Don't Retire Early Without Replacing 4 Things

Welcome to another episode of CCM blog!  Today's financial literacy lesson revolves around early retirement.  C'mon, don't tell me the idea hasn't crossed your mind.  If you're part of the rat race like me, the thought of laying around on your patio, sipping on margaritas all hours of the day has undoubtedly crossed your mind.  Though this may describe your personal brand of paradise, for some, it could be the beginning of feeling more like they're lost in paradise.

Take the case of one, Markus "Notch" Persson, creator of the wildly popular game, Minecraft.  He sold his game to Microsoft for 2.5 billion and within a year, he had this to say on Twitter:  

"The problem with getting everything is you run out of reasons to keep trying, and human interaction becomes impossible due to imbalance."

2:48 AM - 29 Aug 2015

"In sweden, I will sit around and wait for my friends with jobs and families to have time to do shit, watching my reflection in the monitor."

2:51 AM - 29 Aug 2015

Yikes!  The age old adage, Money Won't Make You Happy, is certainly in play here.  But there is more to the psychology of being part of the rat race that meets the eye, whether you retire early filthy rich like Persson or with just enough money to take you comfortably to the afterlife.  What is early retirement?  For me, it's retiring before the age of 55.  If you're on an aggressive course of investing and saving, and are endeavoring to turn in your keys, so to speak, before 55, you may want to consider first having replacements for these next four things:

1.  What's life without a continuous fountain of purpose?  The projects handed to you at work by your boss may be cumbersome, but completing them provides you with a weekly or monthly dose of accomplishment.  As humans we are driven to perform, and purpose is the energy behind our daily performance.

2.  What is the meaning of life?  We don't have to spend our lives worrying about life's meaning, but we sure better hope to have had meaning in our own lives.  Meaning is hard to come by.  It takes time for a book to be written, and each chapter builds and adds substance to a story.  Will you feel like your personal story has been meaningful after only a pair of decades of service to society?

3.  Predictability anyone?  The rat race is about routine.  Getting ready each morning, driving to work, doing something somewhat predictable each day, and driving home, at minimum gets you out of the house.  Heck, on some days, your day at work may have been eventful and entertaining.  Imagine waking up whenever you want, taking a lengthy breakfast to pass the time, and having nothing else planned for the day.  This routine can get old.

4.  What will you be known for?  I'm talking about contribution.  Innovating and being a pioneer gives others a perception of depth about you.  When you leave a footprint in any one niche, your contribution to that space must have been impressive.  Okay, no one is saying you have to be a Steve Jobs, but bowing out before you've given yourself a chance to contribute is problematic.

Early retirement comes with its own pitfalls: worrying longer about your money lasting, losing your purpose and routine, and growing frustration at having lived a life devoid of meaning and contribution.  Studies have shown that some people often suffer from depression and anxiety when they retire.

Even though I fill my days with things to do pretty well during my vacation away from school, I start getting somewhat irritable deep summer.  I like the consistency of my job.  It is good for a person like me.  Having prepared this article, I now know that before I leave teaching, I better have replaced (with something else) the four key elements I mentioned above.  And maybe you should follow suit, friend, for your own good.  Until next time!  Thanks for reading.  Don't forget to subscribe to this blog and in return, I will send you some eBooks and make myself available for whatever inquiry you may have.