Sam Dogen, a 46-year-old in San Francisco, retired from his VP role at Credit Suisse in 2012 after over a decade of intense saving. He planned to live off the passive income from his investments in stocks and real estate. However, after having two children, Dogen is now looking to work again to meet his family’s financial needs. Even as a child, Dogen knew he didn’t want to be poor, having lived in five countries before settling in Virginia, USA. He studied economics at the College of William and Mary in Virginia because it was the cheapest option and landed a job as a financial analyst with Goldman Sachs on Wall Street in 1999.
Dogen’s saving plan began soon after starting at Goldman Sachs, with him investing half of his paycheck into the S&P 500, random tech stocks, and a general savings account. He also maxed out his 401(k) and lived frugally, eating in the free cafeteria at work and sticking to a spending budget for himself. In 2001, Dogen was recruited to Credit Suisse in San Francisco, where his base salary increased, allowing him to save 60% of each paycheck and put money into long-term CDs. By 2003, he decided to diversify his wealth into real estate and purchased a two-bedroom apartment in San Francisco, followed by a house in 2005.
The 2009 crash significantly impacted Dogen’s net worth, leading him to start his blog, Financial Samurai, in 2009 as a form of therapy and connection with others on the road to financial independence. In 2011, sensing more layoffs at Credit Suisse, Dogen negotiated a severance package and retired at 34 with a net worth of $2.5 million. His passive income covered his living expenses, allowing him to enjoy retirement. However, after having children, Dogen found that their expenses were much higher than anticipated, leading them to spend nearly 100% of their passive income.
Dogen now considers his early retirement a failure and is looking to return to part-time work, considering consulting for a tech startup in San Francisco. He believes that retiring at 34 was too early in retrospect and would have tried to stick it out until age 40 if given the chance again. Despite the challenges, Dogen is grateful for the financial security he achieved through his years of intense saving and investing. Moving forward, he aims to find meaningful part-time work that allows him to balance his career with his responsibilities as a father.
