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Most people are focused on ENJOYING their lives. "Early retirement" can be a way to work yourself into an early grave, or physical/mental exhaustion. Most have no desire to race to an early retirement, given what that entails.
Such an absurd question for a post, really.
I turned 60 two months ago, and I have been retired for 18 years.
"Early retirement" can be a way to work yourself into an early grave, or physical/mental exhaustion.
While theoretically true; in practice, I'd argue the standard pattern of overconsumption (of food, just for starters) is what's taking people to an early grave as well as physical/mental exhaustion.
Why should they be, over any other life plan? Such as the already-well-presented "do something you're really good at and don't expend your entire adult life's value so you can end it on permanent vacation."
That this is regarded as some kind of gospel/one-size-fits-everyone(-worthy) goal is just self-indulgent horse biscuits.
We enjoyed our horse biscuits in our early 40s. Hobbies turned into second careers and one may be a nice pocket money producer once the current ones get too tedious.
Most people are focused on ENJOYING their lives. "Early retirement" can be a way to work yourself into an early grave, or physical/mental exhaustion. Most have no desire to race to an early retirement, given what that entails.
Such an absurd question for a post, really.
I'm on track for an early retirement and I'm definitely not working myself to an early grave. I enjoy my life and my the time I have with my young family. The key was to start saving/investing early, and I was fortunate to have purchased a rental property at a very opportune time. I wouldn't have been able to purchase that rental property if I was spending everything I was making though. That opportunity would have been present, but if I didn't have the funds it would have passed me by.
I feel like these discussions seems to go into the extremes. People think to reach early retirement you have to be a miser, don't go on any vacations and eat rice/beans for the rest of your life. That couldn't be further from the truth. If the new normal is to have 10k in credit card debt, 30k in student loan debt, a 350k mortgage and 2 car payments, then I'm glad I'm not "normal". I reject your normal and substitute my own I have no credit card debt, no student loan debt, a small car payment that I'm on track to paying off early and I'll have the mortgage on my primary residence paid off in about a year all before I hit 40 years old. If I didn't get a crazy deal on a minivan, I wouldn't even have a car payment. I could pay it off today, but we'll be doing some renovations on the house we'll be moving into so I'd rather have the money in cash in case there is a cost overrun.
I was talking to a few friends the other day, one isn't working, one works very hard and spends very hard, and the other is just an average joe putting a little away in a 401k each month and that's it. They were all talking about retiring and how it's a "myth" and they'll all have to end up working until they die.
In the very next breath they start ripping on me for owning investment property. That I create too much stress for myself and that I'm crazy. I said "I think it's crazy that you're willing to work for someone else into your 70s when I'm currently in line to retire by 45, who's really going to have to deal with more stress in their life?". Again they make fun of me, saying I'm not realistic.
I just don't understand how the "Normal" thing to do is work your life away, spending all your money on the weekend and most of your life in an office making money for someone else... Why isn't it everyone's goal to get out of that mess?
I sold a business almost 20 years ago, broke it into 3 parts/sold it to 3 different people.
1. Majority buyer was a millionaire that got his money from a settlement. In my opinion he was crazy and would screw it up.
2. Buyer 2 was an employee, buying his share. Hard headed but a hard worker
3. Buyer 3 was trying to run it as a side business, subcontract the employees for a passive income.
I got cash upfront, didn't guarantee anything.
1. Buyer one: lost a 10 year employee, lost 8 big commercial accounts in the first 90 days. In general he lost 1/3 of the overall business. His goofy personality turned people off.
2. Buyer 2 is still going strong today, has grossed millions of dollars over the years.
3. Buyer 3 was out of business inside of the first year.
Moral of the story, not everyone is cut out for self employment nor do they succeed at it.
I'm on track for an early retirement and I'm definitely not working myself to an early grave. I enjoy my life and my the time I have with my young family. The key was to start saving/investing early, and I was fortunate to have purchased a rental property at a very opportune time. I wouldn't have been able to purchase that rental property if I was spending everything I was making though. That opportunity would have been present, but if I didn't have the funds it would have passed me by.
I feel like these discussions seems to go into the extremes. People think to reach early retirement you have to be a miser, don't go on any vacations and eat rice/beans for the rest of your life. That couldn't be further from the truth. If the new normal is to have 10k in credit card debt, 30k in student loan debt, a 350k mortgage and 2 car payments, then I'm glad I'm not "normal". I reject your normal and substitute my own I have no credit card debt, no student loan debt, a small car payment that I'm on track to paying off early and I'll have the mortgage on my primary residence paid off in about a year all before I hit 40 years old. If I didn't get a crazy deal on a minivan, I wouldn't even have a car payment. I could pay it off today, but we'll be doing some renovations on the house we'll be moving into so I'd rather have the money in cash in case there is a cost overrun.
