Mr. Money Mustache

Last updated
Mr. Money Mustache
Mr. Money Mustache Logo.png
Type of site
 Personal finance blog
Available inEnglish
OwnerPeter Jonathan Adeney [1]
Created byPeter Jonathan Adeney [1]
Revenue $400,000 annually as of 2017 [2]
URL www.mrmoneymustache.com
Launched2011;13 years ago (2011)
Current statusActive

Mr. Money Mustache is the website and pseudonym of Canadian-born blogger Peter Adeney. [1] Adeney retired from his job as a software engineer in 2005 at age 30 by spending only a small percentage of his annual salary and consistently investing the remainder, primarily in stock market index funds. [1] [3] [4]

Contents

Adeney lives in Longmont, Colorado, and contends that most middle-class individuals can and should spend less money and own fewer physical possessions. He argues that by doing this, they can live with increased financial freedom and happiness, reducing their environmental footprint in the process. [5] He has described the typical middle-class lifestyle as "an exploding volcano of wastefulness," particularly citing the overuse of and overspending on new cars as an example. [4] The blog has been featured and cited in various media outlets including MarketWatch , [6] CBS News , [7] and The New Yorker , [1] as well as others. He is the brother of Chris Adeney, a Canadian indie rock musician better known by the stage name Wax Mannequin. [8]

Retirement story

The primary aspect of the blog which has caught the attention of many media outlets is Pete Adeney's extremely early retirement at age 30. Adeney and his then-wife both worked in software engineering, averaging an income of approximately $67,000 per year, per person, over the course of their careers. [9] They lived frugally, investing the majority of their take-home pay during their working years. At the time of their retirement, they had amassed approximately $600,000 in investments in addition to a mortgage-free house valued at about $200,000. [9]

Adeney believes in the 4% rule, which states that, with a balanced investment portfolio, a retiree can withdraw 4% of their portfolio's initial value each year, adjusted upward for inflation each year thereafter, with a low probability of ever running out of money. [10] [11]

Adeney's portfolio was valued at $600,000 at the time of his retirement, which could support his family's annual expenditures of about $25,000 [9] indefinitely according to this rule.

Adeney has made considerable money aside from his initial investment portfolio since he retired from his software engineering job in 2005, through the blog and other sources of income, but he maintains that none of this additional money was ever necessary to fund his family's normal expenses. [12]

Community

The website includes an active internet forum for discussion of personal finance matters outside of the blog's comment threads. People who read the Mr. Money Mustache blog and subscribe to its philosophy are known as "Mustachians." [13] [14] Many of the forum's discussions are focused on topics unique to this niche community, such as frugal living, investing large sums of money, and retiring early.

Readers of the blog gather in person regularly at meetups around the world to share experiences and tips on how to live a lifestyle conducive to wealth building, early retirement, happiness, and environmentalism. [1] [15]

In 2017, Adeney introduced "The MMM World Headquarters Building," a physical location in Longmont, Colorado, dedicated to the Mustachian movement. [16] [17]

Common topics

The blog's topics often include: [18]

See also

Related Research Articles

Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload.

A pension fund, also known as a superannuation fund in some countries, is any program, fund, or scheme which provides retirement income.

<span class="mw-page-title-main">Personal finance</span> Budgeting and expenses

Personal finance is the financial management that an individual or a family unit performs to budget, save, and spend monetary resources in a controlled manner, taking into account various financial risks and future life events.

The Vanguard Group, Inc. is an American registered investment advisor based in Malvern, Pennsylvania, with about $7.7 trillion in global assets under management, as of April 2023. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares. In addition to mutual funds and ETFs, Vanguard offers brokerage services, educational account services, financial planning, asset management, and trust services. Several mutual funds managed by Vanguard are ranked at the top of the list of US mutual funds by assets under management. Along with BlackRock and State Street, Vanguard is considered to be one of the Big Three index fund managers that play a dominant role in corporate America.

<span class="mw-page-title-main">CalPERS</span> California government agency which manages pensions for government workers

The California Public Employees' Retirement System (CalPERS) is an agency in the California executive branch that "manages pension and health benefits for more than 1.5 million California public employees, retirees, and their families". In fiscal year 2020–21, CalPERS paid over $27.4 billion in retirement benefits, and over $9.74 billion in health benefits.

