My Working Retirement
My Working Retirement
As you might have guessed, I am not a big fan of the traditional concept of retirement. When it comes to the financial independence community especially, many choose to work at some sort of passion project or side hustle long after they have “retired”. I prefer the term W2 independence. When you have freed yourself from the indentured servitude of the W2 paycheck, you can go about your business as you please. So it might surprise you, after looking at my income reports, to know that I consider myself in retirement. A working retirement that is.
Working retirement? Aren’t the terms antithetical?
Why no. No, they are not.
Let’s take a look at what I have retired from.
Deadlines
The first thing to go after reaching financial independence was deadlines. In my working retirement, I let go of all responsibilities that came with built in deadlines or time stress. Early in my career, I found the easiest way to suck the enjoyment out of an otherwise cheery task is to introduce time pressure.
I loved seeing patients in my office when I worked for a large medical group. The variety of problems and heterogeneity of the patient population created a good deal of work satisfaction. However, as time passed, the medical group tried to push more and more patients at each of the doctors in shorter and shorter periods of time. Before long, I was rushing through visits, staying extra hours, and feeling like I was delivering inadequate care.
Now, I continue to see patients. Many fewer. And I can take as much or little time as I choose. No deadlines. No time pressure.
Bosses
There is nothing that reminds you more of your station in life than being told what to do by a lug head boss. At some point in time, almost all adults have had to slave away miserably under someone else’s supervision. I’ve worked for bosses both good and bad, but always found that losing control of your own destiny led to feelings of helplessness.
During my working retirement, however, I released myself from such chains. Since I was already financially independent, I could afford to become a consultant or leave all together those situations in which I had to bend to a superior’s will.
My hospice work is an excellent example. Although I could easily become an employee of the company, I purposefully maintain my role as an independent contractor. By doing this, I forego certain benefits like health insurance. But I also relieve myself of late night business meetings, required orientations, and pretty much any other tasks I find distasteful.
I can always quit.
Extras
Ever gotten that email from your boss and gnashed your teeth as you read about how you had been signed up for an extra “opportunity”? Maybe you have been asked to cover an extra shift or if you are a physician see that extra consult.
We all, at one time or another, have become a victim of extra work shoveled onto us by our bosses.
The beauty of my working retirement is that I never have to say yes again. I only have taken on those extras that add something to my enjoyment or even my bottom line if I so choose.
I never have to show up for work in the morning in fear that I will be bullied into doing more than I want to. Nor can I be forced into working late in the night or on weekends.
Not Exactly Retired
Financial independence has given me the luxury to escape some of the most bothersome aspects of employment. I have not retired, however, from physical and mental work, making money, or even taking on new projects. Those are all part of what I have decided to include in my working retirement.
One day, I may get tired of the mental gymnastics and become a manual laborer. Or I might decide to let go of the paycheck and volunteer my time totally for free.
And there is even a possibility that I will stop doing all forms of work all together.
But, I highly doubt that.
Lol, i love it… I’d certainly love to retire from bosses and deadlines… oh well, we will get there shortly. But by my estimation, after i hit FI, i will probably take on some consulting work on the side… I just need to have options, that is why FI is so appealing, it’s not really the retire early part.
Agreed. Having options is what really made my working retirement feel like luxury.
I definitely like the concept W2 Independence. That gives you wiggle room in terms of still earning money from active endeavors but implies you do it on your own terms, not that of others. That is the most freeing aspect of the FIRE philosphy anyway.
I really hate the word “retirement”. W2 Independence makes more sense.
As the quote goes – “Work is great when you don’t need the money”. I’m working on a new graphic design this morning, and it may NEVER sell once. But I still love doing it. Because I don’t really need the money. A great place to be!
You seem to really enjoy the Graphic designs. I bet it will sell.
You’ve hit on an interesting topic. Love your departure from the standard work hard, hit age x, stop working -retire. Many cannot live out side the box, which seems governed by invisible laws that say; at this age we do this, when we get to that age we do that. We always have options.
I think in this FI world we have the standard dogma. I try to present the other side of some of the issues. Especially when they are my truth.
Ahhh to be financially independent. And to have a working retirement with utter and complete independence of everything. Independent of time (no deadlines), independent of people (NO BOSS!), independent of location (work anywhere), and independent of money (financial freedom).
