A couple years ago, I took my two daughters for a rare treat at a fast food restaurant. I went up to order and noticed that the lady working the cash register was at least 80. She was frail, having a difficult time with the job and did not look the slightest bit happy to be there. It was a sad scene.
Since that day, I have thought about her often. I don’t think she was working there for social aspects or to keep busy. I had worked at this same place when I was a teen and it was a miserable experience. My 15-year-old knees ached by the end of the shift. I can’t imagine what her knees felt like at 80. I have to conclude that she was working there because she needed the money. That thought terrifies me. Running out of money and not being able to enjoy life after years in the rat race is a nightmare for me.
At this point, you may be thinking that this lady’s story is an argument against early retirement. She must have planned badly and run out of money. However, I think that the lesson to be learned is quite the opposite. Successfully planning for early retirement is the best insurance against winding up working at the golden arches in your golden years. I’ll go a step beyond and insist that early retirement is less risky than the traditional retirement path. Here is why:
I know my financial situation very well
Anyone who is considering early retirement has to plan carefully (a topic for another post). I keep track of all income and expenses, dutifully logging them. I will do this up until the day I retire and after. When the day comes to bail from the rat race, I will have at least 1500 days of records to go by. Since I am hyper-aware of exactly how much money I need to live on, I will know exactly when I’m ready to retire.
Contrast this with the attitude I see among those whose retirement is decades away. My 44-year-old friend told me that he’s ‘too young to worry about retirement.’ People don’t like to think long term, so they don’t. What happens when 55 sneaks up on you and you have nothing saved? Go talk to that 80-year-old lady. Maybe they need someone for the drive-thru…
I have my priorities figured out and am a better person for it
Some would say that early retirement requires too many compromises. I disagree. I’ll never have a 4000 square foot home. I’ll never have a fancy car. I’m not going to be vacationing at the Four Seasons in Bora Bora. However, I’ve also come to realize that these things don’t provide long term happiness. That big house means higher taxes and more to clean. Expensive cars have expensive insurance and expensive parts. Some of my favorite vacations are where we go camping and leave all the electronics at home.
Since coming to terms with all of this, I am a happier person. I’m not jealous of others who have more. I am content with what I have and am better for it. Good times with friends and family is really what counts.
My health is the best its been in years
I can relate when I hear Girl Meets Debt fretting about turning 30. This year, I’ll be 40. Where did the time go?
On the other hand, it doesn’t bother me much because I’m in the best shape of my life. I recently lost my 15-pound gut and my blood pressure went down 20 points. A couple weeks ago, I did 192 flights on the mini-escalator-torture machine at the gym. That is almost climbing the Sears Willis Tower twice!
Early retirement is a big motivation for staying in shape. Chronic medical conditions brought on by an unhealthy lifestyle would eat into my retirement budget. Also, what is the point of retirement if you can’t have an active life? My early retirement dreams are causing me to eat healthier and work out more. I feel great!
A side benefit of early retirement is that I’ll be able to exercise more once I don’t have a 9-5. I love biking, but I have no time to go for a 60-mile ride during the work week.
If I fail, its OK
My plan to retire in 1500 days may very well fail. It may take 1800 or even 2000 days to build my nest egg. If my portfolio falls flat on its’ face and I have to work an extra couple of years, then I’m retiring at 45 instead of 43. People have faced worse hardships.
Now, think about what happens if you’re planning to retire at 67 and fail. Are you going to be able to continue working at your current job when you’re in your 70’s? If you should lose your job, are you going to be able to find similar work at that age? I’m a software developer and I sure as hell don’t want to be competing with 25-year-old brains when I’m in my golden years.
Go for it
Friends give me grief all the time about my early retirement plans: “Your brain will turn to mush because you won’t be challenging your mental facilities with a job.” “You’ll die young!” “You’ll run out of money!” However, I argue with all of these points. I’m convinced that early retirement will make my life even better. I’ll be able to exercise more. I’ll know my future is secure because I’ve planned carefully. I’ll be able to write software all day (I actually enjoy writing code) as opposed to many of the boring tasks that I have to do currently at my job. I’ll have all the time in the world to do whatever I want, and it won’t be working in fast food.
Readers, what do you think? Do you have early retirement dreams and if so, how have they changed you? Do people argue with you about them?
