Advised Podcast Ep 007: The Modern Way to Retire Early | Get to the good stuff sooner

The world has changed, yet the traditional cold turkey retirement is still mainstream...WHY? What if you could get to the good stuff sooner? How much energy would you have? Would your health improve? Would your relationship with your spouse and children get stronger? Would you, just simply be happier?

For many the answer to all those questions and more is a resounding YES, and unfortunately they don't see a clear path to get there. Now this is no trick, or easy get rich quick scheme, and you don't even have to buy real estate! The concept is to either slow down for longer, OR (and this one is my favorite) actually do something you enjoy doing every day, so that work... well isn't really work. You still need a portfolio and you will still need some traditional planning to see what age this can start at, and how much money is needed each year.

This concept doesn't work if you're 50 and don't have any savings, the idea is the start the benefits of the retirement you're starting to envision, EARLIER. Would spending more time with the grandkids 2 years earlier make your life better? How about snow birding to Florida 4 years earlier than you thought possible? If you could play golf mostly when you want to for 5 years before you previously planned, would that increase your happiness?

Start viewing you retirement for what it allows you to do, not what you get to stop doing!

Listen above or read the transcript below, and let us know what you think of the episode!

Rick Luchini (00:00):

Today I'm going to discuss some alternatives to the traditional retirement that you might be looking forward to or planning for and why it's important to maybe have a different perspective on the way you were viewing retirement before. Let's get started.

Intro (00:17):

You are listening to advise with Rick Luchini.

Rick Luchini (00:25):

Why do people want to retire? Why do you want to retire? You could have a bunch of specific reasons, but it typically boils down to I want to do the things that I want to do when I want to do 'em. Spend more time with my family and or escape the stresses and headaches of my current job. Now, the traditional retirement that you are planning for or dreaming about typically works like this. I'm some version of miserable for a really long time. I do a thing to make money so that I can one day have enough money to not do anything at all or at least to do the things I want to do on my terms. I'm going to work all the way up to that specific day. I'm going to quit cold Turkey and the next day I'm going to be super excited and I don't know, go golfing or fishing or go to my grandkids soccer game, whatever the thing is that you want to do. Alternatively, what if you could get to those benefits of retirement sooner? What if the actual act of retiring isn't really what's important to you?

(02:11):

It's those things that retirement afford you. It's more time with your family, fishing, hunting, golfing, antiquing, gardening, snowbirding to Florida, whatever those things are. Do you need to be 100% fully retired to do them? Maybe there's two different versions of a next phase alternative to retirement where depending on what it is that you want to do, you may not get a hundred percent of it, but what if you could go from what you're experiencing now, which is 10 to 15% of those leisure activities or that lack of stress or whatever it is basically used on your vacation days picking and choosing what days to take off? Well, if you take that from 10 or 15% to 80, 75, might you be able to do it longer?

(03:34):

Wouldn't you think it's valuable to begin enjoying those things that you're dreaming about earlier two years earlier, three years earlier, 5, 8, 10 years? I don't know. First version is probably the easiest for most people, and that's just the phase out. I call it the part-timer. Now, this could be applied to a whole bunch of different skill sets, a whole bunch of different industries, blue collar, white collar, don't get all bent out of shape about the examples. The idea here is you take the skillset that you currently have, your value add, your knowledge on the industry and whether it's at the company that you're currently at or whether it's a completely different one. You find a way to monetize your skillset with a much lower demand on your time. What's that look like? Well, maybe it's 30 hours a week instead of 50. Maybe it's remote, still full-time, but remote.

(05:13):

Maybe it's a consulting for the same company that you're at or a different one. Maybe it's a board seat. Maybe it's the same skillset but a slightly different industry. So I'm really good at sales. I've made a big network, a lot of connections, but I really just don't like what I do and it's very demanding. I can't back it down. I either do the thing or I don't do the thing. I make a lot of money doing it, but what if I could take all that experience, all that knowledge and sales my entire network, people that know, like, and trust me and that into selling something that maybe I do like or that demands significantly less of my time or isn't open on the weekends. Some simple change that improves your quality of life at 50 instead of waiting till 65 at 55 instead of grinding it out till 62. Whatever your situation is, might that be valuable, but Rick, I likely won't make as much money.

(06:38):

Yeah, I know. I'm not saying quit your job today without knowing the numbers. I'm saying. You might be surprised as many are when you run the numbers in. Realize that adding income, even though it's less than what you're making now, deeper into your retirement years because it's something that you actually don't hate doing and the time is manageable, puts a lot less stress on your portfolio because you're not relying on it a hundred percent from day one, allowing you to spend less of it at least in the early years and possibly to save less and start that process earlier. Working part-time remotely is a lot different than working full-time in an office with a 30 minute commute where you are so important that you're answering emails even when you're not at work, you're on call every other weekend, whatever the thing is that you just can't wait to escape from.

(08:01):

It's not that you're trying to escape doing anything. You just see it right now as black or white. I either do this big crazy thing that I'm fully invested and saturated in or I retire, but there is a middle ground that allows you to golf, to hunt, to fish, to play with the grandkids, to go to Florida still also contribute and feel valuable and exercise your brain. Continue to learn. As soon as you start viewing your retirement as something that is fluid rather than an on off switch, you might be able to get to some of the benefits a lot sooner. Now, if you don't love your industry, you're in part-timer maybe isn't for you. Good. We got another one. It's called the Passion Project. This one's a little bit harder. You got to do a little bit more work. You can't just search Indeed and go from full-time to part-time remote in a week. You do a little bit more work here, but the passion project, this is something that if you can find this, the rest of your life could be changed for the better. Here's why.