A productive, creative, and independent working retirement is living the dream! 🙂
You will get there before you know it.
Yes! Well stated….
Being autonomous, being competent, feeling worthwhile…all are things that make work fulfilling.
“The power of No”
There is nothing better than being able to say “no” to an arduous task.
Right there with you. I still have bosses but fi means if I disagree I speak up. Why? Cause what’s the worst that happens? The power subtly shifts to you the employee as loss of job is no longer a fear. I’ve found within reason no goes my way, but I wouldn’t have said it pre fi.
That power shift is what of the great joys of FI.
From reading your blog, it has helped me to slowly identify what is that we are all seeking. Choices. Nice “job”!
Thanks Susan! I’m honored. If this blog makes you think…than I’ve done my job.
I’m not one to stay idle for long so I plan to have a working retirement as well. A fulfilling “retirement” for me will be one where I have autonomy, freedom, and purpose. Autonomy of time – I’ll work when I want to work. Autonomy of place. And autonomy of people (who I chose to work with). All this is guided by an underlying purpose. And then top it off with the freedom to walk away from it all whenever you choose. That’s an ideal retirement for me.
Autonomy, freedom, and purpose. Yep!
I love this post because it highlights the distinction between not working and what members of the fire community are really after: freedom.
I’m not sure I’ll ever give up my job, but having the freedom to work or not work as I see fit, that’s very appealing indeed.
-Ray
Freedom is the point. Sometimes people mistake monetary goals as the end game. It’s freedom.
I think work in retirement is a great diversiFIer to the portfolio, as good as a pension. No one knows what is really required for a 50 or 60 year retirement. No calculator or reliable numeric method exists. As death comes into focus, much variability is removed. It is removed because the mistakes you make to your portfolio in a 20 year horizon is far less magnified in the portfolio and likely your mistakes will out live you before they can become fatal to your funding. I’m 66 and my portfolio will be opened at age 70. I am fully retired and living of some cash, (a risk free asset) while I Roth convert. This leaves my actual portfolio closed to SORR at the present. I have also come up with a couple cheap schemes that can mitigate my risk in the future. So I am living a risk free life at present till I open the door.
The advantage of opening the portfolio at 70 is I likely have 20 years left. Maybe 30 but no-one in my family ever lived to be that old so the genetic odds speak against that. I’ll probably be dead in less than 20. SS starts at 70 and will be the maximum so my WR will be minimum. I was doing some calculations and I could withstand a 2.5% over inflation yearly loss for 20 years and never miss a hamburger. Extended WR as in longevity and high WR is what puts your portfolio at risk. Pension, low WR, SS and dying younger means dying rich. My wife OTOH is 7 years my junior and her people especially her women people live beyond 90, so I do have to plan a near 40 year possibility. And I have to tax plan for her retirement after I’m gone.
My analysis therefore shows it’s almost incumbent to have a job at least till SS starts or some combination of other pensions, or you have pre-planned something to live on for something like several years of Roth conversion, unless you have a monster pile (pushing 8 figures) to have any security at all. I think a jobless FIRE at 40 is pretty much assured to have Alpo Ramen and French toast made with day old bread and maybe dab of Velveta, written all over it. Of course then you could start a blog bragging about your frugality. I had a job till I was 65. I quit because it was time to quit and I had to put my Roth conversion plan into effect.
Yes. People forget that the business asset class is an asset class just as stocks and bonds. By carrying out my working retirement, I have a trustee asset class that is highly uncorrelated to the market.
Gasem, I agree. Maybe it’s generational (I’m 62), but even though I could theoretically quit right now, I’m much more comfortable enjoying being FI picking and choosing my work (I’m not retired, I’m “selectively employed”). Anesthesia is so much more fun when you don’t have to do it full time. Having some income from work allows continued investment, as well as not being required to withdraw.
I’m also interested to note you are planning to delay SS until 70. I’ve spent a lot of time playing with the numbers, and unless the program goes into heavy means testing delay appears to be a better deal.
I know exactly what you mean about working under supervision in a job, very much like being in school. Its not a nice feeling & does not make sense for most but most have to do it for money. I spent over 20 years in terrible corporate jobs & that finally drove me towards my FIRE path. All the best in you working Retirement!
Thanks FIminator. I love being my own boss!