What Does it Mean to be Retired Early - 2?

As mentioned in part 1, you are ready to retire if you have fulfilled your responsibilities (or made provisions for that); and have prepared yourself both ways – materialistically and spiritually. Being retired means –

1. You are able to manage yourself (financially and health wise) till you exist, and the things/initiatives which you started, continue to move in usual pace when you don’t exist; and
2. You have learned to adjust to a life where you progressively use your wisdom, gained over years, to compensate reduction in your physical work

Age is not a bar for the retirement. You may be retired as young as Robert Kiyosaki or never retire till you leave the Earth for your onward journey.

For leading a successful retired life, you must distinguish between necessity, comfort and luxury, and decide for yourself what kind of retired life you wish to enjoy. Jalāl al-Dīn Rūmī, one of the greatest Sufi mystic and poet stated that “anything which is more than your necessity is Poison – whether its wealth, power, lust or others”. Would you offer yourself poison, particularly when your body is ageing?

The first step towards retirement, as I feel, is to decide the time period and work out the finance required for post-retirement period (at discounting rate). In my case, my retirement period starts from 55 years, and say, I take my longevity as 80 years. It means I need finance for 25 years. I am preparing in a way that when I retire in 2023, I won’t have any financial obligation, and if I have any, I would budget that (like children marriage). Suppose, I hypothetically take Rs.50,000/- as my monthly spending post retirement; therefore, I would need minimum Rs.600,000 per annum for 25 years (at increasing rate to compensate inflation).

The second step is to work out the ways to get this steady flow of income. If you know how to manage three types of income, you should start reducing your dependence on earned income and build your portfolio & passive incomes. If you are not aware of these types of income, then I would strongly suggest reading 3 types of income as mentioned in ‘Rich Dad & Poor Dad’. You must buy this book, and subscribe to its website 

Besides building your portfolio and passive income, I would also suggest taking Mediclaim/health insurance, which you may need more when you are ageing.

I started preparing for retired life as early as in 2004 when I was still very young. I had a life changing event on 25th October 2004, when I narrowly survived. There are some very valuable lessons from that incident which I shared through my LinkedIn post “Biggest Mistake of my Life”. During those three days at ICU in St John’s Hospital, Bangalore India, the first commitment I made to myself was to become financially independent. I took retirement from job in 2008. By 2012, my family reached to a state of financial independence where, whether I work or not, money would flow in. We had reduced the spending, and started building portfolio and passive income.

If you wish to invest and you have time for retirement, my suggestion would be to invest in Gold or Real Estate. Stock market (shares) could be an option, but it’s a different ball-game. If you are not smart enough, you will be a game in this field. I had tried my hand in Stock market in 2005, but left in 2006 when realized it would take my energy and return will be risky. Some of my LinkedIn contacts are experts in Stock market, and they may share their experience & advice in this post. 

I did invest in Stock/Equity, but differently. I built my own Company and created the stock/equity. In 2013, I and my spouse co-founded SAI – a Triple Bottom Line Company. The level of social, environmental and economic impacts of SAI is astounding. But, have you ever looked at SAI from business angle? Till 2018, I and my spouse had invested Rs.10 million (Rs.1.0cr). Its valuation in 2018 was Rs.500 million (Rs.50cr). It would have crossed Rs.1000 million (Rs.100cr) by now, and by 2025-26 when it will be listed in Stock market (BSE), it's valuation would be more that Rs.5,000 million (Rs.500cr). SAI is 100% owned by me and my spouse with no equity dilution till date. We followed SIP (Systematic Investment Plan) - earning through consultancy assignments; keeping a part for family expenses, and investing remaining in SAI. If you invest wisely, you can multiply your money many times. You will need to take calculated risks, but this is the age when you can take the risk, not when you retire. 

Getting financial independence is only one part of preparation for the retired life. Do you still remember the Jude teaching which I shared in Part 1? It says that “Life is a marriage of body and soul, and is at its most productive when nurtured by a sound physique as well as a healthy spirit.”

When I had stress attack in 2004, I used to go for daily jogging and exercise. However, I was a workaholic and had forgotten that body and mind should be in harmony. My body was not able to cope the pressure, and finally it collapsed. I was lucky to survive. That incidence gave me a big learning of maintaining balance between body and soul/mind.

Your body is your home, and you don’t keep garbage in your home. Try to avoid eating junk food which can lead to an increased risk of obesity and chronic diseases. I find it interesting to see McDonald/KFC teaching us value of healthy meals. You might find such information on your tray when you order burgers, French fries and coke. Isn’t that contrasting? That’s a business trick where you feel happy that you are health conscious and checking your calories, but in fact you are eating junk food? 

One of my friends used to tell me “Breakfast like a king; lunch like a prince; dinner like a pauper”. Means first meal of your day should be your biggest meal, and last meal of the day should be the lightest. Breakfast like a king because it helps replenish blood glucose levels and metabolic rates that drop after a night’s gap. Dinner like a pauper as your body is going for the rest and metabolic activities will be low.

It’s also good to regularly detox your body. Have you wondered why fasting is recommended in almost all religions (lent in Christianity; Ramadan/Ramzan in Islam, Navratri and other festivals in Hindu)? Because it cleanses your body, purify your soul, and bring you near to that Supreme Power, to whom we fondly call God, Allah, Ishwar, …... 

Your mind is your garden. If you keep your garden empty then weeds will grow, spoil and stink. In the same way, if you are not feeding your mind with good teachings and thoughts, then negative thoughts will automatically start growing, which will pollute your mind. If you like reading, then you may read some self-improvement/ personality development books or life history and teachings of some of great scholars. If you are not fond of reading, then you can listen or watch some of the shows which are full of wisdom. Believe me, these will bring quality change in your actions & behaviour.

While preparing for retirement, please also spend some time daily in solitude. It provides time for contemplation, and self-examination. When you are alone, reflect back and see what lessons you can draw from your past actions. You will also be able to discover your identity, find your inner-self and grow spiritually. You may also meditate daily. It’s not difficult. Watch this VIDEO by Brian Weiss to learn how to do meditation. Even if you are not interested in meditation, I would encourage you to watching this VIDEO at least once to find how people meditate. It will take only 20 minutes but you will see the difference in yourself.

Remember “The spiritual growth of old age invigorates the body, enabling one to lead a productive existence for as long as the Almighty grants one the gift of life” – Teaching from Torah, Hebrew Bible

In Part 3, I will be sharing with you Wish-list for my retired life.

 Jitendra Sinha

(to be continued)