All posts by Leisure Freak Tommy

Happy New Year 2023! Simple Financial Goal Tune Up Time

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The beginning of a new year can be full of resolutions and hopes of bettering our life. Part of that should include our personal finance priorities. Any financial plan needs to be reevaluated from time to time. The new year is the perfect time to perform our financial goal tune up. Best yet, it doesn’t necessarily require a major effort to ensure we’re on course to reach or stay on our financial plan. 

Happy New Year 2023! Simple Financial Goal Tune Up Time

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Simple Actions To Perform Our Financial Goal Tune Up

How’s that portfolio asset allocation looking?

Last year was certainly rough water with sentiments and the market swinging both up and down. Portfolios can enter into an evolution towards a different risk profile than we want. One that our investment risk tolerance isn’t aligned with. Our portfolio should maintain a stock to bond ratio designed to meet our financial goals while staying within our risk tolerance zone. 

The fight against inflation has brought rising interest rates and tighter monetary prices. There’s also worries of a possible recession, a disgusting war, global growth concerns, and politics both here and internationally that are kicking investment attitudes lower. The best way to weather the uncertainties is to make sure we have confidence in our plan. 

The new year is the perfect time to begin our financial goal tune up. It starts with evaluating our portfolio profile. Then taking action to rebalance asset allocations as necessary.

Anything new in our financial world?

A year’s time can bring a multitude of changes in one’s financial situation. We can experience changing life priorities, benefits, income, and expenses. Some good, some bad, but they all need to be evaluated for a successful financial goal tune up. 

While those still on the job might see a raise or cut in income, added required commute costs, or benefit changes. Even those of us on FIRE who are living life on our terms can see changes. 

We made some lifestyle changes to combat inflationary pressures that we hoped would be temporary, but will they? We’ve also seen a decrease in our health insurance costs because of our aging bringing about our transition to Medicare during this new year. 

The new year is the perfect time to make the time to plan for the necessary changes to maintain the perfect cash flow and ensure that we stay on our financial plan’s track. The optimism that comes with a new year can help us do what’s necessary to meet our financial goals while considering our current financial world realities.

What’s the emergency fund and cash reserves looking like?

Cash reserves in an emergency fund can ensure we stay on our financial path. Whatever our plan is, like having three to six months expenses of easily accessible cash in a safe, liquid cash account, it’s important to maintain that balance. 

We use a savings account. Money market deposit accounts or short-term certificates of deposit are also good considerations. My wife and I had to tap into our emergency fund last year. I came up short to meet higher than expected increases in property tax, homeowners insurance, and auto insurance. Ouch! It’s now noted and accounted for in our budget.

Our emergency cash reserve fund performed its duty as planned when needed as our first defense against financial setback. But now it requires replenishment to our planned allotment because it’s likely to be relied on again in the future. This emergency cash is our financial plan success insurance and an important part of our financial goal tune up.

Does your new year’s portfolio balance still measure up to your long-term income expectations?

Using our current portfolio amount in a retirement calculator is just a snapshot in time. Last year’s market shellacking was rough. Although I have hope of market recovery, seeing now if our numbers are still able to meet expected income expectations for as long as we are on the planet is a good way to see what adjustments, if any, are needed. 

Using the current portfolio numbers against our updated life expectancy years (we are all a year older) can be an eye opening exercise. Either there’s no issue to concern over or something has got to happen to improve the odds. 

If an asset allocation rebalance has already been determined as necessary, then checking progress later in the year will also be prudent. Especially if odds of portfolio success have turned against you after the dismal past year’s market performance. 

Ready for the inevitable and coming fast income tax filing? 

The best financial plan is one where we get to keep as much of our money as we’re legally entitled to. I’m happily reminded each year that our retired tax rate is less than the one we were in when we made all of our 401K and IRA contributions. Even so, I still don’t want to miss anything.

The other side of this is avoiding IRS scrutiny over any missed income on our tax return. The IRS always comes calling years after filing. This gift also brings interest and possibly penalties when our memories and records can be harder to find. 

However, the most immediate benefit of preparing for tax time earlier than later is that organizing the necessary documents reduces stress and allows us to be on track. As documents come in, I immediately put them in my Tax Folders. We use an actual manilla folder for postal and a digital folder for the electronic stuff received or downloaded. All are recorded against a checklist to make sure we have and get everything. 

If things go sideways, are beneficiary, POA, and other legal designations up to date?

I list this issue last because it’s the downer of an otherwise optimistic new year financial goal tune up. Many of us put this little gem off because, you know, becoming incapacitated or death is a bummer. But it’s an important part of our financial planning. Having a Will established is a great way to make sure that what we have goes where we want it to go. Having beneficiaries on our accounts will take priority of anything listed in a Will and most likely resolved quicker. All of our accounts both large and small should have beneficiaries listed. 

My wife was surprised to find that her old job ESOP only had me as a primary beneficiary even though there were secondary beneficiary slots to fill in. She then added our daughters in case something also happened to me. 

We’ve also experienced the bad fortune of a parent having none of us siblings listed as having Power of Attorney (POA). It created a huge problem maintaining her mortgage payments after a stroke incapacitated her and then her passing. We had to work under a “Guardianship” condition which was time-consuming and costly. 

Use this financial goal tune up time to consider whether something has been missed in this area or requires updating due to major life changes since they were initially established. 

 

A financial goal tune up is far simpler than an overhaul. Keeping the plan maintained and running smoothly costs much less than a surprise failure. Use having optimism that this new year will be even better than last as motivation. Take time to perform a few actions to ensure you’re still on your personal finance track. 

I’m Celebrating 13 Years Of Early Retirement

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I have good reason to celebrate my now 13 years of early retirement. Mostly because I beat the odds and went against traditional retirement advice. Some of my success is dismissed as luck. But I think we make our own luck and work with what we have regardless of the obstacles we encounter. This is a BFD milestone early retirement anniversary for me. It comes within months of reaching my next phase of this FIRE journey. That being the transition from early retirement to just retirement. My early retirement plan held true to get to this point. 

I’m Celebrating 13 Years Of Early Retirement

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The How And What Of 13 Years Of Early Retirement

When it started. 

I retired at the young age of 51 from a 31 year career in telecom in December 2009. It was right during the great recession. My original 10 year plan was to actually retire early at age 50 in 2008. But I delayed pulling the trigger after the recession induced portfolio and economic slaughter. I just needed time to feel it out and be comfortable with walking away from the lifetime conditioning of the employment and career focused system. Jumping out of an airplane goes against acceptable reasoning even when you’re wearing a parachute. The first time is going to be a mind-warp to deal with. Especially if unexpected bad weather, like a recession or any other economic disruption is dropped into the equation.

How I funded my early retirement. 

We applied our version of frugal living so that we could maximize savings while we were still working and to create a lower cost lifestyle that we could enjoy living with. Knowing our sustainable budget allowed us to retire young with less than a million dollar portfolio. 

Almost all of our portfolio was in retirement accounts. Because I was only 51 I utilized the SEPP 72t backdoor approach to fund my early retirement without worry of paying the pre-age 59 ½ early withdrawal 10% penalty. I immediately started receiving monthly distributions from my IRA that covered my budget. 

Pursued opportunities of interest.

I had always planned to live a retire early and often lifestyle once I freed myself from my career. Adopting the mindset that retirement is the absence of needing to work, not the absence of work is something we all can benefit from. It was fun navigating the world of work in retirement when I didn’t have to. I was able to free myself from chasing dollars and make decisions based on interests and passions. There was a feeling of employment liberation within a new power dynamic that was in my favor. 

I continued living off of my 72t distributions while I worked my paid adventures. Putting all my earnings from any gig toward paying off our modest mortgage and reinvesting back into the portfolio. 

It has been some years since my last paid adventure. I’ve been even more picky about what it would take to re-enter the workforce since running through my bucket list of job interests. I do look back at my retirement gigs fondly as the most enjoyable and rewarding work experiences of my life. 

The End of the 72t.

The rules for a SEPP 72t are fairly rigid. It’s something that one doesn’t want to run afoul because there’s a penalty for doing so. Once I reached the young age of 59 ½ I was happy to freely raise and even lower IRA distribution amounts as needed. 

