Category Archives: Non-financial Aspects of retirement

The Longer In Early Retirement, The Easier It Gets

When I was first contemplating retiring young, the idea of funding my lifestyle over decades was of high concern. A lot has happened and changed over the nearly 13 years on this early retirement ride. Even in this high inflationary period, I do believe that the longer in early retirement, the easier it gets. Not that it was all that hard in the beginning. It’s just more comfortable and enjoyable with less worry, more coasting along. 

The Longer In Early Retirement, The Easier It Gets

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It Has Only Got Easier The Longer I’ve Lived Early Retirement Freedom

Of course, a major retiree worry is burning through our money before we leave the planet. As the years have stacked up, there have been a lot of ups and downs in our portfolio. We never started with hitting the magical million dollar number to begin with. What we did was maintain a reasonably frugal lifestyle while still being able to travel as much as we wanted to, help our kids and grandkids out when necessary, and have a blast doing it. As time passes, the easier it gets.  

The Easier It Gets Financially

Budgeting

We used to feel like we had to watch it like a hawk. Now it’s pretty much on autopilot. Our frugalish lifestyle and spending habits have stuck. There is little yearly budget deviation except for the occasional emergency or small planned indulgence.
When the first of the year healthcare or other insurance/tax cycles cause big increases, we make necessary adjustments without worrying about things as much as we used to do early on. 

Since retiring over a decade ago, we’ve seen how over a 12 month period it all smooths out in the end. Even when there were some high monthly hits that were encountered. 

Adapting To Rising Healthcare Costs

We were lucky. The first few years of early retirement only brought small yearly increases. It then went obscene and it was a huge pain in the assets. Over time we’ve been able to take it in stride. We still get ticked off, but with every year that passes we get closer to Medicare eligibility. We just automatically assume we will be adjusting the budget in spending and income to cover it with a lot less worry until age 65. 

Riding Out Market Swings

There are some things we just can’t control, even with a well diversified portfolio. Market volatility swings can cause a lot of early retiree sweating. It was something that caught my attention in the early years causing some worst case worrying. 

The longer I’ve been doing this early retirement thing and living off of my portfolio, the easier it gets to just roll with it and trust the plan. I do check balances and run numbers when it has taken negative hits like it has of late. 

A quick run of the FIREcalc retirement calculator using the new lower portfolio total along with any new income requirements and Social Security data is all it takes to remove any concerns. Well, including Social Security and you know…… that growing older reduced years circling the sun thing. It’s a simple equation:

Social Security income coming in sooner

+ Less years left to fund

= Enough even with a reduced portfolio number to cover current market loss in the overall retirement funding calculation. 

If the calculated success percentage came up poorly, I would calmly do what we now have a history of doing, make necessary adjustments. 

Aging Closer to Medicare and Social Security

As mentioned above, I do use our Social Security figures as part of our overall retirement planning. That and the big reduction in health insurance costs that Medicare will provide us. We will finally reap the promised benefit from paying into our nation’s retirement system for our entire working lives. The longer in early retirement, the closer we inch to retirement portfolio funding assistance. Ya, ya, I know there is talk among certain politicians that some people of politics are looking to kill it. If they do then I suppose this country will be dealing with an even bigger and more dangerous problem than any retirement budget adjustments or income shortcomings I will have. 

The Easier It Gets Non Financially 

What Work Identity?

Early in retirement, I did everything I could to prepare for leaving my career title behind. Even so, there were still some mental adjustments that took time to work through. The longer in early retirement, the easier it was to put it all in the past. In fact, I have trouble remembering many names of those I worked with over the 31 years of that career. It all seems like a previous life that matters about as much as if not less than my highschool portion of life.

Having A Better Social Life

The first issue I recognized as a big hole in my early retirement was my social life. It took no time to realize almost all of my social circle revolved around work. I had to make a concentrated effort to grow my social life in the first months and years of retirement. My social life is now broadly community and hobby based. I have only one person that I’m still in regular contact with from my first long-held career, and that is just fine.

Wanting Less Because I’ve Already Scratched My Itches

There was a lot of daydreaming about what early retirement would be like and what I wanted to do before pulling the trigger. Once I retired at the age of 51 I was still full of the same high energy and production based conditioning I had when I was a career engineer. I enjoyed down time to the fullest and entered into paid gigs of interest and passions. I see now that some of that was also driven by another necessary transition- trying to get over myself and invisibility. Scratching these itches were both necessary and extremely rewarding in many ways.

 

A lot has changed over the 12+ years in early retirement. I scratched all my itches, transitioned away from work identity, grew my social circle, learned to fully trust my savvy personal finance skills/plan, and have relaxed over time into a comfortable energy level of retirement living. 

I still pursue new passions and ideas that I have interest in, but I’ve learned that I have nothing to prove to anyone, not even myself. 

Time, experience, and maturity has made me a better early retiree and made early retirement easier to enjoy to the fullest.

How to Plan for Aging Parents

This informative article was contributed to Leisure Freak by freelance writer Regina Thomas that details some necessary first steps.

Your parents appeared indestructible to you as a child. You expect them to be present at all times. So it’s acceptable if you are in denial when you notice either or both of your parents are aging and become feeble. Maybe you are unprepared to live without them or are concerned that their health is deteriorating. Alternatively, one parent may have died, leaving the other to deal with loneliness and loss. Alternatively, you may be uncertain if they should continue to live alone and what options are open to them. You might have to accept that your parents aren’t getting any younger. Preparing for the worries that come with aging is in your and their best interests.

The following are some suggestions for preparing for your aging parents’ future and tackling the difficult choices you may face as a family;

How to Plan for Aging Parents

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1. Have a Family Discussion

Nobody wants to consider what might happen to their aging parent. However, if you truly want to prepare for your aging parent’s future needs, everyone in the family should be on the same page. You are recommended to have a deliberate family chat since this subject can easily be put to the side or neglected altogether. This isn’t a topic to broach during a holiday dinner when everyone is preoccupied. If the entire family cannot attend in person, create an online conference call to ensure that everyone is involved.

This chat aims to discuss your parent’s care needs and wants as they grow older. It doesn’t have to be aggressive; rather, it should be an open conversation with their best interests in mind. Ensure your parents and siblings are ready for this discussion and think about how they feel about it before they come. You should also consider your familial relationships and how they can help or impede this discussion. When feasible, try to avoid any confrontations to keep the conversation constructive and positive.

2.Explore Senior Housing and Aging Care Options

Your parents may appear sprightly and self-sufficient today, but their circumstances may transform. There are several eldercare solutions available to meet your loved one’s needs. If your parent is experiencing health issues and can no longer survive alone but does not require constant healthcare services, supported living is a great choice. Your parents can stay in their apartment, but they will have to share meals and activities with the other residents. Transport, cleaning, laundry, medication administration, and support with activities of daily life (ADLs), such as showering, grooming, and dressing, are all standard services provided by assisted living communities. For instance, The Moments of Lakeville offers high-quality assisted living services and an improved memory care setting for aging parents. A search online can help you find and connect with care facilities and experts in your area. 

