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How to Retire Early: The Latte Factor

Lesson 2 of 18

My Start in Investing and Teaching


How to Retire Early: The Latte Factor

Lesson 2 of 18

My Start in Investing and Teaching


Lesson Info

My Start in Investing and Teaching

She taught me how to buy my first stock at age seven, and that was in McDonald's. And so it's seven years old, totally and is an eating Milo, Big Mac and French fries and apple pie and milkshake, she said. You know, you could get rich here. You like to play the game of Monopoly. I can teach today how to play it for real, she said. I'm gonna take you home today and show you how you can own this place, she said. See, there's three types of people in the world. See that person over there that's working in the cash register that's called a worker? And that poor worker makes minimum wage? Do you know much minimum wages? I don't know Grandma much, is it? She said. Right now it's 85 cents an hour. Which seven seem like a lot of money? Because I was like, That's a bunch of gum. But she said, it's not a lot of money and super hard to get ahead on minimum wage, she said, There's you You just came here and got the Big Mac large fries and the apple pie milkshake. Say thank you, by the way, thank y...

ou, Grandma, and you spent money. And then there's somebody else who owns this place. I'm gonna teach you out on this place because when you own it, when you come here, you'll make money from yourself. When your friends come here, you'll make money from them. Grandma, how could I own there? Donald, she said, I'll show you. She takes me home. She opens up The Wall Street Journal. She circles on CD, she says. That's the stock symbol. Now go watch the TV screen. I'm gonna teach you how to read the ticker tape. She gives me a pad of paper. She's like every time on the CD goes by, write down the number. That will be the moment the price goes by. That's what it's trading for right now. So the stock symbols going by, I'm calling it out. $17 a gram of $17 and something else aligned with No what fractions, where she's like, That's how much it costs to buy that stock. And then she took me to go by my first share. She's like, now you own this place. Now you're an owner of McDonald's. At nine years old, I go to Disneyland. I'm like, Can you buy this place to? And that would be my second stock. Her lessons would shape my whole destiny. And so I was a financial adviser, and I came in finance Citrus industry in 18 93 alongside my father and wait a lot. Older clients and the clients are starting to tie, and the ones that almost always die first are the men. 80% of men. This is an important statistics, right down 80% of men di married 80% of women die widowed, which is why I became a procedure for women's financial empowerment because it's women who are the ones that were hurt the most in their older years. 80% of the poverty stricken elderly or women because you've lived longer. My grandfather passed away in his early seventies. My grandmother lived to be 86. I have to grammar roses. My mom's mom lived to be 96. Her husband died at 56. Guess what? The average age of widowhood is still in this country today. 50 70? Yeah, So we start having these clients who are dying, and I'm meeting with women who do not know how to write checks or read their brokers. Take. And I say to my father, Dad, what is going on in this office? We have all these clients that are dying and they're all men. And we're teaching the wives how to read their broker statements at the worst possible point in their life. This is insane. He go, David, where you talk Because here's the thing. Not everybody was like your grandmother. She is not the norm we have all this is 1993. We have all these older clients. He's like it's kind of always been the men that are managing the money. I go well, Grandma Bach, and do it. Then we need to change this. I'm gonna go teach a class for women and money. I had a vision to teach a class around this size. This is 1994. We send an invitation Help. 222 women from our clients want to come to the first seminar. The invitations air coming in. My dad's opening the mail. He's seizing. You know, son, you may have a problem. I go. What's the problem? He goes, Have you checked to see if the hotel room can fit this many people. I'm like, Dad. It was It was a brand new hotel. Is Lafayette Park Hotel him like all I'm sure will be fine. Because you better call. I call them up. They go. Yeah, we can put 100 7 people. So good news is the room is full. Now, I've got to teach to this class two times and three times. I just didn't event two days ago with my sister Emily, back in the Bay Area, where this whole thing started back in 1994. And I got to have a private event with our clients. There were two women from my first seminar in that room two nights ago. And amazing is one of them was young at the time. She was in her twenties. Now, years later, she's in her forties. One of the women in that room. The reason Hadley, I'm gonna show you another book here in a second. When have we came to that first seminar? And I taught her how to double down on her savings because she wanted to retire early. Coming, if you want to retire early. So So Well, then came similar. She's like, I won't retire early. Well, then, Lynn, you need to make some serious changes. Okay? Show me what to dio. I showed her what to Dio. She retired early Then she ended up in the automatic millionaire book to tell her story. Then she went to Oprah with me. So one more client sitting in my room two days ago from 25 years ago. So the first book I wrote after I tell this class for years with smart women finish rich and then I've written a whole bunch more after. That's more couples and all these books you see here there's been 11 books out and it's just been a total blessing and a privilege to be out basically teaching out for 25 years. This is what I love to dio. And today what? I'm excited Dio is teach you about the lot a factor. So I have written three updates These three books have been updated in the last 18 months. Smart women finish rich smart couples finish rich in the automatic millionaire I am always asked which book should I read first? I'm gonna tell you today in a lot of factor. Most people start with the automatic Millionaire. This book has sold 1.5 million copies from most popular financial books of our time. Smart Women Finish. Rich has sold over a 1,000,000 copies, the most popular financial book for women Ever. Smart Couples Finish, which is actually most popular couples book. So it's three