There have been plenty of budget changes over the 13 years.

We’ve gone through several budget adjustments during these 13 early retirement years. Things like health insurance, property taxes, auto and property insurance have all risen dramatically. Other things have decreased as we’ve aged and our interests changed. The biggest budget increase was Healthcare. From health insurance policy cost to out of pocket deductibles, they have climbed over the past few years. Healthcare has been sitting at ⅓ of our yearly retirement budget.

My 13th Year Has Been One Of The Most Enjoyable

The saying, you don’t know what you’ve got until it’s gone came to realization during the Covid crisis. This past year has been closer to a normal one and with the fresh memory of the prior couple of years still fresh, even our simple living lifestyle felt amazing. At this time we are also looking forward to the next phase of our retirement journey. 

The start of our next phase, Retirement!

I’ve come to consider that early retirement’s finish line as when we’re old enough to receive our Medicare health benefits. Although we’ve benefited from never going along with traditional notions regarding retirement, we’re calling our 65th birthday the end of our early retirement and the beginning of regular retirement. 

My bride is a few months older than I am and we’ve just transitioned her to Medicare. I am already seeing $600 in monthly health insurance savings with much lower out of pocket deductibles than we’ve had. Once I make the Medicare transition later in 2023, I will see even more savings. This will provide something in retirement that I love- having options. 

I’m still holding out until FRA (full retirement age) before starting my long earned Social Security benefit. That will offer even more retirement options in how we utilize our assets and our budget. 

If I were to pinpoint what made these 13 years of early retirement successful-

Figure out and create the kind of lifestyle you want to have.

We figured this out and lived it before retiring early. Doing this before ditching the rat race works much better than waiting until you have to or having a plan’s numbers rely on some future imaginary lifestyle. We knew exactly the ‘how and where’ we wanted to live. 

See and measure real world costs for funding your desired lifestyle.

Knowing our wanted lifestyle’s cost based on real numbers allowed us to see that we didn’t need a million dollar portfolio to afford our early retirement. Having real numbers means being able to develop a budget with monthly and annual cost expectations. 

Figuring out all sources of income.

In our case we were relying solely on taxable retirement savings accounts with early withdrawal penalty issues to maneuver around. We use an IRA bucket retirement funding strategy. Our plan also includes eventual Medicare and Social Security providing portfolio distribution relief which is just now starting to occur. We saw our retirement in phases and set funding expectations the same way. We ran our numbers through a retirement calculator and verified through different scenarios that we had the income plan to cover us throughout our retired life. 

Deciding upfront feelings toward working in retirement.

I always knew there were a few opportunities of interest I wanted to learn and do. I planned upfront that any income from retirement gigs would be reinvested into our net-worth. Although I never counted on such income in our early retirement plan, I’ve always been open to the prospect of wanting to work in retirement. Knowing if choosing a retirement job the right way, it would be rewarding both through the experience and financially. My wife didn’t have any post retirement aspirations and has never worked during her retirement. Her focus was more towards our grandkids and family.

Developing a healthcare plan for the years before Medicare.

Figuring out how to cover healthcare is a critical retirement planning issue. I had a mega-corp retirement health insurance benefit that was eroded over the years through corporate mergers and changes in executive direction regarding legacy promises to workers. It’s the same old sadly allowed corporate world story. Being it was changed to a “use it or lose it” benefit, we stuck with it through massive cost increases. 

Plan “B” was to have necessary Roth funds to make sure we could fall back on an ACA Silver Plan by making sure our taxable income could come in below ACA subsidy income thresholds. This certainly could have been our Plan “A” with the right taxable income strategy.

How long do we think we will live?

I didn’t put too much thought in this to start with. We all think we will live to be 100 and even then it seems so far off it isn’t real. But as we grow older and we start to see family members pass we are reminded that we have to deal with this bummer-how long will we live? Not only does this make us live every day with purpose, but it also helps in figuring out finances. Obviously less years on the planet means less needed to fund it. Older age also takes us down a different retirement funding path. 

Figuring out our how and when Social Security strategy.

We paid into Social Security for all of our working years so I do expect to receive my well earned retirement benefit. We have run the numbers and Social Security option scenarios through the calculator and continually test it yearly to know our best strategy. 

 

There have been a lot of surprises during 13 years of early retirement. Most of them were pleasant while others were perplexing, but nothing insurmountable. I still have to chuckle to myself when thinking about how much retirement initially messed with my head. I’m glad I did all I did to mentally prepare ahead of retiring and I’m sure it softened my landing. But there were still some identity issues. Something that hasn’t crossed my mind for over a decade now. It just takes recognition and time to work through. That’s true with everything in retirement that we unexpectedly find.

I’m very happy about my 13 years of early retirement and how it has all worked out. I can’t imagine what my life would have been like had I stayed in my soul grinding career. Something that seems like a previous life that’s no longer connected to this one now. 

The Brilliance Of A Retire By 50 Plan

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There’s a brilliance to dedicating yourself to a retire by 50 plan. The brilliant part that’s overlooked by naysayers is if you do it right, you can’t lose. It goes beyond the obvious financial aspects. It also allows us to mentally approach work with a healthier mindset. That then leads to enjoying both work and life on a higher level. 

I constantly thank my younger self for having the insight to go against normally accepted societal work and consumerist practices. My younger self instead pursued financial independence with the goal of retiring earlier than the traditional age. Something positive happens when we take control of our lives. Especially when we do so with our financial life. It provides a healthy focus and ultimately power. 

I was happy to read about how Millennials want to retire at 50. They’re now in or nearing their forties. I was 40 when I had the same burning desire. The article eagerly focuses a bit on the obstacles. It wasn’t easy for me to retire early and it certainly isn’t easy now. So what? Anything worthwhile is never easy. 

The Brilliance Of A Retire By 50 Plan

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Done Right, You Can’t Lose With A Retire By 50 Plan

This is what I found to be the best part. Even if you fail you’ve still won. Doing something is always ahead of doing nothing. Setting oneself up through a retire by 50 plan pays off long before reaching the goal line. It does take constant monitoring of not only progress but feelings about how we are living. 

One of the biggest naysayer talking points is having to waste your life in voluntary poverty in order to save enough to pull off early retirement. Here’s the problem with that nag. If done right there is no feeling of poverty or feeling of a deprived lifestyle. Naysayers should worry more about living in fear of losing a job. Fear of putting up with workplace garbage in desperation to work until old age. Fear of worrying about where to get money in an emergency.

We set ourselves up both mentally and financially while we’re doing it.

Frugal adaptability, living a non deprived lifestyle. 

Nobody should dedicate themselves to a retire by 50 plan that leaves them feeling they are living a deprived life. There will always be tradeoffs. The great thing is we get to decide for ourselves what we want and the way to get there. All is defined by us.

I found that we could still live an enjoyable life while cutting wasteful spending, eliminating debt, and setting aside money for our future. When my family or myself felt it went too far, we scaled back. When things changed and we could cut something that wouldn’t be much missed, we then did so. Frugality is different when you do it with purpose. It’s a major form of taking control. It will change over time in both what we do and how we do it.

My salary never made it to 6 figures. Frugality was a must to succeed with my retire by 50 plan. The lower the cost of my self defined happy lifestyle, the more I could save from our income to eliminate debt and invest. Creating a lower cost of living also means needing a smaller portfolio size to support it once retired. 

Divorcing our identity away from our chosen career.

It is too easy to get wrapped up in our careers. We educate, learn skills, gain experience, and work hard to advance. But it’s also easy to mentally frame our identity around our work and career accomplishments. Dedicating oneself to a retire by 50 plan starts the mental process of seeing our career as the means, not the ends nor our life focus. 

Starting my early retirement plan began my understanding that my work is transactional. It’s not a marriage of mutual interest or loyalty. It was always that way, but I found myself believing otherwise while leaning into my career over the years. 

I was painfully disappointed many times during my career thinking that it was a fair exchange based on long standing rules and promises. I wasted many years in obedience to a false employment perception and could see there are no real rules requiring the honoring of agreements when you have no power to enforce them. Getting our head straight about this aspect is the first mental step to work identity liberation. It will ultimately help us during our retirement transition once we ditch the rat race too.

