# Dark Side of Early Retirement



## londoncalling (Sep 17, 2011)

I stumbled upon Financial Samurai's blog today. Although I don't necessarily agree with everything in the post linked below, it does provide an opposing view and food for thought. It is often good to play devil's advocate so I thought I would post it here. I would agree with 1, 3 and 5 as reasons why people would consider/strive for early retirement. I do want to be able to be financially secure enough to determine if/when/how I will retire but I think most people do as well. I believe it requires having something to retire to. I have also noticed that retirement means many things to many people and as a result the definition has changed. Currently I find my job challenging, exciting and rewarding even though most days are a lot of work. I do enjoy travelling, socializing and relaxation but even after a week or two of vacation I am ready to return to work. 

https://www.financialsamurai.com/the-dark-side-of-early-retirement-risks-dangers/

Cheers


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## bass player (Jan 27, 2016)

The author doesn't give early retirement enough credit. The 5 reasons for retiring early are:

1) Haven’t found the right job
2) Easier way out
3) People are lazy and want things now
4) A feeling of hopelessness
5) Realization that time is precious

I agree with #5, but not with reasons 1 - 4...you don't have to be lazy or feel hopeless to think there is something more to life than work.

The cons for retirement the author noted are:

1) Oops, you change your mind
2) You run out of money
3) You lose touch with friends and family
4) You may find it difficult to start your own family
5) You lose your own self-respect, and the respect of others

If you run out of money, that's due to poor planning. If you can't stay in touch with friends and family, that has nothing to do with whether or not you are employed. If you lose your self- respect after successfully retiring early, then you probably should see a therapist. Retiring early is an accomplishment, not a failure.

And, then there is this:

"Early retirees will croon about how great their lifestyles are. I’m sure, in some ways they are spot on. But notice how they seldom write about the hardships they face. They can’t, because it’s important they continue highlighting how awesome everything is, to justify their decision to no longer work. Can you imagine spending 16 years going to school (grade school + four years of college) only to work for 10 years? Some would surely say that’s a waste, would they not?"

Really? I would consider a 10 year working career followed by retirement to be a massive success. I retired at 53 but would have done so at 33 had the numbers worked out, and I would have not considered it a "waste".


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## sags (May 15, 2010)

Most of the people I know retired early because of ill health or forced layoff. 

Often they weren't financially prepared but had to manage on government benefits and whatever they had from savings and house sales.


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## gaspr (Mar 24, 2014)

sags said:


> Most of the people I know retired early because of ill health or forced layoff.
> 
> Often they weren't financially prepared but had to manage on government benefits and whatever they had from savings and house sales.


Yes, health is important. To me, improving one's health (both mental and physical), should be the number one focus in retirement, early or not.


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## pwm (Jan 19, 2012)

The whole article didn't make much sense to me but I had to laugh at this, which was a con for early retirement:

_5) You lose your own self-respect, and the respect of others_

What a load. Having some dick-head boss saying "Yo boy, see that pile of sh*t over there? Go clean that up and get back to me" is why I quit to preserve my self respect.


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## Davis (Nov 11, 2014)

Yeah, this article doesn't apply to me . 18 months in, and I've never regretted my decision. A while back I was offered a short-term contract to help out someone I like and respect, but it would have disrupted our autumn trip, so I said 'no'. I also don't think my heart would have been in it. As much as I liked the work that I did over 25 years, I like not working more. Besides, my old life would not have accommodated a ten-week trip. Our Airbnb in Istanbul, overlooks a lively street with restaurants and cafés, and it is a privilege to be woken by the call of muezzin in the morning. I might not feel the same were I single or had my husband not been able to retire at the same time.


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## jargey3000 (Jan 25, 2011)

_"Our Airbnb in Istanbul, overlooks a lively street with restaurants and cafés, and it is a privilege to be woken by the call of muezzin in the morning."_
...jealous here!...


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## milhouse (Nov 16, 2016)

Kind of a make conversation article IMO. 

I want to retire early to allocate more time to things I enjoy, particularly travel. I also view is as an opportunity to do different productive things I enjoy. Seeing a few people I know and celebrities I grew up with dying in their 40's, 50's, and 60's kind of freaks me out and hold time more precious. 

With regards to the dangers of ER, I think FS' list is a bit of a stretch. I've been willing to work a few years longer to build a buffer so I don't run out of money. You can talk about various risks but even working won't mitigate all the risks. Personally, I don't feel my job defines me and have a good social network outside of work.


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## Rusty O'Toole (Feb 1, 2012)

"Early retirees will croon about how great their lifestyles are. I’m sure, in some ways they are spot on. But notice how they seldom write about the hardships they face. They can’t, because it’s important they continue highlighting how awesome everything is, to justify their decision to no longer work.

Or, maybe they found out that complaining about how tough retirement is to your friends who are still working, goes over like Tweeting from your vacation in Tahiti that you have to wear sunglasses because of the glare from the white sand beach and you were getting tired of rum drinks served in pineapples by teenage Wahinis in Bikinis.

I get a strong whiff of sour grapes.


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## Eder (Feb 16, 2011)

The worst thing in my retirement is that sitting under a palapa is just not dark enough to properly respond to this question.