Great post, I was totally on board until "if I didn't get a crazy deal on a minivan"
I looked at a farm a few years back, like a u-pick type place (not 1000 cows). 200 acres, business was 20+ years old. It could be had for just over 1.3mm, cost to carry wasn't terrible and it was in a vacation area.
Just noticed the farm got relisted about 2 months ago, they want to sell the house/barns but keep the majority (92%) of the land and the business. Asking price is about 350K more than they paid for the whole place. If it actually sells that would be a great score for the owners, they get all their cash back plus a few bucks and they basically got the business for free! It is a retirement business for them according to their bios.
Great post, I was totally on board until "if I didn't get a crazy deal on a minivan"
Haha ya I hear ya. I had a 2004 4Runner that was paid off and nothing wrong with it. Wife has wanted a minivan for a while and with our two kids in car seats it was tight when family would visit. My overseas parents visit us for a few months every year and whenever we did anything, we'd have to take two vehicles. It was a major PITA. So found a 2013 Honda Odyssey with less than 34K miles on it, one owner and all the service was done at the Honda dealership I bought it from. It came with new tires all around, a new alignment, new brakes etc. I talked them down to $18500, put $7k and financed the rest. Payment is $250 and I'm making extra payments to pay it off early. I'm already at trajectory to pay it off at 4 years instead of the 5 years of the loan. I did NOT trade in the 4Runner, instead I sold it to a coworker so I got more from that transaction versus trading it in.
Like I said, I have the money this second to just pay it off the balance but with our upcoming renovations, I'd rather have the money in the bank in case of cost overruns. If I end up not needing the extra funds, I may just pay it off. I really hate car payments but the car purchase was to make the wife happy and my life easier. It's hard to put a dollar amount on those 2 things.
All that being said, the car purchase didn't delay my early retirement as I had already been budgeting for a car replacement. We had talked about buying one next year so this just moved up the purchase. I don't regret the purchase as my wife is happy and I have found that having the van has made my life easier. We just did a trip to Lancaster and Rochester in it, and the extra room was nice while visiting family. They could just pile in and not have to take multiple vehicles while sight seeing.
While theoretically true; in practice, I'd argue the standard pattern of overconsumption (of food, just for starters) is what's taking people to an early grave as well as physical/mental exhaustion.
And while THAT is true for many, it’s not true at all, for many others - myself included.
I would have had a far less enjoyable life attempting something so unattainable.
I'm on track for an early retirement and I'm definitely not working myself to an early grave. I enjoy my life and my the time I have with my young family. The key was to start saving/investing early, and I was fortunate to have purchased a rental property at a very opportune time. I wouldn't have been able to purchase that rental property if I was spending everything I was making though. That opportunity would have been present, but if I didn't have the funds it would have passed me by.
I feel like these discussions seems to go into the extremes. People think to reach early retirement you have to be a miser, don't go on any vacations and eat rice/beans for the rest of your life. That couldn't be further from the truth. If the new normal is to have 10k in credit card debt, 30k in student loan debt, a 350k mortgage and 2 car payments, then I'm glad I'm not "normal". I reject your normal and substitute my own I have no credit card debt, no student loan debt, a small car payment that I'm on track to paying off early and I'll have the mortgage on my primary residence paid off in about a year all before I hit 40 years old. If I didn't get a crazy deal on a minivan, I wouldn't even have a car payment. I could pay it off today, but we'll be doing some renovations on the house we'll be moving into so I'd rather have the money in cash in case there is a cost overrun.
Again, you had the funds to purchase. Most, don’t. Opportunity is great - to think that everyone has access to the same investments is just being unrealistic. Your assumptions are all incorrect as far as my own life. No student debt. Drive one car, until it dies. Haven’t had a car payment in 5 years. No CC debt either. No cable. No manicures. I was always averse to debt so that was never an issue. I put my son through college and have not one single regret about that.
In less than 3 years I’ll retire with a nice pension and a good amount of savings. I consider myself to be blessed, frankly. What works for you, does not necessarily fly for others.
Last edited by ChessieMom; 07-15-2019 at 07:10 AM..
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I have no credit card debt, no student loan debt, a small car payment that I'm on track to paying off early and I'll have the mortgage on my primary residence paid off in about a year all before I hit 40 years old. If I didn't get a crazy deal on a minivan, I wouldn't even have a car payment. I could pay it off today, but we'll be doing some renovations on the house we'll be moving into so I'd rather have the money in cash in case there is a cost overrun.