The can’t lose fact: We will be far more financially ahead than if we had not made this decision.

Even if we miss our savings goals we’re miles ahead of where we would be if we hadn’t been on the retire by 50 plan. I was 9 years into my 10 year plan when the great recession hit. A year later at age 50 my target was missed because market conditions caused a diminished portfolio but I was way ahead of a lot of desperate working people in a time of constant layoffs. 

There is no way to know how we will feel, what we will be doing, or how the economy will be in the future. It’s a lot easier to come out on top if we stay on plan and have the options that come from living a financially disciplined life.  

Hustle- Chasing money will transition to chasing interests and passions.

When I was climbing the career ladder I felt like I had to put money ahead of all other decisions when it came to work. Work overtime, take extra shifts, second or third jobs, accept unpleasant tasks, whatever it took. I couldn’t turn away a chance to bring in extra money to make ends meet. Nor say no because it might tick-off the boss. As my retire by 50 plan was fully engaged with measurable progress it became easier to be choosy about what I would lean into. 

I still had a desire to accept opportunities to earn extra money or advance my position and salary. But I didn’t just accept anything because I no longer felt desperate to do so. I became focused on aspects I like doing, wanted to do, and wanted to learn more about doing. Within company work guidelines, I was mentally freed to easily reject any unpleasant assignment. I found that I was able to care less about management’s feelings and confident in knowing another opportunity that was better aligned with my goals would come.

Redefine retirement- Working in retirement is easier when retired in your 50s.

It’s time we redefine retirement, especially early retirement. Retirement is the absence of needing to work, not the absence of working. Having a retire by 50 plan allows us the time to earn skills and direct our attention to making ourselves attractive to opportunity if we choose to pursue them. Whether to start our own business or do as I did and seek opportunity into other fields that we had passion and interest in learning and doing. My early retirement work was very rewarding. The time working through a retire by 50 plan can be useful in preparing for this retirement definition shift. 

There’s no shame in missing an age 50 date.

Retiring by 50 is not easy for most people. Salary constraints, debt issues, economic shifts, market volatility, and the cost of living where one lives comes into play. Something all the naysayers lean into. The age 50 is a goal, not a measurement of failure if missed. The brilliance of this target is it gives us time to fine tune and define what success will look like while we’re on the path to try to meet it. Something that will shift as we live our lives, experience new things, and we age. 

The Nothing Tricky Financial Side of Things- The way I started my retire by 50 plan

There are all kinds of advice and metrics that are recommended on how to develop a retire by 50 plan or any financial independence plan. Some are basic and others seem extreme or unattainable because of our own unique economic factors. Personal finance is uniquely personal. When I started my FIRE journey there was little internet or anything on the internet about it. There were few books on the subject. Here’s the high-level approach I took.

Build an emergency fund.

The conventional advice is to save 6 months worth of expenses in an emergency fund. Great if you can, but if you can’t don’t let that stop you. 

I started with a target of 6 months housing, not full lifestyle expenses. In my case it was a modest mortgage payment. The idea was if I lost my job I could get by until getting back on my feet with unemployment or temporary work. 

Setting emergency savings goals at different levels was the way I approached this. I felt that it was important to cover the other necessary personal finance aspects too and not go all in exclusively on a full 6 month emergency fund first. I dropped this to a small monthly allotment until I could ramp up emergency savings amounts as the other retire by 50 plan goals were met. 

Eliminate debt.

One of the reasons I was slow to build a respectable emergency fund was I had debt to clear. We were good to avoid a lot of credit card debt at this point in our lives but with a family there were always the occasional large financial hit that caused me to tap an equity line of credit against the house. 

Our debt load was eventually reduced not only by a dedicated amount from income but also by savings from making lifestyle changes through frugality. Debt was a primary target of earnings to resolve first. One of my delayed emergency fund goal relief thinking was that if the worst happened I could still access needed money from the line of credit that I was paying off. 

Set and Work Towards Meeting An Overall Savings Goal 

I had dug into defining our lifestyle costs over a number of months while setting aside money. When it was time to figure out an overall retire by 50 savings target, I sought the help of a financial planner. I was not saving enough and wasn’t saving it in the right places or allocations to meet my early retirement goal. It was hard to squeeze more out but we found it was there all along. With having solid direction it was easy to dedicate ourselves to the plan.

The Goal Of A Maxed out 401K.

The first rule I accepted regardless of my income level was If your employer matched a percentage of your 401K savings, then you have to at least do that. Mine at first was a measly 100% match of my first 3% of 401K savings. Not doing it was leaving money on the table. I started at this small percentage earlier in my career but bumped it up to 10% which was where I was at when I chose a retire by 50 plan. 

While I was still working on the other goals, I began adding about half the amount of my yearly salary increase to 401K allocation increases. As debt was cleared and emergency fund goals were met I was eventually able to set aside the allowed 401K maximum yearly allocation. When the IRS raised the allowed threshold I also increased my allocation. It is important to invest early because time is our greatest ally and the more we have invested the more time helps us. 

Maxed out IRA and Roth IRA strategy. 

My wife and I never made enough money to limit our participation in side funding an IRA or Roth IRA alongside 401K savings. Once I was meeting 100% funding of my 401K I started funding an IRA and Roth IRA. I initially split the yearly maximum IRA limit between the two types for both my wife and I. 

Because contributed Roth IRA amounts can be accessed if necessary without penalty or tax, I later funded the yearly maximum amounts into our Roth IRA accounts instead of splitting it with IRA contributions. I saw the Roth as another emergency fund source although that was not its primary retire by 50 plan objective.

Began non-retirement account savings and investments.

I eventually added a non-retirement investment account. I chose a stock mutual fund through a financial planner I was using.

Leveraged my skills for better pay. 

I became a courageous salary negotiator. My journey and shifted goals toward early retirement allowed the time to open my mind to see things from a different place. I went from going with the flow at all costs to advance my career, to challenging management misdeeds to secure the higher income that I earned so I could further feed my retire by 50 plan. 

This also reduced workplace disappointment. It was replaced with the strength to demand what was promised if I held up my end of any bargain. My growing portfolio and financial confidence provided the power to leverage my skills and accomplishments. 

Having my well won financial backing allowed me to stick up for myself without fear of job loss or worry about any quiet firing tactics. 

Establish an early retirement funding strategy.

My portfolio was primarily behind 401K and IRA accounts. That meant getting required retirement funding at age 50 without early withdrawal penalty by using a SEPP 72t arrangement. This substantially equal periodic payments scheme allowed me to start receiving monthly checks from my IRA at age 51 without penalty and only paying normal income taxes. A sort of  backdoor approach to fund early retirement. When I took on paid work I would live off of my retirement income. Then i’d invest all of my work earnings back into my net worth. 

Having an early retirement healthcare strategy.

Of all the early retirementment costs that await us, healthcare is most likely the trickiest. What I paid when I first retired 13 years ago and what I pay today is beyond any of my planning.

This one is tough because things can change over the duration of our early retirement journey. The way I see planning ahead for a retire by 50 date is to stay informed about early retirement healthcare, learn the ins and outs of the ACA, and vote in your future’s best interest. 

If There Is A Trick, It’s This-

The trick is to have the discipline to knock out the primary goals and increase retirement savings as soon as you can get to it. But at the same time finding a happy medium living your defined efficient and enjoyable frugal lifestyle. If the word frugal is a turnoff, use purposeful.

It is a choice to live a life of optimism based on actions taken instead of just hoping it somehow works out. It’s optimism based on our financial investments and investments in ourselves through solid personal financial discipline.

The best part of being dedicated to ditching the rat race while young is we get to determine what lifestyle meets our needs and allows us to still live a happy life. We can practice and refine it over time. There are no hard rules and if you screw it up it just means a retirement delay. Understanding what our enjoyable retirement lifestyle would be like and what it would cost provides enormous motivation and confidence in knowing we have a solid financial target.

The brilliance of a retire by 50 plan goes beyond actually reaching the goal. It is the way that it trains our brain to see life, spending, work, and power differently. We can improve our lives while on the journey. Even if we fail to hit our financial target by age 50 we still win. We are closer than if we hadn’t and it’s surely better than failing a risky work until 70 retirement plan. 

