Six More Observations from Early Retirement

This article first appeared on www.loadeforlife.com 

A few months after retiring, I offered . As I reach my one year retirement anniversary, I want to share six more observations. I hope these help you in making your future retirement plans.

Making the Right Decision

So, my first observation is answering the most common question I am asked. Did I make the right decision in retiring early? Yes, without a doubt! I had a diverse work history which included spending the last 18 years working overseas as a U.S. diplomat. It was a great experience seeing the world and I made many valuable friendships. But, I was ready to move on. And I was grateful to leave on my terms and in a way that opened many doors to new adventures.

More Opportunities Than Expected

As mentioned in the first article of this series, I never viewed retirement as a time to slow down or to cease working completely. Originally my retirement plan was to immediately get my real estate license and expand my real estate business. I still intend to do this, but, the beauty of retiring early is the range of opportunities life presents. Some more interesting options presented themselves so I chose to pursue them. And this brings me to my second observation, retirement can open a lot of doors and you may have many more opportunities than you initially expect.

Once I retired I took a road trip across America. I then returned to New Zealand to accept a short-term contract as a senior advisor working for the New Zealand government. This was an opportunity to draw on my years of Middle East experience working with a great foreign policy team. It was so enjoyable, I signed another contract to stay in New Zealand longer. By the end of the second contract I was ready to head back to the States to be closer to family and friends, but the additional time in New Zealand was a great transition

The next opportunity to present itself was working with some highly skilled partners to launch the bespoke security consulting firm . My work with Group Nine draws on years of experience in high risk locations as well as a lifetime of entrepreneurial skills. We assist clients with security vulnerability assessments, expert witness testimony and personalized security training such as learning how to respond to an active shooter in the workplace. If you own a business, it is vital to take security precautions to protect your employees and customers. Amid this trend of rising violent crime in the post-pandemic world, failing to implement such due diligence measures could cost you your business.

I am grateful for these post-retirement opportunities and look forward to where they will lead in the future. But, most importantly, I would have missed out on them had I not retired early. Keep this in mind as you consider whether to retire now or delay your retirement.

Beware of "One More Year" Syndrome

The decision to retire makes most people slightly anxious, but if this fear is not managed it can lead to staying in a job, you really wish to leave. Three common fears of retirement are losing an identity that work provides, daily social interactions with colleagues, and living on a reduced income. Such fears often lead to "one more year" syndrome. Workers want to retire, but continue to delay for a year, and then another year. This is the third observation from early retirement, a few people have shared that they are caught in this stage, afraid to make the retirement leap.

Do not let "one more year" syndrome rob you of the life you really desire. Time is precious and none of us know how many summers we have left. Seeing a few friends from high school pass away this year is a salient reminder that our most precious commodity is time. If you delay this transition it may be harder to pivot to a new career or enjoy hobbies. In addition, the stress of continuing to work in a job you don't enjoy will take a toll on your health and happiness.

If you are trapped in "one more year" syndrome, begin by addressing your fears. Start by reviewing retirement savings to assess the validity of your financial concerns. Make a list of what you are most afraid of and then look for ways to address it. If you financially do need to save for another year, look for ways to reduce your expenses to help you maximize your savings rate. If you are financially set but fear the loss of contact with colleagues, join professional organizations or community groups now to expand your network. If you fear the loss of identity from work, start looking for full or part-time positions that would give some of these same rewards but that are more enjoyable than your current job to ease the transition. But, merely waiting it out is not a wise strategy.

Financially, Expect the Unexpected and Have Extra Cash

The fourth observation is to expect some financial surprises in retirement and save a little more cash than you think you will need. Financial diversification and good planning mitigates the impact of these surprises. Several months after I retired the stock market went into a bear market and inflation rose significantly. (For those who read , it advised investors to prepare for higher inflation and also offered strategies for navigating bear markets in retirement, hint: they are buying opportunities).

The financial surprises were not only market driven. When I retired I was owed a few months of unused annual leave. This payment should have been made within a few weeks. My former employer did not make this payment for seven months. I was not alone, there are hundreds of retired diplomats still waiting on their payment. Many retirees were counting on these funds to start businesses, pay for major expenses, or for the down payment on their retirement home. Some are still waiting.

It is vital to have enough cash on hand in retirement to navigate these types of challenges. Markets will be frothy and bureaucratic delays can arise in any organization, so have sufficient cash holdings available to address these issues. I also encourage all future retirees to see the article on as these types of expenses can quickly derail retirement plans.

Healthier Lifestyle and Leave Your Phone Behind

The fifth observation is the health benefits from retiring early. It feels pretty amazing to wake up every morning knowing I will be able to get outside and exercise, this is a great way to eliminate stress. This also includes having more time to ensure we eat healthy foods. These positive habits pay dividends and keep you active for the rest of your life. These habits can also help reduce long term medical expenses. I focused on maintaining good health during my career, but eliminating work related stresses has been a game changer.

One recommendation from this observation, leave your phone in a locker when exercising. I am amazed at the number of people who sit in a gym for an hour, scrolling through their phones. This is a habit that robs them of the benefits of exercising. It is also not the best way to make friends at the gym as they tend to park themselves on equipment other people are waiting to use.

Road Trips Become Annual

In part one of this article, I talked about the value of making a clean break in retirement by embarking on a specific trip or an adventure. When I retired I drove across the United States, catching up with old friends, seeing new places and revisiting favorite locations. I followed it up this year with a 3,875 mile motorcycle trip on back roads from the East Coast to Idaho. It took me through the famous Tail of the Dragon (318 sharp turns in 11 miles), to the top of snow-covered Pike's Peak and the rapidly dwindling Great Salt Lake. The trip also allowed me to attend the multi-day Welcome to Rockville concert in Daytona Beach and my nephew's wedding. This was an amazing experience.

My sixth observation is to make road trips an annual occurrence. These meandering adventures are so rewarding for keeping old friendships strong, learning more about the world, and continuing to have unique experiences. They are the way to stay connected with people and not miss out on life's best moments.

The key to a successful early retirement is proper planning. For more detailed information on planning for retirement and creating financial independence see and the .