# Getting ready for a sabbatical



## twowheeled (Jan 15, 2011)

Hi guys, its been awhile since I've posted on here for advice. Two years ago I finished school with no debt. I really buckled down and started building up my assets. I chose to make a few sacrifices along the way to meet my goals, like living with my parents, working a lot of extra hours in fort mcmurray, and putting away 90% of my take home pay. 

RRSP - $30k (have another 20k contribution room for this year)
TFSA - $25k
Non registered investments - $90k
Cash - $ 30k

When I first started working I had a goal in mind. Save $250k in total and buy a condo in calgary outright. Then move to a standard 9-5 job and start a family. But as the years have gone by, I'm finding this prospect less attractive. I don't want to walk such a straight and narrow path and end up regretting things later on. Right now I'm 25 years old. I absolutely hate my job, I am just putting my head down and forging ahead. I always used the money as an excuse, but its not justifiable anymore to be so unhappy for a paycheck. The last 2 years I've been putting very important parts of my life on the back burner. My social life, relationships, physical, mental, and spiritual well being. Over the last few weeks I've come to realize that these are far more valuable to me than money. 

I decided to quit my job in the new year, and spend a year off soul searching. Getting myself back into shape, making friends, being in a relationship, and traveling. All the things I put off for money. All my coworkers tell me I'm crazy, that it's a stupid idea, why are you throwing a 6 figure salary away? I guess I'm looking for some opinions and someone to tell me this is not 100% idiotic. The nest egg I have saved up is enough to semi-retire for years. The only thing that is holding me back is the fear of going against the grain. I've been talking myself out of the idea, just stick it out for 3 more months and I will hit $200k in assets. A nice even number to leave with. Of course the flipside of that is where to draw the line. Lots of coworkers went to fort mac for "just a few years" and are 20+ years in now. 

The other aspect of this is I would like some advice on how to rearrange my portfolio to prepare for a sabbatical. My RRSP's are set up with the couch potato method. TFSA and Nonregistered accounts are all in growth focused equities. Should I consider moving most of that into income stocks? Being more conservative with my investments?


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## Nemo2 (Mar 1, 2012)

Quite a quandary. Me....I didn't start doing any kind of a 'real' job until I was in my early 30s, (bummed around the world before that and had zero money), and I quit working at age 46 (thank you, Saudi Arabia).......it's nice to do both, but it's _real_ nice to have what I call "**** You Money".

Thing is, at 70 I really don't feel that much different inside than when I was your age....but it's so much easier to do things like travel, (hitchhiking, youth hostels, etc), on a shoestring when you're younger.........and it's so much nicer _not_ to have to do the things you don't want to do (such as 'work'), when you're older.

Can you take a year off, see the world, and then go back?


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## OptsyEagle (Nov 29, 2009)

I can't comment on your job situation. One of the major benefits of saving money is the freedom not to have to do what you don't want to do. 

That being said, the laws of compound interest state that you can either take 2 years off of work now ... or... 15 years off of work when you are 50 and both sabaticals will cost you the same amount of money, today. I know that age 50 seems like a long way off, but I promise you two things: it will come quicker then you expect and at that time you will still not want to do what you don't like doing. A sabatical taken 25 years ago will have no benefit to you at all.


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## Nemo2 (Mar 1, 2012)

I also found that, once I had accumulated what I thought was 'sufficient' money to 'retire', (and before our Saudi contract expired), the fact that I had the cash made it so much easier to tolerate the workplace.........knowing that, at any moment if you feel like it, you can get up from your desk, down tools, and walk out, makes it easier to _stay_....because you just chuckle to yourself......"I've got a secret".


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## twowheeled (Jan 15, 2011)

OptsyEagle said:


> I can't comment on your job situation. One of the major benefits of saving money is the freedom not to have to do what you don't want to do.
> 
> That being said, the laws of compound interest state that you can either take 2 years off of work now ... or... 15 years off of work when you are 50 and both sabaticals will cost you the same amount of money, today. I know that age 50 seems like a long way off, but I promise you two things: it will come quicker then you expect and at that time you will still not want to do what you don't like doing. A sabatical taken 25 years ago will have no benefit to you at all.