How to Develop Healthy Habits During Retirement

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happy and retired couple playing console games

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This article was contributed to Leisure Freak by consultant Alicia Montgomery.

To say that retirement marks a new chapter in one’s life is an understatement. It’s more than revisiting your previous life journeys and achievements while taking an occasional walk or resting on a couch. There are so many ways to make your golden years joyful. Once you develop healthy habits during retirement and practice them daily, your days become brighter and more exciting. So buckle up, and look at the tips we prepared for you!

Refurbish your home

Set the tone of your retirement era by renovating your home. Get rid of junk, and sell or donate excess items. You’ll enjoy more space if you don’t have tons of stuff in your sight. Furthermore, you can turn a spare room into a personal yoga studio, art corner, etc. Repaint walls, add new ornaments and a few house plants, and you’re good to go. Everything comes easier when you live in a pleasant environment.

Change your location

People move shortly after their retirement more than ever before. Instead of living in a big, half-empty home, they downsize to smaller, comfier apartments. Retirement doesn’t necessarily mean getting stuck in a place where you’ve been living for ages. Discuss different options with your partner if you wish to change your community completely. Explore the cities within your state (or beyond) and see what they offer. 

A change of location can make your retirement days more interesting for the following reasons:

  • You’ll truly feel like you’re starting over. 
  • Learning about new surroundings is stimulating. 
  • Socialization becomes easier in places where people often move to after retirement.

Spend more time in the nature

It’s not too late to start hiking and camping, even as a senior! All you have to do is get the proper gear and check hiking tours in your area. Kayaking is another relaxing activity that allows you to explore lakes, rivers, or beaches in your area. The best thing about outdoor activities is that they aren’t as tiring as they seem. Once you go outdoors, there’s no going back!

elderly couple trekking and discussing building healthy habits during retirement
Physical activity is one of the first steps towards building healthy habits during retirement.

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Get moving and eat well

If you already lead an active lifestyle – good for you! However, if working out has never been on your mind, it’s time to change that. Contrary to common belief, you are never too late to start exercising. Physical activity benefits your mind and overall health and boosts your daily energy. And the best thing is – it’s fun! So, explore local activities such as yoga and dance classes, or sign up for a gym membership! Hire a professional coach who can tailor a workout plan according to your physical condition and age. 

Keep your physical performance on point with healthy nutrition. How you eat is essential for all our bodily functions, no matter the life stage we’re in. A nutrition plan curated by an expert dietician can improve your life, especially if you are allergic to certain foods.

Sign up for classes

You never stop learning, even as a retiree. So, wait no more and sign up for language courses you’ve been postponing for years. Try out pottery classes, woodwork, and knitting, or learn basic coding skills. The possibilities are endless. Plus, courses are ideal for getting to know new people, especially if you’ve moved to another community. Socialization is one of the critical components of a happy and peaceful retirement. Whether you work out or have classes in a group setting, you’re more likely to develop new friendships. Moreover, it’s more enjoyable when you have someone to share experiences with. 

retired couple relaxing in their home
Check what courses are offered in your town.

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Get a retirement job

Believe it or not, many retirees want to continue working, at least part-time. Even though retirement is supposed to be the era where you reap the fruits of your labor and relax to the fullest, it can get dull at some point. If you miss work, don’t hesitate to look up part-time retirement jobs that earn extra coins. 

Get your finances in order

Even as a retiree, you should keep track of your costs and set a savings plan. Have a planner in which you’ll write down weekly and monthly expenses, savings, etc. This will give you peace of mind and help you maintain a financially stable life. For more interactive money management, check free apps and download one of them.

a person putting a coin in a clear piggy bank
Track your costs and savings.

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Invest in real estate 

Real estate is a popular way of investing, and some additional income can significantly improve your way of life and, thus, your health. A simple and comfortable vacation home can become a source of passive income if you put some effort into it. Keep in mind that the real estate market is quite volatile these days. Hiring an experienced realtor makes the chances of finding a suitable vacation home far greater. It’s much easier to navigate through the housing market when you have someone on your side to guide you. However, keep in mind that patience is crucial when buying a property. It might happen sooner or later than you anticipate. In the meantime, explore online platforms where you can list your vacation home. Also, check how top-rated hosts have done it. 

Rest assured, you won’t regret investing in real estate after retirement. Just make sure to learn about everything that comes with it and check your budget beforehand. After all, you can team up with a family member and split the earnings. 

Curate a new routine and keep clutter away

As a retiree, you enjoy more time free time. However, it still comes in handy to develop a simple routine and practice healthy habits during retirement. You can start with peaceful mornings with coffee and a book or have a relaxing stretch session. Write daily tasks down to start another day with a clear head. Also, make sure to keep your home and new life clutter-free. That way, you’ll lead a more organized and, at the same time, relaxing retirement.

Thanks to Alicia Montgomery for sharing her expertise and tips to develop healthy habits during retirement.

Author Bio:

 Alicia Montgomery is a consultant at Bright Futures Treatment Center Boynton Beach, FL. She loves working with retirees and the elderly, and her primary goal is to help them lead a fulfilled life after they have stopped working. In her free time, she enjoys writing and sharing tips on how to live more healthily. 

Rolling With Retirement Lifestyle Volatility and Disruption

optimism

I had a great run. My chosen path of personal finance and frugality got me to early retirement. Then followed by over a decade of successful and enjoyable freedom. I really loved how it was all  working. But noooo, now I have to deal with some retirement lifestyle volatility and disruption. No doubt about it, it’s really messing with my mojo, if only temporarily. It’s the same old cautionary tale to anyone contemplating retirement. Nothing lasts forever and being messed with doesn’t end with ditching the rat race. Better plan on someday having to be forced to adapt. 

Change isn’t necessarily always a bad thing. It’s more about how even the best plan and lifestyle choices can become obsolete due to uncontrollable outside forces. Like it or not, what we think is there for the long haul can blow up. We’ve got to be willing to go with the flow and adjust to required lifestyle tweaking, both mentally and financially. 

Rolling With Retirement Lifestyle Volatility and Disruption

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What Has Got My Goat After All These Years of Early Retirement

There are a few things that have recently got my goat. The last thing on my retired mind was having to shift my lifestyle to accommodate irritating new world changes. By irritating, I mean some of it is a hassle to get around. Others just have no viable solutions to rectify. Basically I’m seeing some forever changes in my retirement’s universe. Little stuff when just looking at it from high above. But big, at least mentally in the way that we only have so many simple pleasures. They’re sure hard to give up. It’s small stuff but definitely something that as a retiree I would’t want to build up and cluster into one big mentally aggravating retirement bomb. Here are just a few silly but annoying examples.

My Automotive Hobby

Get a Life Before Retiring EarlyI’m one of those people who loves cars. From design and function to performance. When I find one I like I will hold onto it forever. Something that was not only a financial benefit over my life but a pleasing hobby. I did need to move on from my sports car because of back issues but I still tinker, show, and drive my now “classic” convertible beach cruiser. A 1981 Toyota Pickup that I’ve been driving since 1993.  

Although I do a lot of the work on my cars myself, there are things I can’t do. The retirement lifestyle disruption I’m hitting is that now the mechanic shops in my town will not work on anything older than 20 years old. It’s some kind of post-pandemic change in business practices. Our 2002 Chevy is on the cusp of repair aging out too in a couple of months. The couple of shops that still will touch an older car will now charge a high premium. I would understand if it was a supply chain related to getting parts, but it doesn’t matter if parts are readily available. 

Doctor Merry-Go-Round

The older we get the more reliant we are on medical support. Healthcare has been a growing hassle and something that takes more self management. First, my long-time Doctor retired. Since then I have had to change doctors 3 times due to them moving out of the area or changing practices out of my insurance network. I am now on the hunt once again for a new doctor along with everyone else being displaced in their practice. It’s a pain as timing is necessary to maintain medication refills and staying current with everything the insurance company loves to nick you for if missed.

Canceled Cell Phone Plan

I have had the same grandfathered cell phone and plan forever. Yes, I still use a flip phone. But it only costs me $100 a year and meets all of my lifestyle needs. It all ends this December when 3G will no longer be supported by wireless networks. I’m being forced to switch to a higher cost plan. I have my reasons why I’ve never accepted the smart phone into my lifestyle. It has a lot to do with my over 30 years in the telecom industry and my disdain of being tethered to technology. My wife uses an i-Phone we have on a discount wireless plan through Tello so there are at least low costs options available. 

