Retiring Super Early: Dream come true or false hope?Submitted by Financial Planning Solutions, LLC on February 21st, 2019
In the last few years retiring in your early 50s or 40s has entered mainstream discussion as many tech entrepreneurs have found themselves very wealthy at a young age. It has given rise to impressive stories about traveling the world, changing careers, and changing lifestyles.
I would argue that the term, “early retirement” is a misnomer. Really it is about transitioning your life early and substantial wealth often is part of that circumstance. Suddenly you have the ability to do things that you had only dreamed about. It is a point of freedom for many where the daily grind of work and career is no longer at the primary vehicle to success. Opportunities to travel to new and interesting places are boundless and starting something new is now possible without the usual financial concerns.
In my view, this kind of early retirement is just a transition point that arrives early and perhaps unexpectedly. As financial planners we, of course, look at this situation through a planning lens.
- Can you pursue your dreams while maintaining your lifestyles?
- How can you anticipate other changes that may affect your finances later in life?
- How is retiring early different from retiring at your “normal” retirement age of say 67?
- Are there different factors to consider and how should you plan for them?
I just returned from visiting my uncle in Florida. He was an engineer for a defense contractor many years ago. He took an early retirement in his early 50s and has now been retired for longer than he ever worked!
What did he do with his time?
--He spent it wisely on things that were really important to him: traveling the world and the United States extensively with good friends; building several homes for family members (he enjoys working with tools); investing wisely in real estate; and many other things.
Interestingly, shortly before he retired, his wife went to work as a school librarian where she worked for decades. She enjoyed the work so much that she retired twice because the first time she missed it too much.
This is one story of early retirement. Others may receive an unexpected windfall and use it to build a new future. If you are seeking early retirement it will be as unique just as no two persons are exactly alike. Deciding how to make that early transition and making your money last is key to a worry-free early retirement.
These stories of early retirement are not about an ending, they are about a new and exciting beginning—perhaps many new beginnings.
If you or someone you know is curious about retiring early, let us know. We’re here to help.
Lyman H. Jackson
Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. FPS provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client after entering into an advisory relationship. Information herein includes opinions and forward-looking statements that may not come to pass. Information is derived from sources believed to be reliable. Information is at a point in time and subject to change without notice. Such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.