Advice on early retirement "45"

[Jeffa]

Not an arrogant post but after some genuine advice on people who have achieved retiring relatively young, I'm at a stage were I can replace my income from my investments ,Im 45 been a tradesmen for 30 years and my bodies over work...more afraid than anything to retire at my age..Im Maori so my life span is most likely 70s,still 30 plus years to wonder what to do? Worry about my mental health aswell as physical when I stop working, but am seriously over work...what have others done in my situation?

[Chelsea]

It's a very good post.
What will you do when you achieved "Financial freedom"? Does financial freedom bring happiness?
Three are lots of people on this forum could give you an answer but my answer is no.

I'm in a similar situation, might not be as rich as you but I actually don't need to work for money. Retiring at "45" has been my goals for a number of years but recently I'm in a mid-life crisis and do wondering if I'm gonna be happier after retiring at 45? What will I do seems I've lost motivation and passion for life, I don't need more money and anything else... anyway it's your post and I don't want to whining about my crisis.

simple answer is, sounds to me you just need a long break. Take a holiday for a couple of months, go to beach or a different country, unwind yourself, then re-think about retirement.
If you do not have any other hobby/other "things" to fulfill your life, then don't easily quite your job.

[artemis]

Could start by cutting down hours, especially hours on the tools. We have a similar aged experienced tradie in the family. He now focuses more on the business side of things, including things like talking with clients, quoting, quality control. On the tools if needed. Uses subbies mostly, no staff (too much paperwork, compliance and hard to get rid). And is quietly learning more about investments and passive income.

A pity to walk away from 30 years experience when you could be keeping your hand in a few days a week and learning new skills the other days.

[charlotte30]

What do you want to do when you retire? It sounds like you need a purpose, or a new challenge. It does not have to be monetary. It needs to be something to get you out of bed in the morning raring to go. Retirement to me is about choice without financial worries. To do the things I haven't done before, challenge me, expand my mind.

A family member of mine is also a tradie and said early on around the age of 20 that he did not want to be a moaning, buggered tradie at 40. He did retire early and does projects/activities now that interest him. He has a greater sense of personal fulfillment than when he had his nose to the grindstone.

[Jeffa]

It's a tough choice, I listened to my peers buy a house young, invest in assets and now my youngest is about to start uni...all your life you are told were to be and what time..now with a realization money isn't a concern anymore and you have dedicated your whole life to work and family then you achieved your goal of early retirement and boom...what next?travel?been there done that nothing beats a NZ summer or a clear winter's day...wish I could pick up a hobby?...I enjoy property investment but I really don't need any more....first world problems

[JBM]

It's a tough choice, I listened to my peers buy a house young, invest in assets and now my youngest is about to start uni...all your life you are told were to be and what time..now with a realization money isn't a concern anymore and you have dedicated your whole life to work and family then you achieved your goal of early retirement and boom...what next?travel?been there done that nothing beats a NZ summer or a clear winter's day...wish I could pick up a hobby?...I enjoy property investment but I really don't need any more....first world problems

LOL yes I know exactly what I'll be doing playing more Golf and get much better at it (I love competition) into adventure/trail motorbike riding etc + snowboarding and doing these activities with others..... so for me if I'm lucky enough to retire @ 45 in another 3yrs... you won't here me complaining about what I can do with my spare-time (Got young kids so they certainly will keep us busy for the next 12yrs+)

Your certainly not the only person not to have any really hobbies .. I know plenty of guys that have all the gears but not the motivation do actually get out there and experience the joy of excelling at it..(activities much more enjoyable when your good at it) but everyone is different everyone enjoys something ... matter of getting out there and experiencing LIFE

[Don't believe the Hype]

Not an arrogant post but after some genuine advice on people who have achieved retiring relatively young, I'm at a stage were I can replace my income from my investments ,Im 45 been a tradesmen for 30 years and my bodies over work...more afraid than anything to retire at my age..Im Maori so my life span is most likely 70s,still 30 plus years to wonder what to do? Worry about my mental health aswell as physical when I stop working, but am seriously over work...what have others done in my situation?

How very kiwi of you - apologizing up front for being successful - watch out for the tall poppy cutters.

We retired before 40 on the back of our property portfolio and we've never been busier. Don't think of it as retirement, think of it as buying your time back.

We used to work 60+ hours a week each in a suit building up a bunch of faceless shareholders wealth at a time and location of someone else's choosing. The toughest thing of all was giving up the monthly cheque - even though the xls said we didn't need it we still found it a very scary proposition.

Set some goals for yourself - without them you'll likely float through life and you'll look back at 65 wondering where the time went. We set both personal (learning a foreign language) and financial (improve profitability by x or cash flow to y) goals to work on.

We now work on the projects that interest us on the time frame and schedule that suits us. In 2019 we spend 6 months travelling China and Europe with our young kids which is something we will all never forget.

If you don't have a partner who has retired with you it is very possible you could get lonely or bored (while JBM talks up the opportunity of playing more golf in reality when your mates have to go to work Mon-Fri you get sick of playing golf by yourself) so make sure you have others who have free time through the week.

With your skills and the current demand for them you would be able to work on far more profitable projects - take on the jobs that interest you either because they're a challenge OR because they're profitable.

