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What To Do After Retirement? Save The World Of Course!

Updated: 02/17/2021 by Financial Samurai 37 Comments

After retirement, what do you think you’re going to do? The obvious answer is save the world of course! If you don’t plan on retiring to something, you may end up experiencing all the negativities of retirement you did not know existed.

Life After Retirement

So you’ve worked hard these past 20 years, diligently saving most of your money. You’re dreading doing the same old thing for another 3+ years and discover How To Engineer Your Own Layoff.

After digesting the information, you develop courage and execute the framework to produce a severance package valued at three years of living expenses. It’s as if you’ve worked longer but managed to save three years of your life and quit at age 37 instead. Now what after retirement?

Spend your money of course!

Grand Canal Venice, Italy - What To Do After Retirement? Save The World Of Course!

One of the biggest mistakes a retiree can make is not spending their money. An early retiree is so accustomed to saving that it becomes ingrained to continue saving for retirement, even though s/he is already retired!

You should theoretically spend 100% of your income every month and live it up! Alas, the process of saving money is almost an impossible habit to break. Maybe I can help!

How To Spend Your Money After Retirement

1) Say no to spoiled offspring. As a result of not spending, we don’t maximize the exchange value of our money and die with too much.  Sure it’s nice to leave some for the kids in a trust. But, you don’t want deadbeat kids now do you?

If I knew I had a million dollars waiting for me by the time I turned 25, it is unlikely I would have worked so hard to accumulate my first million by 27.

I probably would have taken a year off after college to travel the world and then work at a coffee shop in Hawaii, which sounds pretty good actually! One friend new she stands to inherit $1.5 million after taxes and is now entering her 10th year as a PhD student!

2) Extract true value from paper. Money is but a medium of exchange. Unless you love making paper airplanes out of hundred dollar bills, you really can’t do anything with the actual money you’ve saved.

I remember getting absolutely sick of seeing the savings account grow after three years post college. Due to savings, I became demotivated because I had more than I needed.

As a result, I bought a condo in SF and got motivated to produce and earn again because I had something nice to pay off. Money became valuable again, because it had a purpose.

3) Save the world with joy. Given you are retired, you can now spend more time saving the world.  You can give away your money or volunteer your time now that you have more of it. I’ve got a better idea for you. How about saving the world by going to the place that needs your money most?

Last year I took a two week cruise that stopped in Venice, Santorini, Mykonos, Olympia, Istanbul, Kortula and a few other places that really needed capital. I spent about $10,000 during this time, which hopefully multiplies into a $30,000 positive affect on the economy! Coincidence the markets started rallying again in November of 2011?  Maybe, maybe not!

How I Plan To Save The World With Joy After Retirement

The global pandemic is really starting to drag. Countries in Europe are hurting due to the pandemic and du to a debt crisis that has lingered. Millions of retirement accounts are at risk of losing billions in value thanks to the indebtedness of our European brothers.

Imagine if 100 million working Americans decided to go to Europe for just a week vacation each and spend $2,000 each? That’s $200 BILLION dollars worth of capital that will be injected by the private sector in just one week!

$200 billion of non taxpayer money would surely jump start Europe’s economy don’t you think? I believe so, which is why I’ve booked a 2.5 week vacation for two.

Destinations:

Amsterdam, The Netherlands
Copenhagen, Denmark
Warnemunde (Berlin) Germany
Helsinki, Finland
St. Petersburg, Russia
Tallinn, Estonia
Nynashamn, Sweden (Stockholm)
Bruges, Belgium
Amsterdam, The Netherlands

The vacation for two will cost about $12,000.

Airfare: $3,000 (keeping it real with economy)

Cruise: $5,000 (12 nights balcony suite)

Excursions: $2,000 (want to see as much as possible at each stop)

Hotel: $1,200 (five nights)

Food: $800 (five nights on land as cruise is all you can eat)

Hence, if 100 million Americans each spend $6,000 while in Europe, we could inject $600 BILLION dollars worth of capital into the continent!  An injection of this magnitude would probably shore up investor confidence, which would lead to increased production and hiring by corporates, which would lead to a surge in stock market performance that will make you way more than $6,000 per person!