In my line of work, I can't imagine having a problem with affording retirement at 50 regardless if I take a year off right now. I don't see why I should spend the best years of my life working to postpone gratification another 25+ years down the road. I do find it funny you say this would have no benefit to me. Your experiences as a young man did not shape you into the person you are today? Or did life start at 50?


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## donald (Apr 18, 2011)

I think you prob should-If your waking up every mourning absoultly ''hating'' life that aint good.Sounds like your burnt-out(my guess would be that is normal living the fort mac lifestyle)

You have saved up a small fortune([email protected] 25)should give yourself a pat on the back!I dont think there are to many 25 yr olds floating around with the liquid assets you have built up.

25 aint old @ all........nothing worse than being a bitter young guy!You have already showen smarts/hard work/skills/abilties ect already(you wont lose that)

Money cant buy:health,happiness....You got to get positive again somehow(ive had periods like this also)Nothing beats waking up everyday looking foward to the day----Its a tough decision thou----You have the ''golden'' handcuffs on.


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## kcowan (Jul 1, 2010)

ONce you get loaded down with responsibilities, it will be hard to take off. Nothing like a mortgage and a kid to teach you about financial responsibility! Just plan it carefully and don't do anything you might regret with your current employer.

One thing about decision-making. There is no decision that is so momentus that it cannot be undone. Take a chance.


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## lifeliver (Aug 30, 2010)

Try to take an unpaid leave of absence. It may take 6 – 12 months to get it approved and actually take place but then you can travel worry free. I was in Central America earlier this year and I actually met a guy from Alberta who did just that.


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## eulogy (Oct 29, 2011)

Go for it. You only live once. Literally. Do you really want to do the travelling you always wanted to do when you're near 60 and have a bad hip? I'm currently saving for an RTW ('round the world) trip for a year. There's just some things you have to do. And I wouldn't dare apologize for doing it.


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## inbetweenworlds (May 13, 2011)

With a good nest egg like that, you've got the time and space to go for it. I'm a year into an multi-year sabbatical myself (dabbling with retirement and business!), and it's an excellent decision so far.


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## JustAGuy (Feb 5, 2012)

I just noticed this thread, and for what it's worth I'm doing the same thing.

I'd been living away from my wife for a year, hate my job, and have other things I'd rather be doing... so when they announced that we'd get pay cuts at work I decided I'm quitting on the 24th of this month and becoming what one of my friends has called "a deadbeat". (He disagrees with men being stay-at-home...). But I actually already have a plan of action during that time to accomplish my goals and as the date approaches I'm more and more excited about it. It's easy to be apprehensive about it when you first get the idea because money is a powerful siren... but I disagree with OptseyEagle. Time taken off now *can* be beneficial when you're older. If you're dealing with depression as a result of bad conditions now, that can actually diminish your lifespan, and make you regret what little life you do have. Yeah it might not make financial sense but there's more to life than finances.

Best of luck with your planning.


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## rikk (May 28, 2012)

JustAGuy said:


> If you're dealing with depression as a result of bad conditions now, that can actually diminish your lifespan, and make you regret what little life you do have. Yeah it might not make financial sense but there's more to life than finances. Best of luck with your planning.


And if you could get say a doctors letter, and are eligible for say a couple of months of leave with pay for health reasons (before you hand in that resignation), I'd say that could be (depending) even better than just quiting ... just saying


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## MoMoney (Apr 1, 2011)

OptsyEagle said:


> I can't comment on your job situation. One of the major benefits of saving money is the freedom not to have to do what you don't want to do.
> 
> That being said, the laws of compound interest state that you can either take 2 years off of work now ... or... 15 years off of work when you are 50 and both sabaticals will cost you the same amount of money, today. I know that age 50 seems like a long way off, but I promise you two things: it will come quicker then you expect and at that time you will still not want to do what you don't like doing. A sabatical taken 25 years ago will have no benefit to you at all.