Favorite Places Closing and Replaced With Expensive High-End Offerings

This isn’t a case of my being some old codger griping that the world is going to hell in a handbasket. It’s just the way of things now. People seem to prefer trendy-updated-swanky eateries and retail. They are willing to pay more for that kind of experience. In our case we’ve always preferred simple and reasonably priced. It saved us a lot of money over the decades and now there are less options within our chosen retirement lifestyle. Our town is a higher cost area and we don’t kid ourselves that we couldn’t afford to live here in retirement on our budget if we hadn’t set ourselves up over the years as we did. Just going out and about town is now a constant reminder of that. We’re just not the customer base they are chasing after. We will have to figure it out and find some other places that fit well. 

The Natural Challenges of Growing Older

Rolling With Retirement Lifestyle Volatility and DisruptionI exercise every day. Usually a 1 to 2 hour hike in the morning and 30 minute elliptical ride in the afternoon. Sprinkle in 12 mile round trip bicycle rides into town a couple of days a week by way of our Plum Creek Trail system. That doesn’t mean I’m not still experiencing arthritic and other pains that are causing some retirement lifestyle volatility in one way or another. I have been an active person my whole life and believed it would provide a strong and healthy body into old age. Alas, some of my activity may have been beneficial while others caused damage that I now must adjust my lifestyle to. Some physical activities I grew to love over the decades for exercise and recreation are now taboo because of how my body can no longer support it.

Plan On Retirement Lifestyle Volatility and Disruption To Happen At Some Point

I’ve made some mistakes. I didn’t see how something that I counted on, enjoyed, and that had worked in my favor over many years, even decades, would become unviable or completely undone. I figured I would eventually grow tired of things, not things leaving my universe before I was ready for them to. When the realization first hits me it isn’t mentally pretty. I don’t want to accept it and I fight it. But time and self reasoning eventually prevails and returns me to my retirement peace. 

It’s not that I’m stupid or overly rigid. There were possible changes that I knew and understood as being necessary to embrace, like growing old and changes in activity. Somehow it’s all too easy to ignore it while living our comfortable retirement lifestyle. That is until it sneaks up and throws a sucker punch or as recently happened, my insides decided to come outside through my belly button. 

Market volatility is something we always hear about and we plan for and around when necessary. But retirement lifestyle volatility is just as real and an unwelcome retirement bummer if we’re not prepared to accept and deal with it. The problem is we can’t always predict what it will be or when it will happen. With that in mind….

Live it up while you can

I say this with the thought of being reasonable. Not recklessly blowing through the portfolio or our body. I put some things off for a later time. Places I wanted to go, some automotive hobby desires I thought best to wait to do, and experiences I wanted to try. Most are out of reach for me now for one reason or another. 

Don’t save it all for later, later may never come and it is wasted

I’m happy that I have never been someone who buys a car and thinks of it as an investment, leaving it undriven. I drive and enjoy mine and have put over 200K miles on my beach cruiser driving it as much as I can. If it breaks down and I can’t find a way to repair it then at least I can enjoy it while I still have it. If buying a shirt or something else that’s considered special, then treat it well by taking care of it and just wear it. It will just become obsolete sitting in the drawer or closet. Same goes for everything we love and want to save for later. Other things like special aged wine or a single malt might last but your ability to enjoy it won’t. Do it, use it, and appropriately enjoy it. And yes, I did find at the back of my closet an old leather jacket only to be worn on special occasions that I have to laugh about now. 

Enjoy but also push beyond our comfort zone

It’s easy to limit things to what we know and love. Why rock the boat when things are going great? The problem is that someday it might be gone. Its absence will leave a big hole in our retirement lifestyle. Enjoy what we do but always add a little something new into the routine. Even if it feels weird, stretch the boundaries as long as it’s a sane endeavor. If it isn’t a good fit then move onto something else. Explore new paths while still loving what you love while you still can.

Be willing to let things go. Nothing lasts forever, not even us

Passions reinvented due to retirement lifestyle volatility

There are things that I’ve had to let go of and I really miss it. I miss my sports car and all the fun driving I had over many years. But a surgery aggravated something that was slowly occurring and I could no longer drive like I could before. I had to let her go and adjust the way I enjoy that aspect of my retirement’s automotive hobby. I still love it but have to support this passion in a different way. Then there’s how I also love good whiskey. But that little hobby isn’t as fun as it used to be when I was younger either. A retweaked passion that is now all about quality over quantity. 

Now I find more retirement lifestyle volatility happening and I will have to make similar decisions on what to do. In the end they are small lifestyle disruptions. As long as we mentally adjust and take the necessary course of action to replace them with new opportunities they will remain small aggregations and not become a retirement buzzkill or turning us into fear and grievance filled jackholes. 

 

There’s no sense in wasting time stewing over circumstances that we cannot change. Many of which we most likely shouldn’t even if we could. We need to roll with what seems to be unwelcome changes and adapt to make our retirement lifestyle the best experience that we can for as long as we can. 

Reasons to Invest in Real Estate After Retirement

optimism, Owning Rental Property,

This post was contributed to Leisure Freak by consultant and blogger Alyssa Foster.

happy elder couple playing console games

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You decided to boost your income and enjoy your golden years even more. The question is – where to start? If you are out of ideas for a small business, then you might want to give real estate a try.  If you invest in real estate after retirement, your chances of enjoying a more financially stable lifestyle are significantly higher. In addition, you get a completely new retirement mindset you never knew you needed! Having said that, let’s take a look at the benefits of investing in real estate!

Passive income is the most common reason why people invest in real estate after retirement

Not all retirees prefer the same lifestyle. While some enjoy relaxing walks in the afternoon, others still seek to establish another source of income. That’s why real estate purchase is what most retired people opt for. It generates a monthly passive income and tax deduction benefits. If you are a landlord, then all you have to do is calculate the rent that will bring you profit and cover expenses. However, remember that even as a real estate owner, there’s still a required effort on your part.

cute house maquette and a key
You can benefit from being a real estate owner during your retirement.

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What you should have in mind is that your rental place needs occasional maintenance. Renting is highly competitive these days, which is another reason to give the place you plan to rent your full attention. In order to attract tourists, for instance, you have to make sure everything in the apartment/flat/vacation house works well. Also, there will be a need for repainting, decoration, etc. The money you invest into modifications will return you at a much higher value since the rental place will be sold out even a month in advance. 

Tax deductions

As an owner of real estate, you have the right to multiple tax deductions:

  • Interests – The most popular factor that reduces your taxes.
  • Insurance – A rental insurance policy is another tax write-off.
  • Repairs – All the necessary repairs inside your rental place are also written off from your tax payment. 
  • Professional services – If you decide to rent your rental place to, for example, a lawyer, you get rid of property management fees. 

A vacation home is one of the best real estate investment choice

If you look forward to becoming a landlord, keep in mind that it matters what kind of real estate you will own. A vacation home is arguably the easiest and, at the same time, super profitable real estate investment. However, you must ensure that the location and surroundings add value to your vacation home. This is why it comes in handy to hire a real estate agent and go through the buying process smoothly. A professional and trustworthy realtor is a person that will make sure you get the best deal. 

You can only benefit from entrusting your real estate hunt to a professional realtor:

  • Real estate agents know the housing market well. Hence why hiring one saves you plenty of time. 
  • With the help of a realtor, the market doesn’t seem so confusing and overwhelming anymore. 
  • You learn the pros and even cons of a particular real estate that caught your attention.
  • Once you explain to your chosen realtor what kind of property you want to invest in, they will do their best to get you an excellent deal. 
  • An experienced real estate agent will work in your best interest from start to finish. Even if they advise waiting for a little longer, take their advice.

Hire a professional to help you manage property finances 

If you want to set your retirement plan in motion, consider hiring a financial planner. As a real estate owner, your responsibility is to keep track of your finances and leave nothing to the case. A trusted financial planner can do the work for you and make sure your retirement period remains financially afloat. 

a professional  financial planner calculating the costs
Invest in real estate after retirement and hire a professional financial planner to help you manage finances.