Not only will you make all your money back in the stock market, you’ll have a bloody good time in the process!

ALWAYS CREATE MULTIPLE WIN SCENARIOS IN RETIREMENT

One of the key tenets of How To Engineer Your Layoff is creating a positive scenario for your employer to lay you off. You can either convince them that laying you off will bring them more profitability in the future, or perhaps take advantage of their panic and desire to cost cut in exchange for giving you a healthy severance package.

Do not try either of these strategies before reading the book. There are many more strategies you should employ first!

Here are the multiple win scenarios for going to Europe:  

* See nine new countries/cities.

* Inject badly needed capital into Europe.

* Test out working abroad for almost three weeks.

* Develop new blog content for upcoming posts.

* Play around with new retirement spending habits.

* Crystallize the value of my separation package.

Retirement is what you make of it. You will either have the YOLO retirement philosophy or the Legacy retirement philosophy. Personally, I plan to follow the Legacy retirement philosophy because I have two children and organizations I care about.

After retirement doesn’t have to be a scary time. Utilize your money and free time wisely. This pandemic has taught us that tomorrow is not guaranteed. Time goes by quick. Make the most of it!

Recommendation

Manage Your Finances In One Place. It’s now more important than ever to get a handle on your finances since you no longer have that main source of day job income. Sign up with Personal Capital, a free online platform which aggregates all your financial accounts in one place so you can see where you can optimize. Before Personal Capital, I had to log into eight different systems to track 28 different accounts (brokerage, multiple banks, 401K, etc) to manage my finances.

Now, I can just log into Personal Capital to see how my stock accounts are doing, how my net worth is progressing, and where my spending is going. The best feature is the 401K Fee Analyzer which has saved me over $1,000 a year in portfolio fees I had no idea I was paying. Personal Capital takes less than one minute to sign up and is the most valuable tool I’ve found to help people stay on top of their money in retirement.

They’ve also come out with their incredible Retirement Planning Calculator that uses your linked accounts to run a Monte Carlo simulation to figure out your financial future. You can input various income and expense variables to see the outcomes. Definitely check to see how your finances are shaping up as it’s free.

Retirement Planning Calculator
Retirement Planning Calculator Sample

Photo: Grand Canal, Venice. Updated for 2018.

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Filed Under: Retirement

Author Bio: I started Financial Samurai in 2009 to help people achieve financial freedom sooner. Financial Samurai is now one of the largest independently run personal finance sites with about one million visitors a month.

I spent 13 years working at Goldman Sachs and Credit Suisse. In 1999, I earned my BA from William & Mary and in 2006, I received my MBA from UC Berkeley.

In 2012, I left banking after negotiating a severance package worth over five years of living expenses. Today, I enjoy being a stay-at-home dad to two young children, playing tennis, and writing.

Order a hardcopy of my upcoming book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom. Not only will you build more wealth by reading my book, you’ll also make better choices when faced with some of life’s biggest decisions.

Current Recommendations:

1) Check out Fundrise, my favorite real estate investing platform. I’ve personally invested $810,000 in private real estate to take advantage of lower valuations and higher cap rates in the Sunbelt. Roughly $150,000 of my annual passive income comes from real estate. And passive income is the key to being free.

2) If you have debt and/or children, life insurance is a must. PolicyGenius is the easiest way to find affordable life insurance in minutes. My wife was able to double her life insurance coverage for less with PolicyGenius. I also just got a new affordable 20-year term policy with them.

3) Manage your finances better by using Personal Capital’s free financial tools. I’ve used them since 2012 to track my net worth, analyze my investments, and better plan my retirement. There’s no better free financial app today.

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Comments

  1. andrew says

    December 11, 2012 at 8:25 am

    Travelling doesn’t have to be that expensive. One of the ways to make it cheaper is to go for extended periods of time to the same place. The most expensive part of longer term vacations is getting from place to place. The longer you stay in one location the cheaper you can make it for yourself as you will save on food and accommodations.