*Mr. 1500 toy does not come with GI Joe Kung Fu grip, but he will come with a Mrs. 1500 action figure. The Mr. 1500 action figure, while finding Barbie very attractive, could never tolerate her dream houses and Corvettes.
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hungry hungry artist (@blerghhh) says
April 16, 2013 at 1:32 pmMy retirement goals… That’s a hard one for me to quantify. I’ve never really “worked” according to a lot of people. If I’m flying to/from gigs, I’ll get asked by the person in the seat next to me, “yes, but what’s your REAL job?”
I briefly took on a “real” job but it was awful due to abusive management. So I guess I’m rather gun-shy in that respect.
But the real truth, I don’t NEED a real job.
Mind you this has come with some serious lifestyle impediments and I’m looking to fix that with my investing strategies.
Seeing how many gigs I have lately, and how much time I spend stock trading, I guess you could call me a full time trader. It’s working. It’s just VERY difficult with my current level of capital. ($200k more and I’d be on easy street).
My tastes however do include big houses and fancy cars… So I’m just going to have to trade a while longer.
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Financial Samurai says
April 16, 2013 at 2:11 pmIt was one of my worst jobs, but also something that helped me tremendously a long the way, MCD.
Perhaps everything is rational though? If you don’t mind working until late, you will and not save while working, otherwise, you wouldn’t.
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1500 says
April 16, 2013 at 6:01 pmI agree that working there was a great teacher. Even now, I appreciate my real job so much more because I remember the misery of working there.
Stephanie says
April 16, 2013 at 2:16 pmI think you bring up a really good point – several people that I know well in their 50-60s I believe really aren’t sure what their number is. They honestly don’t know what they need in order to retire. My mother in law is one of them. I wish she did have a handle on what her needs will be and that she had a plan in place. I think she would feel more relieved. Also, you are right, so it takes you (and I) longer to get to our plan to retire early – so what? It’s not a crisis because you are still working the plan. The scarier thing to me is to not have a plan.
1500 says
April 16, 2013 at 6:00 pmMy parents ARE retired and they still don’t know what their number is! They are lucky in that my dad has a cushy pension and doesn’t really need to worry about it. If they didn’t have the pension, they’d be up the creek.
Yes, it is scary! In my little world, most don’t have a plan. ‘I’m too young to worry about it.’ Grrrrrrr.
Jacob@CashCowCouple says
April 16, 2013 at 2:47 pmWe’re just over 20 but time really does fly. We aren’t sure what age we want to give up employment or a career. If I truly love my career, which I’m hoping I will, I would like to stay active for many years. If I hate it, I’ll be looking to exit. I don’t think I’m as big on the “retire by 30” idea as some folks, but we’ll see what happens in 10 years.
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1500 says
April 16, 2013 at 6:21 pmJust over 20! Well, you certainly have a little time to consider it! I wish that I had thought like you when I was 20!
Maybe MMM needs to go on a high school tour? I wish I had someone like that giving me advice when I was 16 or even your age.
Pretired Nick says
April 16, 2013 at 3:01 pmI think a big part of seeking financial independence is having a strong enough personality to ignore the naysayers. Trust your own math and your own path.
That picture is hilarious!
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1500 says
April 16, 2013 at 5:56 pmYeah, I couldn’t care less what anyone else thinks. Actually, I appreciate the naysayers and critcism. They keep me honest and ensure that I’ve thought through my decisions.
Glad you like the picture and hope you get your Mr. 1500 action figure (3 points of articulation). Supplies are limited!
Michelle says
April 16, 2013 at 3:39 pmI have early retirement dreams. I want to be financial independent soon and do things that I LOVE! 🙂
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Mrs PoP @ Planting Our Pennies says
April 16, 2013 at 3:49 pmWe’re aiming for early retirement input thirties, but so far all the feedback is mostly positive. No naysayers around here. At least so far.
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1500 says
April 16, 2013 at 5:52 pmNice, you must live around enlightened people (there I go with the Voltaire talk again).