great books for you today. We're going to talk about the lot factor. So yes, so, um, this is totally different than anything I've ever done. And I wrote this book in a different way because I want to reach people who wouldn't normally read a financial book. So this is not a typical self help nonfiction financial book. It's a story. It is a story you can read a super small, and you can read it in like, an hour, two hours max. And it's a story that's going to take you on a journey about a young woman named Zoe Daniels. And by by going on the journey with her, you're gonna learn life lessons that you're richer than you think. That small amounts of money can change your life, that you're stronger than you know. And most importantly, you're gonna learn. It's actually not about the money. It's about your dreams and how you go get them. And that's what today's class is gonna be about. Some of you are on my amazing insider team. Who here is from my insider team. So what Precinct 123 could basically the whole audiences from my insider. So what I did to pre launch this book and you can and I'm telling you all this because those you are home, you can still join me. We created an insider team of people who wanted change your life financially by reading this little story. And then all time will go share this lessons thes three secrets on how to build financial freedom with your friends because my idea was if we could get a couple 1000 truly motivated, inspired human beings that together we could go out and make a difference in the world like a little dent. So I created this website. It's at the lot a factor dot com, and bribery is amazingly valuable tool. So what I did and it worked cause you all took the bribe. As I said, if you go by one copy of this book, and you could do this right now to on my website at the law. Dave after dot com. I'm gonna entice you with bribes and those bribes. Air free gifts. One of those free gifts happens to be thanks to my friends and create alive. You get the start late finish. Rich course, which normally we would sell for $149 has 19 videos. It's you. Have you guys watched it? It's amazing, right? And that's included. So you go by the book, you get the ability to watch that course immediately. Also another keynote speech and then a bunch of other goodies. The most valuable, I think, is our insider Facebook page. Because what's happened now we have 1600 people on this team, 1100 got on Facebook, and now we have a viral community inside supporting each other. What I'm gonna talk about also today is that you need people whose support your dreams. You need to remove yourself from the toxic people, and you need to embrace the people that support you. And so, at our private Facebook page, we've built a team that will support you, so come on over to a lot of factor dot com and enjoying us. A couple things I also just launched is the lot of factor podcast this all free. So at the Lahti factor dot com, you can download the podcast. There's eight episodes. The first episode is the 1st 3 chapters of the book narrated by me. So go listen to that Today for free. The ultimately when you go by the audio won't be narrated by me, but that's on the podcast. So check that out. We just put this up yesterday so brand new. So back to the book. I wanted to write a book that anyone were read, starting with my son. So my son Jack is 15 and he's the most amazing. I actually have the most amazing teenage son. Jack. I love you. I really do. I'm like the proud dad that loves his son and my son. Basically, he doesn't ever disappoint me, except he's ready in my books. So every time the books sit by his bed, I all we signed him for him, and I'm like, You know, you gotta read, Read the automatic millionaire your age Now, Dad, I go to your seminars. I don't need no, no, you need to read the book. But he didn't read the books telling the truth. So I thought if I put it in a story that a teenager could read if I can read people starting in their teens and college and millennials and anybody else who needs it just would not read a financial look, I could help a lot more people. So my son, he's never read one of my books. He read this book on a plane flight in two hours, cover to cover without bribery. So he turns to me and he goes the end. Dad, this books really good. This book's really good and he turns to the back of the book, and I'm gonna show you a little bit of chart. But there's this incredible chart in the back of the book. He goes, Is this chart real? Yeah, it is. He's like that. If I did this, I would be a multi millionaire, and I go, I know he's like, Well, then we need to do this for me. So that really made my day. And then the second man made my day is this book and we'll talk about this later, too. But this book talks about going for your dreams and taking risk. And there's a story about my grandmother in there. To where I'll tell that later. But she comes to a fork in the road and she doesn't take the risk and she regrets it. And he read that part of the book and he said, Dad, the most important lesson I got from this book I need to take a risk. How much? You're right. Anything in life you really want. You have got to go. Take risk. You have to take the road less traveled. I'm a teacher. How to do that today. There are a lot of you right now that are playing it safe and saves Okay, unless safe is making you sad, right? A lot of people who are watching right now happened be watching this work because you don't like your job. So you've got earphones on and you're supposed to be working. But you're sad you don't want your job, even if it's paying well. It's not what you want to do. There was a recent study that came out by into it, they said There's 24 1,000,000 people right now who have a job that one out in the next 12 months and only probably there according to serving about two million will make the leap. I don't even have to get these stats that obviously the big serving to get it. But like 24 million people, basically, they don't want their job. Look, I'm not trying to everybody across America to quit their jobs today, but if you love what you're doing, we need to get you to financial freedom. We're talking about how to retire early, and I'm gonna have to talk about teaching you today how to transition, because it's actually not about my opinion. Retiring early If you want to. Fantastic, we'll show you how to do this today. But it's about transitioning you financially is that you are free to leave something that's making you sad so you can go for what your heart really desires. Some make sense