    Reply
  2. Carson Bennet says

    September 1, 2012 at 4:02 am

    One of the better work which we can choose during our retired life is to serve the society. Put our remaining life serving the society.

    Reply
  3. Jacob @ iheartbudgets says

    August 22, 2012 at 3:02 pm

    My wife wants a 3-4 week European vacation in the next decade. I’m hoping to do my part to help Europe and plan to drop a cool $12k-$15k. I also lol’d at your statement about the markets rallying after your trip to Europe last year. Sam, single-handedly recovering the economy, one foreign bottle of wine at a time :)

    Reply
  4. Financial Samurai says

    August 20, 2012 at 7:04 am

    Cool! What’s the catch?

    Reply
    • Financial Samurai says

      August 20, 2012 at 7:49 am

      Oki doke. Will check it out!

      Reply
  5. Financial Samurai says

    August 20, 2012 at 7:04 am

    I plan on going back to Greece and stay on land over the next 5 years. Athens was rioting when we tried to go last Fall!

    Reply
  6. Financial Samurai says

    August 20, 2012 at 6:59 am

    I have a fanny pack for my fanny pack.

    Reply
  7. Financial Samurai says

    August 20, 2012 at 5:26 am

    Thx! Flying into Amsterdam then immediately going on the cruise. Will spend the last 3 days touring the city. Im surprised your mom is already Talking inheritance. I refüsier to Talk about ist as well.

    Reply
  8. James says

    August 18, 2012 at 11:09 am

    Hey Sam,

    Congratulations on the early retirement – if you’ve been able to generate enough capital to live on you certainly deserve the vacation.

    Have you considered going to someplace a little more challenging, like sub-saharan Africa or China? I’ve found those trips the most rewarding. Europe is terrific, but it substantially similar to the U.S. such that you dont’ get all the benefits of the travel.

    Best,

    James

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:35 am

      I traveled for 6 months in China and have go about 15 times already, so I’m kinda tired out of that country. However, it’s been over 25 years since doing Africa, so will probably give that a shot soon!

      Reply
  9. Jen says

    August 18, 2012 at 3:23 am

    Warnemünde, really?
    I’m curious why you would name this as the most desirable location to visit in Germany.
    I’ve been there various times myself, and it’s nice if you have young children and it’s summer, but I could think of many places that for me are more interesting here.

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:17 am

      Love the criticism of Warnemunde!

      I’m on a cruise. Let me know when Berlin opens up a port.

      Reply
  10. Traineeinvestor says

    August 17, 2012 at 11:29 pm

    Sam

    I like the sentiment – there is no point in retiring early if you are not going to use the time well. There is no point in making money if you are not going to put it to good use.

    Cheers
    Traineeinvestor

    Reply
    • Financial Samurai says

      August 20, 2012 at 7:05 am

      And if we can save the world with our spending, why not right?

      Reply
  11. krantcents says

    August 17, 2012 at 5:12 pm

    The Euro should be pretty good right now. Enjoy the trip, I think I took that cruise a few years ago. I absolutely love Amsterdam and will go back sometime soon. One of my favorite meals was breakfast of a dutch pancake. It was expensive, but so memorable.

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:34 am

      Will have to try out what a Dutch pancake is! Thx for the tip.

      Reply
      • krantcents says

        August 19, 2012 at 9:50 am

        It is a very thin large pancake (whole wheat) usually topped with whipped cream and fruit. It is amazing! Also definitely take the canal buses! You can hop on and off and travel the city with an all day pass. The museums are good too and don’t forget Anne Frank house. You will probably see my last name all over the place because it means newspaper and kranten means news. Enjoy, Amsterdam is one of my favorite cities.

