Author Topic: Retiring early  (Read 8031 times)

deific

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Retiring early
« on: October 29, 2018, 09:43:56 AM »
Seems that the trend today is retiring early, like super early once you reach your financial independence. Am I only one that doesn't really want this? Essentially, I want to retire once my kids are out of school, even if I have achieved financial independence well before that. I am 38 now, by 50-55 I'd like to be done. I have 3 kids that I'd like to put through college, but also I like not living like a homeless person (ie. I want to enjoy having a nice car, home, vacations). Am I the only one??

Hayden

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Re: Retiring early
« Reply #1 on: October 29, 2018, 11:17:39 AM »
Hi deific,

I think that it all depends on what you want in life. Retiring early can mean different things to different people. Most younger people tend to think of retiring early as just being financially free to wake up and do whatever YOU want to do that day. It does not mean that they stop working all together.

Once you hit your pinnacle point (you can live off your assets) then you are free to venture and do whatever you want in terms of career change, traveling, volunteering, or investing more into your side hustle. Sometimes people tend to make more money after they hit their pinnacle point than before.

Some people are very satisfied living a low lifestyle where the cost of living is quite low. While others may want to live a more sumptuous lifestyle. It all depends on your goals and strategy.
« Last Edit: October 29, 2018, 11:19:25 AM by Hayden »
Very Respectfully,
Hayden

Sydney

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Re: Retiring early
« Reply #2 on: October 29, 2018, 07:05:39 PM »
You're definitely not alone. The percentage of people who retire early is actually very small and likely will stay that way. It's been a very trendy topic lately across blogs and media publications, which makes it seem like everyone's doing it or trying to do it.

Derrick

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Re: Retiring early
« Reply #3 on: October 29, 2018, 07:33:54 PM »
I am similar to you 36, soon to be 2 kids. I plan on working until both are through college (if they choose to go). I view 55 as a nice age to retire, still early but not this extreme retirement that is popular in the media right now.  Not that anything is wrong with doing that, but I enjoy my job so I see no reason not to continue working.
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Rdizzle

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Re: Retiring early
« Reply #4 on: October 29, 2018, 07:35:33 PM »
Hi deific,

I think that it all depends on what you want in life. Retiring early can mean different things to different people. Most younger people tend to think of retiring early as just being financially free to wake up and do whatever YOU want to do that day. It does not mean that they stop working all together.

Once you hit your pinnacle point (you can live off your assets) then you are free to venture and do whatever you want in terms of career change, traveling, volunteering, or investing more into your side hustle. Sometimes people tend to make more money after they hit their pinnacle point than before.

Some people are very satisfied living a low lifestyle where the cost of living is quite low. While others may want to live a more sumptuous lifestyle. It all depends on your goals and strategy.

I agree. My wife and i plan to "retire" in our 40's but that just means our passive income handily outmatches our expenses. She plans on pursuing a new career and I always have tons to keep me occupied.
Most people equate it with what they see as retirement which is laying around and occasionally playing golf. Which is fine if that floats your boat too.

Money Ronin

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Re: Retiring early
« Reply #5 on: October 30, 2018, 06:01:26 PM »
Just because you can retire early doesn't mean you should.  The lifestyle changes are not a good fit for everyone.  Financial Samurai had a good article on this (https://www.financialsamurai.com/?s=dark+side).

I am semi-retired and my wife chooses to continue her salaried job.  We have two young kids.  The biggest pro of my situation is that I am available for my kids, shuttling them everywhere and being there for my kids.  That clearly doesn't appeal to everyone (it's too much of a good thing for my wife).  I have more free time than a full-time worker but the problems I face managing our investments and rentals are more stressful than being an employee.

While I know many people who work from home (including my wife) or have a lot of flexibility because they are self-employed, I don't know any other early retirees.  It's a rather lonely lifestyle.  Some people even miss the human interaction of co-workers whether it's camaraderie with peers, mentorship from a boss or authority over staff. 

When you were single, you had mostly single friends.  When you got married, same thing happened.  When you had kids, ditto.  There is a societal norm in terms of progression of one's life.  Early retirement makes you an anomaly (no matter how well you hide your financial status) and you lose some connection with your old social network.  It's as if I've moved on to the next stage, and I'm waiting for everyone to join me.

nycrite

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Re: Retiring early
« Reply #6 on: October 31, 2018, 06:20:09 AM »
When you were single, you had mostly single friends.  When you got married, same thing happened.  When you had kids, ditto.  There is a societal norm in terms of progression of one's life.  Early retirement makes you an anomaly (no matter how well you hide your financial status) and you lose some connection with your old social network.  It's as if I've moved on to the next stage, and I'm waiting for everyone to join me.

Well said!

The independence part of the FIRE acronym should not be understated. You are independent for better or for worse. If you're not an independent person by nature, then I would expect an identity crisis in early retirement. Someone whose identity is found in external things (job, accomplishments, stuff, status) will more likely struggle in early retirement than someone who finds their identity from the inside out. Finding your identity extrinsically vs intrinsically isn't a right or wrong answer, but knowing which side of the spectrum you fall on can help you better determine if FIRE is right for you.