3.Financial Planning Needs

Most of us are apprehensive about discussing finances. You will make wise choices if you address these concerns as early as possible when there is no urgency. Examine your parents’ financial situation. Compute their assets, liabilities, Welfare Benefits, pensions, and other sources of income. This could be an excellent time to decide who will have the power of lawyer and financial responsibility for your parents’ accounts. If they cannot manage their money, a power of attorney will allow a trusted individual to do that on their behalf. Your parents can designate how their assets are handled by consulting with an eldercare lawyer. A power of attorney can take control of your parent’s money if they become ill unexpectedly, ensuring that invoices are paid, and medical bills are not missed.

4. Comprehensive Legal and Medical Preparation

Prepare for an emergency ahead of schedule. Make a primary folder with your parents that contains all of your critical documents in one safe location. As you collect documentation, you can check if any papers are missing. Every relevant document should be kept in a safe, locked box or storage unit in this master folder. Make sure your parent share where the items are safely placed so the rest of the family are able to get to them if needed.

A will can be used to avert family feuds by clearly stating their goals. They should consult with a lawyer to discuss their assets and intentions for how their inheritance should be divided. If your parent has particular thoughts about their final farewell, making a plan for sensitive family members to adopt can be helpful. They can even pay for some funeral services in advance. If your parents haven’t already done so, you are recommended to talk to them about making a living will.

Conclusion

This planning will ease a great deal of stress for the family members if you spend the effort to arrange their property and know their preferences for their future. Therefore, this debate is necessary for families, even though it can be difficult and uncomfortable.

 

Much thanks to Regina Thomas for sharing these tips on how to plan for aging parents. Something that many of us may have to face. 

Author Bio:

Plan for Aging ParentsRegina Thomas is a Southern California native who spends her time as a freelance writer and loves cooking at home when she can find the time. Regina loves reading, and hanging with her friends and family, along with her Golden Retriever, Sadie. She loves adventure and living every day to the fullest.

 

The Boring Early Retirement Truth: It’s What You Make It

I’m going to retire early and travel, sleep in, and make my life an endless vacation. I thought it, said it, and have heard it many times from others. Well, maybe it’s true for some. But for me and most people who have or had  this dream, it isn’t our reality. Which sadly can lead to retirement disappointment. As someone who ditched my long career over 12 years ago at the age of 51, here’s the boring early retirement truth: It is all on you to make retirement what you want it to be. 

We have to be prepared and willing to make our retirement the adventure it can be. The euphoria that comes on our first day of retirement fades and drags away any of those freewheeling dreams we might have had. We have to be ready to start a new phase of life. There are a slew of different challenges we must mentally commit to accept and work though.

The Boring Early Retirement Truth: It’s What You Make It

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The Basic Boring Early Retirement Truth Is We’re On Our Own To Make It Great

There’s nothing earth shattering to be revealed here. The boring early retirement truth is our retirement depends on much more than the portfolio numbers that we need to support it. Our numbers are obtained, invested, allocated, rebalanced, and for the most part do what they are supposed to do based on historical analysis. 

It’s the other stuff that causes retirement grief or success. There’s no nifty non-financial retirement calculator or program to rely on. We are on our own to develop our retirement vision and how to get there. Believe me, it can be a fluid and indirect trip over the years. For as long as we are on this journey, our required effort to adapt never ends. Here are some of my observations collected over my decade-plus of early retirement. 

Big Dreams, Little Sustainable Support For Them

I have to smile when thinking about my preconceived notions of what I was going to enjoy doing in early retirement. Some of it was just dreams. When we are busy working, we can believe that it’s only our lack of free time that is keeping us from doing some things we dream about doing. When I finally had the time, I found out a few things:

  • For some retirement dreams it wasn’t a lack of time that kept me away from them. I just didn’t realistically have the finances to support them. Imagine that. We are always trying to dream big. Sometimes too big.
  • Other retirement dreams I found that I had the finances but would in no way be worth the cost in finances and time for me to do them. 
  • Some retirement dreams I got a taste of and found out it wasn’t my thing. 
  • Then perfection, when it’s right it’s exactly where and what I should be doing. But I had to ditch doubt and notions of previous failures to be willing to make the leap and try it first.
Did any shattered early retirement dreams cause a sense of retirement failure? 

Not hardly. We have to be willing to explore, test, and learn as we go. What looks fun and exciting while reading about other’s adventures or things we thought would make life wonderful may not be for us. I still enjoy reading about and investigating things of my retirement dreams or curiosity because who knows? There’s always an avenue I have no inkling about.

We spent a lifetime doing what others laid out for us or demanded from us and then measured every which-way to Christmas for success or failure. 

Who would have thought that after decades of identifying with our work related title or occupation we could possibly encounter mental turmoil when we decide to give it up. Retirement freedom means it’s on us to test the waters and push ourselves to find out what our thing or sense of purpose really is. If what we are drawn to or dream of stalls or starts out perfect and then fades, just move on. There is no longer the required need to measure up. It isn’t failure, it’s just change.

Being Bored In Retirement

I never thought I would be bored in retirement. Not before or after walking away from the grind. I can’t say I’ve been bored either. Whenever I hear someone say they would be bored in retirement, I agree with them. Yes, you will be bored. Best to stay in the rat race feeding the system. Just as it was designed for. 

If we say we will be bored in retirement we are making a statement of belief. We’re not ready to ask whether we could possibly enjoy being retired or not. Nor willing to accept another’s experience or suggestions. 

Having periods of inactivity, projects, travel, etc. doesn’t have to equate to boredom. We have to get used to learning how to enjoy doing nothing while celebrating the little things in life that the freedom of retirement brings us.

The Mental Bumming Burden Of Financial Volatility

News flash! The portfolio and market numbers go up and down just like before retirement and as it always has through history. We will just care more about it in the early years of retirement since we’re for the most part not adding earned income into it. At least for myself, I skipped away with a less than a fat million dollar portfolio and was alarmed whenever the market took big drops. I now believe a lot of it was more connected to losing my work identity and having to rely on a system I have no control over. 

We do have some control and learning to accept that takes time. I find looking at my financial plan the way I was forced to do for long-term career success worked to ease my mind. Refresh, reevaluate, and rebalance becomes much easier to do and market induced panic no longer lands. From portfolio allocations to spending or budgetary tweaks, it’s all on us to find the right balance for retirement success. 

Accepting A Limiting Definition of Retirement

I don’t get it, and do try to understand it, but why would anyone want to be free from a life of unrewarding work obligation and then throttle yourself with a limiting definition of what retirement is? I’m talking about paid adventures in retirement.

Want to make early retirement easier to accept?  Another boring truth about early retirement, just keep the definition loose: Retirement is the absence of NEEDING to work, not the absence of working. Not that finding fulfilling work in retirement is necessary. It’s just adding the prospect of an open mind of happily riding that horse when the opportunity looks perfect. Get off when it isn’t.

I’ve had some awesome paid retirement adventures and have this same attitude to take with all my retirement endeavors.