JC @ Passive Income Pursuit says
April 16, 2013 at 4:13 pmThere’s a lot of negative feedback when early retirement is thrown around with the common ones being those that you mentioned. I think too many people the importance that freedom and flexibility are. We aren’t focusing on quitting our job to go play golf all day and then sit on the porch. We’re working towards the opportunity to do exactly what it is we want without money being a worry. You can easily take a consulting job where all you get to do is code, there’s no more office politics or mindless tasks that take you away from what you love doing with your job. Personally I want to be able to go camping more and hopefully be able to take a wilderness survival course and then push myself to see if I can survive for a week. I also want to be some kind of tour guide possibly a bike tour or even teaching some kind of fitness class. The opportunities to do those things are there when you have a family relying on you to provide food and shelter. This is the biggest reason I’m striving for FI, so I can have the flexibility to do what I want.
I love the line about failing in your pursuit of early retirement and oh well you can retire at 45. Failing in traditional retirement and oops, now you get to work at McDonald’s or Wal-mart.
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1500 says
April 16, 2013 at 5:50 pmYes, exactly! We’re not going to play shuffleboard and shrivel up, we’re going to pursue our lives exactly how we want because we’re not constrained!
Sounds like we’re very similar. We love the outdoors and biking. Regarding the survival class, I hear that seagulls are absolutely disgusting…
JC @ Passive Income Pursuit says
April 16, 2013 at 6:47 pmI guess if the option is a seagull or nothing I’ll take down a seagull. Hopefully it doesn’t come to that. I started watching the new Naked Survival show on Discovery where this guy went to some deserted island in the Pacific with absolutely nothing, not even clothes. The first episode was pretty interesting, although he did have to eat those little sucker fish that clean your fish tank. Nothing like eating something that only eats poop.
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Rachel says
April 16, 2013 at 8:27 pmSpot on! “We aren’t focusing on quitting our job to go play golf all day and then sit on the porch. We’re working towards the opportunity to do exactly what it is we want without money being a worry.” Not having to worry about money will give me options and that’s my biggest incentive.
1500 says
April 17, 2013 at 2:00 amYes! Yes!! Yes!!! Yes, I hate golf, but wouldn’t mind sitting on the porch if I’m reading a good book. Its just about freedom and maybe even working, but working because we want too.
Ms. D says
April 17, 2013 at 2:16 amAgreed. Sometimes, we forget about the value of time. The optimum quality spent in these precious seconds is more important than toiling in a sub-par job. Not everyone is blessed to be working in a lucrative career they absolutely love. That’s why FI is important to me. To pursue something more than satisfactory.
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1500 says
April 17, 2013 at 2:59 am“Sometimes, we forget about the value of time.”
Exactly! Most don’t realize it until almost all the water is under the bridge. Very, very important lesson.
Laurie @thefrugalfarmer says
April 16, 2013 at 5:01 pmLove this post, Mr. 1500. Now I can’t stop thinking about the 80-year-old cashier at the drive thru. We don’t have any plans as to when we will retire, but we’re putting financial plans in place so that when that day comes, whether it be at 50 or at 80, money won’t be a determining factor. We know what we need to comfortably retire at certain age points, and we have a plan to get there, but we’re just winging it with the rest. I know that you and I and the rest who are being frugal and planning now will be the ones not freaking out at 60 – that’s for sure.
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1500 says
April 16, 2013 at 6:26 pmHi Laurie-
From reading your blog, I think that you have a good deal of it figured out including what is important do you (abandoning suburbia in favor of the hobby farm).
“I know that you and I and the rest who are being frugal and planning now will be the ones not freaking out at 60 – that’s for sure.”
Absolutely! I fret for all of the poor planners around us. Not only will they not have any savings, but they don’t have pensions and Social Security will probably be greatly reduced. Good luck people.
1500 says
April 16, 2013 at 5:54 pmER isn’t for everyone. I think the really important thing is that you have a plan and make the right money decisions to achieve it.
Elizabeth says
April 17, 2013 at 1:07 amYou hit the nail on the head there 🙂 Well said.
1500 says
April 16, 2013 at 5:58 pmHi Holly-
I hope that is the case, that she wasn’t working because she had too. If I need to socialization or something to fill my time, I hope that I can find it through volunteer work or something just a little more meaningful.
1500 says
April 16, 2013 at 6:13 pmNo GI Joe Kung Fu grip, but they will come with a Mrs. 1500 action figure. The Mr. 1500 action figure, while finding Barbie very attractive, could never tolerate her dream houses and Corvettes.
Ms. D says
April 16, 2013 at 7:15 pmThis reminds me of an older lady at work. To commemorate her upcoming retirement, she had breast augmentation but she ended up being fired. Lost her pension, long story. She had to work as a parking attendant after that.