(09:41):

Start making a list of the things that you want to do when you retire. I can't wait to retire because I'm be able to blank fish, golf garden, go biking, hiking, coach, my grandkid's soccer team, write a book. Every single one of those things that I mentioned in pretty much all the other ones, someone somewhere is earning income, doing some version of that. But Rick, I like the fish. I'm not just going to be able to be a pro bash fisherman overnight, and I'm not telling you to do that. Take what you're good at and apply it. Maybe you work part-time a bass pro. Maybe you're a boat salesman. Maybe you start a blog about fishing for the regular guy. You like golf. I'm not asking you to be Tiger Woods.

(11:06):

I'm saying you can work part-time down at the pro shop. Take some stress off your portfolio, start your retirement a few years earlier, get to the good years earlier. You don't actually know how many you have left. Everybody sure raves about your pulled pork and you love doing it. Maybe you start a catering company. You're only going to take the jobs that you want to do, but you're definitely not going to take any jobs in February when you and your spouse go to Florida to get away from the cold. You're not going to take any jobs in October and November when you like the archery hunt or you're not going to do 'em in the summer because that's when you watch the grandkids when they're off from school still adding income to the bottom line, taking stress off of your investments and actually doing something that you love to do.

(12:10):

You're not, you're not going to stop doing that at 62 because you'd love doing it. You don't have to start a business or a blog or anything. Maybe it's a paid position at a nonprofit that you're super passionate about and you can add a lot of value because of the lessons learned in the industry you were previously in. You're valuable. It could be a board seat. You can do 90% of the work from your cell phone at no particular time. Answer those emails or send those drafts by the end of the week and log on or show up for a quarterly meeting every once in a while. I dunno, how long could you do that?

(13:10):

A lot longer than you can do the thing that you're doing right now that you wish you didn't have to every day, and this goes for business owners too. You love the business, you love the industry, you're passionate about it, but at some point you want to do the other things. You want to have time to do the other things. I can't step away from my business. I am the business, right? Well, so maybe your passion project is your business, but you need to start strategizing around the economics of hiring a general manager and or building out workflows so that other people can do what you are doing and you don't have to be bogged down and stressed and strapped to that business. You're not handling the day-to-day, but the overall vision and big picture decisions are still yours. You can still run the show from afar. You need to hire the right people. You need to build workflows so that what you do is repeatable and you got to do the hardest part. You got to let go. You got to let go a little control and trust the people around you. You don't have to sell it. You don't have to retire. You don't have to close the doors.

(14:59):

Hell, you could work all summer if you want because you love being there, but man, when it starts getting cold, you'd sure love to go down south for a few months, do it, build it out so that you can do it. You still got income coming in. You're not relying 100% on your portfolio. Yeah, I know in a lot of these scenarios, you're going to make less money. I get that. Of course you are, but in a lot of them, you're going to be able to and likely want to do that thing longer, and that means you don't have to make as much money. How much of that money is going to your 4 0 1 K right now?

(15:46):

How much less taxes would you pay if you're making less? Don't look at the gross number. Look at the net. What are you net spending right now? I bet you could afford to live on less now. If your goal is to amass the most amount of wealth that you possibly can and die with the biggest i r a and you're proud of that, that's your goal. Go for it, man. Keep doing it. But if you want to start enjoying yourself two years earlier than what you think you can, three years, five years, eight, I don't know, 11, start thinking about some alternatives to the traditional retirement. You have value in today's world with technology allows you to do a lot of different things from a lot of different places, and depending on what your skillset is, it could be something very, very similar to what you're doing now. Just less of it. It could be something completely different. So now don't go run out and buy a food truck tomorrow, say, Rick told me to retire early. I'm not saying that, but you can model it out and you can figure out how much you actually do need to earn, what type of thing you could do to fill that gap and for how long it can be planned for, and it's at least worth taking a look at to decide if that option is viable for you or not.

(17:47):

I'll say it again. When I really push people to tell me why they want to retire, they're positive. They want to retire, I want to retire as early as I can. Absolutely. Tell me why. They don't say It's because I want to stop working completely and have absolutely, without a doubt, unequivocably no responsibility at all for the rest of my life. Most of 'em don't. They start saying things like, I can never get away. I want to spend more time vacationing with my family and stuff, but I only get so much time. It's hard to get away. I'm stressed out all the time. The phone never stops ringing. I'm getting emails all weekend. That's the stuff they're talking about. Man, I really love golfing. I barely ever get out. I'm to my desk. I love being outside. If I could just hike a couple times a week, be out in nature hunt, fish cycle, I'd be in better health, I'd be happier. These are the things that they're saying. Those are the things that you're thinking about when you're thinking about retirement. That has nothing to do with 100% stopping work, and what I'm saying is if you could start doing some of those things a little bit earlier, it might just make a huge impact in your life. Thanks for listening.

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Content Disclosure: Luchini Financial LLC is a registered investment advisor. This content is provided for informational and educational purposes only and is not intended to be personalized investment advice, nor a recommendation to buy or sell any investment. Luchini Financial works closely with each client to gain a full understanding of their unique situation prior to rendering advice. The information contained herein is derived from numerous sources, which are believed to be reliable, but not formally audited by Luchini Financial. Information may include statements which are time-bound and subject to change without notice or opinions, which may not come to pass. Please consult Luchini Financial with any questions.

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