Early retirement pros and cons:

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
DrGoogle2017
Posts: 1322
Joined: Mon Aug 14, 2017 12:31 pm

Re: Early retirement pros and cons:

Post by DrGoogle2017 » Sun Dec 24, 2017 11:03 am

2Birds1Stone wrote:
Sun Dec 24, 2017 4:25 am
DrGoogle2017 wrote:
Sat Dec 23, 2017 4:54 pm
But you have a much longer time frame to get bored. My FIL retired at 62 and lived until 91. That’s almost 40 years of practically doing nothing. When I mean nothing, I don’t mean just sitting at home and drinking beer.
29 years is not almost 40.......your post makes much more sense now.
Oops, my math is bad. But if a person retires in their 40s and lives until 90s, that’s almost 40-50 years. That’s longer than the working years if they start working in their early 20s.

acanthurus
Posts: 369
Joined: Sun Aug 04, 2013 8:02 am

Removed

Post by acanthurus » Sun Dec 24, 2017 3:21 pm

Removed
Last edited by acanthurus on Sun Apr 08, 2018 11:22 am, edited 2 times in total.

RadAudit
Posts: 3027
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: Early retirement pros and cons:

Post by RadAudit » Sun Dec 24, 2017 3:45 pm

Pro: You have a longer time of good health to do what is meaningful to you.

I just got a Christmas letter from an old friend. This year he had a stroke and his wife had a heart attack.

Tomorrow is not guaranteed.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

User avatar
fear/greed
Posts: 31
Joined: Sat Aug 22, 2015 5:51 pm

Re: Early retirement pros and cons:

Post by fear/greed » Sun Dec 31, 2017 5:53 pm

There is some idea that the opposite of working is being bored. This is not so for me. I cannot recall ever having been bored. I have a good job that I am grateful for - I am paid well, have health insurance and paid time off, and work in an environment that is not physically taxing, and there are other good or neutral or bearable things about it. But I produce nothing of value to society or to myself. I work because I need the paycheck.

The things that give me joy in life exist outside my job. I would never think of my job as an antidote to boredom. I do not conflate "work" and "something to do". For those whose work is fulfilling mentally, creatively, physically, socially - how wonderful, and I can understand not wanting to quit that.

Regarding the separation of financial independence from early retirement: for me, the only point of financial independence would be to spend my time doing my preferred activities; for me, achieving financial independence is not an end in itself.

I never used to see the utility of money beyond basic bill-paying. But a couple of years ago, I suddenly realized that there was this thing called "retirement" and that the job I'd gone to week-in, week-out, month-in, month-out for 15 years was using up my precious life, and life is short! If I had enough money now, I would leave this job.

I am now investing as much as possible and am desperate for a time when I don't have to go to work. I make the most of my time and my life is rich, my non-work hours are fulfilling, and work isn't so bad - but, except for the paycheck, it's a waste of my time.

I understand that, even with feeling like I do, there would be a major adjustment upon leaving my job, but even if I found myself having an unproductive day, I wouldn't think that I should have stayed at work.

User avatar
MichaelRpdx
Posts: 343
Joined: Sat Feb 27, 2010 7:18 pm
Location: Portland, Oregon
Contact:

Re: Early retirement pros and cons:

Post by MichaelRpdx » Sun Dec 31, 2017 6:14 pm

fear/greed wrote:
Sun Dec 31, 2017 5:53 pm
There is some idea that the opposite of working is being bored. This is not so for me. I cannot recall ever having been bored.
The cure for boredom is curiosity. There is no cure for curiosity. ~ Ellen Parr
Be Appropriate && Follow Your Curiosity

gotester2000
Posts: 582
Joined: Sun Nov 12, 2017 1:59 am

Re: Early retirement pros and cons:

Post by gotester2000 » Mon Jan 01, 2018 2:56 am

All I wanted was a less demanding job not early retirement - work kept me busy, healthy and gave a daily objective. Now I am striving to not stop working as long as I can. Vacation is enjoyable after work - whole life cannot be vacation - it is meaningless.

