Paul Terhorst was a successful partner with a very large international CPA firm.  At age 33, he got the bug to leave corporate America.  And two years later he broke his addiction to the "good life", gave up his $125,000 annual salary, sold his house and cars, and with $400,000, invested it all in CD's.  He and his wife Vicki then set out on their exciting journey.  That was in 1984.  His journey continues to this day.

The best way I can express my feelings about this book is to provide you a quote from the book in his own words.

"In our society it's considered normal to work during the best years of our lives.  You work when you're young, healthy and vital.  You work when your mental powers are sharp, you mind inquisitive.  You work when you still have a family at home and your kids need you the most.  You give the best years of your life to a career and the last few years to yourself.

Are we crazy or what?"

Well, I think that sums up his core beliefs.  Since dropping out, he has become a worldly traveler, living in Buenos Aires, Argentina, Austin,TX., Chapala, Mexico, Las Vegas, Paris and currently (6/01) resides in Chiang Mai,Thailand.  If that's not your cup of tea, well, you're not alone.

More to the point, Paul worked hard, saved, got in and then checked out.  He and Vicki are leading exactly the kind of life they could only dream about before.  And his $400,000?  I understand it has grown to nearly $1 million . and it happened because (1) he never touched the principle, and (2) he reinvested the income that he didn't use for living expenses.

This book is rather dated in terms of investment advice.  Certificates of Deposit are not my idea of a good investment strategy. And the authors confirmed to me that they abandoned that strategy in the early 90's.  But the philosophy that he offers I believe is worth the read.

His message is that the "good life" which presumably we all want should not be defined by the things we own.  Possessions are nothing more than traps which rob us of freedom . car payments, mortgage payments, $500 suits . you know the list.  He defines the good life as financial freedom . the freedom to live each day as a new adventure.  His possessions are few, but he eats well, has fine housing, not elaborate, and he does whatever he wants to do within the limits of his investment income.

Paul and Vicki have learned the key to happiness is in controlling their wants; not in amassing possessions.

Personally, I wouldn't want to follow Paul's path and give up a career or possessions, nor would living in foreign countries hold much appeal.  But then, I haven't tried it either.  Paul worked in a pressure-cooker environment, and when he made his exit, he never returned.  And he never experimented with alternative employment . dancing to your own music can be very rewarding, even if it is a job.  I define financial freedom as that day when employment is an option.  I think he might define it as the exit date.  And he's probably right.  Stay tuned.

Vicki wrote me about this review and added these comments: "The fun thing about early retirement or financial freedom is letting life evolve. We would define financial freedom just as you do - it is when employment becomes a choice - an alternative - an option.  Early retirement (the theme of Cashing In) we would define as the exit date from traditional employment."

If I have convinced you this is a must read, then I now must offer apology.  The book is out of print.  I found it at our local library and you might have the same luck as I did.  He does have a web site if you have an interest in visiting.  You'll find it at www.geocities.com/paulvic.  It's one of those "free" sites Geocities gives away by the way.  Way to go, Paul.

Interesting to me was his recommendation of another book called "Your Money or Your Life" written by another author.  Why interesting?  For me, that book is required reading for anyone interested in my concept of financial freedom, as I define it.  You might want to check out that book report as well.