What Does it Take to Retire Before 40?

4 snips

Sep 3, 2025

A teacher in her late thirties with $800,000 saved is contemplating early retirement to travel the world. She shares her journey of overcoming childhood money anxiety and navigating debt. Discussions include strategies for tax-efficient withdrawals and the significance of Roth IRA conversions. The importance of flexible wealth management, understanding retirement accounts, and adaptive investment strategies are also explored. Personal anecdotes about travel dreams further enrich the conversation, making financial planning feel relatable and achievable.

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ANECDOTE

Paid Off Debt By Teaching Abroad

Camilla paid off massive student loans by teaching overseas and sending most of her salary home.
She used low-cost living abroad to build a large nest egg quickly.

ANECDOTE

Childhood Shaped Extreme Money Anxiety

Camilla's difficult childhood and family instability created deep money anxiety.
That anxiety drives her strong saving behavior and fear of running out of funds.

ADVICE

Three-Bucket Portfolio For Stability

Split your portfolio into growth, yield, and a cash reserve to balance growth and income needs.
Keep 6–12 months of expenses in high-yield savings to avoid forced selling during market dips.

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Camilla, a teacher in her late thirties, is ready to pull back from full-time work and travel the world. Despite paying off significant student debt by teaching overseas, she has deep-seated money anxiety stemming from a difficult childhood and fears running out of funds. With $800,000 saved, Camila’s wondering how to withdraw her retirement savings in a tax-efficient way while ensuring her portfolio’s continued growth.

In this episode, Camilla sits down with Crystal, a Morgan Stanley Financial Advisor, and discusses her options, including tax-loss harvesting to offset capital gains taxes, Roth IRA conversions and a high-yield emergency savings fund.

For more information about this episode and the topics covered, check out our episode page and explore how you can connect with a Morgan Stanley Financial Advisor.

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CRC# 4753386 (08/2025)