User avatar
birdog
Posts: 155
Joined: Fri Apr 07, 2017 1:35 pm

Re: Early retirement pros and cons:

Post by birdog » Mon Jan 01, 2018 6:53 am

gotester2000 wrote:
Mon Jan 01, 2018 2:56 am
All I wanted was a less demanding job not early retirement - work kept me busy, healthy and gave a daily objective. Now I am striving to not stop working as long as I can. Vacation is enjoyable after work - whole life cannot be vacation - it is meaningless.
Unless you plan to work until your dying day then you will retire sometime. I found this article from Mad Fientist, which details his first year of early retirement (at age 34 I think), to offer some good insights and practical takeaways. Also, I found that many people “retire” only from working for others (megacorp) and then start “working” again doing things they enjoy.

https://www.madfientist.com/first-year-of-freedom/

gotester2000
Posts: 582
Joined: Sun Nov 12, 2017 1:59 am

Re: Early retirement pros and cons:

Post by gotester2000 » Mon Jan 01, 2018 9:41 am

birdog wrote:
Mon Jan 01, 2018 6:53 am
gotester2000 wrote:
Mon Jan 01, 2018 2:56 am
All I wanted was a less demanding job not early retirement - work kept me busy, healthy and gave a daily objective. Now I am striving to not stop working as long as I can. Vacation is enjoyable after work - whole life cannot be vacation - it is meaningless.
Unless you plan to work until your dying day then you will retire sometime. I found this article from Mad Fientist, which details his first year of early retirement (at age 34 I think), to offer some good insights and practical takeaways. Also, I found that many people “retire” only from working for others (megacorp) and then start “working” again doing things they enjoy.

https://www.madfientist.com/first-year-of-freedom/
Most of the people who seek early retirement in 30s and 40s are IT guys fed up with deadlines and constantly needed to reset to new paradigms. I am one of those guys and I realized what I need is not anymore high earnings tied to 24*7 with no time for family or personal life. However I also do not want to loaf around trying to fulfill my every desire(which has no end really) - I think these early retirement guys are making quite a bit of money through blogging by taking advantage of this sentiment.
Even if you are FI you need to do something to spend your time worth your while. Just like extreme work is one end, complete retirement in young age is the extreme opposite - you need to find a balance in between. I have lived both the ends so far and striving for that practical balance which is my need. I would like to work till 60 for not more than 40 hours a week - not for megacorp again but something which is regular - I dont want my everyday to start with what should I do today?

rec7
Posts: 2369
Joined: Tue Oct 28, 2008 7:22 pm

Re: Early retirement pros and cons:

Post by rec7 » Mon Jan 01, 2018 11:04 am

I retired at 38. I was a poor student but God took care of me. I wanted to be a priest when I was young so I guess I never was real crazy about things. Because all a priest usually buys is some clothes and a used car. I love being retired. I always had a small job because of my low GPA. My father told me before he died that money was not that important. I see a lot of wisdom to what he said. He is right most of us do not need as much as we think. I love reading the bible and southern gospel music both are free.(that is hours of my day right there) What I miss is not working for God so in the future I am going to try for the priesthood again. Foreign languages are very hard for me and the seminary has seven years of them.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

ge1
Posts: 325
Joined: Sat Apr 28, 2012 8:15 pm

Re: Early retirement pros and cons:

Post by ge1 » Sun Jun 10, 2018 7:49 pm

Age 46. We are not quite there yet, but we are making good progress so hopefully should be FI in a few years.

One big unknown for me is spending. We are spending a lot now - but at the same time we are saving a lot, so there is no need to save more. Hard to say what our budget would be in retirement.

I actually like my job and I am very well paid. There is a downside though, such as never being able to truly take a vacation. I dream of just taking several weeks off without checking emails! My biggest regret though is that I don’t feel I have enough time for my parents, who are in their 70s and live overseas. They are still healthy and able to travel, however all it takes is one incident and that could change. I hope that if and when that happens I will be in a position to spend extended periods of time with them without having to worry about work.

