• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

Is Early Retirement Worth It? How to Know If You Really Should

By Enero Febrero

Who doesn’t dream of having the freedom to retire well before you hit your twilight years? After all, the dream is a good one; you work very hard while you’re young and able, and then, while you are still youngish, you quit your job and enjoy an early retirement.

Unfortunately, some people get so wrapped up in the goal of reaching early retirement that they don’t quite know what to do with themselves when they get there. In other words: they may realize that they don’t actually want to be retired.

This may sound crazy, as many people would love to not have to work longer than needed, but it is quite a common thing. It’s almost as if the hoarding, investing and frugal living is a hobby or lifestyle that you just kind of do.

You identify so much with the movement and spend your time reading sites like this one that by the time you reach your goal, you sort of lose the identity and aren’t sure what to do.

Let’s go over some of the things to keep in mind as you forge ahead in the quest for early retirement. You may end up deciding to keep going or that it isn’t really what you wanted.

Pro early retirement

When you ask many people who plan to retire early what their motivation is, they almost always respond freedom. What this freedom looks like will vary between different people as it is subjective.

It can mean freedom to do nothing or freedom to travel. It can mean that you have the freedom to pursue a higher education or to fix up that old cabin in the woods.

The allure is very clear when it comes to this aspect of early retirement.

Another reason to go for it is because you never know what could happen along the way. Suppose you are in bad health when you reach your traditional retirement age. That wouldn’t leave you any time to enjoy being retired. Since you never know, it makes sense to retire as early as possible so you can enjoy your life while you are healthy.

Lastly, another valid reason is to make a change in career. For instance, not everybody thinks retiring means not working. It can also mean that you just don’t want to work a job you no longer enjoy. Having financial freedom can allow you to make a career change late in life.

Why you shouldn’t retire early

If your idea of retirement is to lounge by the pool or beach all day and not have any responsibilities, then you’re setting yourself up for failure. This may sound nice, but life is long; can you really imagine doing nothing for 30 years or more? Not many people can enjoy that kind of lifestyle for very long.

If this indeed is your main motivating factor, then it is probably much wiser to ease up on the frugal lifestyle and splurge on an occasional vacation.

Photo Credit: Tax Credits

July 14, 2020

Comments

  1. 1

    RD Blakeslee says

    “If your idea of retirement is to lounge by the pool or beach all day and not have any responsibilities, then youre setting yourself up for failure. ”

    If you’ve done well enough in life to be able to retire early, it’s hard to see how you would fail that way, or any other.

  2. 2

    Kenny says

    Great article. I have a couple of friends who retired in their late 30s/early 40s and went back to work less than 10 years later. One of them had a kid (unexpectedly) and found himself short of cash. The other one just got bored after 7 years of traveling and playing golf.

  3. 3

    Mike says

    Retired at 37. First year was a blast. Year 2 was so so. The third was complete boredom. I went back to work in year 4 and don’t plan on retiring again.

Trackbacks

  1. Black Coffee: Rock Covers Paper – Len Penzo dot Com says:
    July 25, 2020 at 6:35 am

    […] Is Early Retirement Worth It? How to Know If You Really Should […]

The Question of the Week:

How big is your home?

View Results

Loading ... Loading ...

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!
Black Coffee: The Good Ol’ Days
Grandfather Says: The Continuing Chronicles of Elaine, Part 24
An Overview of the Most Common Student Loan Options
6 Ways to Fix Your Finances: Smart Tips for Resuscitating Your Bank Account
My 13-Year-Old Daughter Shares Her Financial Fears
Black Coffee: It Ain’t What It Used to Be
How Thinking Outside the Box Can Save You a Fortune
The Pros and Cons of Higher Interest Rates
Five Frugal Ideas for Fall Season Family Fun
I’m Not Rich, But I’m Financially Free; Here’s How I Got There

All-Time Most Popular:

  1. 1. 19 Things Your Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Popular Now:

  1. 1. My Personal Journey to Financial Freedom
  2. 2. Why I Run My Household Like a Business (and Why You Should Too)
  3. 3. 5 Ways You Can Save Money on Groceries This Week
  4. 4. My 15th Annual Cost Survey of 10 Popular Brown Bag Sandwiches
  5. 5. 5 Frugal Tips for Family Fun During the Fall Season
  6. 6. Expensive 401k Mistakes People Make Every Day
  7. 7. 10 Ways to Get Fit for Little of No Money
  8. 8. The Ethics of Found Money: Should You Keep It?
  9. 9. Historical Gold & Silver Benchmarks for Wages and Commodities
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

Copyright © 2023 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2023