Thinking about going back early? Be aware of these disadvantages. (Photo: adrian825, Getty Images / iStockphoto)
Many people have negative views on young retirees: They are spoiled. They're lazy. Their parents helped them. They won the lottery. But none of these things apply to me.
I grew up in a middle income household. I worked hard to earn good grades and pay for college. I was the first in the office and the last to leave. Sure I was fortunate in landing a high-paying investment bank job and in some of my investments, but I live a frugal life and have always been diligent about staying on my finances
All this played a big part in my early retirement in 2012 at 34. When I finished my job, I had a net worth of about $ 3 million that generated about $ 80,000 in investment income per day. year.
I do not regret my decision
I do not want to lie: Early retirement has been a dream that is in order. I gave up a healthy six-digit paycheck, but I got something invaluable in return: Freedom.
People told me that I loved to leave a high-paying job at such a young age, but I was totally burned out and felt disillusioned with my industry of work. I had never expected how miserable I would work in economics, especially after the financial crisis.
Early retirement is not for everyone. But from my experience, the pros outweigh the disadvantages. I will wake up whenever I want. I no longer need to endure unproductive meetings or set up with colleagues. I have traveled to more than 20 countries with my wife, wrote a book on how to negotiate a dismissal and coach in high school tennis.
I also became a father in 2017. Being a parent has been the hardest full time job I've ever had; It does the work of investment banking for 13 years as a walk in the park.
Are you middle class?: Here are 5 features you may have
The disadvantages of early retirement
I will admit that there are a few disadvantages. (Finally, I understand why scientists say it, no matter how much of a lift we get in freedom or money, we eventually return to our normal baseline of happiness.)
In a 2017 CompHealth study, 68% of those 400 late carers surveyed said they were not tense of retirement. Some of the major concerns were losing social interactions at work, loss of purpose, boredom and depression.
Having said that, here are the biggest negatives of early retirement that no one likes to talk about:
1) You may suffer from an identity crisis.
One of the most common questions people ask when they first meet are: "What are you doing to live?"
When you have spent at least a decade working in any job, you may find it incredibly fun to no longer be identified as a marketing expert, investment, or management consultant.
Only when I left my job did I understand how obsessed I was with my profession. I often wondered: How does the business go without me? I was there for 11 years. Were they really able to survive without my expertise?
But after months of no emails or phone calls asking me to come back I finally accepted that I was no longer needed.
Traveling this summer? 5 ways to save money and nab last minute flight offer
2) You can guess yourself.
When you retire, you may be asking yourself if you have chosen the right choice and regret all the money and status you present.
I still had a mortgage to pay and was worried that I was making a serious mistake. But after a while my pension schemes grew clearer. I started writing more about Financial Samurai, the personal finance site I started in 2009. It was a cathartical way of dealing with stress and uncertainty.
Fortunately, Financial Samurai, having written three times a week for the past 10 years, has grown tremendously. I reinvested 100% of the profits and created a decent amount of passive income.
3) People can treat you like a misfit.
Maybe it's because retirement is early unconventional. Or maybe they're secretly jealous, you don't get away on a day job. Whatever the reason, people will not always give you the same respect as they would to a working class citizen.
Eventually, I became tired of explaining why I retired early or that I was not a trust fund's child. To keep the discussion simple and regain a social identity, I just want to say that I was an author and tennis coach.
Privacy: please This self-supporting private island in Manhattan in Manhattan is for sale
4) You will be surprised that you are not so much happier .
Many people believe that when they obtain financial freedom or leave a job they hate, they will be permanently happier. But as mentioned earlier, research has found that any significant amount of elevated happiness is only short-lived.
A scale of one to 10, my level of pleasure progressed to a 10, after I was able to negotiate a fairly solid severance pay. It was enough to pay for five years of life. But not too long after the check struck my bank account, I returned to my normal early retirement base line of happiness.
5) You may be really sad.
Retirement is early as to end the season finale of your favorite TV show. You are glad it was a nice ending, but you are also sorry it is over and left to wonder what is next.
With an extra 10 to 14 hours of free time each day, my productivity suffers and I became less motivated to achieve great victories. It didn't help that none of my friends or former colleagues were able to hang out. There were no more company holidays or different customer events. Believe it or not, I actually enjoyed these things!
Now I'm trying to attend different meeting events to make new friends, but my social life mostly consists of the people I meet by playing tennis and softball. 19659006] Only three years later, when my wife joined me for early retirement, my boredom began to disappear. We traveled a lot, but more importantly we became parents who renewed my sense of purpose.
Jaws, Batman, Finding Nemo and more: Biggest butterfly blocs every year since 1975
Early retirement does not solve all your problems
Here is the truth: If you are Unhappy before retiring early, it is likely that you will still be dissatisfied when you retire. It is better to find out what is the core of your problems and correct them first. Then you have a clear vision of what you actually plan to do when you retire. Otherwise you just treat retirement as a crutch – and it rarely ever happens.
After seven years of retirement, I finally found my track by regularly doing things I enjoy:
- Writing on the Financial Samurai
- ] Real Estate Investment
- Coaching High School Tennis
- Being a man and home parent
(I consider the first two to be more like hobbies, even though I make some money out of them.)
Past retirement is not the elixir of eternal happiness, but it is destined to work and work in meetings all day long!
Sam Dogen worked in investing bank for 13 years before starting Financial Samurai a personal financial website. He received a B.A. in economics from the College of William & Mary's MBA from the University of California at Berkeley. Sam has been featured in Forbes, The Wall Street Journal, The Chicago Tribune and L.A.Times.
© CNBC is a United States TODAY content partner offering financial news and comments. Its content is produced independently of the United States today.
Read or Share this story: https://www.usatoday.com/story/ money / 2019/06/24 / early retirement -5 Disadvantages-No-One-Narrator / 1553587001 /