At age 54, Jeanne Thompson was the perfect candidate for early retirement. She had the motivation: a demanding job that had left her feeling burned out. She had the financial wherewithal: a buyout offer from her employer. And she had the knowledge: as part of her job, she had helped people plan for retirement.
Thompson told Newsweek that she expected her retirement to be “fantastic.” She was going to exercise regularly, travel for fun, and finally have time to socialize.1
But that’s not how it initially turned out.
“The first six months were rough,” Thompson said. “I worked my whole life and am used to a routine. I was used to people calling, and emailing me all of the time, then suddenly it was very quiet.”
During her 25-year career she was the sole breadwinner, mother of two kids, and had aging parents to care for. Being so busy, she hadn’t kept up with friends outside of work. And her long commute meant she had no time to develop hobbies.
But by the time she took early retirement, her parents had passed away and her kids were away at college. Thompson found herself alone and with nothing to do.
“It was strange having the leisure of downtime,” she said. “Some days I would wake up at 7 a.m. and stay in bed until 9 a.m.” She thought it would be fun to have nothing to do. But it wasn’t.
Thompson had to learn to deal with two of the big challenges people face in early retirement. The first is the sudden lack of being needed. They’ve often left their jobs at the height of their career and find themselves no longer an essential part of an organization.
The second challenge is dealing with the realization that extended idleness isn’t fun. People want to believe that a permanent vacation will finally make them happy. And Thompson actually felt bad for being in this privileged position and not enjoying it.
“I felt guilty because I was lucky enough to retire but I couldn’t figure it out,” she said. “I wasn’t happy.”
Thompson did eventually figure it out. She moved to an area where she’d always wanted to live. She made it a point to get to know her neighbors. She joined an active sports club. And she began working again—but this time as a consultant with the flexibility to help needier clients and leave time for her outside interests.
The idea of retiring just to get peace and quiet can be very attractive in theory. Especially if you have a stressful job. But if your post-career life is not built on a realistic view of your needs, you can be setting yourself up for disappointment.
As you plan for your next chapter, remember that while your need to work full time may cease, you won’t stop being a person who needs social connections, new challenges, and a routine. Your trusted financial advisor can help you navigate a personalized retirement transition whatever your stage of life.
If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.
Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020
Sources:
1. http://go.pardot.com/e/91522/hated-early-retirement-1791249/93jynv/2018457583?h=N7RM57cU6n_uJBL7qdGoCyb_M_dqv2xFw7sl5Gg2tK0
Disclosure: This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.
