasting money on a big house and personal cars, it is possible to travel the world in style spending about $40,000 per year.

I get the impression that the book was mainly written for the few percent (still several million people) with executive level compensation and a high net worth. The main point is to get people thinking about their priorities. There are some comments about increasing your salary from $80,000 to $150,000 (today's dollars) to be able to reach the savings goal.

Realizing that this is not possible for everybody, the last chapter is dedicated to the bare-bones retirement. This divides all numbers by four.

The main message of the book is: Sell your house and sell your car and you will likely be able to achieve financial freedom and retire early. This is quite true. However, in addition, regardless of how much you make, you also need to learn to live like people making four times less than you do regardless of whether you make $40k/year or $160k/year. The book does not cover this, but those expenses typically, and I say typically, pale in comparison to what most people spend on their homes and cars anyway.

Overall, it's definitely worth reading.

[Aaron Dutton · Rating 5 out of 5]

Probably one of the best books on early retirement mindset that I've read. The investment advice is very dated--the author changed strategies as the market changed, but if you can skim the investment sections, you can get a lot out of this book. I would highly recommend to anyone pursuing financial independence.

[Mickey Dawson-Annan]

Unfortunately, I haven't had the opportunity to read this book, much as I would love to. For some reason it is not available anymore. There was a used paperback copy on Amazon for a ridiculous (my opinion) $497.
Hope Paul Terhorst is not deceased, because I have been wondering why there are no reprints (or better yet, an updated version) of the book.
Anyone knows how one can get one's hands on a reasonably priced copy?

[Alex · Rating 5 out of 5]

A groundbreaking book that changed my thinking about the meaning of "freedom".

[David · Rating 4 out of 5]

There is nothing even close to 8% CDs in 2016. Apart from that, this was a great read!

[Mark Dantonio · Rating 5 out of 5]

ISBN = 0553052896 - Paul Terhorst

Super book! I read this book 25 years ago and I just purchased it again and I just read it again. This is a great book for those that want to get off the treadmill!

Paul spends about half the book convincing one that it is OK to retire. It sounds like a strange idea but it makes sense. We are programmed to work in America (and in other parts of the world as well). We feel bad when we do not (sometimes when we do as well). The author points out that one can fight this feeling and live a simpler life. His premise is why work away your best years?
The author bases his whole idea on saving up $100,000 to $500,000 dollars and earning 8% in FDIC American bank CDs (this book is old and we all know that one cannot get 8% in a bank today). Paul was a young partner in an American accounting firm and he did quite well. He sold his house and other possessions and he banked the money. He set up staggered (laddered) CDs and lived his life.
He gives lots of advice on where to live (Mt Olive North Carolina) but claims the best values are outside the USA. He lives in Buenos Aries Argentina.

The book will motivate you to save and perhaps to be more moderate in your life.

Fun reading. This book starting my savings program many years ago. Loved it.

Mark D.

[Maya · Rating 1 out of 5]

This book is way way to old it doesn’t apply to the world that we live in now 😂economy back in the 80s to today is completely change . I am agree in the model of keep saving and not waist money but cash is trash now CD and savings in a bank are not good at all not 😆

[Lionel Pillai · Rating 4 out of 5]

Brilliant book to read a Kickstarter to financial planning and personal asset building. Gives you a basic idea of financial freedom and the quirks along with it. Brilliant read.

[Alicia · Rating 2 out of 5]

Very out of date overall.

[Lam · Rating 3 out of 5]

1.Live like a student
2.Live $50 a Day
3.Work and Retire or Work - Retire a few year - Work again

[Denny Troncoso · Rating 4 out of 5]

Although written in 1988 it has timeless tips. The mindset the author teaches is gold. A good book to read for those pursuing building wealth and/or early retirement.

[Laura · Rating 3 out of 5]

It was a good book and well written. However most of the helpfulness was too out of date to be useful 20 years later. I mean he talks about getting a 12% to 17% on a CD. But I could see where his ideas were very revolutionary for the time.

[Tony Poerio · Rating 5 out of 5]

Paul's story is inspirational. The writing is elegant, and the stories are memorable.

It'll give you hope that retiring by 35 is possible, and some tools + ideas to do it.

I'll be re-reading at some point.

[Ryan Adams · Rating 4 out of 5]

This was a pretty good book, although since it was published in 1988 his investment advice no longer applies (CDs paying 8% interest). I found a lot of advice in common with Zelinski's 'Joy of Not Working'.