Over the years I’ve heard a number of misleading things about Retiring Early.
Here are the top five:
1. You’ll need $5 million dollars in order to retire early.
This was a myth started by Suze Orman during a podcast interview. If you need $200,000+ a year in income in retirement then, $5 million might be your number however most of us won’t come anywhere near needing that number. Suze is an entertainer who wants to sell you her books so when she throws out a ridiculous statement like this, all it does is bring her back into the spotlight hoping you’ll buy something from her.
2. You’ll never work again when you retire early.
For some people this is true, but for many folks they’ll go back to work for something to do or to pick up a little extra cash. Most people who retire early are working in some capacity. Some folks might be working online, others have a part-time job and some folks just do a complete career change and go do something they enjoy. Heck, Brett Favre and Michael Jordan each retired three times. Jordan is the owner of the Charlotte Hornets and Favre has numerous sponsorships that he represents. Retiring early does not mean you’ll never work again. It often means redefining rather than retiring completely.
3. You’ll get bored if you retire early.
When retiring early or at 65, most people are so focused on getting their finances in order that they forget they need to plan out their lifestyle in retirement. If you don’t put any thought into it and retire on a random Monday, then yes you might get bored within a month. The key is to get your finances in line and get your lifestyle in order prior to retirement. If you get bored, that means you just didn’t spend enough time on that part of your retirement plan.
4. Your health will decline if you retire early.
You’ll find arguments on both sides of this position, but I have to strongly disagree with this one. Yes, if you go home and sit in the lazy boy and eat ding dongs and drink good ol’ Mountain Dew all day, this is not going to be good for your health. Being mindful is the key here. Most early retirees are going to be more active in their day and have less stress. This leads to a healthier lifestyle and a healthier you. If you make it a priority, living healthy and stress free, will prolong your life. You are in total control here.
5. You’ll live so frugal that retiring early won’t be fun.
If you plan correctly, this will not happen to you. Retiring early is about taking control of your life and doing what you want, when you want, how you want and from where you want. Having a solid retirement and lifestyle plan is key.
There’s a funny quote that comes to mind:
“I’m gonna wing it” –Me, about something I most definitely should not wing.
Your early retirement plan is something you most definitely should not wing or you might find yourself eating gourmet spam out of a can. If you’re plan is solid, as it should be, you’ll never have to worry about how you will spend your time or having to be overly frugal in retirement.
Live free my friends
p.s. If you need help with your early retirement plan, I’m here to help you. Go to www.AskEricGaddy.com to find out more.