Anyway, I love this post. It makes me think of the future. It’s funny when i talk about retirement at work, they think I’m too young (already 32!) to consider it. And in my head, I’m fretting that I shouldve started in my early 20s.
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1500 says
April 17, 2013 at 2:56 amWow, working as a parking attendant to pay for a boob job. Yikes!
Right on. I wish I would have started thinking about it when I received my first allowance: “Mom and Dad, please buy Berkshire Hathaway with my lawn-mowing money.”
Girl Meets Debt says
April 16, 2013 at 1:40 pmWhen are you turning 40? We can have a pity party together Mr. 1500 🙂
With my amount of debt, I won’t be able to retire early like you but hopefully years earlier than the normal age, which is 65 in Canada.
P.S. Can I have a Mr. 1500 action figure? 😛
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1500 says
April 16, 2013 at 6:04 pmNovember! How about you?
You never know what opportunities life will throw at you. I never dreamed that I’d have as great of a job as I do now. I worked my ass off in my 20s (often working 80 hours/week), but it paid off incredibly. Doors opened for me that would never have otherwise.
Brian says
April 16, 2013 at 8:02 pmI don’t know why you don’t think you can’t go to Bora Bora… with a little credit card churning and some free time you can get there and stay there for very little out of pocket (other than what you would normally spend to earn the points).
I don’t really have that early of a retirement dreams, maybe 50 or so. I like working and currently like my job. My plan is to have enough eff you money I can walk away at any time after about 45, but I don’t see myself actually doing that.
1500 says
April 17, 2013 at 2:54 amYou’re tempting me with the Bora Bora talk. Actually, we flew almost free to Hawaii in January on a British Airways promotion. Four round trip tickets cost us less than $300.
Rachel says
April 16, 2013 at 8:22 pmI’ve been talking about early retirement goals for the past few years and I’m 29. All my friends think I’m nuts. And the most common thing I hear is, when you’re retired you’ll be too old to do the things you want to do, like travel! I guess they don’t realize I plan on retiring at 50 or so. Plus, I think they need more friends that are 65+. My 70+ workout buddies are retired and live good lives. They’re healthy, travel often, and workout regularly, even doing the occasional mud run or ocean race.
1500 says
April 17, 2013 at 2:01 amA mud run at 60? That is one bad-ass person.
This past summer, I was hiking a 14er in Colorado. I summitted and was feeling all good about myself on the way down. Then, I see a guy who was at least 70 running UP the friggin’ mountain. That took me down a couple notches, but was also really motivational. I want to be that guy.
Johnny Moneyseed says
April 16, 2013 at 8:54 pmI’ve never heard of early retirement.. you mean like when you’re 60? I, for one, will be done in my 30s. My mom tried to give me a life lesson the other day, “If you were smart, you’d stay at your job until you are eligible for a pension”…. So another 7 years on top of when I plan on being retired. She didn’t understand the concept that I’m putting my money to work for me now. That we are planning on buying a second home and turning ours into an income property. She also doesn’t understand the difference between an asset and a liability.. but like I’ve said before, she has a $2M pension, so she doesn’t have to.
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1500 says
April 17, 2013 at 1:58 amI used to think like her too, but it is all diminishing returns. If you can stop 7 years early and be free, you’ve now bought back 7 years of your life. That is incredible.
PS: Your mom has one sweet pension. My mom, in her 60s, was bragging to me recently that they had saved up 25K. Ummm mom, we need to have a serious conversation…
Canadian Budget Binder says
April 16, 2013 at 9:59 pmMy wife would tell me that she had a hard time envisioning herself at one of her past jobs in her 50’s and 60’s. In fact she had no idea how many of them did the job at that age as she was physically exhausted. It was looking into the future in her mind that set the wheels in motion to go back to school. Many people are not happy and I sure as hell wouldn’t be happy at 80 working at McDonald’s. I don’t know when I want to retire but what I do know is that I will live my life the way I want to. No matter how healthy we say we will try and be anything could happen to us, we are not excused from disease, illeness or death because of it but it does give us a flicker of hope and ease of daily activities as we age. You sound like you know exactly where you are headed and one day maybe I’ll get there but for now, I have no idea where the path will lead. Well written. Cheers
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1500 says
April 17, 2013 at 1:54 amRight on!