As others said, I don‘t fear of being bored, there so many things that interest me.

scrabbler1
Posts: 2219
Joined: Fri Nov 20, 2009 2:39 pm

Re: Early retirement pros and cons:

Post by scrabbler1 » Sun Jun 10, 2018 8:10 pm

I retired 10 years ago at age 45. I worked 23 years full-time before switching to part-time in 2001, regaining control over my personal life. Even working only 2 days a week for the last 17 months of my career, I couldn't stand the long, tiring, annoying commute. I am single (but in a LTR) with no kids, so I have total personal and economic freedom, a wonderful combination. I come and go as I please, with my "paycheck" being the monthly dividends from my bond fund and stock fund.

Health insurance was an issue for the first few years until the ACA came along with its exchanges in 2014. I had it the whole time but I either had to pay a lot or I was somewhat underinsured for a few years. In 2015, I had some health issues but the ACA thankfully keep me healthy and from having to spend an awful lot more money. Also, it would have been very tough even working part-time to fight my health issues and get back to good health. Being retired meant I could devote 100% of my time and effort to getting well.

As for things to do, I had already built up a good personal life in the 7 years of working part-time, so switching to complete retirement wasn't a big deal. I see no cons to being retired, only pros.

flyingaway
Posts: 1892
Joined: Fri Jan 17, 2014 10:19 am

Re: Early retirement pros and cons:

Post by flyingaway » Sun Jun 10, 2018 8:13 pm

If I truly have enough, I would retire at any time. Beach is much better than office.

User avatar
Sandtrap
Posts: 5324
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Early retirement pros and cons:

Post by Sandtrap » Sun Jun 10, 2018 8:15 pm

It's more of a process of "reinventing" oneself rather than "early retirement" and then entering some sort of "void".
I sold off my R/E business holdings and closed my construction company, but still have rentals and am passionate about investment finance.
Is that retired?
I suspect that many "retired" Bogleheads are just as active though applying their time and efforts in different pursuits than when in the work force full time.
Is that retired?
Early Retirement merely means that one is able to pursue the next thing to retire from, ad infinitum.. . . :D

aloha
j

User avatar
willthrill81
Posts: 5775
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Early retirement pros and cons:

Post by willthrill81 » Sun Jun 10, 2018 8:25 pm

flyingaway wrote:
Sun Jun 10, 2018 8:13 pm
If I truly have enough, I would retire at any time. Beach is much better than office.
Image
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

User avatar
Sandtrap
Posts: 5324
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Early retirement pros and cons:

Post by Sandtrap » Sun Jun 10, 2018 8:39 pm

willthrill81 wrote:
Sun Jun 10, 2018 8:25 pm
flyingaway wrote:
Sun Jun 10, 2018 8:13 pm
If I truly have enough, I would retire at any time. Beach is much better than office.
Image
Or This:
(day at the office)
Image

EnjoyIt
Posts: 1581
Joined: Sun Dec 29, 2013 8:06 pm

Re: Early retirement pros and cons:

Post by EnjoyIt » Sun Jun 10, 2018 8:41 pm

Goal #1 is to be financially independent or very very close to it.
Goal #2 choose and the key word is choose to work part time for a multitude of reasons.
Goal #3 always have the option to stop working and do something else that may be more fun.
Goal #4 devote extra time to all the current projects I have going.

bearcub
Posts: 873
Joined: Sat Mar 08, 2008 7:54 am
Location: Twilight Zone

Re: Early retirement pros and cons:

Post by bearcub » Mon Jun 11, 2018 6:51 am

pros... More time with family + friends, time for enjoyable hobbies, better health, feel great. cons....ummm...

truenorth418
Posts: 403
Joined: Wed Dec 19, 2012 7:38 am

Re: Early retirement pros and cons:

