My old man did a presentation last night for Positive Real Estate, about his thoughts on dealing with early retirement after over two years of same for himself. For anyone who might be interested, these are his notes that were handed out on the night.
DaleGG said:Early Retirement – Without the tears
What the books don’t tell you!!
Ignoring the financial side of things for a moment, the answer to a retirement that you can enjoy really comes down to three things:
How do you prepare for retirement?
- Being mentally and emotionally prepared
- Understanding who you are
- Having something worthwhile to do
Before retirement, you will spend a lot of time looking at the numbers:
You will build into your retirement plans, all sorts of contingencies and, no doubt, talk to accountants, mentors, financial planners and anyone else who you think will help with these questions....and that is a good thing.
- How much money/income/assets do I have?
- How much do I need?
- Will the money run out if I retire early?
But, will you look at the physical and emotional side of things? It will NOT be a bed of roses for you unless you are emotionally prepared. It will NOT be easy; and hence, the need for you to start preparing now for this side of retirement.
You have just spent a LOT of years trying to cram a lot of things into a small amount of time largely taken up by school, at first, then work.
How do you define yourself?
Whilst your employment, or profession, may not thrill you or be life defining....At the moment, you think of yourself as an Accountant, Manager, Nurse, IT Person, or whatever. How will you define yourself after retirement? Will you still think of yourself as successful without this title? In your mind, will you still be an achiever? It is likely that you will no longer be the bread winner and you will no longer be the provider for the family. Will this be an issue for you?
What about your relationship?
Now, this IS a scary one....you will actually have to spend more time with your spouse/partner. This may seem like a dream come true for some, and it may well be so, but, for others, it will be a challenge learning to communicate and share time, feelings, resources and emotions all over again. Being prepared for this will allow you to enjoy your time so much more.
Here are some sobering facts from one author, a psychologist:
Why? Because they bore themselves to death! Perhaps this is also because these same men are no longer “the hero” in their dreams, and, in their own perception, in the eyes of their friends and family.
- Men, in particular, are 12 times more likely to commit suicide after retirement than they are whilst working. Yes, 12 times!
- Research has found that a significant number of men die within 3 years of retirement
So, with all this extra time, what will you do?
Long before your retirement make a list of the things that you want to do; or, might like to try, but, before you do.....keep in mind that your friends will be at work, your family will be at work and so you may not be able to spend time with them. Travel sounds great, but, if you have family you may find that you cannot travel as much as you would like, anyway.
My tips are:
Get into a routine. You have a routine now and by adopting a new one quickly it will be easier to cope in that first few months.....if not your entire retirement
Most of all, relax, and enjoy!
- Get dressed. Do not spend all day in your PJ’s, if you wear them!!
- Set Goals e.g. bucket list
- Find hobbies, such as painting, genealogy, photography, scrapbooking, gardening, writing
- Do courses, workshops or further studies
- Join sports or hobby clubs e.g. chess club or a gym
- Do volunteer work....even something like this group
- Keep in touch!! With friends, family, and with other investors – this group is invaluable!
- Manage your finances....e.g. weekly/monthly bookkeeping & visits/inspections of IP’s
- Set up an electronic office and scan everything
- Renovate existing IP’s
- Do not be frightened of considering a gradual retirement or part time work
- Make money....e.g. shares etc
- Travel
- Live life!! After all, that is why you are doing things now!