Fission Financial

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Re: Retiring early
« Reply #7 on: October 31, 2018, 11:49:08 AM »
I have seen this as a big trend lately and have been pondering why people want to retire early. Money aside, what would you do for the rest of your life if you retire at 40. Sure you can go on vacations or play golf everyday, but it will get stale after awhile. I am still young so I haven't thought much about retirement other than the monetary part of it, but I have always said I will work until I physically can't. As long as I like what I do, I am fine with it. Plus I always want a challenge in my life to overcome.

I feel like there should be a standard definition for what people mean by retire. I totally understand not working a desk job that you hate to run your blog and do that for a living, but is that really retired? If that is then I could see why people would want to 'retire' instead of slaving away at a desk until they die.

Interested to hear what people have to say and what they will do when they retire early.

Happy Halloween!!

Lynx

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Re: Retiring early
« Reply #8 on: October 31, 2018, 03:49:09 PM »
Just a chime in here. What I see in my online reading about people "retiring early" is usually based on them being in a job or career that they find some or all of unfulfilling as their life priorities change. They go for the FI to give their lives options and be able to move on from that job. However there is some activity going on at this stage. So as you rightly asked, the key question would be what is the definition of "retiring early"  :D

For me I am not interested in retiring early even though I am very interested in financial independence. I will more than likely move on from my current career once I am comfortable in my FI phase as my job can be rather stressful at times. However I do enjoy gardening and my passion project is growing food so I may expand on that from just my current part time pursuits. I would also love to build a business from scratch and have been tossing around some ideas in my head. With more hours in my day unoccupied I would look into expanding those thoughts into something productive.

Fission Financial

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Re: Retiring early
« Reply #9 on: October 31, 2018, 05:32:20 PM »
Awesome reply. I completely align with everything you said. I could see not working for someone, but I would at least move on to pave my own path by starting my own businesses. The FI part would help reduce the risk of this, but the risk is what would keep me going. Nice to read someone who has similar thoughts!!

Orphan

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Re: Retiring early
« Reply #10 on: November 06, 2018, 03:08:27 PM »
Seems that the trend today is retiring early, like super early once you reach your financial independence. Am I only one that doesn't really want this? Essentially, I want to retire once my kids are out of school, even if I have achieved financial independence well before that. I am 38 now, by 50-55 I'd like to be done. I have 3 kids that I'd like to put through college, but also I like not living like a homeless person (ie. I want to enjoy having a nice car, home, vacations). Am I the only one??

It is nice to retire early. I enjoy it. But there is nothing wrong with enjoying your life as you reference.

People lose their minds trying to keep with The Jones. It will beat you every time. Been there wised up early on..

Sam

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Re: Retiring early
« Reply #11 on: November 07, 2018, 08:10:35 AM »
You are not the only one. FIRE is just on max trend FOMO right now.

If I had 3 kids and a job I did not hate, I would probably want to work until they are out of college too. Kids are expensive, and the security of a stable job with stable benefits cannot be underestimated.

But if I had 3 kids, I may start RESENTING my job before they get out of college if I get back stabbed, passed over for a promotion, didn't get a raise I wanted etc. Lots of stuff happens at work over time, and most aren't lucky to have smooth sailing.

Finally, going to work is like going on vacation compared to being a full-time dad. Much easier to raise kids if you don't have to! :)

Related: https://www.financialsamurai.com/thinking-about-taking-a-vacation-by-going-back-to-full-time-work/

Sam
Regards,

Sam

deific

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Re: Retiring early
« Reply #12 on: November 09, 2018, 10:47:51 AM »
You are not the only one. FIRE is just on max trend FOMO right now.

If I had 3 kids and a job I did not hate, I would probably want to work until they are out of college too. Kids are expensive, and the security of a stable job with stable benefits cannot be underestimated.

But if I had 3 kids, I may start RESENTING my job before they get out of college if I get back stabbed, passed over for a promotion, didn't get a raise I wanted etc. Lots of stuff happens at work over time, and most aren't lucky to have smooth sailing.

Finally, going to work is like going on vacation compared to being a full-time dad. Much easier to raise kids if you don't have to! :)

Related: https://www.financialsamurai.com/thinking-about-taking-a-vacation-by-going-back-to-full-time-work/

Sam
I don't think you meant your post to come across the way that it did so I'll try not to read it that way. But going to work is absolutely easier than being home with the kids full time. That being said no one has to be home with them all day because they are all in school, their education is part of their upbringing. My job, as a full time father is to work for the families future and to spend time with them at the end of my work day. That roll comes with its own stress and responsibility when compared to being a stay at home mom/dad but shouldn't be considered lessor or greater than the other. The stressors I have at work are likely greater than what I would experience at home, but they are also quite different and as I'm not accustomed to them cannot handle them the same way. Which is why I lose my sht when my kid does something awful at home vs when a client does something awful in the workplace.