Address Social Life Challenges

I found the sting of realizing that my social life was 95% tied to my work. It took time and effort to rebuild a social network within my community where I was going to be living the dream. There’s no magic resource or tool that will tell you that you have this covered.

We leave behind a lot of BS when we retire. But there was also stuff we liked and enjoyed. I found that the people I associated with were only there in my life because we shared the same rat race burdens. It was just like I experienced when changing jobs. Most ex coworker pals drift away. It’s natural and retiring is no different.

I found a new and rewarding community based social life by volunteering to support things important to me, frequenting a local small independent coffee shop where locals can be met, and attending free classes offered at the local library. Then it was accepting the coming social invitations even when it challenged my comfort zone. My social life grew from there. 

You Gotta Make Moves, Nothing Will Likely Just Fall Into Your Lap

When it comes to retirement, we can’t sit back expecting adventure. Another boring truth about early retirement is the old saying, out of sight, out of mind. Get out of your comfort zone and constantly test the waters.

Many times I enjoy being surprised at just how wrong I was about something or some people. It makes taking the effort to find out totally worth it. It is much better than sitting back wondering about something and regretting not being involved or participating in it. Invitations to adventure are rare to those who aren’t seen. By always sitting back, it becomes easy to fall into a boring routine just to avoid stressful risks.

Stay Curious and Open Minded, But Always Question

Sometimes we are drawn to real opportunities for a great retirement adventure. Other times it becomes obvious that we are falling for a hyped-up false version of something or someone. When that happens it’s OK to walk away and don’t look back. 

Live and learn is my basic boring truth about early retirement. There have been a few surprises both good and bad. But without curiosity and an open mind, I wouldn’t have had the great experiences I’ve had over the past 12 years of early retirement. 

Retire early by saving time on habits

 

This post was contributed to Leisure Freak by the accomplished entrepreneur and personal finance influencer Erik Bergman

When it comes to retiring early, it’s all about achieving financial freedom. But what many fail to recognize is that to achieve financial freedom, you have to change habits. Some habits work against your efforts to retire early. So by saving time on these habits, you are making it easier to do that.

Achieving financial freedom before retirement isn’t easy. Not only do you need to root out some habits to save time, but you also need to prepare mentally. While it’s easy to put off your retirement plan for another year or two down the line, imagine how different things would be if you had saved that time instead. So if you want to retire early, you need to act now and not in hindsight. With the help of our tips, you can do that. So without wasting too much of your time, let’s look at how to retire early by saving time on habits.

Retire early by saving time on habits

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Go To Bed Earlier

One of the most common bad habits we all do is not getting enough sleep. We are encouraged to get anywhere between seven and eight hours of sleep each night. Are you sure you’re getting enough sleep? Sleep is an important biological function that no one can survive without. Not only does sleeping help replenish energy, but it prepares you for the next day.

All successful people get enough sleep. So to do that, you need to start changing your bedtime habits. Are you going to bed at the right hour, or are you wasting time by scrolling through social media, watching TV, or playing games on your smartphone? If the answer is yes to any of these three, then you’re not getting enough sleep. In that case, the only way to get enough sleep is to wake up later in the day.

But morning is the most important part of the day. It prepares you for the day to come, and waking up earlier makes you fresher and more productive. My simple tip is to go to bed earlier by reducing screen time. On average, you will be saving more than ten hours a week. This is one of the four habits that save time and help you retire early.

Quit Poisoning Your Mind and Body

We have all kinds of habits that negatively impact both our minds and body. These habits make it difficult for you to function the next day. Even more so, they create a downward spiral that makes you less productive. In turn, the less productive you are during the week, the less work you’ll do. This negatively contributes to your goal to retire early.

The whole point of retiring earlier is to enjoy retirement more. So with every small action, you make that will negatively impact this goal, you are losing valuable time. People have all kinds of negative habits. But some hinder your ability to achieve financial freedom. Some are so harmful that they actively work against early retirement. Drinking is one of those harmful habits. The more you drink, the less productive you are. While you’re certainly not a stranger to the idea of alcohol, having too much of it can harm your mind and body.

If things spiral out of control, then you indeed lose all control. The habits become the norm. Every morning becomes a struggle to sober up and deal with hangovers. This hinders your personal and professional development. So, you need to start thinking about changes. One of the best changes is to replace the whiskey glass with dumbbells. Exercise is your best tool to help you deal with this problem.

Many people drink to stop depressive thoughts. According to this study, exercise is the best tool to combat depression and addiction.

Save Time By Preparing Easier Meals

Much like sleep, we depend on food for energy. Without eating, we wouldn’t be able to survive. So naturally, eating is something unavoidable. But you’ll be amazed to find out just how much time you’re losing every day preparing meals and thinking about what to eat.

Meal preparation takes, on average, one hour each day. You can spend that hour more productively elsewhere. But that doesn’t take into account the process of figuring out what you’ll be eating three times a day. So what’s the solution to this problem? Like in personal finance, planning is key. By planning what you’ll be eating for the whole week in advance, you’ll save valuable time grocery shopping, preparing, and cooking.

Make this a habit, and you’ll start realizing just how much time you’re saving on average. You can invest the time saved into planning for early retirement.

Stop Watching Television

The last habit is similar to the first but different in many ways. We mentioned that to prepare for early retirement, you need to prepare your body and mind for it. Everyone owns a television. And everyone has the same habit of watching TV when back from work. But what television does is it makes you a slave to it.

You watch more just to satisfy your need for daily entertainment. That could be watching a fun game show, TV series, or even watching the news. People watch the news to know what’s happening around the world and at home. But what happens around the world doesn’t really impact you or your day in any way. You’ll still go to work and come back tired.

So instead of watching television, try to do something else that will have a positive effect on your early retirement plan. On average, quitting television can save up to four hours each day.

This informative article was contributed to Leisure Freak by Erik Bergman. We all can find ways to be more productive in reaching our early retirement financial goals. A little self  analysis goes a long way and tweaking non productive habits costs little to nothing.

Retire early by saving time with better habits  Author Bio: Erik Bergman co-founded Catena Media and helped grow it to over 300 employees and a $200 million valuation before stepping away to start Great.com, an iGaming organization that donates 100% of its profits to environmental charities. In addition to running a successful online affiliate business, Erik also hosts the Becoming Great podcast, shares entrepreneurship tips with his more than 1 million social media followers, and contributes to sites like Entrepreneuer.com, Business Insider, Foundr, and Forbes.  

Early Retirement Invisibility: The Getting Over Yourself Transition

I used to be a telecom lead engineer. Guess what? Nobody cares. It sounds like a punchline from a certain humorous television commercial about teaching young homeowners how not to become like their parents. The reality of dealing with early retirement invisibility isn’t so funny if we aren’t prepared. It’s a retirement mental hurdle that hits many of us if we haven’t successfully detached from our work identity. Something that’s in us deeper than we’ll ever know until we actually retire and exit our career. I started, or at least thought I started this detachment years before ditching the rat race. But I still went through some things. Getting through it is a crucial key to retirement success. 

