I’m Ready to get out of the Rat Race

Q&A with a Reader 

I’m going to be 61 this year, and I’m ready to hang it up.  I do not have a lot in retirement because of divorce and  a little cancer scare, but still kicking, hate my job and ready to say quit.  I have a couple of options, like moving into a room with my kids in an area that I really like. And, yes I would like to become a gypsy.

Are you doing Obama Care for health insurance ??  I could sell my house and put that money into an account that could earn interest income. I have already talked to a financial guy about that.  Did you do early retirement at 62 for social security? That is another thing I am debating about.  Have to get out of this rat race.  I have no problem being a minimalist.

Yes I would pay off my car and one other account, then be debt free if I sold the house.

What are your thoughts??

Thank you.

Vicky

Reduce your cost of living. Pay less for medical care. Find better weather. Create a healthier way of life.

Hi Vicky,

You bring up a lot of good questions and I think, given your personal flexibility, you could have several options that might work for you.

If you would like to become a gypsy, renting a room out from your children could be the best of both worlds. From there you could travel for weeks or months at a time. You could house sit all over the world or just in the US and Canada, if foreign locations worry you. But if you do go overseas, that could also be your answer for medical care, at least until Medicare kicks in for you.

We have utilized medical tourism for decades and it’s our primary means of getting care. We are not on any plan from the Affordable Care Act and we stay out of the country for the required amount of time to not have to pay the penalty. You could consider your choices in this area of your retirement life and then decide what you would like to do – apply for Obamacare, live overseas for the required amount of days, or go back and forth from your children’s home and pay the penalty.

If you decide to live overseas for a greater period of time, you might consider going car free. I realize that living in the US without one’s own vehicle it is more of a challenge than it is overseas, but there are certainly cheaper ways to obtain transport than owning a car. You might research this topic so that you have all the information available to you to make a clear decision. Even paying a girlfriend, taking a taxi, utilizing Uber, using mass transport, bicycling, walking, etc. are all cheaper than the expenses of maintaining a vehicle.

We did decide to take Social Security at age 62 and you can read about it in our article on this topic. This may or may not work for you, depending on what you choose to do in your retirement. – Getting back to house sitting as a housing option, this would save you thousands of dollars a year in housing costs, and being car free would do the same. So your spending could be different than you might have already thought about. I don’t know what your financial adviser said, but you may be able to purchase stocks and obtain dividends for your income, which might be more than simple interest on your money.

Things to think about.

Do you track your spending now? Do you know what you need annually to cover your costs?

I hope these suggestions are useful to you and if you have further questions, feel free to write again.

Wishing you all the best,

Akaisha

About Retire Early Lifestyle

Billy and Akaisha Kaderli retired two decades ago at the age of 38 and began traveling the world. As recognized retirement experts and internationally published authors on topics of finance and world travel, they have been interviewed about retirement issues by The Wall Street Journal, Kiplinger's Personal Finance Magazine, The Motley Fool Rule Your Retirement newsletter, nationally syndicated radio talk shows and countless newspapers and TV shows nationally and worldwide. They wrote the popular books The Adventurer's Guide to Early Retirement and Your Retirement Dream IS Possible.
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