I’ve found that in my almost decade of working with people, no one has really liked the word retire.?We retire old socks or worn out tires, let’s not retire people the same way.?Gaining popularity instead is the term financial independence, which I take to mean - having the financial ability to choose whether or not to work.?There are possibilities for more definitions here, but we’ll save that discussion for another time….?
So, when will you be financially independent??When will you have the option to say no to a re-org, a nasty boss, a demanding client, or stressful business????
Recently I’ve drawn a line in the sand encouraging people to be prepared for that ability by age 60.?(I know, I said it’s not an age or date and here I’m giving you an age – let’s give each other some grace).???
There are several reasons for this, let me outline a few:?
- There’s been a steady trend that about half of people retire sooner than planned.?This number generally jumps above 50% during recessions and falls just below 50% during economic expansions and recoveries.?Do you know people who retired early after the financial bubble of 2008??How about in the last year due to the pandemic??Economic downturns tend to impact the oldest and youngest of the labor force.????
- Health – about half of the people who retire earlier than planned do so for health reasons.??Some for their own health concerns, others to care for a spouse or other loved one.??
- Technology – You’re probably reading this email on a device that didn’t exist 20 years ago.?While the World Economic Forum reports that AI & automation will likely create more jobs than it will destroy, many argue that we are in a period of transition now where people must re-skill or up-skill before their jobs become obsolete.???When I used to read statistics like that, I would immediately jump to the grocery cashier being replaced by self-check out but the reality is that there are many high skilled jobs that AI can do better than humans too.??Radiology is one example, an AI program has the ability to scan millions of images, something a human brain doesn’t have the capacity for today.?
?My hope is that everyone is confident in their financial independence strategy.?If you aren’t, or you are but wouldn’t mind a 3rd?party validation, book a no-obligation 30 minute session with us today.
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2 年Oh, this is a great thought exercise Carol Parrish, RICP?! I don't really have it in me to retire - my own dad didn't fully retire until he was 88!
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2 年I think about retirement as a departure from my current career and my next step using my skills and talents gained to pay it forward for others in a “2nd career” of sorts. I won’t have the pressure of a corporate job but taking a step back to give back.
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2 年Such good insight, Carol Parrish, RICP?! Retirement has changed significantly. When I think of retirement, I think of freedom. Freedom from restrictions and pressures that drive what we can and cannot do. Having the flexibility to follow passions, lean into relationships and pursue dreams. As I watch my parents' generation near and enter "retirement," it's interesting to see the different approaches. The ones who appear to be winning aren't slowing down. In fact, they're racing faster toward what they love. Truly winning for sure.
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2 年I don't plan to retire. I plan to continue doing things that bring me growth, fulfillment, and purpose while making a contribution to others. As long as my mind is keen, I'll keep creating.
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2 年Carol Parrish, RICP? Great reminders about why it's so important to be thinking of this now. We have no control over market returns, but we do have control over how many years to save and how much to save per year. Putting a target age on it helps with those decisions.