Early Retirement Invisibility: The Getting Over Yourself Transition

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Avoiding Early Retirement Invisibility Madness 

It should be of no surprise that after decades of building ourselves into a successful career that mentally letting go would be hard. It doesn’t matter that we were ready and willing to chuck it all for the freedom of retirement.

Many people fail to counter their feelings of early retirement invisibility. Miserable in their retirement because they couldn’t get over their previous selves, tied to title and position from an accomplished career. It can cause a mental funk that leads to complaining about retirement life and how it was a big mistake. 

A recent conversation with someone going through this mindwarp reminded me of what I went through and what I needed to do to overcome my own form of retirement invisibility crisis. 

The mistake of holding on-

I didn’t think my social life was as tied to my work as much as it was until it all ended. I made the mistake of doubling down on this social limitation by trying to stay connected to people I thought were real friends from my career. 

It didn’t take long to realize that the majority of these work pals weren’t friends after all. They were work acquaintances. We shared a common bond tied to our careers. Now that I was gone, I offered no real benefit to them as they were still in the toil. 

I should have immediately let go of my past and except for rare occasions, immediately let go of them too. It was all a one way street from me with their contact only coming back toward me when they needed to know something about work. My false notion about these friendships caused a delay in my transition. The real effort should have been immediately looking forward and doubling my efforts to grow my social circle with people more aligned with my new life.

Foolishly trying to prove something-

After delaying my freedom by a year I retired at the age of 51. It happened at the end of 2009 during the great recession. Nearly everyone thought I was crazy, foolish, or at the very least destined to fail. I didn’t have to prove anything to anyone but still ended up feeling the need to. Why? This was the exact moment I knew I wasn’t over my previous self. I gave up being a success in my field and had left with full confidence in my retirement decision. All the career accomplishment recognition had ended and now I was invisible trying to be seen in some way. It was dumb. 

Then truth-to-self hit me. I reminded myself that I voluntarily decided to no longer be an engineer changing that piece of the world. What others thought about my early retirement decision didn’t matter then and still didn’t matter now. The only thing I needed to do was put in some effort and move on. My proof was simply being happy and successful without the past. Achieving retirement success in the way defined by me. 

The allure of staying relevant to the working world-

One would think that after working through this retirement invisibility thing that it wouldn’t happen again. Wrong! I did take on some retirement gigs. It is all too easy to fall back into career identity even when you know it’s going to be short lived. It’s a menatly comfortable habit to identify with what provides us income. People are conditioned to consider what we do for money as the most important and interesting measurement in this go-go working world. 

For me, identifying with my retirement gigs was just a lazy way to answer other people’s questions. An easily understandable label. It eventually annoyed me and I immediately put a stop to it. It was a lot easier to shake my retirement work identity than it was the first time. I just changed my focus to why I was doing these paid roles in retirement instead of the roles I was playing. It served two purposes. 

1- It made clear my paid retirement work wasn’t allowed to bring anyone some twisted joy of perceived retirement failure on my part or reflect negatively on early retirement in general. 

2-  More importantly, doing this opened up a conversation towards sharing my retirement philosophy. A subject of great personal interest and passion: It’s the absence of needing to work that defines retirement, not the absence of working.  

Being Interesting Instead Of An Invisible Retiree Starts In Our Own Head

The new you is really better off.

It starts with understanding that the past accomplishments made us who we are today. Both the good and the bad. Maybe it was interesting, maybe it wasn’t as interesting as we think it was. What matters in retirement is embracing our future. If we think we’re invisible and boring then so will everyone else. 

Early in my retirement I found a lot of what I was passionate about wasn’t as interesting to others who were within my orbit. So what? It’s the spark in me that mattered, not their approval. I had escaped the merry-go-round of the working world and the problem was with them, not me. 

Just as our social circle primarily revolved around our career in our previous life, our new social universe will and should attract those with similar passions in our new retirement life’s direction. As we evolve, so will the group we gravitate toward to share our time with. It requires allowing the transition time to work it all out and putting in the effort to grow it the way we want it.

What and who do I want to be?

Of course nothing will happen to drop our tightly held work identity if we haven’t figured out what’s next for us. I had all this planned out before retiring, that I would never say I’m a retired engineer. I thought my numerous hobbies and pleasurable routines would be enough to fully detach. But I didn’t do the deep dive that I should have. 

I wanted to be free of unrewarding obligation. But I failed to recognize that a lot of that obligation, which benefited many others while giving me only headaches, also fed my ego. Ego has a hard time getting over itself. I really didn’t like that part of me so I had to actively kill it. Maybe that’s why I call myself a Leisure Freak. I’m sure most egos would hate that title.

Understand that pleasure is a poor substitute for fulfillment and  purpose.

Sure, pleasure will keep you busy and is a lot of fun. There’s nothing like smiling your day away, but it’s fleeting. It takes purpose for us to have the long lasting feeling of fulfillment, accomplishment, and relevance. Without any of that it’s far too easy to dwell on how it’s missing and how it was fed by title and earned income in our previous career life.

My solution was to be clear about what I wanted in retirement to provide me with a sense of something more than just unstructured freedom and memories of my previous, now meaningless past working world accomplishments.

Create- Always be making something. 

Whether it’s planning new projects and setting goals, or actually building something new. Always look for opportunities to create something new or build upon what is already there. From relationships to something physical, including anything in between.

Love- When doing what matters, be all in.

I focused on family and friends. Targeting the ways I could make our lives and our relationships better. I now had the time and in some ways more resources to try to bring a little more happiness to all of us. I also made certain that if I didn’t love what I was doing or the reason I was doing it for, it needed to change or end. It requires a sustained level of passion or interest to spend my valuable time on. 

Educate- Constantly feed curiosity by learning and also sharing what you know.

This happens to be my favorite retirement passtime. I focus on a subject of interest and won’t let go until I have learned all that I can, want to, or need to learn to fully understand it. The other side of this is to enjoy sharing what I’ve learned with someone else who has the same inquisitive interest. 

Appreciate- Recognize my blessings and good fortune.

I used to get ticked off when I was told I was lucky to retire early. Really! Do you know how much work it takes to retire young? I learned to accept that yes, I’m lucky and blessed. Someone like me wasn’t supposed to beat the system. Growing up low income with no connections, sponsors, or mentors usually leads to a different outcome. I was fortunate and lucky to want to learn the benefits of personal finance and the power it provides. I appreciate the unique place I’m in and vow to never take it for granted. 

Relax- It’s alright to take me-time, I’ve earned it without needing approval from anyone.

Back in the early “I’ve got something to prove stage” of my retirement transition that came shortly after my retirement celebration period ended, I felt like I had to be constantly progressing or doing something remarkable. And I wasn’t nor have ever been into social media. I can’t imagine what that must be like for those poor souls. Once I figured that nag out, I could just relax into the retirement pleasure zone. It is an important learned retirement skill to counter the decades of rat race objectives and achievement conditioning.

When it comes to retirement, none of us has a clue right out of the gate.

I picked up retirement advice and warnings from people who haven’t retired and from those who had. We talked about this overlooked aspect of retirement. I thought “duh”, I have it handled. If you are in this same mindset then all I can say is once the retirement celebration is over, prepare to get over yourself. You don’t know diddly-squat. There will always be at least a little something about your new retirement invisibility nagging at you. 

