Post #138 - Early Retirement is not for everyone

Part 6: Let’s emphasize the important stuff (cont.)

I know you are still young, but I bet you’re already planning to retire in 15 years.  Here is a semi-wet blanket I want to throw over that idea.  I’ll skip all the psychological issues about early retirement.  Just let me make one important point.  Some people should never retire.  They would go insane.  Don’t ever retire if:

• You love telling people what to do and when to do it.
• You live for Power Lunches.
• Your Blackberry/I-phone is grafted to your hand.
• You can’t go on vacation for more than 5 days without feeling lost and rudderless.
• You have no hobbies or enjoyments outside of work.
• You have no friends to hang out with at home.
• Your spouse doesn’t want you following him or her around all day looking for sex.
• You would feel like a loser if you didn’t have a secretary and a corner office.

But if you do retire early, there are two keys to enjoying your golden years.

1. Continue to LIVE SIMPLY
2. Don’t let the market tank during the first few years of your retirement.

Unfortunately, you don’t have any control over point number 2.  All you can do is keep your fingers crossed.  Anyone who retired in early 2008 is probably looking for new employment right now, because all their calculations about how long they could live on their savings have been thrown out the window.

When you think you have enough money to retire early, or if you suddenly get a big inheritance, don’t up and quit your job.  Work for another ten years.  During those years you can:

• Continue to build your nest egg.
• Develop a few hobbies.
• Improve your connections to your extended family and friends.
• Make new friends outside of work.
• Think about what you want your retirement life to be like.  Maybe you want to continue working part time at something else.  Maybe you want to volunteer.  You may need to develop new skills to accomplish these things.  During the ten years of extra work, you can learn these skills.

Then, when you finally do retire (ten years later than you wanted to), you’ll have a larger nest egg, a support network (friends and family) in place and a good perspective on your new life.

Of course, if you die in that ten year periods, your last words might be “Curse that blogger and his ridiculous suggestions.”