An institutional investor is an entity that pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked companies, insurers, pension funds, sovereign wealth funds, charities, hedge funds, real estate investment trusts, investment advisors, endowments, and mutual funds. Operating companies which invest excess capital in these types of assets may also be included in the term. Activist institutional investors may also influence corporate governance by exercising voting rights in their investments. In 2019, the world's top 500 asset managers collectively managed $104.4 trillion in Assets under Management (AuM).

Bain Capital, LP is an American private investment firm based in Boston, Massachusetts, with around $185 billion of assets under management. It specializes in private equity, venture capital, credit, public equity, impact investing, life sciences, crypto, tech opportunities, partnership opportunities, special situations, and real estate. Bain Capital invests across a range of industry sectors and geographic regions. The firm was founded in 1984 by partners from the consulting firm Bain & Company. The company is headquartered at 200 Clarendon Street in Boston with 22 offices in North America, Europe, Asia, and Australia.

<i>The Millionaire Next Door</i> 1996 book by Thomas J. Stanley and William D. Danko

The Millionaire Next Door: The Surprising Secrets of America's Wealthy (ISBN 0-671-01520-6) is a 1996 book by Thomas J. Stanley and William D. Danko. The book is a compilation of research done by the two authors in the profiles of American millionaires.

<span class="mw-page-title-main">M&G</span> British fund management company

M&G plc is a global investment manager headquartered in the City of London. Since its de-merger from Prudential plc, it has been listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

<span class="mw-page-title-main">Wax Mannequin</span> Musical artist

Wax Mannequin is the stage name of Chris Adeney, a Canadian indie rock singer-songwriter. His style has been described as "a hybrid of Bruce Cockburn and Frank Zappa", "Tom Waits and Type O Negative jamming on the early Beatles catalogue", and "Rheostatics via Savatage". Carl Wilson of The Globe and Mail noted that "crowds are often baffled whether to be awed, irritated or amused by Wax's all-rockets-flaring, un-Canadian-like extravagant performances" (2004).

<span class="mw-page-title-main">Kevin O'Leary</span> Canadian businessman and television personality (born 1954)

Terrence Thomas Kevin O'Leary, sometimes called Mr. Wonderful or Maple Man, is a Canadian businessman, investor, journalist, and television personality. From 2004 to 2014, he appeared on various Canadian television shows, including the business news programs SqueezePlay and The Lang and O'Leary Exchange, as well as the Canadian reality television shows Dragons' Den and Redemption Inc. In 2008, he appeared on Discovery Channel's Project Earth. Since 2009, he has appeared on Shark Tank, the American version of Dragons' Den.

William P. Bengen is a retired financial adviser who first articulated the 4% withdrawal rate as a rule of thumb for withdrawal rates from retirement savings; it is eponymously known as the "Bengen rule". The rule was later further popularized by the Trinity study (1998), based on the same data and similar analysis. Bengen later called this rate the SAFEMAX rate, for "the maximum 'safe' historical withdrawal rate", and later revised it to 4.5% if tax-free and 4.1% for taxable. In low-inflation economic environments the rate may even be higher.

<span class="mw-page-title-main">Alberta Investment Management Corporation</span> Sovereign wealth fund of Alberta, Canada

Alberta Investment Management Corporation (AIMCo) is a Canadian Crown corporation and institutional investor established to manage several public funds and pensions headquartered in Edmonton, Alberta. AIMCo was established by an act of the Legislative Assembly of Alberta in 2008 under the government of Progressive Conservative Premier Ed Stelmach.

An angel investor is an individual who provides capital to a business or businesses, including startups, usually in exchange for convertible debt or ownership equity. Angel investors often provide support to startups at a very early stage, once or in a consecutive manner, and when most investors are not prepared to back them. In a survey of 150 founders conducted by Wilbur Labs, about 70% of entrepreneurs will face potential business failure, and nearly 66% will face this potential failure within 25 months of launching their company. A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital and provide advice to their portfolio companies. The number of angel investors has greatly increased since the mid-20th century.

At retirement, individuals stop working and no longer get employment earnings, and enter a phase of their lives, where they rely on the assets they have accumulated, to supply money for their spending needs for the rest of their lives. Retirement spend-down, or withdrawal rate, is the strategy a retiree follows to spend, decumulate or withdraw assets during retirement.

