In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 3rd decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
Retirement in Your Future?
Billy and Akaisha Kaderli
The perfect time for
retirement doesn't exist.
This is what we have learned in our
over two decades of financial independence. Things change, and sometimes radically. There simply
are no guarantees.
From our point of view, a
full and rich retirement is still possible for many people right now. Sometimes
it takes personal flexibility in how one's retirement is
defined, as well as self-discipline and commitment to
Many potential retirees will
working part time to supplement their retirement lifestyle and perhaps to
obtain a medical
insurance plan. They may work from home in a virtual
style of employment, make money from their hobby, or take advantage of a less
stressful second-career opportunity.
Medical tourism will become
more commonplace, as corporations look for financial alternatives to providing
health care for their employees. As this idea becomes more familiar, retirees
and potential retirees will consider this type of health care as a viable option
if they are underinsured or if their own health care plan is lacking or if it's too
expensive to maintain.
Moving to more affordable
countries such as
The Philippines, Costa Rica, or
also become more attractive to those whose portfolios have been
compromised for one reason or another. One can live a reasonably
comfortable lifestyle in these countries for far less than in the
Grander retirement dreams may
be scaled back, but that is not necessarily a bad thing.
Less can be more when
one's retirement money is spent for living rather than for maintaining things.
If one's future retirement
life is based upon the idea of keeping the same level of spending after there is
no longer a paycheck coming in, you could be in for a shock. But if you have learned to live below your means, have kept your
monthly expenses reasonably low, and have not loaded up with huge amounts of
consumer debt, then the road of retirement ahead will not pose a threat.
People will still retire, but
how people actually live life away from the working world will continue to
Creativity, flexibility, and the trend toward simple living will take on more
value as their use will provide options for a quality retirement.
If you find yourself debating
about the sort of retirement you may face, the following
suggestions may provide alternatives:
1. Prioritize. What is
important to you in your life? Keep that list as simple and as clear as
possible. The more simple the list, the easier it will be to make it happen.
2. Do the math. You
might need to downsize your home instead of keeping one that is taking up too
much of your current monthly income.
The smaller the
house, the smaller the
mortgage, the less you will pay for utilities, repair, upkeep, furnishings and
insurance. This "newfound" money can be put to use elsewhere in your plan.
3. Review the options of
relocating. Moving to a tax-friendly state or to a state or country where
the cost of living is less than where you are living now is worth your
consideration. Taxes and the daily cost of living play a huge part in the amount
of money one will need for retirement. Want to keep in touch with grandchildren?
Try any of the VOIP available - Skype, Facetime, Magic Jack, or Vonage. The
money you save by relocating can be used to purchase airfare to visit in person.
4. Consider other work
possibilities. If the idea of fully retiring frightens you, consider working
part time, cutting back the hours at your current job, doing consulting work, or
starting a second career. You'll still earn income, but you may not have the
same work demands of your current job. You may want to work from your home or
make money from your hobby. Even a little bit of income can go a long way in
stretching your retirement dollars. Exchange services with neighbors or friends,
and check out places like Craigslist, Current Exchange System or Simbi for how you can exchange services with your
5. Streamline. Examine
recurring monthly expenses in a new light. Items such as having a landline and a
cell phone plan at the same time can add up. Do you need more than basic cable?
Review your insurances and keep them up to date. You may be paying for more than
you need. You might also consider using a bicycle, public transport,
sharing a car or going
6. Track your expenses.
Before you retire,
your expenses for two years. If you are already
retired, begin tracking them now. Find out where your money is going. You may be
surprised to find places in your budget where you can live without that expense.
Are you paying for storage you don't need or use? Do you have an extra car or
you can get by with one? Are you paying for a boat slip or boat insurance that
is no longer really necessary? Perhaps you can replace a gym membership with
outdoor exercise or substitute DVDs from the library for your weekly movie
7. Pay down debt.
After tracking your spending, streamlining your monthly expenses, and possibly
downsizing your home, use this newly discovered cash to pay down debt. Seriously
weigh the idea of being mortgage free, or not maintaining a car loan. You'll be
in a far better position to retire comfortably if you are not lugging the burden
of unnecessary debt into your future plans.
8. Make your dream yours.
Give your dreams substance. Don't hide in a holding pattern or delay striving
for your ideal future "until things get better." Know what motivates you toward
your dreams, and write them down. Post them up and keep them in mind every time
you get the urge to give up, or when your interest flags.
If you create a personal
relationship with your particular bright future, then no one can take it from
you. If you know why your dreams are important to you, it will put power behind
figuring out how to achieve them. Don't let anyone drive a wedge between you and
In short, we recommend being
flexible and creative in describing your retirement dream. Open up to
possibilities that you may not have considered before.
Join online forums on
topics of interest to you to
find community and become self-reliant in creating
the retirement best suited for you. You may not be able to control the markets
or world events,
but look to what is within your power to change and improve: Your own
About the Authors
Billy and Akaisha continue to journal and photograph their
Retire Early Lifestyle Blog
About Billy & Akaisha