When we first formulated a real early retirement plan, it was based on the rigid belief that we’d never, ever work again. Or at least never *have* to work again. And while that’s still true — we haven’t expedited our plan by forcing ourselves to earn income in the future — we now expect to get a much more diversified set of income streams in early retirement. In part because life happens and we’ve made some different choices along the way. And in part because that recession hasn’t hit yet, health care is still up in the air, and it makes sense to keep hedging against sequence risk and health insurance uncertainty.
Today we’re talking options, and keeping them open. Early retirement isn’t an ending, after all — it’s a beginning. And if we go into that beginning with a limited set of options, and no ability to change our course, we could be setting ourselves up for a less-than-ideal future. Here’s why it’s so important to have an exit plan from your exit plan, which really just means you’re giving yourself the financial and logistical resources to change your mind.
I definitely fell into magical thinking for years of our retirement planning, thinking I’d have time to do everything I’d ever dreamed of after we quit: travel the world, write novels, learn a gazillion languages, solve world hunger — you get the idea. But after talking to many early retirees, I’ve had to accept: Time will always be limited. And if I care about accomplishing goals or living a life of meaning, it’s crucial to go into retirement with an eye toward making time for what’s important, and ruthlessly cutting out what’s not.
We love that more and more people are talking about prenups these days (more financial transparency between partners is great!), but for those of us considering early retirement, we think a pre-FIRE agreement is even more important. After all, early retirement comes with its own set of major risks, some of which we’re insulated from to some extent as a couple, but others which become bigger risks for those who are married. Here’s how we’re navigating this.
We’re huge believers in pacing ourselves on the way to early retirement — both finding ways to manage the impatience, and creating boundaries and self care habits that keep us healthy along the way. But as we get close to that finish line, it’s getting harder and harder not to break out into a full sprint.
One of the bedrock principles of our early retirement vision is that we don’t ever want to *have* to work, and we want to choose which projects to take on regardless of whether they pay. Which is all nice in theory, but does that principle stand up in the real world? With this blog as our guinea pig, we put our ideals to the test. Here’s what we learned.
Today we’re talking mission statements, something that most companies have, but which few individuals or families do — which is a shame, because they can be super helpful in keeping you on-track to reach your biggest life goals. Think of your mission statement like a compass or GPS that helps you find your way if you ever start to wander off the path.