Class Description


  • Create financial freedom starting with as little as $5 a day
  • Learn how to earn 10% rates of return of your money
  • Understand the automatic millionaire habit that changes everything
  • Retire early or transition early to a life you dream of
  • Understand the FIRE movement and how to apply it to your financial future
  • Know how to become rich faster, as a freelancer or a small business owner
  • Use the Automatic Millionaire pyramid system to double your money in 10 years or less
  • Know which companies, apps and investments today are making managing your money easier and cheaper


What if you didn’t need to be rich to live rich? What if there were a way you could achieve financial independence and live your dreams now?

In less than five hours – The Latte Factor Class can help you take control over your money and your life. Whether you’re just starting out in business, an employee, or you’re in debt and you just want to live the life you’ve always dreamed of, “The Latte Factor” is a one day program that has inspired millions.

David Bach is the Author of The Latte Factor and the creator of The Latte Factor Method. He’s also a nine-time New York Times bestselling author of books including Start Late, Finish Rich and The Automatic Millionaire. In How to Retire Early: The Latte Factor, David Bach will teach you why you are richer than you think. He’ll help you see a future that puts you in control over your finances and back in the driver's seat of your dreams.

It’s never too late to start living your dreams; today is your starting point. Whether you are living paycheck to paycheck, or simply want to increase your net worth, this class is for you if you’re ready for a fresh outlook on life and money.


  • Anyone who wants to stop living paycheck to paycheck
  • Freelancers
  • Small business owners
  • People who want to live their dream life


David Bach is one of America’s favorite financial experts and bestselling financial authors of our time. He has taught millions to live and finish rich through his seminars, live events, courses and books. He’s the author of 9 New York Times best sellers, with over 7 million books in print in over 19 languages - including Smart Women Finish Rich, Smart Couples Finish Rich, and The Automatic Millionaire. He’s a media favorite having made thousands of appearances the past twenty years, including on Oprah six times and the Today Show over 100 times. David is the co-founder of AE Wealth Management and Director of Investor Education. His latest book is The Latte Factor: Why You Don’t Need To Be Rich To Live Rich. David presents seminars for and delivers keynote addresses to the world’s leading financial service firms, Fortune 500 companies, universities, and national conferences.


  1. Class Introduction

    You don’t need to work five side hustles for the next decades to achieve early retirement. You don’t need to live paycheck to paycheck for the rest of your life. Meet David Bach and learn how small amounts of money can change your life. David shares his personal finance story starting from age 7.