<span class="mw-page-title-main">Financial independence</span> Accumulation of sufficient resources to not need employment

Financial independence is a state where an individual or household has accumulated sufficient financial resources to cover its living expenses without having to depend on active employment or work to earn money in order to maintain its current lifestyle. These financial resources can be in the form of investment or personal use assets, passive income, income generated from side jobs, inheritance, pension and retirement income sources, and varied other sources.

Anne Scheiber was an American IRS auditor and a post-mortem philanthropist who, over 50 years of retirement, secretly amassed significant wealth and upon her death donated it all—US$22 million—to Yeshiva University for scholarships for women. She never earned a salary of more than $4,000 per year until her 1944 retirement and lived frugally in a rent-controlled apartment, letting her investments grow through a tax-efficient "buy and hold" approach.

Robo-advisors or robo-advisers are a class of financial adviser that provide financial advice and investment management online with moderate to minimal human intervention. They provide digital financial advice based on mathematical rules or algorithms. These algorithms are designed by financial advisors, investment managers and data scientists, and coded in software by programmers. These algorithms are executed by software and do not require a human advisor to impart financial advice to a client. The software utilizes its algorithms to automatically allocate, manage and optimize clients' assets for either short-run or long-run investment. Robo-advisors are categorized based on the extent of personalization, discretion, involvement, and human interaction.

Wealthsimple Inc. is a Canadian online investment management service. The firm was founded in September 2014 by Michael Katchen, Brett Huneycutt, Som Seif, and Rudy Adler and is based in Toronto. As of March 31, 2024, the firm holds over C$38.7 billion in assets under management. It is primarily owned by Power Corporation indirectly at 56.6% through investments made through their holdings in Power Financial, IGM Financial and Portag3.

The FIREmovement is a lifestyle movement with the goal of gaining financial independence and retiring early. The model became particularly popular among millennials in the 2010s, gaining traction through online communities via information shared in blogs, podcasts, and online discussion forums.

References

  1. 1 2 3 4 5 6 Paumgarten, Nick (February 29, 2016). "The scold : Mr. Money Mustache's retirement (sort of) plan". Profiles. The New Yorker. Vol. 92, no. 3. pp. 22–27.
  2. ↑ A Visit With Mr. Money Mustache , retrieved 4 March 2024
  3. ↑ Meet Pete Adeney, 2024, retrieved 4 March 2024
  4. 1 2 Johnson, Kelly (26 April 2013). "Meet Mr. Money Mustache, the man who retired at 30". The Washington Post .
  5. ↑ A Visit With Mr. Money Mustache , retrieved 4 March 2024
  6. ↑ Coombes, Andrea. "How to retire early — 35 years early". MarketWatch .
  7. ↑ Stillman, Jessica. "How Much Your Commute Is Really Costing You". CBS News . Retrieved 17 September 2014.
  8. ↑ "Mustache Really on the Move: Heading to Canada for the Summer". Mr. Money Mustache. 25 June 2011. Retrieved 14 October 2017. my brother (who, as a bit of trivia for you, happens to be the Canadian Indie Rock Star Wax Mannequin).
  9. 1 2 3 Pedersen, Claire; Effron, Lauren (12 May 2015). "How the Man Behind Mr. Money Mustache Retired at 30, and You Can Too". ABC News .
  10. ↑ Mr Money Mustache: How I ‘retired’, aged 30 , retrieved 4 March 2024
  11. ↑ The early retirees who know there's more to life than work , retrieved 4 March 2024
  12. ↑ Adeney, Peter (15 September 2011). "A Brief History of the 'Stash: How we Saved from Zero to Retirement in Nine Years". Mr. Money Mustache.
  13. ↑ How these penny-pinchers retired in their 30s, 2024, retrieved 4 March 2024
  14. ↑ Anderson, Tom (31 May 2017). "Use these homegrown tools to figure out if you could retire early". CNBC . Retrieved 20 August 2017.
  15. ↑ A Visit With Mr. Money Mustache , retrieved 4 March 2024
  16. ↑ Meet Peter Adeney, the Canadian-American Who Retired At 30 Years Old - Straight.com, 2024, retrieved 4 March 2024
  17. ↑ A Visit With Mr. Money Mustache , retrieved 4 March 2024
  18. ↑ Adeney, Peter (27 May 2014). "All The Posts Since The Beginning of Time". Mr. Money Mustache. Retrieved 4 December 2017.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.