Those who don’t have to deal with retirement invisibility will be well ahead in their retirement transition with more mental bandwidth to work through the other things. Like say, going from saver to spender, is moving somewhere else in the cards, is the portfolio living up to expectations, how do I structure my day, etc. It all has to be done and is all totally worth the effort to create the perfect retirement.

Thinking About Retiring? 6 non-financial tips for a happier retirement start

If you’re considering calling it time to retire then I have a few non-financial tips for a happier retirement start. A lot of my early retirement relied on winging it. I was aware of the non-financial aspects of retirement. But I primarily focused on all the money stuff. As far as non-financial aspects, things I thought were important really weren’t. Resulting in wasting too much energy on the wrong stuff. Not that it went bad, it just could have been smoother. 

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Creating A Smoother and Happier Retirement Start

Forget about workplace legacy

I had a long career and the opportunity to improve the business and professionally influence, teach, and elevate a lot of people. In my final weeks before retirement I expended way too much energy trying to feel that I was leaving a workplace legacy. Key takeaway here is “trying to feel”. The reality is we and our accomplishments are all soon forgotten. I realized soon after I retired that any workplace legacy is short lived as life moves on, as it should. 

My tip is that anyone with notions of this sort should understand what you truly feel your workplace legacy is. Then why you feel the need to leave a legacy at work. Try to separate out what is being done for ego. Do only what is necessary to provide peace of your own mind regarding your retirement. There is absolutely no reason to run yourself ragged in your last months, days, weeks on the job trying to appease legacy vapor.  

Give just enough advanced notice of your retirement to the boss

The best way to retire is on our own terms, when we decide it’s time. Some people like to just pull an abrupt exit either because their position allows for it or they have had it. Others may have critical responsibilities and still care about their career, wanting to leave on good terms without hurting the business or coworkers. If that is the case then it’s alright to protect yourself from adverse reaction to any announcement of retiring

I gave my boss a month’s notice. Not that I hadn’t left clues of my early retirement thoughts long before, but it still came as an unwelcome surprise. It was a little too much notice and resulted in a lot of work and hours to cover them when I would have appreciated a gentler retirement takeoff. 

My tip to anyone wondering how much notice to give is to keep it to yourself for as long as professionally possible. The very minimum is the same as any resignation, 2 weeks notice. If that is really still a thing. The other is giving approximately the amount of notice needed for them to reasonably find your replacement, within limits. I would set that timeline. Don’t wait on them to get started if they’re dragging their feet. I was later told I wouldn’t be replaced so I could have technically danced out without any notice. I learned my lesson, my second early retirement announcement was aligned with completion of my project. This time I let them know just in time as they were preparing to assign the next big project. 

Treat any exit interview diplomatically

As a retiring employee there’s really no beneficial reason to participate in a retirement exit interview. Unless of course you are counting on them bringing you back later for a sweet short-term contract gig. I would always rather not burn bridges even when there was a lot on my mind about what could have been a better company environment. Things that were done during my long career, dark motivations to retire early. 

My tip, if you can’t avoid the exit interview altogether, play the middle of the road. I knew some of the things they don’t want to hear would just be marked as grumbling from a disgruntled employee no matter how beneficial it would be if improved. Positive things would be happily used in company promotionals to tell everyone still there how good they have it.  

Preplan what you’re retiring to

Everyone knows to do this. I think when we are still on the job preparing for retirement that we over simplify what is really about to happen. The easy part is rejoicing in knowing what we are leaving. I know that I figured my hobbies and bucket list of opportunities was all I needed to know what I’m retiring to. I was wrong because there are a lot of mental adjustments when leaving behind the lifetime structure of a career. 

My tip, make sure to add some structure to your retirement. Even if you have little to no big things to first accomplish, define your routine. Make sure it includes growing your social circle. It wasn’t until I retired that I realized that almost all of my social contacts were work related. It took some effort to grow it in retirement and I consider it my biggest retirement accomplishments. 

Reinvent yourself because it truly is the perfect time to start your new life

The best part of retirement is having the opportunity to reinvent yourself. Being no longer limited by the definitions of career or unrewarding obligation. Let go of all the muck in life and start fresh with a value based mindset. What makes you tick? It felt liberating to be able to say no to things I no longer wanted to be a part of. I also refused traditional definitions of retirement itself. I embraced the definition that retirement is the absence of needing to work, not the absence of working. Taking on a couple of opportunities to learn and do things long interested in. 

My tip is to be picky in whatever you decide you want to be. Walk past anything resembling the mud from your previous life and concentrate on the gold. No matter what anyone else thinks. Retirement means being able to make our own definitions about our retirement and what we want to be. 

Give yourself time to transition

Retirement is a mindwarp. After the celebration we all go through some things. Especially after the last paycheck clears. There are key steps we need to take to complete our transition from work to retirement. I know my retirement planning shortfalls came quickly to light. I not only had to put in effort to correct them but I also beat myself up for not being more prepared. That probably weighed on me more than the actual mishaps. What else did I fail to account for?

My tip is give yourself time to work through all of the unknowns of transitioning from career to retirement. We don’t know what we don’t know. Everyone will have their unique winging-it phase. It will all work out as long as we want it to and put in the effort. 

Important Legal Steps to Take After Retirement

This informative post was contributed to Leisure Freak by writer Veronica Baxter. A good reminder that there are necessary and important legal steps we need to include in our retirement plan. 

This article will outline the actions you should take while planning to retire or having just retired to ensure you achieve the financial and medical outcomes you desire.

Make a Will

If you have not done so already, make a will. In most states, this can be done with forms you can obtain online; however, there are likely witness or notary requirements. Be sure to comply with the testamentary requirements in your state so that your will is enforceable.

If your estate is complex in that you own a business, have multiple real estate holdings, have real estate or accounts across state lines, own property or accounts, or have invested internationally, you should consult an experienced wills and estates attorney for guidance.

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Update Your Beneficiaries

Your life insurance and bank, investment, pension, and retirement accounts require beneficiary designations. And, of course, you must designate beneficiaries in your will.

Be sure to keep your beneficiary designations up to date. For example, suppose you’ve had more children since the last time you updated your beneficiary designations. In that case, it is time to update again to include a designation to a trust in the name of those minor children. If you’ve divorced and you fail to change your life insurance beneficiary from your ex-spouse to someone else, your ex may benefit from your death. Not ideal.

Name primary and contingent beneficiaries or multiple primary beneficiaries in case a beneficiary cannot be found or has died. In this way, you avoid life insurance not paying out or the proceeds from your bank and investment accounts escheating to the state. Your loved ones should benefit from your hard work if you cannot, not the government.

Last, be sure to designate your beneficiaries by name. Problems can arise between potential beneficiaries if you do not. For example, if a man designates “all of my children” as beneficiaries, who does he mean? His children from his first marriage? His second wife’s children, who he considered his own but never formally adopted? A child he had with a girlfriend in college? You can see the problem.