Due to your level of income, it's not age 50 that should concern you. It's the fact that you could retire at 35 with discipline. Are you willing to part with that opportunity and delay that into age 40? (45?).

I am on the same path as you, just a few years your senior. Remember that the oil patch is cyclical. It may seem that the good times will flow forever (and they have for almost 2 decades now), but there's no assurances. 

I say, suck it up, take your sabbatical in a few years at 29-30. What can't you do at 29 that you can do now? By then you should have (at least) 500K in the nest egg, 5 years of experience on the CV.


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## Pigzfly (Dec 2, 2010)

Any chance you can switch employers and enjoy it more? I know site to site and dept to dept there are major differences in culture and morale.

A co-worker did exactly what you're saying. My tip as a result: Don't sink the sailboat in the Caribbean. (storms are bad. I am talking about a literal sail boat here.)

Alternatively, do you have a skill that would let you go live somewhere else? Perhaps Australia and you could travel SE Asia on your weeks out? Just throwing suggestions out there. There's that big expo on Australian mining jobs, not sure when it is though.


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## twowheeled (Jan 15, 2011)

MoMoney said:


> Due to your level of income, it's not age 50 that should concern you. It's the fact that you could retire at 35 with discipline. Are you willing to part with that opportunity and delay that into age 40? (45?).
> 
> I am on the same path as you, just a few years your senior. Remember that the oil patch is cyclical. It may seem that the good times will flow forever (and they have for almost 2 decades now), but there's no assurances.
> 
> I say, suck it up, take your sabbatical in a few years at 29-30. What can't you do at 29 that you can do now? By then you should have (at least) 500K in the nest egg, 5 years of experience on the CV.


I don't think I would retire at 35 even if I had the financial means. I don't know what retirement life is going to be like (part of the reason for this sabbatical is to find out) but I imagine I would get bored quickly. I won't last another 5 years let alone 5 months here. Every morning I roll out of bed and dread going to work. I have a bad attitude throughout the day and at this point I realize I need to leave on a good note before I start burning bridges.


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## Jon_Snow (May 20, 2009)

Twowheeled, I know all too well the "dread" feeling while heading into work. I'm 40 now, and due to some good fortune, hard work, and crazy saving over the past 10 years, my "sabbatical" in a few years will hopefully be a permanent one. My current vocation is most assuredly killing me... a slow death certainly, but inevitable.

Would I able to even entertain the thought if my wife didn't make a six figure income? Probably not.


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## My Own Advisor (Sep 24, 2012)

I'm getting close to 40 and would love to retire, i.e., do what I want to do, when I want to do it. If I want to work, I could choose to do that. If I didn't, then so be it.

Not having the choice, the older I get, the more I learn about myself and what I want to do, is frustrating.

I have a co-worker who recently told me she needs to work until her mid-60s to retire, with any reasonable pension. I can't imagine working another 25 years because I have to.


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## crazyjackcsa (Aug 8, 2010)

I'm 32 now. And I can tell you I had a hard time at 25, and felt the same way as you. It's basically a quarter life crisis, a transition from one point to the other.

In two years you've saved $175k. Which is crazy! In two more, you could have 375k and in five after that, a million. So, you could be 32 and a millionaire. Free to do whatever you want, explore new avenues of interest, new lines of work, or whatever. 

It isn't worth a dime if you aren't happy, I agree. But don't trade current happiness for future happiness. Instead of a sabbatical, start looking for other work that would make you happy, or spend a little more time working on other areas of your life. 

I wasn't making near what you are. Still not, but I'm a lot happier now and I have the same job. I still don't like my job, but I do love my life. It's my outlook that's changed. I stopped defining myself through my work and started defining my life by other yardsticks. I'd argue that what's missing is more of a work/life balance.


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## JustAGuy (Feb 5, 2012)

Australia is amazing, and I'd go back in a heart beat. It's relatively easy to get work in mining and in fruit picking if you go on a working holiday visa (from what I understand, I was there on a 457 in an office job)


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