Work Less, Live More: The New Way to Retire Early

347 Pages·2005·2 MB·English

by  Bob Clyatt

Work Less,
Live More
The New Way to Retire Early
by Bob Clyatt
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Work Less,
Live More
The New Way to Retire Early
by Bob Clyatt
FIRST EDITION OCTOBER 2005
Editor BARBARA KATE REPA
Cover & Book Design SUSAN PUTNEY
Index SONGBIRD INDEXING SERVICES
Proofreading ROBERT WELLS
Printing DELTA PRINTING SOLUTIONS, INC.
Clyatt, Bob.
Work less, live more : the new way to retire early / by Bob Clyatt ; edited by Barbara
Kate Repa -- 1st ed.
p. cm.
ISBN 1-4133-0200-9 (alk. paper)
1. Finance, Personal. 2. Retirement income. 3. Retirees--Finance, Personal . I. Repa,
Barbara Kate. II. Title.
HG179.C6518 2005
332.024'014--dc22
2005047250
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Dedication
To our Teachers

Acknowledgments
My thanks to the many early retirees who shared their stories and their in-
sights so that others might follow a little more confidently. Particular thanks
to the gang at www.early-retirement.org who are always ready to help, 24/7.
Keith Marbach of Zunna.com generously ran study after study to help
refine, test, and update the Safe Withdrawal Method and programmed the
needed enhancements to model The 95% Rule in Chapter 4. Keith also wrote
the code for the WATS Simulator, which has been used for his own published
research as well as for academic researchers, foundations, and retirees.
Paul Fendler, my longtime accountant and friend, graciously provided in-
stant feedback on all manner of tax questions and strategies throughout the
writing of this book. Paul’s guidance, clarifications, and the many hypotheti-
cal tax returns he produced for illustrations can be seen wherever tax matters
arise in the book, notably in Chapter 5.
Tom Orecchio, of Greenbaum & Orecchio in Old Tappan, New Jersey, an
advisor with Dimensional Fund Advisors (DFA), helped refine and test my
early ideas about the Rational Investing Portfolio and turn it into something
worth sharing. Tom graciously and regularly ran scenarios and portfolios
through his software getting me updated and historical statistics that provided
the meat of Chapter 3’s data.
We are all indebted to a small number of independent thinkers who pio-
neered the research, created the products, and stood up against the ridicule of
Wall Street to make the Rational Investing Method viable for the little guy.
First among them is John Bogle, the founder of Vanguard and developer of
the first low-cost index funds. William Bernstein’s research and pragmatic
explanations provided me and many others with the “Aha” moments. And
Eugene Fama and the folks at DFA have given all serious asset allocators the
building blocks we need to understand and implement Rational Investing.