25-06-2019, 08:56 PM
I retired at 34 with $3 million—here are 5 downsides of early retirement that no one tells you
Sam Dogen, Contributor @FINANCIALSAMURA
Published Mon, Jun 24 2019 11:24 AM EDT Updated Mon, Jun 24 2019 5:50 PM EDT
Many people have negative views on young retirees: They’re spoiled. They’re lazy. Their parents helped them. They won the lottery. But none of these things apply to me.
I grew up in a middle-income household. I worked hard to earn good grades and pay for college. I was the first one in the office and the last to leave. Sure, I got lucky by landing a high-paying investment banking job and in some of my investments, but I live a frugal life and have always been diligent about staying on top of my finances
All of that played a huge role in my early retirement in 2012, at 34. By the time I quit my job, I had amassed a net worth of about $3 million that generated roughly $80,000 in investment income per year.
I don’t regret my decision
I won’t lie: Early retirement has been a dream come true. I gave up a healthy six-figure paycheck, but I gained something priceless in return: Freedom.
People told me I was crazy to leave a high-paying job at such a young age, but I was absolutely burned out and felt disillusioned by my industry of work. I never anticipated how miserable I’d be working in finance, especially after the financial crisis.
Early retirement isn’t for everyone. But from my experience, the pros outweigh the cons. I get to wake up whenever I want. I no longer have to endure unproductive meetings or put up with nefarious colleagues. I’ve traveled to more than 20 countries with my wife, wrote a book on how to negotiate a severance and get to coach high school tennis.
I also became a dad in 2017. Being a parent has been the toughest full-time job I’ve ever had; it makes working in investment banking for 13 years feel like a walk in the park.
The downsides of early retirement
I will admit that there are a few downsides. (I finally understand why researchers say that, no matter how much of a boost we get in freedom or money, we eventually revert back to our normal baseline of happiness.)
In a 2017 CompHealth survey, 68% of the 400 late-career physicians surveyed said they were not excited about retirement. Some of the top concerns included losing social interactions at work, a loss of purpose, boredom and depression.
That said, here are the biggest negatives of early retirement that no one likes to talk about:
1) You may suffer from an identity crisis.
2) You may second-guess yourself.
3) People may treat you like a misfit.
4) You’ll be surprised that you aren’t that much happier.
5) You may get really, really bored.
More details in https://www.cnbc.com/2019/06/24/i-retire...s-you.html
Sam Dogen, Contributor @FINANCIALSAMURA
Published Mon, Jun 24 2019 11:24 AM EDT Updated Mon, Jun 24 2019 5:50 PM EDT
Many people have negative views on young retirees: They’re spoiled. They’re lazy. Their parents helped them. They won the lottery. But none of these things apply to me.
I grew up in a middle-income household. I worked hard to earn good grades and pay for college. I was the first one in the office and the last to leave. Sure, I got lucky by landing a high-paying investment banking job and in some of my investments, but I live a frugal life and have always been diligent about staying on top of my finances
All of that played a huge role in my early retirement in 2012, at 34. By the time I quit my job, I had amassed a net worth of about $3 million that generated roughly $80,000 in investment income per year.
I don’t regret my decision
I won’t lie: Early retirement has been a dream come true. I gave up a healthy six-figure paycheck, but I gained something priceless in return: Freedom.
People told me I was crazy to leave a high-paying job at such a young age, but I was absolutely burned out and felt disillusioned by my industry of work. I never anticipated how miserable I’d be working in finance, especially after the financial crisis.
Early retirement isn’t for everyone. But from my experience, the pros outweigh the cons. I get to wake up whenever I want. I no longer have to endure unproductive meetings or put up with nefarious colleagues. I’ve traveled to more than 20 countries with my wife, wrote a book on how to negotiate a severance and get to coach high school tennis.
I also became a dad in 2017. Being a parent has been the toughest full-time job I’ve ever had; it makes working in investment banking for 13 years feel like a walk in the park.
The downsides of early retirement
I will admit that there are a few downsides. (I finally understand why researchers say that, no matter how much of a boost we get in freedom or money, we eventually revert back to our normal baseline of happiness.)
In a 2017 CompHealth survey, 68% of the 400 late-career physicians surveyed said they were not excited about retirement. Some of the top concerns included losing social interactions at work, a loss of purpose, boredom and depression.
That said, here are the biggest negatives of early retirement that no one likes to talk about:
1) You may suffer from an identity crisis.
2) You may second-guess yourself.
3) People may treat you like a misfit.
4) You’ll be surprised that you aren’t that much happier.
5) You may get really, really bored.
More details in https://www.cnbc.com/2019/06/24/i-retire...s-you.html
Specuvestor: Asset - Business - Structure.