Post by truenorth418 » Mon Jun 11, 2018 7:27 am

DrGoogle2017 wrote:
Sun Dec 24, 2017 11:03 am
2Birds1Stone wrote:
Sun Dec 24, 2017 4:25 am
DrGoogle2017 wrote:
Sat Dec 23, 2017 4:54 pm
But you have a much longer time frame to get bored. My FIL retired at 62 and lived until 91. That’s almost 40 years of practically doing nothing. When I mean nothing, I don’t mean just sitting at home and drinking beer.
29 years is not almost 40.......your post makes much more sense now.
Oops, my math is bad. But if a person retires in their 40s and lives until 90s, that’s almost 40-50 years. That’s longer than the working years if they start working in their early 20s.
Here's my philosophy.

First 25 years of life is preparation, school, etc., to prepare for...

Second 25 years: work hard, contribute to society, earn money, but save and prepare for...

Third 25 years of life: retire, relax, enjoy, do whatever you want to do. Because once you are in your 50s, it really hits you that life is short and you don't know how much time you have left on this earth, maybe not much.

Any years beyond 75: bonus years! Enjoy them while you can, and thank God, because a lot of people don't get this privilege!

lostdog
Posts: 1181
Joined: Thu Feb 04, 2016 2:15 pm

Re: Early retirement pros and cons:

Post by lostdog » Mon Jun 11, 2018 7:45 am

I love having options. Fully retired and I am 42. I can go find part time work when I feel like it. Right now I enjoy riding my bike to the gym and working out in the mornings. By the time I am done with physical fitness routine, it's lunch time. In the afternoon I socialize with my gamer friends, kayak, bike trails, cook and whatever else I feel like doing. So many options.

Pros: healthier physically and mentally compared to working. Learning new things. I am less I introverted. I smile more. I love life. I feel more connected to people.

Cons:. Waiting for my wife to retire or semi retire.

gouverneur
Posts: 77
Joined: Sat Apr 23, 2016 10:25 am

Re: Early retirement pros and cons:

Post by gouverneur » Mon Jun 11, 2018 8:14 am

One question that occurs to me in reading these threads (and I'm definitely the type who has mapped out scenarios for early retirement, particularly when I was in private legal practice), is:

Has anyone here retired early a decade or more ago, so they can speak to us about the experience of what it's like to be young and retired? Where do they find friends or community, given the vast majority of same or similar age peers are still working (and/or have child care obligations) and can't drop everything to be doing the bike rides and fun trips in the middle of the day or on a random week? Do people get bored of not working after 10 years? What about 15 or 20 years out?

I can see early retirement being a thrill for the first few years and then quickly dropping back to the same or similar base happiness level that one had while working at a decent job. And most of the people who post about ER seem to be aspiring to do it or are just a few years into it, so have a somewhat skewed perspective.

User avatar
TheTimeLord
Posts: 5284
Joined: Fri Jul 26, 2013 2:05 pm

Re: Early retirement pros and cons:

Post by TheTimeLord » Mon Jun 11, 2018 8:20 am

gouverneur wrote:
Mon Jun 11, 2018 8:14 am
One question that occurs to me in reading these threads (and I'm definitely the type who has mapped out scenarios for early retirement, particularly when I was in private legal practice), is:

Has anyone here retired early a decade or more ago, so they can speak to us about the experience of what it's like to be young and retired? Where do they find friends or community, given the vast majority of same or similar age peers are still working (and/or have child care obligations) and can't drop everything to be doing the bike rides and fun trips in the middle of the day or on a random week? Do people get bored of not working after 10 years? What about 15 or 20 years out?