Set up Durable Power of Attorney and Medical Power of Attorney

These designations appoint someone to make decisions on your behalf should you become incapable of doing so. For these people to be empowered to act for you, your incapacity may be  

temporary or permanent. The person with durable power of attorney will see to your financial affairs. Likewise, the person with medical power of attorney will make medical decisions for you and enforce your wishes regarding the type of treatment you do and do not want.

Be sure to consult the person or people you want taking on these roles – some people don’t want this kind of responsibility, and you need a willing and capable person to act on your behalf when you cannot.

You can set up a DNR order or organ donation in advance, however, the person with medical power of attorney will make sure your medical team complies with your wishes.

Update Your IRA Investment Risk Level

While not a legal step, this is important. If you have not been advised to do so already, be sure to contact the administrator of your retirement account and shift your investments to low-risk investments. This is to ensure the preservation of the corpus of your contributions as well as growth at a more stable and predictable, albeit lower, rate of interest.

Last, be sure to inform your loved ones of your intentions regarding all of this and their responsibilities, if any. Tell someone where all of your legal documents are so that if something happens to you, they can be easily accessed. You will rest easier knowing that you have taken care of all of this in advance.

Thanks to Veronica Baxter for sharing these important legal steps to take after retirement. 

It’s easy to forget about the non-financial aspects of retirement preparation. Especially things that don’t exactly fit into the more exciting aspects of retirement planning.

V Baxter Leisure Freak Contributed PostAbout the Author

Veronica Baxter is a writer at assignyourwriter, blogger, and legal assistant living and working in the great city of Philadelphia. She frequently works with and writes for Boonswang Law, national life insurance beneficiary attorneys based in Philadelphia.

 

Is Taking A New Job Without Mentioning Retirement Plans Dishonest?

The Financial Independence Retire Early (FIRE) journey can be tricky. It’s necessary to maximize earnings, increase savings, and also land in the optimum lifestyle that we desire to live. Having these goals can come into conflict with what others either fairly or unfairly expect of us. So, is it dishonest to take a new job without mentioning retirement plans? Being honest during new opportunity interviews served me very well in the last years of my first long career and all of my retirement jobs. It’s a major reason for my FIRE success. Here’s why it’s not dishonest to withhold retirement goals.

Is Taking A New Job Without Mentioning Your Retirement Plans Dishonest?

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Why Mentioning Retirement Plans Isn’t Necessary In The Pursuit Of Opportunity

A prospective employer’s thoughts don’t usually fish around retirement related questions during an interview when we’re young. It’s more a subtle issue once we stroll into the age 50+ ballpark. Younger FIRE aficionados probably seldom encounter this issue. But it’s a good idea to be prepared for the possible ethical dilemma of whether mentioning retirement plans is necessary. There’s a cost for businesses to onboard a new employee. They have a right to feel they will get their money’s worth. But we also have the right to have our own goals in mind. 

Many people will have no problem with this issue. 

There is an understood truth that we are all at-will employees and nobody owes anyone anything. Unless of course there is a legally binding contract which isn’t usually an issue except at the executive level. But for a lot of people there is a hope that the new opportunity is a chance for a mutually rewarding relationship. Otherwise, why even do it in the first place? We shouldn’t start off intentionally disloyal or dishonest in the relationship right from the start. I know I don’t ever want to feel like a ruthless jackhole. I have to live with myself. 

My early retirement plan was to reach employment liberation by age 50. But that didn’t stop me from wanting to pursue opportunities up to and after the big day of freedom. Navigating around the issue isn’t that complex, you just need to be prepared. 

They Don’t Ask, You Don’t Tell

It would be a rare thing for a prospective employer to come right out and directly ask about our future retirement plans. If it comes it will be in the way they discuss their employment longevity desires. This could be a discussion about how their workforce has low turnover and people stay for many years. Or that they are looking for someone who is a great fit and will be a lifer with the company. There’s no deception in keeping your retirement plans to yourself. Just say how wonderful that sounds and how you would welcome working in that kind of environment. 

Before my first early retirement there was an internal promotion opportunity in another group. Something that would bring in more earnings to go toward my financial goals and a chance to learn and do something I had great interest in. I always embrace both flexibility and adventure. I saw it as a “let’s see what happens” opportunity. They didn’t ask about my retirement plans and I didn’t tell them. In the end, my job offer was first presented to my director by the hiring manager as a courtesy. My director decided that I would be marked as a kind of department franchise player and he killed the offer. I was brought in to be told about it, I baulked, and he offered me a raise to silence the issue.

I doubt I would have received that raise had they known of my coming retirement plans. He didn’t ask about any of my retirement plans and there was no dishonesty in not telling him.

Where Do You See Yourself In Five Years?

A lot of interviewers like to throw the where you see yourself question out or its numerous variants. There is a right way and a wrong way to answer what’s your future career plans question. It’s definitely ill advised to say it’s to retire in an xyz timeframe living the life of leisure. They aren’t concerned with that and are looking for answers related to career aspirations that will be an asset to them as it relates to the presented opportunity and their business. Obviously, focusing on the real reasons we are excited to go through the hassle of interviewing for a new opportunity is an honest answer. 

This issue along with dealing with the overqualified roadblock came up in my first stepped down retirement job. It was during the recession and I had retired as a legacy network telecom engineer and was applying for a cellular telecom tech job near my home. I’m sure they initially assumed I was laid off like so many others and would jump at a chance to return to a like titled job as soon as one came up. I had always wanted to learn about the wireless industry and all of my answers were truthful around that. Not that I was financially independent and flight risk at any time by retiring again. As long as the gig was rewarding I honestly planned on being there. 

Open Ended vs Fixed Commitment

Some opportunities are open ended, like we want someone to stay for a long time with us as mentioned above. Others have a fixed component. As in, we need someone to commit to finish this XX month or year project. In that case the ethical dilemma isn’t about spilling your retirement plans. But instead whether you can honestly commit to the timeframe regardless of any retirement plans

This was the issue I encountered when interviewing for my encore career. It was another opportunity of interest and passion. I was to support a huge video project at a major cable company with a specific minimum project time frame. My accepting the position without explaining my retirement status was far from the equation. I simply made the decision to accept the timeframe commitment. It was the best and most rewarding working experience of my life. After the project and another contract extension I ended up retiring again with no hard or dishonest feelings.

If It’s Heaven You May Change Your Retirement Plans, If It’s Hell Too

One of the things that I always thought about when taking a new job and not mentioning my retirement plans or status is that a lot can happen in the time there. Both good and bad. We can’t see into the future. The relationship and rewards can be so great that retirement will be gladly put off. Or it can go wrong and become obvious that the relationship has spoiled and needs to end. 

Nearly two years into my first retirement stepped down gig I had an opportunity to advance. I had actually done the job in my past and it was a step up from where I was there. Everything went great and the offer was discussed but as I was later told they decided to give it to a younger applicant because at my age of 53 I was seen as a flight risk. Nobody asked, nobody told, but the employer made their own assumptions. They were right. I left a couple of months later. But I will always wonder if I would have stayed there a lot longer had they not done that. I really liked working there but it made the decision very easy to leave and accept a new opportunity that came my way. 

