Do you Think I’m Nuts?

Posted by Dave on December 6, 2011

This is a guest post by Dave, who is also looking to retire no later than 45, but unlike Tim has no kids and doesn’t want any. Dave is from Ontario and is working towards his CGA certification.

Are you like one of my friends I was talking to this weekend who has no interest in retiring early?  Do you think it’s crazy to be using 3/4 of your take-home pay to save for retirement  and pay off a mortgage?  I’m sure that an early retirement plan isn’t for everyone – my family just kind of rolls their eyes at me and I get responses like “but what would you do with all your time?” or “what if you run out of money?” among other responses when the topic of money comes up (which rarely happens as I am not all that forthright with my plan).

If I found a job that I loved and couldn’t stop doing, my plan would change a little bit I would still do the following:

I would still get out of debt. To me, debt is something that forces you to have to go to work.  Whether you like your job or not, debt – especially consumer debt, seems like a bad idea to me.  If I can’t afford something, I just don’t buy it.  Getting debt free would allow me, even if I’m going to have cash coming in for an extra 20 years to have more money to spend on fun things, which leads to my next change…

I would spend more money. The major trade-off in retiring early is that you’re giving up present income to live off of later.  If I knew I had an extra 20 years of income coming in, I would spend more money.  I would pay for more experiences rather than “stuff”: more visits with friends that live all over the country, shows, dinners out at unique restaurants – things that I do now, but limit to fit into my budget.

I would plan on working part-time after age 55 or so. Maybe you love your job and can’t see yourself not doing it, but 20 years from now what if you just don’t want to do it full time.  Working part-time would allow the feeling of fulfillment you get from the work you do and allow you to not “burn out” at the end of the day.  I’m assuming that my energy levels at 55 may not be the same as they are at age 35.  In order to still enjoy my job, I would plan on cutting back a bit.

Those would be my main changes to the “standard” early retirement plan which a lot of people think is more than a little nuts.  An early retirement plan isn’t for everyone, but with a few small changes, a more moderate plan would still allow the same level of financial freedom, while living what could be seen as a more normal lifestyle.

Things I found interesting/scary this week:

This may not be all that reasonable to live in during a Canadian winter, but it looks like a good use of scrap wood.

I read a lot of science fiction, and this is the type of story that usually starts off some sort of epic zombie apocalypse at best, or a kill-off of a good chunk of the world’s population (maybe we don’t need to limit the number of people in the world?)

Work Interferes with Lifestyle

Posted by Robert on December 5, 2011

This is a guest post by Robert, who lives in Calgary and works as a financial advisor retired at 34. He is married, has three kids.  Robert and his wife then plan to return to school and become teachers, eventually living and working overseas.

I did offer, as an explanation, that I’m currently applying for a graduate program at the University, the Masters of Education. The volunteer coordinator offered that she would like to do something like that, but she has currently taken a part-time job. A friend of hers, who works in an office, knew that the office required more help and begged her to come in three days a week. But she’s finding that the three day per week office job is cutting into her workout routine and her volunteering.

Before, I would have considered her attitude to be a sign of laziness or the side effect of skewed priorities. Now, however, I find it easier to identify with her. In the last couple weeks, I have applied for a couple different jobs, when I stumbled across the opportunity and I felt I could learn something from the position. Two examples are a technical analysis investment research firm and the provincial securities regulator. In neither case did I receive an offer, but I was forced to think about what it would take for me to give up my lifestyle.

Presently, I don’t have to worry about work-life balance, because I don’t have a rigid work schedule. If I were to return to working for income, however, I would need to change my routine and give up some of my freedom. I believe that many workers accept less than ideal working conditions because they don’t have options and because they need income to survive. When I don’t need to meet those needs with a job, I become much more particular about the working environment and enjoyment I would receive from work (or volunteering), rather than the income or benefits.

I volunteer at the YMCA because the atmosphere is healthy and positive. I volunteer in my kids school so I can be with them and find out what they’re doing. What do you like about your work other than the pay? Where do you want to spend your time when you no longer need to work?