I can see early retirement being a thrill for the first few years and then quickly dropping back to the same or similar base happiness level that one had while working at a decent job. And most of the people who post about ER seem to be aspiring to do it or are just a few years into it, so have a somewhat skewed perspective.
A few years back I took an early retirement package from Megacorp (great financial decision), but my spouse was still working and so were all my friends anywhere near my age. Took about 6 weeks to be bored, went back to work within a year. Having said that I am sure there are many others who would have been fine in my circumstance, but for me going back to work was the correct choice.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

flyingaway
Posts: 1892
Joined: Fri Jan 17, 2014 10:19 am

Re: Early retirement pros and cons:

Post by flyingaway » Mon Jun 11, 2018 9:17 am

As I posted in another thread, I am currently in the 6th month of leave from work to experiment early retirement life. My feeling is that if I could have a lot of things to do outside of my home, such as travelling, I may like early retirement, provided I have enough money to do those outside things.
However, if I have to stay at home for most of the time, I may want to go back to work for a non-demanding job. Why not, I can get paid to be not boring.
Retire early to do something that you cannot do with a job, or retire to something, as other people said.

restingonmylaurels
Posts: 190
Joined: Tue Apr 14, 2015 11:02 am

Re: Early retirement pros and cons:

Post by restingonmylaurels » Mon Jun 11, 2018 10:09 am

gouverneur wrote:
Mon Jun 11, 2018 8:14 am
One question that occurs to me in reading these threads (and I'm definitely the type who has mapped out scenarios for early retirement, particularly when I was in private legal practice), is:

Has anyone here retired early a decade or more ago, so they can speak to us about the experience of what it's like to be young and retired? Where do they find friends or community, given the vast majority of same or similar age peers are still working (and/or have child care obligations) and can't drop everything to be doing the bike rides and fun trips in the middle of the day or on a random week? Do people get bored of not working after 10 years? What about 15 or 20 years out?

I can see early retirement being a thrill for the first few years and then quickly dropping back to the same or similar base happiness level that one had while working at a decent job. And most of the people who post about ER seem to be aspiring to do it or are just a few years into it, so have a somewhat skewed perspective.
I early retired over 15 years ago when I reached 40 (had reached FI several years prior). Have not had a dull moment since. It is all up to your own ability to be creative and take on opportunities and challenges, as full-time working life no longer provides you with any structure. You meet people in those forums of common interest you partake in. The world is very big, just visiting every country and truly learning the local culture and people would take you most of a lifetime. If you are infinitely curious then life will ensure you are never satiated.

ER does not mean not working, it merely means you can work at what you choose at whatever comp level (including zero) because you have reached FI. Reaching FI means you have the choice to continue the work you are doing or to change to something you always wanted to do. The list of things I have done since ER is longer than my arm and was the best decision I ever made. Would I be richer (wealthier) if I had stayed? Of course, but I would be much poorer in life experiences and happiness and those truly make up the currency of a life well-lived.

B. Wellington
Posts: 130
Joined: Fri Mar 30, 2012 10:10 am

Re: Early retirement pros and cons:

Post by B. Wellington » Mon Jun 11, 2018 10:28 am

MichaelRpdx wrote:
Sat Dec 23, 2017 1:43 pm
I think it is important to remember the current attention-getting movement is FI/RE, Financial Independence/Retire Early. The emphasis is on financial independence. Use the strength of financial independence to have the freedom to stay in your job, pursue another, or whatever.

This is admirable. I am happy to see this mindset being instilled in young people. Prioritizing wealth accumulation over shiny new consumer objects (especially automobiles) is very healthy.
^^^This. If you spend some time on the early retirement forums you will find a few of the die-hard early retirement folks. Good for them. However, a majority of the posters are just looking for some kind of work/life balance more than anything. To gain some control of their own time. To have the choice to keep working, work part time, start their own side business, or take some time off to spend with family, friends, or doing some other activities.

Another common theme among these FI people is their love of the outdoors, hiking, mountain biking, world travelers, and even extreme sports enthusiasts. (I know of a couple of Doc's who are big into mountain and ice climbing.) My point is that these people have a wide range of hobbies and interests to fill their time. If you have very few interests or hobbies, then some kind of work (part-time maybe) or volunteering maybe a wise choice for many. It is more about Financial Independence then about Retiring early. Doing what you love to do when you want.
Last edited by B. Wellington on Mon Jun 11, 2018 11:35 am, edited 1 time in total.