        Reply
  12. Invest It Wisely says

    August 17, 2012 at 1:06 pm

    Sweet trip, have a blast, Sam :)

    Reply
  13. Monevator says

    August 17, 2012 at 12:57 pm

    On behalf of all Europeans (yes, we Brits are honorary Europeans) I want to thank you in advance for the sacrifice you’re about to make. ;)

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:34 am

      You bet! Trying hard to help my brothers out!

      Reply
  14. Brian says

    August 17, 2012 at 10:17 am

    “it is unlikely I would have worked so hard to accumulate my first million by 27.”

    Wow, congrats on that! Was that accomplished primarily via salary/bonus, or riding SF real estate?

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:19 am

      Savings, investing, and luck! Had one stock turn out to be a 50 bagger, which I then parlayed to real estate. I might write a post one day on how I got there.

      Reply
  15. AverageJoe says

    August 17, 2012 at 9:40 am

    Europe for two? I can take a hint. Of course I’ll help you tour Europe. Sam? Sam? …..

    Reply
    • 20's Finances says

      August 17, 2012 at 11:08 am

      haha – my thought exactly.

      Reply
    • Financial Samurai says

      August 20, 2012 at 7:04 am

      Come on down! Oops, tickets already paid for.

      Reply
  16. Virginia says

    August 17, 2012 at 7:09 am

    Oh, so nice. It sounds like you will be busy. We just got back from a Mediterranean cruise ourselves. It seems kind of strange to think that you are helping the European economy while taking such a nice vacation but it’s true.

    Reply
    • Financial Samurai says

      August 20, 2012 at 7:03 am

      Which ship did you go on and what did u see?

      Reply
  17. Little House says

    August 17, 2012 at 6:50 am

    Amsterdam and Copenhagen? I’m so jealous! You gotta ride a bike in one of those cities and share your experience. Enjoy your trip!

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:20 am

      Walking like a madman here in Copenhagen! It’s a lovely 75 degrees on a Sunday morning now. The Danish don’t lock their bikes!

      Reply
  18. Lance@MoneyLife&More says

    August 17, 2012 at 6:22 am

    Whenever you get a chance to check in I hope you are having an awesome trip. The shift from saving to spending will be interesting for me but once I get there I think I will be ready! Only time will tell!

    Reply
  19. FatChance says

    August 17, 2012 at 6:06 am

    Damn nice vacation package Sam. I love Europe and St. Petersburg is on my short list. May I suggest a safari in Kenya or Tanzania? Evey beer you buy will be equal to a days salary for an average guy in Africa. Plus you will be able to experience some wildlife that may not be around when you are old. Hope your Europe trip is a blast. I will see you out there if you go next year!

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:21 am

      Well definitely try Kenya and Tanzania. I’ve gone on an African Safari before.. Zambia, when I was a kid. Might have to revist!

      Reply
  20. Holly@ClubThrifty says

    August 17, 2012 at 6:03 am

    It sounds like you really want to take a vacation to Europe. No need to rationalize. You can go if you want to! Actually, it sounds great.

    Reply
    • Financial Samurai says

      August 19, 2012 at 2:36 am

      Thanks for letting me go!

      Went for 2.5 weeks in 2011 and decided to return again now.

      Reply
  21. William @ Drop Dead Money says

    August 17, 2012 at 4:52 am

    Awesome – somebody needs to save Eupope! Now I can sleep easier, me Euro account is in safe hands! :) Enjoy the trip!

    I’m retired and I’m trying to save the world by blogging about the economic cycle – how you can really benefit from it. Let the economy work for you, I say. If I can make a dent in the number of people who get plowed under by each recession I’ll die a happy man.

    Of course, enjoying the upcoming fall foliage and football season, plus the odd trip to Africa, won’t hurt, either. :)

    Reply
    • Financial Samurai says

      August 20, 2012 at 7:02 am

      Just bought a $22 cheeseburger in Copenhagen! Man the Nordic countries are expensive!

      Bullish on the world.

      Reply
      • William @ Drop Dead Money says

        August 20, 2012 at 7:04 am

        Cheeseburger in paradise? :)

        Reply

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