Downsizing to Early Retirement
Downsizing to Early Retirement
The term downsizing is usually used in reference to trading a larger house for a smaller one. This makes sense to your average FI minded individual who sees both the economic and psychological benefits of offloading 
unnecessary space and cost. Having young school-aged children, I’m not quite at that place at this moment. Financial freedom, however, has given me another avenue for such thinking. As I reach the top of the accumulation phase, I have started to think of downsizing to early retirement.
I am not ready to retire yet. I still like being a physician and favor human capital as its own insurance policy against sequence of returns risk. Yet, given that I have more than enough, it no longer makes sense for me to front load the sacrifice anymore.
Over the last five years, I have been progressively downsizing my job.
Concierge Medicine
My first downsizing occurred in 2013. At the time, I was running a busy outpatient medical practice with over two thousand patients. My schedule was packed, the paperwork was piled on my desk, and my mobile phone wouldn’t stop ringing. Sure the money was good, but I quickly realized that if I didn’t change my ways, I would run myself into the ground over the next few decades.
The benefit of financial independence is that I was free to make drastic decisions without the dire consequences. I closed my practice and replaced it with a small home-based concierge model. This improved my life and decreased hassles in so many ways.
- I no longer needed a large office space or much staff
- I could take care of 200 patients instead of 2000
- Paperwork decreased exponentially
By moving from a traditional to a concierge practice, I saw how downsizing to early retirement is a realistic alternative. I didn’t have to call it quits just yet.
Side Hustle
Over the next few years, I built up a number of lazy side hustles like medical directorships and hospice work. These often paid better on an hourly basis than seeing patients. Although my concierge practice was booming, I found that it was both time and energy-consuming. I was still often getting phone calls on nights and weekends.
Downsizing to early retirement made the most sense.
So I dropped the concierge practice in 2018 and confined patient visits to nursing homes only. This has greatly optimized my work day, and cut down on off-hours phone calls.
Happy Birthday To Me
Coming up on my 45th birthday this week, I promised myself to cut back further. Over the last few months, I have whittled down the number of nursing homes I visit. Starting this weekend, I will no longer round on Sunday morning as I have been doing for the last few years. This will mean that I essentially have the whole weekend off.
Since I am not ready to stop being a doctor, downsizing to early retirement is the best path. I get to have my cake and eat it too.
Final Thoughts
Retirement isn’t for everyone. Many of us either like our jobs or fear sequence of returns risk. We are caught up in the one more year syndrome.
While I first thought this was a negative, I have come to believe in the power of human capital and have let go of the time money continuum. I choose to entertain myself with work instead of other things. But that doesn’t mean that I can’t continuously downsize my way towards early retirement.
One step at a time.
That’s fantastic. I really like how you made work fit around your lifestyle. There is no point in killing yourself with work if you have enough. That’s one of the benefits of FI. Not to RE, but to have options. Happy B-day Doc G!
The options are what’s magical. Thanks.
I like the idea of easing your way into it. By the way I have announcement coming Wednesday of our first step in a multi decade move that way.
Cool FTF! can’t wait to hear.
Easy does it on this path to FI. Always optimize for comfort and happiness. Happy Birthday Doc!
I’m all about easy.
I think “G” stands for Glidepath. It’s interesting to watch you penetrate your denial and put substitutes with escape hatches in place. Only one question to answer: Are ya done yet? No one quits till they’re done. No one stays once they are. I love my job is similar to I love my hemorrhoid
Your take is definitely interesting. At 45 years old, should I be done yet? I still have lots of energy and pretty much can’t think of much that I am missing out on. I guess travel, work does get in the way of travel. Putting work aside, I pretty much have time to do whatever I want. I can’t imagine quitting the hospice work. it’s very easy and provides me with a social connection as well as the feeling that I am doing something important.
Work is good. Being a physician is a valuable past time regardless of remuneration. I did it till I was done. I worked in a hospital till I was 58. We lost that contract. I retired but I wasn’t done. An opportunity arose to build a SDSC and go into competition with the hospital. The challenge suited my aggression. I did that for a few years. My partner decided he wanted to retire and I didn’t want to run it solo so we sold out to corporate anesthesia and became employed. When medicare age hit I was done. I did about 25000 anesthetics and 25000 pain procedures for my community over the years. Did their carotids and AAA, brain surgeries spines deliveries GSW lungs gall bags ortho and all the rest, and now I need a rest. I may look into working with opioid and addiction on some voluntary basis since I picked up some skills along the way and I still have a license but right now I’m groovin on enough sleep and no stress. I done hung my last bag of blood.
Sleep. now that’s something I have completely forgotten. My body awakes at 445 no matter what. It seems like you made the right choices for yourself. I’m slowly trying to do the same thing.
You still have the expenses of teenage and college and getting your kids into adulthood to live through. I finally have one kid launched, one to go. It’s more expensive than you think. Personally I don’t think travel is a good enough reason to quit.
I worry less about finances and more about emotionally launching my children.
Read my review again and get that book Doc! 🙂
I know. I know.
Happy Birthday coming up. I have to laugh at Gasem’s comment — love your hemorrhoid! I guess you are not done, and that is totally fine. It is a nice idea to just downsize your way there. Especially for you as a physician with a calling.
I’m not done yet. Getting there year by year. Trying to avoid the hemorrhoid.
It is great to be able to tailor a practice that suits your lifestyle now since money is no longer the main driving force. That is the beauty of FI. You can have your cake and eat it too if that means creating a medical practice that allows you to contribute, still earn good money, and not consume your life. I chose a practice for less money over other options because I realized that somethings are worth more than money (for me that was not being on call and having completely free weekends). And as I got up further the FI ladder, I took off 1 clinical day/wk so I’m essentially working an 8:30-5 pm job 4 days a wk only.
Adding an extra day off really make sit feel luxurious. My Monday and Fridays are super easy.
Happy birthday, doc!
I appreciate how you have scaled back and continue to do it in steps. This journey is so personal and we all have to find what works best for us.
Definitely personal. There are many right paths.
The internet is full of how to achieve FI. Stories about how to deploy FI are harder to find. I like your stepwise approach. I look forward to hearing more about your deceleration so I can learn from your example.
Deceleration is so much more fun to talk about.
Not quite as drastic, and not at FI yet, but I did downside my career to 80% time a couple of years ago. I had originally expected that would only last until our son went to school, but now that I’ve been doing it for a while, I realize I have no interest – and no need – to ramp back up at that point. Downsizing is so great because you don’t have to give up something that’s important and brings you satisfaction, but you also have space for the rest of your life.
I think downsizing is the best slow glide path to retirement.
I love this! I really love the clinical aspect (I’m a nurse practitioner) and don’t see myself wanting to give that up any time real soon, but the ability to tailor my work schedule to allow for other interests is huge for me. Right now I do per diem coverage in the ER and hospitalist service for my local hospital (I’m typing this from the call room on a nightshift 🙂 and it works out beautifully.
Healthcare jobs definitely lend themselves to downsizing.
It sounds like a wonderful plan. I really like the idea of a slow glide path. It will make the transition less stressful and allow for more planning. Btw, happy birthday Doc!
Thanks Dave. For me, the glide path eases the transition. I can’t imagine quitting abruptly.
Happy birthday Doc!! I think “whittling down” is the right prescrition for you!
Definitely. Reading about your experiences is helping me see the light.