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Contact a moving company to help you relocate furniture to your newly bought place

Your rental space will be ready once you get it fully equipped. If it’s a vacation home, then keep in mind that you’ll need extra help with furniture and other items. Therefore, put your spare time to good use and look up moving companies that can handle the move. According to seasoned moving specialists, one should rely only on licensed movers with experience. Furthermore, they must have tools and equipment that make moving a smooth process. For instance, if your vacation place is a bit further from the city, movers can simply load the truck and transport professionally packed items. That’s why it’s important to research any particular company before you sign a deal. 

Real estate is a valuable long-term investment

Before you tap into real estate investing waters, remember that patience is your biggest asset. Moreover, real estate is an investment that should pay off in the long run. From the moment you make a concept and start researching the market, it’s necessary to remain strategic. Only sensible decisions will bring you coordinated passive income and a much more relaxing golden years. Furthermore, you will get a completely new outlook when it comes to your retirement period! You will realize it can be joyful and far from dull, especially if you venture into something new (like investing in real estate).

happy older man discussing the reasons to invest in real estate after retirement
The retirement period becomes different when you start reaping the benefits from investing in real estate.

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Conclusion

At first, it seems complex to invest in real estate after retirement. On the other hand, it’s a fun process through which you learn more than you hoped for. At the same time, you discover how to deduce your taxes and learn how to promote your rental space in the best way possible. For a start, decide whether you opt for commercial or residential renting. Maybe you could join Airbnb and attract more digital nomads or tourists. The options are endless. Furthermore, the more effort you put into your real estate, its value increases. This gives you an advantage in case you decide to sell further your rental space at some point.

 

Thank you Alyssa Foster for sharing your expertise with Leisure freak readers.

Author Bio:
Alyssa Foster is an author who works as a blog writer and consultant for Homegrown Moving Company Colorado. She enjoys long conversations over coffee and outdoor activities when she needs a break from the digital world.  

Quiet Retiring: The Retire In-Place Early Retirement Strategy

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I sometimes find some of the new personal finance and career trends to be amusing. Most times it’s a new clever repackaging of what has always been around. Lately my amusement is about how some people are using quiet quitting to make a statement about their dissatisfaction with their careers. Why does it amuse me? Because it’s nothing new. Here’s another flavor that has always been there. A slightly more aggressive form I’ll now call quiet retiring. It may be a possible new trendy path to slowly ending your career if quiet quitting isn’t enough. 

Ask yourself: 

  • Have you saved for retirement but can’t quite get there with stunted market performance and inflation? 
  • Are you at the end of your go-getter rope, hating the soulless job stress that’s slowly killing you?
  • Need a way out of the stressful grind or crappy unbalanced work life and still collect your paycheck and benefits in a corporate world that favors newly attained employees? 

If you answer yes then you might want to consider just retiring in place using a quiet retiring slacker retirement strategy. Use your talents and skills to get most of what you really want: Less stress, reduced obligation, and the happiness that comes with taking control of your life.

Quiet Retiring: The Retire in Place Early Retirement Strategy
Nobody Slugs A Smiling Sloth

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8 Steps To Pull Off The Quiet Retiring Slacker Early Retirement

We’ve all seen and suffered from the “retired in place” at some point in our workplace. At least that’s what we used to call them in my first career. The long-time employees who seemed to escape all the BS and stressful hard work assignments. Those slackers love their jobs and found a way to stay employed. Best of all it’s successfully done by people of all ages. They just may be onto something!

If you’re tired of being a go-getting keister buster and wisely saving for early retirement but can’t get there soon enough, then transforming yourself from Go-Getter to No-Getter may be the answer. 

This plan is all around refocusing your talents away from climbing the ladder to relaxed coasting. Something that has to be done covertly and carefully because management isn’t going to just allow you to do it. If they hate quiet quitters, they will really dislike you doing this. 

In a nutshell, the quiet retiring focus is about creating a work environment where stress can be sloughed-off or passed-on. Where eventually management only assigns you the easiest of tasks and allows you to skate by, being virtually unaccountable. All while still collecting your paycheck and benefits like health insurance until you have enough saved to ditch the rat race on your terms. 

Who knows, it may also provide a big send-off severance check if you eventually get tossed during a downturn. If sticking it to the man floats your boat, then there’s plenty of that too.

Step 1- Identify and Then Mirror the Retired in Place 

Change the way you think about those retired in place that you’ve disdained. As a stressed out go-getter I used to just shake my head wondering how in the hell do they get away with it. It’s time to flip that thinking. Instead of thinking they are unmotivated banana slugs, admire how brilliantly tuned-in they are to management’s mental blind spots. Those who successfully retire in place figure out the perfect balance of doing as little as necessary while setting a low bar for expectations. Yet they’re able to stay employed for as long as they want. Show up and leave on time with nothing but stress free fluff in the middle. Yep, that’s the ticket! 

Management just wants things done. They always find it far easier to force the motivated ladder climbing go-getters to do things because a slacker can’t be 100% relied upon to come through in time. They can’t even identify a motivating carrot to dangle in front of them.

The slackers where you work have found the exact low effort success recipe for your company’s culture and management. Learn from them through observation. Research, admire, and study their work, actions, attitude, demeanor, and imaginative but effective excuses. Then create your own quiet retiring strategy. 

If there are no quiet anything slackers to be found, then you might want to cancel this plan. Maybe you can become their first ever to attempt this in your organization but it’s more likely that your employer’s management has figured it out. You’ll most likely fail, sooner than later.

Step 2- Be the Biggest Cheerleader 

It all starts here. Can you hold your nose to be a cheerleader and enthusiastically cheer every decision and accomplishment within your organization whether it’s total BS or not? If you can’t then your quiet retiring plan may fail. It’s the one thing that management really likes about employees. It’s a slacker perception smokescreen and it somehow always magically protects them. It works so well that any teammate who complains about a cheerleading slacker is looked at as more unfavorable by management than the slacker is. Slackers may not be considered a reliable go-getter, but by God the good slackers sure are perceived as the most engaged, happy, and positive employees on the team. 

Always smile and openly compliment the others who will ultimately be picking up your slack. Be the one who suggests a potluck accomplishment lunch or group success celebration. Create visibly awkward moments by calling out for team hugs, high fives, and fist bumps. Take all the teammate eyerolls that you will be getting as a sign that you are on the right track. You are noticed and remembered for enthusiastically being there for the team.

Step 3- Being in the Right Spot 

Look at the size of your organization. There has to be enough people to hide within and to carry the load of doing all of the hard stuff and BS that you won’t be doing anymore. If you are on a small team or there are already too many quiet quitters or retired in place, then consider transferring to another team or department. 

An internal company move will allow you to begin your quiet retiring by coasting under the guise of “new person ramp-up” in training. I have seen successful slackers stretch that time-line out for years while successfully deploying the other slacker retired in place tactics. 

Step 4- Easy Does It, You New No-Getter

Don’t make the mistake of going too fast into your quiet retiring. If you’ve been the stressed out go-getter for many years then you can’t just immediately retire in place. Slide into it slowly. You must gradually cause lower expectations. Drop the ball and get a few, I’m worried about your lower performance discussions before going full bore. Just use the “I’ve got personal issues I’m working through” excuse.

Start by just letting slide all of the crap you absolutely hate doing. But do still hold a high level of competence and performance for things you actually enjoy doing or that are super important to management as far as performance objectives or team metrics. There’s still opportunity to score some easy performance bonuses and raises during the early stages of your descent into quiet retiring. Then slowly start to let other things slip here and there until you can move into full retired in place operandi. 

Gradually trim back everything that causes work stress but do the things that you can still be happy doing. While you’re most likely trashing any career accomplishment legacy you might have, it’s important to have a reason other than money and benefits for keeping up the charade and showing up. 

Step 5- Don’t Volunteer to Lead But Enthusiastically Join 

There’s always going to be a proposed important project or activity in a staff or team meeting. You know, the ones that have stressful short timeframe or will be extremely difficult. Never volunteer. Sit back and let a ladder climbing  go-getter do that. But once it looks as if it will be a team effort, jump in as a tag-along. It doesn’t matter that you have no intention of working hard. What matters and will be remembered is that you enthusiastically offered to help and was part of the team. Team success will also land on you no matter how big of a slacker you were. 