  2. My Start in Investing and Teaching

    What did David’s first “financial advisor” teach him? Why is it so critical that women in particular begin their retirement planning now? David shares his investment history what you’ll learn in his book, The Latte Factor: Why You Don’t Need To Be Rich To Live Rich is about.

  3. Financial Education - Know Better To Do Better

    In this lesson, David paints a picture of the dire necessity of financial education for Americans. Learn about the mindset necessary for a happy retirement, how companies force employees out of work in their 50s, what rich people now that poor people don’t and how credit card companies prey on consumers. David lays out exactly what you will learn in this class.

  4. Start Early, Start Today

    Early retirees don’t all start with six or seven digit annual incomes -- most started saving and investing early. David shares a comparison of how early planning can immensely impact your retirement savings.

  5. The Latte Factor: How It Works

    What exactly is the latte factor and how can you find yours? In this class, David breaks down the latte factor math and shows you how to save money by cutting out small non essential living expenses and developing a daily mindset geared toward retirement. He also shares his pick of online resources and apps that aid in financial planning and investing.

  6. Student Success Story

    Hear directly from Elizabeth, a member of David’s inside team regarding her financial planning journey over the past 18 months.

  7. FITE - Financial Independence to Transition Early

    Learn about the FIRE movement and David’s take on transitioning vs retiring. David reviews how to plan backwards from your desired retirement age, introduces the 50/20 formula and shows the effect of turbocharging your income stream.

  8. Common Investment Mistakes

    Don’t make these common investment mistakes that won’t yield extra income. David gives advice on buying a car.

  9. Becoming Rich on an Ordinary Income

    You don’t need that much money to become rich or build up a nest egg. David shares research from Fidelity Investments that shows the concrete steps to take to become a millionaire through 401k investments.

  10. How Much do You Need to Retire

    How much should you save and invest or, as David says, pay yourself? See what you should be saving at 30, 35, 40, 45, etc.

  11. Retirement Plans & Where to start

    David orients you to the different types of retirement accounts available, highlighting their benefits depending on your needs. Learn the difference between a traditional vs. Roth IRA, spousal IRA, SEP IRA, 401k and solo 401k plan. What is recommended if you’re self-employed? What if you have employees? David answers your questions and points to brokerages, roboadvisors and apps where you can start.

  12. How to Earn 10%

    There’s a lot of talk about earning a 10% return on your investments -- how do you actually do it? David teaches you the rule of 72, a quick way to calculate how long it takes to double your money when calculations and retirement calculators aren’t at hand. David takes audience questions, addressing financial planning in relationships, investing while in debt, and his advice for self-employment.

  13. Investment Pyramid

    The opportunities for investment can seem overwhelming and intimidating; David presents an “investment pyramid”, displaying all investment options from low to high risk. Learn what makes a diversified portfolio and what David himself invests in. Lastly, David cautions against the high-risk investment zone and which investments to stay away from.

  14. Reasons Most Investments Fail

    In this lesson, David shares the top 4 reasons most investors fail; learn what not to do. See a historical representation of an investment from 1926 through today and learn why the stock market will always favor a “boring” investor.

  15. 5 Things to do During Market Correction

    Market corrections are normal and happen throughout history. David advises on what to do on your own or with your financial planner or advisor.

  16. Retirement Accounts and Investments

    What are target dated mutual funds, asset allocation funds, balanced funds and simplified ETF solutions? Why are they ideal investments? Which Vanguard fund does David recommend? David gives you homework in this class: crucial questions to ask yourself and actions regarding your 401k.

  17. Renting vs Home Ownership

    Why is real estate one of the best investments you can make in your future? David shares benefits and advice regarding mortgages, payment plans, bubble-proofing your real estate and how to become an automatic millionaire homeowner.

  18. Why Your Dreams Matter

    David closes, returning to the point of financial freedom: to live your dreams. He gives advice on different investments to consider depending on your time frame and how to plan a sabbatical. He ends the class with your final coursework: finding your latte factor and putting steps into place to start paying yourself first.


Ling Fan

Great class! Concise and powerful! Wish I knew this 10 years ago.

Kennie Johnson

Very helpful and inspiring

Carlos Figueiredo

I thoroughly enjoyed the course love it!