Always Be Open To New Opportunities

Nobody ethically believes that people should never be open to new and better opportunities in their life. That shouldn’t end just because there’s a near retirement date in our plans or we are already retired and want to work. There is nothing dishonest in this. 

Retirement is the absence of needing to work, not the absence of working. Sure, it screws up the system of employment that depends on a financially desperate working class. But there are no ethical issues of honesty with our winning at their game. If directly asked about retirement plans then truthfully answer you hope to one day retire just like almost everyone else does. But right now I am totally excited about and focused on this opportunity. 

 

This issue is something I had to think about because I had always intended on retiring early and often. It was bound to come up. I created a lot of retirement opportunity boundaries to make sure any paid work I took on would be rewarding. The odds were already tilted in my favor because I didn’t need to work. I also didn’t need to have dishonesty be any part of it. In the end there is no legal obligation to mentioning your retirement plans. But we should still consider whether we are acting ethically and honestly. Not for them, but for ourselves.

Is It Callous To Mention Early Retirement Now?

It is a time of hardship for many. There’s so much misery of illness, death, unemployment, and people waiting in food pantry lines. Even for those who still have an opportunity to earn income there’s health worries and income insecurity. For some essential front line workers they’re overworked with little power to make things better for themselves. Then there are the deniers. Those who push for everyone to suck it up and get back to work regardless of safety. No wonder anyone who has been financially preparing for many years can still feel it’s callous to mention early retirement.

I struggle to find the right words to promote the worthy goal of early retirement without first considering whether it’s insensitive. But should we not mention it? There are things to be considered before bringing early retirement up during these trying times for those who are about to announce their retirement or those who are already happily in it.

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Could It Be Callous To Mention Early Retirement In Today’s World?

This pandemic’s selectively ravaged job market has done a number on many people through no fault of their own. Unfortunately, this world does its best to pick winners and losers. We can’t and won’t always win. Even the best will eventually suffer the sting of loss. We accept it, make corrections or changes to better our odds of winning the next round, and move on. Those who pitifully whine about it are avoided. Try whining about your previous job treatment or anything else at a new job interview and see how far you get. 

Nobody likes a sore loser. But the only thing worse than a sore loser is a sore winner. Early retirement is certainly winning. So yes, depending on how we handle things, it can be callous to mention early retirement.

Today’s trying times share hardship similarities to when I retired young in 2009. 

My company had been in constant cycles of laying people off even before the recession. But once the recession hit they took it to another level. I was FIRE ready in 2008 but stayed another year. I hoped to be selected for downsizing to secure the boost of a happy paid severance send off, but it never came. Many others who were dismissed were personally and financially devastated. 

When I decided it was finally time to leave, my mentioning early retirement was met with different reactions. Some congratulatory, some with envy, many said I was insane, and others I later heard were wishing me failure. I tried to handle the issue with sensitivity and I still couldn’t avoid negative reactions. But that doesn’t mean I was callous regarding my early retirement success during a time of hardship for many people. 

Pointers To Avoid Being Insensitive When Talking About Early Retirement 

Don’t Gloat- 

Early retirement is an accomplishment to celebrate, not boast about. Early retirees have to make financial decisions over a long period of time to reach the milestone. Other people make different financial decisions. There is no need to consider ourselves superior, it’s just that we had and have different values. Nobody enjoys having someone’s success rubbed in their faces. If asked, then simply share future plans as if everything is normal regardless of the economic and pandemic turmoil. There is nothing wrong with doing well and expressing optimism about the future. 

Keep Your Portfolio To Yourself –

I never earned enough to accumulate a million dollar portfolio even with my frugal living habits. My salary never hit six figures, but I still considered myself wealthy. It’s not what you make but what you keep that makes you wealthy. I knew that most of my peers likely didn’t get the big bucks either. Instead of mentioning my portfolio amount when the subject came up, I talked about my strategy to fund my lifestyle budget and how I structured things. Embrace the concept of stealth wealth and focus on the income bracket you will be happily living in. It would cross into callousness to stick your portfolio amount in other’s faces in this environment just as it would have when I retired during the recession. 

Be Honest – 

Nobody enjoys having smoke blown up their keister. I would honestly say that although I would miss some of my work and peers, not all of it would be missed and left it at that. Then I would say that although it may appear like I’m crazy and in a midlife crisis to some, I was looking forward to pursuing my interests and passions and that our paths may cross again. My retirement may include other paid opportunities that come my way. I made sure that it was understood that my early retirement was the result of years of plan execution that included financial discipline and some sacrifices to make it happen. Early retirement wasn’t easily won.

No Guilt Or At Least Don’t Show Signs Of It – 

Haters will look for any signs to latch onto to justify their hard feelings. Showing guilt because of these hard times will give them ammunition. Something that will certainly add to any success guilt you may already have. Focus on being successful because of setting aside your unprofitable dreams over many years, delaying gratification, and developing disciplined lifestyle habits that supported the financial responsibility to be able to retire now. 

Ditch Pride and Ego –

It could be callous to mention early retirement now while so many others are not doing well if we do so through pride and ego. Early retirement is winning the game big-time. It’s beyond reaching a special status. But there’s no call to go to the other’s locker room to scream that you won and they lost. Instead enjoy and celebrate your victory and start thinking about ways to improve things  for you and others where you can. 

If that doesn’t fully work for you, then just think that leaving your job means possibly creating a job opening, saving someone’s job, or providing an opportunity for someone else to advance that might not otherwise be there. That is certainly what I thought when humbly mentioning my early retirement during a bad economic time for so many. That and deciding to choose my words carefully to be more inspirational than controversial. 

 

Some final food for thought. In the end, after so many years have passed since I retired, it isn’t what anyone else thought about my retirement that matters. What matters is how I feel about the way I treated people in my early retirement victory. I think most people would find that to be true.

Busted! When The Cloak Of Stealth Wealth Malfunctions

I never earned enough to build a giant portfolio but I still consider myself wealthy. I’m wealthy in the way that I can fund my early retirement lifestyle without NEEDING to work. That said, I purposely try not to appear wealthy. I’ve never been into status and my lifestyle is exactly aligned with the chosen socioeconomic level that I want to be in. But what do you do when your cloak of stealth wealth malfunctions? I made a small mistake that caused a crack in my financial cloaking. It caused questions within my social circle and within myself. 

Busted! When The Cloak Of Stealth Wealth Malfunctions

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Encountering Stealth Wealth Malfunctions

Stealth wealth malfunctions don’t have to be anything major to reveal one’s financial standing or challenge one’s chosen perceived standing. Retiring young already provides its share of social mystery. My stealth wealth deviation challenged perceptions and renewed long sidelined questions. 

It all started when I did something with nothing but joy in my heart. I decided to knock a longtime item off of my bucket list. Something others might consider silly, but one aligned with one of my lifetime hobbies. 

All it took was showing up in a new vehicle.