Funny enough, someone once recited your exact words in trying to talk me out of my goals: “Why don’t you get a Porsche, you may die at 50.” If I knew I was going to die at 50, I would definitely be doing things differently now. However, the statistics say I probably won’t die young, so the best way to make the most of my time is to try to get out of the workforce as early as possible.
CashRebel says
April 16, 2013 at 11:31 pmI definitely agree that early retirement is less risky than working the rest of your life. I’m shooting for my late 30’s seeing as I’m 24 now, but even if I’m off by 5 years it’ll still be amazing. Plus sitting in a cubicle all day is awful for your health, I will stop doing that as soon as I can.
1500 says
April 17, 2013 at 1:50 amYes, cubicles suck! I’ve often thought that when I retire, it may be cool to work in a national park of something outdoors. Help balance out my sentence in the cubical world.
1500 says
April 17, 2013 at 1:56 amThe lack of developers is something I think about frequently. I put my resume online a couple months ago and had 250 people contact me in the first day. Despite the great pay and fun work, kids just don’t want to study computer science. Their loss, our gain.
1500 says
April 17, 2013 at 2:52 amHaving to work in my 70s would be a nightmare scenario! Big no-thanks to that.
I understand the interactions. We still haven’t thought about what we’ll do to replace that, maybe volunteer work.
Jane Savers @ The Money Puzzle says
April 16, 2013 at 10:54 pmI stand all day at my job and there are no old women at my work. Their hips and knees or feet give out and they can’t do the job and they are forced to retire instead of retiring when they want to.
I need to be much healthier so I can stay on my chosen path to retirement and so that I will be able to have a good life in retirement.
Having a diversified portfolio with investments that become more conservative as you age might help you avoid the feeling that you may end up as a hobo one day.
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Jane Savers @ The Money Puzzle says
April 16, 2013 at 10:55 pmAnd I love McDonald’s French fries.
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1500 says
April 17, 2013 at 1:50 amIf you don’t love those french fries, there is something wrong you. They are a guilty, guilty pleasure…
KK @ Student Debt Survivor says
April 18, 2013 at 12:17 amI haven’t given a lot of thought to retiring early. But I know I don’t want to be working at mcdonalds when I’m 80. I hope I’m able to work when I’m 80 and am able to do something that I love. But I also hope that I don’t *have* to work at 80.
1500 says
April 18, 2013 at 12:55 amExactly! Big difference between doing something because you want to and doing it because you have to.
Michelle says
April 18, 2013 at 4:34 amI don’t want to retire early. I DO want to stop working for other people in an office. I would like to work for myself via online endeavors so that I can do what I want to do from wherever I happen to be at the time. I want to travel and live abroad. Then, I would like to return to Denver. But, I want to be making money while I’m roaming around 🙂 I have also seen elderly people in high stress jobs and I worry about them. I do think that their co-workers gain by having them as colleagues. But, I just hope that they don’t have to work, but want to work and be around people.
1500 says
April 18, 2013 at 1:19 pmHi Michelle-
It sounds like you’ve thought it all through and that is what counts.
PS: I’m in the lovely Rocky Mountain state too. Say ‘Hi!’ if you see me on the street.
Shannon @ The Heavy Purse says
April 19, 2013 at 8:17 pmGreat post, Mr. 1500. Your friend who thinks retirement is a long ways off is probably right – with his current mindset, he won’t be able to retire for many, many years and may end up working at McDonalds when he is 80 too. It’s sad that there are so many short-sighted people when it comes to retirement and savings. I like to live in the now too, but I always have an eye on tomorrow as well. And as you said, it’s incredibly important whether you want to retire young or not that you know what makes you happy and what doesn’t. My retirement dream of traveling around the world is different from yours and neither of us are wrong when we’re following our own dream and taking the right steps to make it a reality. Glad we connected on twitter!
1500 says
April 20, 2013 at 1:35 pmOur dreams aren’t so different. If I make my goal, we’re going to do some serious traveling as well.
Yes, I’m glad we connected to and look forward to collaborating down the road!
bevery hills wealth management says
January 12, 2015 at 10:15 amI’ve been a long time reader, and this is my first comment. Just wanted to say I am glad I discovered your website, and I’ve enjoyed reading your posts throughout every season. I always find you relatable.
1500 says
January 12, 2015 at 11:41 amHey, thanks for the kind comment; much appreciated!