Good luck

[Perry]

Plenty of Gems & Beware of Hedonism

It's a tough choice...all your life you are told were to be and what time..now with a realization money isn't a concern any more and you have dedicated your whole life to work and family then you achieved your goal of early retirement and boom...what next?

How very kiwi of you - apologizing up front for being successful - watch out for the tall poppy cutters. We retired before 40 on the back of our property portfolio and we've never been busier.

Retirement to me is about choice without financial worries.

A lot of gold nuggets in the responses. I've referenced three, but the last one (Charlotte's) is probably the most pointedly succinct.

My late wife worked with the elderly, when still in their own homes. She had a few broad observations to make based on many years of experience. Some of them not at all nice, too. One was about blokes and their retirement. She averred that - generally-speaking - blokes either took on a "new lease of life," or were dead within five years.

To the "new lease of life" ones, work was a means to an end and retirement offered options like pursuing a hobby or passion without the distraction of a job.

To the "dead within five years" retirees, work was the be all and end all and without it, their life seemed to become purposeless and so they slowly ebbed away.

As others have observed, it does not have to be all-or-nothing. Choose wisely.

[Peter Griffin]

Great question and lots of fantastic supportive ideas. I have also reached 'retirement' at an early age. I still have my job and enjoy it. My wife doesn't have an income producing job but voluntars in several community groups. We also have an "ideas book". Anyone can put anything into the book and we then do it. Next thing we're doing is staying in Disney land for a week and having fun with the kids. Good luck with your decision, metal health is extremely important. Who knows, like me, you may choose work?

[Bluecoat]

With your skills and the current demand for them you would be able to work on far more profitable projects - take on the jobs that interest you either because they're a challenge OR because they're profitable.

Good luck

Some v good suggestions.

Sometimes it may not be about projects or making more money, it could simply be of giving back, working with not so privileged groups and seeing their life turnaround.

Jeffa , you are right though, Life is such a B***^ when you reach your end goal , sometimes its throws you curve balls like poor health, relationships , becoming a grumpy old fart - all sorts of things. Whats the point of having the wealth when you are diagnosed with life threatening cancer. so make the most of each day.

[OnTheMove]

In all honesty, never fully retire imo. Just do a job you enjoy. Ive read so many studies that show not retiring extends life span. Dont quote me as I dont remember the links but it makes sense to keep busy. The more lazy we get, bed ridden watching TV etc, the faster our body degrades.

Being Maori imo is largely due to suppression of low income housing and lifestyle contributions. If you dont smoke and dont drink every day and eat a Paleo diet. i reckon you have as much chance of 85 plus as the rest of us. :-)

I wish you all the luck. I wanted to retire now but my Mums aging and care got in the way. So Im off to make my retirement by 57. Then I will part time spearfish and part time work, maybe on marine electronics.

[donna]

Interesting thread. I agree with the mid life crisis thing and I don't like the term 'retirement' so I don't plan on retiring but I work for myself so I suppose I have retired from the rat race, which I was part of in UK, Aus and here for 20 years.


I think you'll need to find projects that challenge you but as many have said you probably need to rest and restore before you can move forward This may not be your thing but there's this walk that has inspired many, it's the Camino de Santiago a modern day pilgrimage walk of hundreds of kilometres. A six week jaunt is said to go like this - the first 2 weeks are physical, the next 2 are mental, and the last 2 are spiritual.


I plan on doing one of the routes, to clear the air. Right now I can't imagine 6 weeks without using a mobile - thankfully I don't think it for social influencers - and you can walk for hours without seeing anyone.


cheers,


Donna

[Dynamic]

I like these posts. Early retirement/Financial freedom is something I aspire to achieve (Currently 2 so I can have the freedom to do more of what I enjoy, weather it be spending more time with my wife and kids, traveling, fishing, camping, exercising or simply going on a nice drive during the week instead of being stuck in the office...

To the ones that have achieved early retirement or financial freedom, it would be interesting to know how long you have been investing for and what part of the country you have invested in?

[Anthonyacat]

I run my own business, but I intentionally prevent it growing too big (havent been encouraging new clients for months, and started turning them away recently) and stop it feeling like a 'real job'. I also look after my son (2 very soon!) so that's a huge job. When he goes to school or regular daycare I plan to learn a unique instrument (thinking the steel drums, or the theremin), picking up surfing, and maybe another language.

By some metrics I consider myself retired as of my late 20s. If we wanted to cut some of the fanciness we could live on our investments without any "earned income". That would disappoint a lot of my clients though - and I enjoy doing the work.

I tell you though - it has made lending harder. I am seriously considering applying for part time PAYE work so the banks will be a bit friendlier.

[HattrickNZ]

stages of life


Great topic/answers so far.
This question always kind of reminds me of this picture.
Though I am late 30s and don't have enough time but I do have 2 young kids, maybe the pic needs another stage


I am in a different predicament. Probs can't afford to retire, but could probs afford to take time off. I am not really interested in work at the minute and am considering my options. career change, or just same industry different job, or stay at home dad + and things that I like(if I had the time), start/buy a business, take a break, Reduce my hours.
I think Reduce my hours might be winning at the minute. Not sure if or when I will pull the trigger at this stage.
Good luck to all who are in similar boat.