Millennials, is “Retirement” a complete scam?
Here’s a depressing thought: I’m going to work at a job I don’t absolutely love for 30+ years, then when I’m 60-something I can finally quit to focus on the things I want to do and care about most. Seriously, who the hell wants to sign up for that? Yet that’s exactly the idea we’re being sold by the financial services industry and I want to share why it's complete BS.
Why traditional retirement is good for business, but not good for YOU
The truth of the matter is that what’s good for financial institutions (i.e. banks, insurance and investment firms) is not necessarily what’s good for you. Ultimately, these companies are in business for a profit so it’s important for you to understand what makes them profitable:
1. They want your money
2. They want it on a systematic basis
3. They want to keep it for as long as possible
4. They want to dribble it back to you as slowly as possible
Operating under these four principles is what makes financial institutions a TON of money. With this information in mind, it makes complete sense why these companies would advocate for people to work multiple years without enjoying their money.
Financial independence should be the new retirement
The only thing that needs to retire is retirement itself. Instead, our generation should focus on achieving financial independence (FI for short). FI can be defined in a lot of different ways, but I like to think it’s the point at which you’re free to make decisions based on what makes you happy instead of what makes you money. To be clear, FI does not mean you stop working completely. It simply means you no longer rely on income from an unfulfilling job and therefore can choose to work in areas that create excitement when you wake up in the morning.
Sound too good to be true…? It’s not! All it takes is discipline and a good financial roadmap to get there.
Bottom line: don’t buy into the idea that retirement is the light at the end of your tunnel and remember it’s just a way companies brainwash you into letting them keep your hard-earned money for long periods of time.
Godspeed,
Terry Andersen
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