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## Plugging Along (Jan 3, 2011)

My question is what do people on CMF consider early retirement? I remember growing up and 55 was considered early, now people are talking about retiring in their twenties, thirties, and early forties. I think that is really different that is really different than retiring even at 50. 

I met someone who retired at 27, I thought I was some self made millionaire. Nope they worked for a few years, decided it wasn't for them, Lived off their parents on. I didn't consider that really retirement because they didn't self support. Their comments were tha then learned to live very cheaply, and did have a small passive income from some internet stuff, and loved at home, plus they help their parents. I do know others that retired young, but self supported, but those reitrements are also very different than what I see retiring early as.


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## milhouse (Nov 16, 2016)

I still think 55 is "early" considering how has been written about how Freedom 55 is an unreachable goal for most. However, in my company, I've seen a number of employees & colleagues that started fairly young and stayed with the company on a DB pension have been able to retire in their mid 50's. I don't think retiring in your 50's is too out of the norm but I'm bias'ed because that's my target. 

I think the environment is also more conducive for people to retire in their 30's and 40's. I feel there's more opportunities for young people in their 20's to quickly make $100K+ incomes. The investing environment now has low fee brokerages, low fees funds, ETF's, etc. There's a tonne of people blogging about how to retire early. With the above, it then just comes down to savings and spend discipline. 

The ER risk I would pose for people retiring in their 30's and maybe early 40's is around how their needs, values, and goals may evolve or completely change.


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## kcowan (Jul 1, 2010)

You have 168 hours available each week in retirement and 128 while working. If you are dealing properly with the 128, adapting to handle 168 should be relatively easy. It is only if you ascribe too much to those 40 hours that you may have trouble.

Also travel is much more practical without the 40 as a boat anchor around your neck.


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## sags (May 15, 2010)

Some people's definitions of retirement are pretty funny.

According to their thinking............anyone in prison is not only retired but living in an all inclusive home.


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## JackJac (Mar 13, 2017)

Plugging Along said:


> My question is what do people on CMF consider early retirement? I remember growing up and 55 was considered early, now people are talking about retiring in their twenties, thirties, and early forties. I think that is really different that is really different than retiring even at 50.
> 
> I met someone who retired at 27, I thought I was some self made millionaire. Nope they worked for a few years, decided it wasn't for them, Lived off their parents on. I didn't consider that really retirement because they didn't self support. Their comments were tha then learned to live very cheaply, and did have a small passive income from some internet stuff, and loved at home, plus they help their parents. I do know others that retired young, but self supported, but those reitrements are also very different than what I see retiring early as.


This is basically my life. I have "retired" as far as I can see. I am in my early 30s, live at home with parents, and have about 600K in savings. My health has improved from what it once was, but it's still iffy (which is the main reason I have "retired"). When my parents pass away, I'll be inheriting at least another 600K.

I love the simple life, and only need and want the bare necessities, so I imagine I'll be fine. I might pick up a part-time security guard position in the near future to show good faith, and add to my savings a bit.


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## Franky Jr (Oct 5, 2009)

Hahahahahaha!
Living at home with your folks is not retired! But if it's health related that's OK. But it is not retired.


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## bass player (Jan 27, 2016)

sags said:


> Some people's definitions of retirement are pretty funny.
> 
> According to their thinking............anyone in prison is not only retired but living in an all inclusive home.


They call the prisons "gated communities"...


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## OnlyMyOpinion (Sep 1, 2013)

Franky Jr said:


> Hahahahahaha!
> Living at home with your folks is not retired! But if it's health related that's OK. But it is not retired.


I do notice that JackJac put retired in "quotations" so I think they acknowledge the dissonance.
To me, their "retirement" seems no less than we hear from others who are young and "retired" but still earning an income through some sort of work. Not sure that having your own place is necessarily a requirement?


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## Plugging Along (Jan 3, 2011)

sags said:


> Some people's definitions of retirement are pretty funny.
> 
> According to their thinking............anyone in prison is not only retired but living in an all inclusive home.


One of the funnier things I have read.

:eagerness: well, I think it is only retired if they have a sentence as life without parole, otherwise, its just an all inclusive. 



OnlyMyOpinion said:


> I do notice that JackJac put retired in "quotations" so I think they acknowledge the dissonance.
> To me, their "retirement" seems no less than we hear from others who are young and "retired" but still earning an income through some sort of work. Not sure that having your own place is necessarily a requirement?


I know lots of people retired but ended up earning income. I suspect that I will be one of those. I have always said that if you are earning income from a side hustle because you need to to pay for your retirement, then you are not retired. If you are working because it's something you want to do, and you happen to get paid, then it's a a self sustaining hobby in retirement. It's about needi g the extra income or not.

Hmm... I had to think about whether having your own place is a requirement. I think it's how can you retire from the working world when you haven't really worked it. Does it mean my kids are in pre-retirement? What if they were to inherent enough from us they would never have to work? (Not the case) but it just has me thinking.


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## zylon (Oct 27, 2010)

Real life sob story (sniff sniff) : the woes of being young, moneyed, with nothing to do.

https://thefelderreport.com/2017/10/17/podcast-erik-townsend-on-living-the-macro-dream/



> He explains why it “sucked” being a young retiree on a yacht in the Caribbean and how he’s much happier today working long hours at his trading desk running his hedge fund.


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