Tuesday, 14 January 2020

The Early Retirement Downsides You Aren’t Prepared For.


Early retirement has a downside you are not prepared for. When you've got a lot of time on your hands you get deep into your own headspace and when you're in the deep, deep headspace you go down some weird rabbit holes, and you start getting things like "worried". You get a little bit of anxiety about the future


  1. Will, I Enough?
  2. What If My Plan Changes?
  3. What If I Go From Being Okay With Two Kids To Needing Six Kids?
  4. What If I Go Through a Divorce?
  5. What If I Want To Travel Summer?
  6. What If I Meet Someone And We Want To Start This? Extravagant Business And I Need Extra Amounts Of Capital To Do That

What if the choices that I made to get me from where I am now will not get me to where I wanted to be, I should've stayed on the other track and although I've made the wrong decision I don't know.

That's sort of mindset that you will get.

Today we're going to talk more openly about some of the negative things associated with this dark side of early retirement.

Let's Get Started

This is mostly not going to be about money


Identity Crisis

It's one of the big things we go from being respect, consultants, business owners, accountants, maybe you work in the oil field and that's how you identify. people know you as the roofer, they know you as the landscape guy, they know you as the pest-control operator, the accountant. That's how you're branded, that's how you're known and if you just quit your job and jump into early retirement. What you're going to find is that you no longer have the identity that you had before. Whenever someone asked you what you did for a living, you knew you could say hey I'm the accountant, and they can put you into their archetype and say that's what John is all about. He's the business consultant or he's the real estate agent, or whatever it is that you do, it helps you identify with who you are. You will find that you're lost in early retirement if you don't plan.

By the end of this article, I'm going to tell you some of this strategy I've used to cope with a lot of this downside I'm talking about. Specifically around your health, believe it or not, studies have been shown that when people retire what you will find is that people who early retire their health extremely improve or their health falls off. They have bad health decline, and that's for a few reasons below.


The Lack Of Social Identity And Social Issues With Early Retiring.

You spend a good portion of your life in the working world, your friends were in business, your friend was also kind of tied in with everything you did and those people now work 8:00 to 5:00 and you don't work 8:00 to 5:00 so when you want to go hang out or go golfing they aren't there to hang out with you or to go hiking or to go golfing. So you have to sort of separate yourself from your old friends because you're doing different things than their and your time schedule looks totally different than they do. 


Chasing Free-Time In Early Retirement

The free-time is a double-edged sword. On one sense you're craving that free time in early retirement many of us are chasing that freedom but that freedom actually doesn't solve your problems. You think the early retirement is going to be the silver bullet, it's going to be a trip to Costa Rica and all around the world from Russia, China, and Brazil and all the way back. but in reality, it's not the silver bullet, it's doesn't make you happy. It gives you a whole bunch of time if you are unhappy and dissatisfied before you quit your job more likely than not you will just have more time to sit and wallow in your unhappiness. You will not have a purpose, early retirement itself is not a purpose, it is not a hobby, it is not something that will drive you and give you intersection of what you're good at, what you're meant to be, earlier retirement will help you facilitate that but it will not solve those problems for you and it does not make you happy. 

Maybe you go from working 8 to 6 and commuting and all the other chores in life you go from not spending any time with your kids or your spouse to all the sudden being home all the time and if your spouse retires with you all of a sudden you might have spouse overload. You might have kid overload, you might have too many spouses in your life, you're not used to spending 80 hours a week with this person you have to learn how to adapt and change in this behavior and people in early retire went the way of divorce.


Earlier Retirement Can Make Some Of Your Issues Worse Not Better.

Just by reaching financial independence your problems aren't just solved. You might be extremely motivated by financial independent and now you are buying a property and building this awesome company, but sometimes you will be wonderful and not every day, sometime you will get this feeling that maybe you didn't make the right decision, that maybe you should still be in the corporate world, maybe you still be out there working. The beautiful thing about early retirement it's like you're fixed you can't go back, you could always go back and get a job, you could always open a business or start an entrepreneurial venture to find that thing that you're after. You have to realize that it's not going to be the solution to your problem, it's not going to solve those deeper seeded issues and in fact, when you're busy you don't have to think about those issues that are underlying your life. 


Money Itself Doesn't Create Happiness

If you have millions of dollars in your bank account before you retire early, it doesn't make you happy. Freedom of time doesn't make you happy. This is why multi-millionaires and billionaires even, are dissatisfied with their lives because early retirement itself, that freedom of time all of that money that comes with it that you work so hard to get it doesn't solve your issues you may still have an identity crisis.


Jealousy

You will get a lot of jealousy. People who are grinding their jobs who are paycheck to paycheck they can't understand early-retirement they're just angry at you and that anger and hate prevent you from having a meaningful connection with that person.


Unconventional Weird

Who is this kid in his 20s or 30s or even if you're in your 40s retired it's not normal, people don't know how to react to that so they just label it as weird like this guy is weird.


Unproductive Leech

He isn't working and contributing to society, he isn't in the normal mold of society, he's not paying taxes, he's not carrying his fair share and because he's an unproductive leech, how do I get value from him. That person sees you as an unproductive leech they say how can this person add value to my life, he's retired he's not an accountant he can't help me of my taxes, he's not a real estate agent he can't help me buy a house, he's retired so he can't add any value to my life.

Those three categories are very common at early retirement.


  1. Jealousy Type
  2. Unconventional Weirdo
  3. Unproductive Leech

You can start with "hey, I'm a real estate investor" that's how I start. Just because it's so weird to say "hey I'm Canada's youngest early retiree" people don't want to hear that they can't process it, it really just garner's negative attention is what I found in a most situation so I don't ever lead with that and you may have that struggle yourselves if you're early retired people are going to put you in one of those archetypes, there may be that one person who's just genuinely happy for you and also their network to be friends and in those cases you're not going to be throw in one of those three categorizations I just threw our for you but it's a real challenge.


How To Be Happy In Early Retirement

Find that thing you're meant to be doing in your retirement, joining hobbies, creating social bonds and structure, the structure is what is needed in early retirement, you can create the structure that will help you find meaning in your life and find happiness and joy. Because there's a lot of things that are dragging down, there's a slot of downside to early retirement that people don't factor in.


Solution To be Happy In Early Retirement

If you've been able to unlock early retirement. I don't care who you are, the traits, the personality, and the skills, those skills that got you towards your early retirement those skills they are the same skills you're going to need to ensure you can cope in early retirement. So what got you here is going to get you the rest of the way. If you figure out how to spend less, how to earn some more money, and how to invest your return you're already there you already have the predisposed skills to make it through this, and to solve this problem you just have to spend some time to think through them. What do you want to be doing? What a day look like? What is a month's week look like? If you reach your early retirement and you're not happy, you will find that you're completely dissatisfied, make a change. And some of those things are like joining hobby groups, pickups a sport. Etc. 

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