User avatar
friar1610
Posts: 1270
Joined: Sat Nov 29, 2008 9:52 pm
Location: MA South Shore

Re: Early retirement pros and cons:

Post by friar1610 » Mon Jun 11, 2018 10:54 am

I retired at 58 and moved to Vermont for 8 years shortly thereafter. When my wife and I were in our kayaks on Lake Champlain on a beautiful day looking at the Adirondacks to the west I would often say, "Right now there's some poor SOB stressed out because he's caught in traffic on the Beltway, is late for a meeting and is generally having a bad day. That used to be me but it ain't now."
Last edited by friar1610 on Mon Jun 11, 2018 3:07 pm, edited 1 time in total.
Friar1610

AllAboard
Posts: 24
Joined: Fri Jan 15, 2016 7:40 pm

Re: Early retirement pros and cons:

Post by AllAboard » Mon Jun 11, 2018 11:30 am

heyyou wrote:
Sat Dec 23, 2017 12:38 am
Having been a blue collar worker at MegaCorp, early retirement suited me well. I found the perfect volunteer work for an introvert, so my first decade of retirement was the best years of my life.

Glad to hear that others found what suited them.
What is that volunteer work?

EnjoyIt
Posts: 1581
Joined: Sun Dec 29, 2013 8:06 pm

Re: Early retirement pros and cons:

Post by EnjoyIt » Mon Jun 11, 2018 1:21 pm

restingonmylaurels wrote:
Mon Jun 11, 2018 10:09 am

I early retired over 15 years ago when I reached 40 (had reached FI several years prior). Have not had a dull moment since. It is all up to your own ability to be creative and take on opportunities and challenges, as full-time working life no longer provides you with any structure. You meet people in those forums of common interest you partake in. The world is very big, just visiting every country and truly learning the local culture and people would take you most of a lifetime. If you are infinitely curious then life will ensure you are never satiated.

ER does not mean not working, it merely means you can work at what you choose at whatever comp level (including zero) because you have reached FI. Reaching FI means you have the choice to continue the work you are doing or to change to something you always wanted to do. The list of things I have done since ER is longer than my arm and was the best decision I ever made. Would I be richer (wealthier) if I had stayed? Of course, but I would be much poorer in life experiences and happiness and those truly make up the currency of a life well-lived.
Right on. I love your comment especially what I bolded. I am in my early 40s and looking to start cutting back dramatically very soon. Working every day just does not suit me. I have way too many things I want to do and this work thing keeps getting in the way. We are sort of FI or at least teetering on the cusp of it. We want to retire comfortably including plenty of money for travel, paying for college, and a few toys. We both look forward to having more free time in the future and enjoying our hobbies more.

William4589
Posts: 20
Joined: Sat Jan 31, 2015 2:38 pm

Re: Early retirement pros and cons:

Post by William4589 » Mon Jun 11, 2018 1:39 pm

willthrill81 wrote:
Sun Jun 10, 2018 8:25 pm
flyingaway wrote:
Sun Jun 10, 2018 8:13 pm
If I truly have enough, I would retire at any time. Beach is much better than office.
Image
This one made me smile. Excellent. :)

zwzhang
Posts: 54
Joined: Thu Jul 25, 2013 10:43 am

Re: Early retirement pros and cons:

Post by zwzhang » Mon Jun 11, 2018 2:38 pm

William4589 wrote:
Mon Jun 11, 2018 1:39 pm
willthrill81 wrote:
Sun Jun 10, 2018 8:25 pm
flyingaway wrote:
Sun Jun 10, 2018 8:13 pm
If I truly have enough, I would retire at any time. Beach is much better than office.
Image
This one made me smile. Excellent. :)
+1 Agree!

Post Reply