Yes, I bought a new car. Something that couldn’t be hidden nor did I want to hide it. I’m an automotive enthusiast and my car hobby is a big part of my retirement. I decided it was time to move on from my 21 year old Corvette that I’ve driven for 11 years and went to a new 2019 Jeep Wrangler 2 door Sport that was greatly discounted after the new year. I’ve always wanted to have a Jeep like this since experiences one summer with a CJ5 as a teenager. 

It was a “someday I want to” bucket list thing. 

To me it’s simple, it’s a convertible sports car that’s fun to drive in any season. Road conditions, what road conditions! Obviously it’s not a sports car like any of my past old Corvettes. But then again my driving desires dropped far below their performance capabilities long ago. Jeeps are common where I live in Colorado. In 2019 our last snow storm was the end of May and the first one in early October. Owning one is hardly a revelation of opulence. Mine’s even a stripped down model with manual windows and locks, just as I wanted. 

My automotive choices and hobby are well known and when I pulled up in it at my favorite coffee shop/craft beer purveyor I was stoked to talk about it. It took little time for that to happen because everyone knows that I have been driving the same old cars for years, for some of them even decades.

Where my stealth wealth sin occurred is in the way I answered the question: What’s your payment? 

Without thinking I just said, zero, I paid cash. That was instantly met with the snarky reply, it must be nice. Those who were within ear shot quickly jumped into the conversation. Look what Tommy just wrote a check for. When are you buying the next round of drinks for everyone here? They were obviously kidding me, or were they?

I innocently made a simple mindless slip. While I was successfully and happily living my lifestyle using stealth wealth practices, I was unaware that I’m in a perceived income zone with a financial status below the capability of paying cash for a new car. 

Whether or not in the overall scheme of things it even matters much to them, it mattered to me. 

Surprisingly, I found this unsettling. I’m someone who prides himself on not caring what others think about me. Especially those who flaunt their wealth and title. For them I go out of my way to let them know I dropped out of the rat race and retired early with just enough. Purposely choosing employment liberation over being a financially desperate servant to the system. But with this new slip-up within my chosen socioeconomic level I now felt like I might have messed up and revealed more about me than I comfortably wanted to. 

I enjoy being part of the socioeconomic groove I chose and am perceived part of. 

People accepted that I have enough to live on a budget and not need to work. I’ve preached my personal finance FIRE beliefs and was considered as being one of them, watching my dollars and making it all work out. But a new question will now have to be answered: Is it acceptable that I can make a cash purchase like this too? In my stealth wealth efforts I missed this aspect. This is the first time since FIRE that I broke character.

What I Did Right 

My Chosen Income Zone

We live in a moderate cost area where the median household income is $121K. I am sure that the published figure I’m using here is actually lower than what is current. Still, our overall household budget today comes in less than half this amount. It’s only that high because it includes the $20K a year I pay for our health insurance and associated out of pocket expenses. That is my chosen stealth wealth zone. It matches perfectly with the majority of my social circle. I enjoy frugal living and that includes free activities that most of my social circle are part of. What I did right is choosing an income zone where I never have to fake it to fit in or live the lifestyle I want to live. 

Don’t Drive Status Cars

Although I love cars and could have expensive rides, I instead have a few old purpose driven autos. When I say old, my daily driver (weather permitting) is a 1981 Toyota SR5 truck. I bought it in 1993 and my then 12 year old son and I customized it by turning it into a hardtop convertible. All of my cars together, including the Corvette, would add up to be worth $20K. 

Although the Jeep is new and raises my overall auto net-worth, it’s hardly unique or a status car and is less expensive than most newer autos on the road. 

Dress For The Income Zone I Want To Be Seen In

I prefer casual attire and that fits right in where I’m happiest. No expensive clothes, shoes, cell phones, or watches. I dress like the group I want to be part of and is representative of the way I prefer to live. 

Don’t Brag

I never self promote or brag about anything. I stick to my budget living the way I want to live and practice what I preach. I’m humble when talking about finances with anyone. Although my portfolio’s size is nothing like most FIRE aficionados, I keep it private and avoid talking about what I have. I know it’s most likely more than the majority of people in my chosen income zone.

Share and Encourage

I’ve a habit of talking about personal finances and share the common good practices that I’ve used to retire early. I use my early retirement story to encourage others that they could make it their goal too. I also volunteer in the community because I not only want to be part of my chosen social income zone, I really enjoy it and want to give back too. 

What I Did Wrong

I Got Too Comfortable With My Financial Freedom and Capability

It’s one thing to live in the perfect stealth wealth income zone that’s aligned with your budget, but another to underestimate onetime visible moves that challenges it. If we were a true $60K a year household living here, could we have been able to do this? Most of my social circle are local folks who fall below the median household income levels. While some who commute into the city for professional occupations earn more, many work and live in town where earning a $40K salary with benefits is a big accomplishment. For most people, paying cash for a brand new car even with a trade-in isn’t possible.

My Answer Was Short and To The Point Without Showing Pain

Although it wasn’t my intention, my answer that I paid cash could be seen as hubris or bragging. In a way, rubbing their nose in it that I can do this, when they probably can’t. My actual answer should have shown a sign of ordinary financial pain or sacrifice in making the decision to pay cash for it. It came across as being easier than it actually was. I was caught off guard and cut off by the snarky reply and the subsequent comments because I hadn’t thought enough about this aspect.   

What Now, The Cat’s Out Of The Bag

I’m happy to report that all is well. As the ribbing commenced one of the group came up and put their hand on my shoulder saying, I knew you would buy a Wrangler. You’ve only been asking me questions about mine for over a year. We should be buying your drink because you’re probably broke now.

That snapped me out of my malfunctioning fog. I was able then to say, I took some market profits earlier and was waiting for a great deal. I had just enough cash with my Corvette to pull it off with its discounted price. It’s something from my bucket list and after my recent health scare I had to ask myself, if not now, when? Best of all, it was all true.

All was forgiven. No, not by them, but myself. 

In the end they really didn’t care one way or another. It was all me. This malfunction only lasted a short time. But it stuck with me how I felt guilty about how it might have looked or came across. I care about these people and our relationships. I know and will never forget the struggle of trying to get by to make ends meet.

It’s just another mental issue of my early retirement to learn from. I grew up low income, raised a family, made it to engineer, cut living expenses, and invested until I had just enough. Then pulling the plug young while I was still on top and just walked away. Something I’m proud of but realize I had some luck to have pulled off. My brain decided to remind me of that. 

In my new ride exuberance I slipped up and was caught off guard. I said something in a way that should have immediately included the additional conversation. It didn’t matter that I stayed within my personal finance rules of which I also eventually included in extended conversations:

  • Only buying what I can afford to pay cash for. 
  • Doing all the research and clearly making sure it’s something that will add happiness to my life. 
  • Finally, if I’m going to do it, get the best deal I can. 
What else can I say about my stealth wealth malfunctions? 

I had done such a great job of living within my stealth wealth practices that my stepping out of character with this purchase messed with me. Early retirement continues to be an adventure in more ways than one. Just when you think everything seems figured out, something comes up to surprise you. Even after 10 years in early retirement I’m still learning new things.