If you are unfortunately assigned the lead by management then make sure it becomes a team effort. If it isn’t obviously going that direction, start by saying “this sounds great. I have a lot on my plate but I think I can make room”. Then start complimenting a team go-getter so they get dragged into your team. While working on the project make sure to throw in a lot of “WE” talk with the other assigned team members. Reminding everyone this is a “WE” situation will make the go-getter(s) overcompensate for what will be your quiet retiring performance. 

There is one exception to this step or rule. Do volunteer to lead any celebration type activity to be a compliment to your cheerleading efforts and then milk the crap out of it to avoid other stressful or hard work assignments. 

Step 6- Exaggerate Your Work’s Importance and the Effort It Takes

Even as a retired in place slacker you will have work that you will be doing. It’s important to inflate the work you choose to do. Your quiet retiring task is to spin your wheels for as long as possible. That way you appear too busy to be assigned anything more and especially anything hard. Always smile and talk about how difficult and important your work is. Remember that many managers have no idea what the actual work is or how it’s done anyway. 

Step 7- When All Else Fails, Buy Treats

It is highly recommended that you strategically shower a few inexpensive treats on your coworkers and team while you retire in place. Sometimes a slacker’s best strategies will wear thin or fall short. Buying team treats is an important part of any quiet retiring toolkit. Especially when you have successfully dropped the ball and your team has had to carry your load. Even when being late to a meeting, treats like doughnuts, cookies, or bagels are the perfect smokescreen tactic to deploy. Even cheap day-old or old halloween candy works. It’s a companion action to being the biggest cheerleader. 

Step 8- CYA: Document Everything

There are times when slackers will be targeted for reprisal or dismissal.  If your finances aren’t where you can otherwise retire, then you must CYA with documentation that can be used to secure a severance package or financial offer if things go south. 

Any miswording or action that could be considered even remotely offensive to anyone, whether you were offended or not, should be documented. Dates, places, the issue, the offender, the audience, witnesses, etc. 

Don’t play your hand unless you have to. At the first sign you may be in serious slacker employment trouble, drop the bomb. Say you have been working in fear and now need to bring atrocious behavior to the attention of company executives. Use your most inquisitive and sad look on your face and quietly ask, do you think I might need an attorney?

CYA documentation may not stop your termination but you may end up with a bigger severance package or offer to make both you and it all go away. It just could bridge your retirement savings gap.

If you have an impressive list of bad behavior there are always legal options. You may be a retired in place quiet retiring slacker but you’re also now a sympathetic or even maybe a pathetic victim in this rancid cultural stew that celebrates grievance. It just might pay off! Remember, you are the biggest cheerleader. You were always the lead for celebrations and you constantly brought treats to the team. 

In Closing

Quiet retiring means you still have to show up to your job. But think of it as being about fulfilling your social needs and getting paid at the same time. Look, retiring in place isn’t some clueless “work until you die” retirement plan. If you are killing yourself in a stressful job and can’t quite retire yet, the quiet retiring goal is to purposely and happily retire in place while you continue building your retirement nest egg. Why should the actual lazy morons and ruthless manipulating idiots only get to pull it off?

LAST BUT NOT LEAST- 

It is extremely important that you’re completely aware that this was written to be totally facetious. 

There’s been talk about the trend of people “quiet quitting” in today’s post pandemic workplace. Then an old first career coworker told me of his stress and frustration about having to carry retired in place do-nothings. I was amazed to hear that some of the same long-time slackers were still allowed to work there from my days dealing with them over 12 years ago. They always tell everyone how much they love their jobs and the company. For some it must be close to 20 years of slacking their way to a stressless retired in place happy career. They have a lifestyle they never need to ever retire from. 

As one unashamed retired in place slacker once told me, “I haven’t had much of a salary increase in years, but my hourly work pay has quadrupled”. 

Personally I think doing any of these quiet retiring tactics takes much more effort than just pulling your own weight and doing your job to the fullest. Just set some rational boundaries, continue living below your means, and keep doing what you’ve done to become as successful as you are and can be. 

This is just a little Labor Day mental musing based on my past corporate career encounters that crosses with today’s career trends. I’m funnin on both managers and slackers alike. This Quiet Retiring Slacker Early Retirement Plan is of course tongue in cheek. Or is it?

Muffle The Noise, It’s Our Retirement Personal Economy That Matters

optimism

There’s always noise meant to warn and influence us. A lot of it is contradictory, especially when it comes to the economy. Regardless of messaging, when it comes to my retirement I always choose optimism. Primarily because I’m certain of one thing. My time on the planet decreases every day and I don’t want to waste any of it. The way I do that is focusing on my retirement personal economy instead of merely listening to possible trends and predictions. Most of which covers the widest economic swath including a lot of financially irresponsible businesses and consumers. Some of the noise may even have a dose of self serving or manipulative intentions.  

As an early retiree I’m always trying to stay informed. But depending on who says what and for what reason, their bias, or the targeted audience, it’s hard to separate the reality from the hype or horse excrement.

Some or none of the hyped-up economical news or constant reports of gloom and doom prophecies may be or come true. The way I see it, what matters is how I’m economically positioned now and will be positioned over the long-term even if I have to deploy my retirement super asset, making necessary corrections. It’s not just a financial matter either. When it comes to retirement there’s more at stake when allowing unsubstantiated perceptions and crystal ball predictions to impact how we react.

Muffle The Noise, It’s Our Retirement Personal Economy That Matters

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What I Call My Retirement Personal Economy

Being that I retired early at the age of 51 with less than a million dollar portfolio, I’ve been financially and lifestyle diligent. My retirement personal economy covers more than just my portfolio. It includes everything that I value and most of what I value goes beyond finances. That’s why when I was recently asked if I am better off today than 2 years ago, I could honestly answer YES! 

I may have had more money in the portfolio 2 years ago, but everything else of value suffered much more when compared to today. It became obvious that it was not the answer they expected. 

As a retiree I think it’s important to focus on the bigger picture. Dwelling on a single metric may cause making unnecessary or bad moves financially or otherwise. It can certainly unnecessarily rob us of retirement enjoyment. We can end up needlessly succumbing to economic fear and putting life on hold waiting for normal to return. The problem is, time doesn’t give a rip and we only have so much time to spend. Normal can also be illusive as everything becomes normal over time as we just get used to it. 

I see my retirement personal economy as including:

Family and friends-

After living through lockdowns and all that was going on in our recent past, this is certainly reaffirmed as a major value. Retirement is at its best when we can share our lives in a healthy social life with people we care about. 

Home- 

Having somewhere to call home for shelter, comfort, remembering, and building memories is certainly a key retirement value. It’s our base for all of the retirement adventures we wish to launch. Home includes all that makes it so: Utilities, food, water, safety, etc. and making sure finances covers this valuable aspect of life. It does cost more today, but we carefully established a retirement home before retiring and we make necessary adjustments to ensure it isn’t ever under threat. 

Health- 

Without having decent health, nothing else matters. Having the time to exercise, the ability to have and use health insurance, and eating better is a valuable part of retirement life. It allows for activity, spares excessive budget hits, and gives us the ability to maintain an active social life. Although there is still the threat of pandemic today, we now know much more about what it takes to live and avoid the worst outcomes. Nothing is better than having a run of good health. 

Interests and passions- 

I value being able to freely dive into what interests me or lights my passion-fires in retirement. I see only opportunities with nothing but me getting in the way. It’s this value that breaks up life’s routines and keeps it interesting.

Freedom from unrewarding or unwelcome imposed obligation- 

Time is a precious value. There were too many times in my life where I was forced into unfair obligation. I value the freedom to decide what I do and with whom I do it. It is either aligned with my values or I just refuse to engage. This value was one of my earliest personal finance motivations.

These are some of the things of value that my finances are there to support. 

My retirement personal economy is more than just a number in a portfolio because that number has no meaningful value without the rest. 

I think that too many people look at the volatile market or inflation and allow that narrow view to impair retirement enjoyment. A good financial plan should weather the economic storm. We just have to trust it. When things cost too much, just don’t buy it or find an acceptable lower cost replacement or alternative. Many times I walk away and later find a deal or even a lightly used option. 

