Your Money_ The Missing Manual - J. D. Roth [149]
Because early retirement presents so many financial hurdles, some people choose semi-retirement instead. Semi-retirement is like early retirement except that you continue to draw income from some sort of work. In Work Less, Live More, Bob Clyatt explains the advantages of this option:
With a modest income from part-time work, early semi-retirees may not have to face the dramatic downshifting in spending and lifestyle that so often confronts those who live only on savings or pensions. And semi-retirees learn that a reasonable amount of work, even unpaid work, keeps them energized, contributing, and sharp.
Though semi-retirement is more realistic than early retirement, it's still not for the faint of heart. You have to be dedicated and work hard to make it happen. Semi-retirement typically involves:
Ample savings. Semi-retirees plan far in advance, accumulating a large nest egg before they make the leap.
Modest living. Semi-retirees tend to be frugal and use techniques like those in Chapter 5.
Ongoing work. Though semi-retirees aren't employed full time, they do keep working for a number of reasons: The added income means they don't have to draw down their retirement savings as quickly as they would otherwise, and the work lets them spend time with people while doing something worthwhile.
Note
According to the EBRI Retirement Confidence Survey, one-third of retirees worked for pay in 2009.
Exploration. People in semi-retirement give themselves permission to explore new interests by doing things like going back to school or taking a part-time job in a completely new field.
Purpose. Most importantly, semi-retirees can pursue projects and passions that align with their core values. Instead of slogging away selling pharmaceuticals, for example, you may finally have time to volunteer at the local health clinic.
If you're interested in semi-retirement, Clyatt's Work Less, Live More is an excellent place to start. It's full of brilliant advice and practical examples.
The Final Frontier
Ultimately, deciding when and how to leave the workforce isn't about some number in a retirement account. Think about your goals and what makes you happy. It may be that you're satisfied with your current job and you hope to keep at it for years to come. Do what's right for you.
And remember: A happy retirement is about more than money. Intangibles like health, hobbies, and habits will help you fend off boredom and increase your overall satisfaction after you leave the workforce. More than anything, close ties with friends and family will ensure your long-term happiness. So as you build financial wealth for retirement, build social wealth as well. The next chapter has tips for doing exactly that.
Chapter 14. Friends and Family
"When you get to my age, you'll measure success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life."
—Warren Buffett
This book has given you the knowledge and tools you need to build a better financial future. Using what you've learned, you can boost your cash flow to pay off debts from the past, provide for the needs of today, and fund your dreams for the future. If you put in the work and do the right things, you can get rich—slowly.
But to what end? Money is valuable because it can help you meet your goals. The point of building wealth isn't the Stuff you buy or the money itself—these things are secondary. What matters is that money can give you freedom: freedom from worry, freedom to pursue your goals, and freedom to spend time with the people you love.
Living a rich life isn't about making money; it's about your relationships with other people. Because friends and family play a vital role in your happiness, this chapter explores some ways to balance love and money.
Financial Blueprints
In Secrets of the Millionaire Mind, T. Harv Eker writes that each of us has a "money blueprint," a built-in set of attitudes and beliefs that affect how we deal with money.