On the flip side, once finances are in danger of no longer being able to support what I value, then something does have to change in my financial plan. Looking at the big picture helps me understand whether my retirement personal economy is fine and I can continue enjoying our time in life. But it’s also a way to see that adjustments are required, both large and small to maintain it. 

I Understand That As A Retiree I’m Fortunate – There’s A Lot of Economic Pain In This World

I don’t discount what it took for me to be in this early retirement place. But it’s obvious that this economy isn’t working for many people who are trying to keep a roof over their heads, put food on the table, find a decent wage, and are buried in debt. For many, their personal economy was challenged before and it’s only worse now. It’s a systematic trap that has always been there. 

I was trapped in that same spot not that long ago during the first half of my life. Something I vividly remember and it’s a financial place I never want to end up in again. My personal finance story has too many years where I couldn’t earn enough to cover our basic expenses each month. It certainly made it difficult to find much joy in life living like that. I find that experience as my main motivation to stay focused on all aspects of my retirement personal economy. A life perk for having the patience and discipline to create a life of FIRE.

My Evaluation Process To Confidently Enjoy Retirement

How is my retirement personal economy doing overall? 

This is where I check the way I feel about things. Obviously if something is bothering me, then I need to look at it. Even if I’m feeling confident about how things are going I still take a peek to verify that I’m living in reality.

How have any of my retirement values been impacted? 

I look at all value areas, checking to see if any aspect is lacking and if so, why. While I don’t want to see any aspect falling behind, it isn’t unusual. Life is seldom without challenges. A couple of years ago I may have had more money in the bank but other values of my retirement personal economy were severely depleted. Today the portfolio is down but everything else is in full swing.

Are there any areas of spending and my value based budget being challenged? 

Some years it might be a medical condition that causes health, social, and financial stress. Other years as now, it’s inflation hitting specific expenses. While budget adjustments are sometimes necessary, this is where a little work on the front end can save a lot of headache later. Sometimes it comes down to making a few compromises to other retirement personal economy values to put things back in balance. 

Does my retirement’s personal value funding feel secure now and over the long-term?

Having a good financial plan helps smooth market volatility concerns and over time earn our trust. There’s only so much we can know and do when looking into the future. I used to worry about this aspect much more than I do now. I still run a good retirement calculator to assure things are safely on track. When I need financial calming, I talk to a professional to make sure my portfolio allocations and retirement funding bucket strategy holdings are in line with my risk tolerance, life expectancy, and current market conditions.

Looking beyond political and national data metrics

When I read or hear economic reports it provides a glimpse at current conditions. The problem is there’s always an expert countering the prevailing message, perception, and predictions. No wonder some people will needlessly go into fear mode or completely disregard things when personal action is actually needed. That’s why I rely on monitoring my retirement personal economy. Then I can confidently celebrate my fortunate life. When necessary I deploy countermeasures in income, spending, or other value based changes to reverse any downward trends.   

Knowing how my unique economy is doing supports happiness and optimism. 

Wrongly being pessimistic and depressed is of no help in enjoying our retirement life during the finite time we have. Even a disappointing retirement situation can be reversed into hope when we take control and make positive changes. 

Life is hard and it takes more than smiling to get through it. We have to take control of our own situation. It doesn’t matter that the rest of the world is doing wonderfully if we’re stuck in a real or mentally created crisis. Even if economically everything trends going south, but we have done what’s necessary to ride it out, we’ve earned being able to happily live our best life that we can.  

It is a waste of time being unnecessarily dragged down. Retirement success is a call for us to rejoice in our position and lend a hand to people who we can or want to. 

Staying informed of our valued based retirement personal economy adds mental armor against anyone trying to sell us something by telling us that our life is worse off than it really is or that we have it better than we actually do. I prefer to count my blessings based on informed and verified retirement personal economy value based metrics. 

Cost-Effective Ways To Enjoy Retirement

Funding Retirement, Saving Money, ,

This post was contributed to Leisure Freak by personal finance blogger Ted James.

Approximately 22% of Americans have less than $5,000 saved for retirement, according to a study cited by The Motley Fool. Additionally, 15% have no retirement savings at all. If you have very modest savings or none at all, you’ll need to live off your Social Security benefit during retirement. While the amount you’ll receive depends on your work record, the average monthly Social Security benefit was $1,509 in 2021. But you can still enjoy your golden years if you follow these tips, presented below.

Cost-Effective Ways To Enjoy Retirement

Photo Credit: Cottonbro via Pexels

Create a Budget

To create a budget, such as one following the 50/30/20 rule, first determine your fixed monthly expenses. These include your mortgage or rent, utilities, groceries and loans, and credit cards. You can’t eliminate these expenses, but you can reduce their payments. Try refinancing your loan for a lower rate, reducing utility usage, or negotiating a lower interest rate on your credit card.

Mixed Up Money notes that the most challenging part of creating a budget is finding ways to cut back on nonessential expenses because they’re difficult to track. These expenses can include dining out, buying gifts, taking vacations, and purchasing magazine subscriptions. Keep receipts and check your bank and credit card statements to see where you’re spending. 

Perhaps the most important aspect of your budget is planning for your retirement goals. You can be doing fine right now with your budget, but have you factored in the cost of retirement living or travel? When creating this document, project for the future. What income will you have after age 65? What are your primary goals once you retire, and how much will they cost to achieve? Once you factor in these components, you will be budgeting for more than now – you’ll be budgeting for your retirement.

Downsize

Downsizing means less maintenance and lower bills. It also allows you to find a property better suited to your needs as you age. Furthermore, if your home has increased in value over the years and your mortgage is almost or entirely paid off, downsizing to a cheaper property may leave you with a lot of equity. 

However, there are some potential disadvantages to downsizing. These include:

  • Fewer belongings. Some people get emotionally attached to particular items and may find it difficult to part with them.
  • No room for overnight guests. Family members who’ve stayed over in the past may now have to book into a hotel when they visit.
  • Lack of privacy. Smaller and fewer rooms make it difficult to get away from other family members when you want time alone.
  • Less recognition. Some people are more concerned with how others perceive them than with comfort and may find that moving to a smaller property doesn’t project the image of success. 

If you choose to downsize, you can also decide whether you want to sell your larger home or rent it. This decision will likely come down to money. Can you rent the property for more than you owe on it each month? If not, are you willing to break even in order to keep the equity? Or do you need the money in hand right now that would be available through a sale? 

Take in a Lodger

Taking in a lodger can help with expenses. Unlike tenants, lodgers are easier to evict should any problems occur. Lodgers also provide extra security for your home, particularly when you’re away. Check out the short-term rental laws in your area before considering renting a room to a lodger.

Part-time Work

Earn extra cash by freelancing to meet expenses and boost your bank account. One increasingly popular job is becoming a medical coder. In addition to performing critical behind-the-scenes tasks like accurately documenting patient data, medical coders determine a patient’s diagnosis and any procedures performed. By taking medical coding courses online, you’re equipped to learn industry standards, including how to use the Healthcare Common Procedure Coding System, (HCPCS) and Current Procedural Terminology (CPT) codes. 

Whatever type of work you pick up, if you decide to start a business using your skills, forming an LLC gives you tax advantages, flexibility, limited liability, and less paperwork. Avoid expensive lawyer fees by filling out the paperwork yourself or using a formation service. Check out your state’s rules for forming an LLC before proceeding, as they differ from state to state. 

Less Stress and More Enjoyment

Having a fixed income in your golden years doesn’t mean you have to worry about finances. Taking steps, such as budgeting, downsizing, working part-time, or taking in a lodger, can make your later years less stressful and more enjoyable.

 

Much thanks to Ted James for contributing this article that shares cost-effective ways to enjoy retirement.

Author Bio:

Ted James is a husband, father, dog owner, and rock climber living in the Pacific Northwest who devotes a large chunk of his time helping people get back in the driver’s seat of their finances. He created his site, Ted Knows Money, to share money tips and help people get complete control of their finances.

The Longer In Early Retirement, The Easier It Gets

Financially Free, Living in the Moment, Non-financial Aspects of retirement,

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.