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Retire Early
Lifestyle
Retirement; like your parents, but way cooler
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In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
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Are Your
Finances Ready for Your Eighties?
Randall Johnston
We
don’t talk enough about money and getting older, probably because most people
would rather eat a dry saltine in silence than discuss both in the same breath.
But the truth is, you’re gonna need money when you’re eighty, and it’s not the
“cute little nest egg” people like to joke about while ignoring it. It’s real,
and the sooner you’re straight with yourself about it, the less likely you’ll be
fumbling around later, half-listening to a financial planner who calls you
“buddy” while skimming your statements.
The Part No One Wants To Hear
You’re not invincible. Sorry. And if you’ve hit sixty without a plan, it’s not
too late, but it’s also not the time for denial. Retirement isn’t a finish line,
it’s the start of decades where you’re not earning in the same way but still
spending, often more than you think, on things like heat, a decent pair of shoes
that doesn’t make your back hurt, and medications you can’t pronounce. Inflation
doesn’t care that you’re done working, and your taxes won’t either.
You
want to aim for
financial freedom, not some vague idea that “it’ll work itself
out.” That’s how you end up stuck between asking your kids for help and letting
bills slide because you’re too proud to say you need a budget. Pride doesn’t pay
for groceries. Getting honest about what you have, what you owe, and what you
want your daily life to look like in the coming years beats living in la-la
land.
Health Costs Aren’t Just A Line Item
If
you’re healthy now, good, stay that way. But don’t bet your retirement on it.
Healthcare costs can swallow a budget like a toddler with a cookie, and
long-term care isn’t some niche concern for “other people.” You don’t want to be
in a spot where you’re deciding between in-home help and keeping your lights on.
Medicare is great, but it’s not a golden ticket to free care. Many people are
shocked when they see what’s not covered and how quickly out-of-pocket costs can
add up.
Long-term care insurance can help, but only if you get it while you’re still
insurable. If you can’t or don’t want to, then you’ll need to earmark part of
your savings for future care, no matter how boring that sounds. Look, your
joints might betray you, but your budget shouldn’t.
Retirement Isn’t A Vacation
Retirement is a shift, not a permanent vacation, and that’s fine. You can still
enjoy your hobbies and that afternoon coffee ritual without draining your
accounts to keep up with some influencer’s idea of “living your best life.”
Part-time work, consulting, or taking on seasonal gigs can keep income flowing
while giving structure to your week. It’s not about working forever, it’s about
making sure you don’t shrink your life down to your living room because you’re
scared to spend money.
Now’s the time to map out where your income will come from: Social Security,
pensions, IRAs, Roths, maybe even a rental property if you’ve got one. Know
what’s coming in, what your tax implications are, and how you’ll pace
withdrawals so you’re not racking up penalties or pulling out too much too soon.
And
yes, you should think about
planning for senior living while you’re still able
to choose what that looks like. The best time to figure out where you want to be
if you can’t drive or handle a two-story house anymore is before you’re forced
into a rushed decision. Good senior living communities are like well-run small
towns, but you’ll need to understand the fees and the lifestyle differences
before jumping in.
Don’t Get Scammed Now
You’d think the world would leave older people alone, but you’d be wrong.
Scammers love seniors, and they’re good at what they do. They’ll call you about
fake Medicare cards, pretend to be your grandkid in trouble, or act like your
bank asking for your login info. Never give out personal details over the phone
unless you initiated the call, and even then, pause before you do.
Your best defense is to stay informed and keep your support circle active. Let
your family know you want them in the loop with financial decisions if you’re
ever unsure. If you’ve got someone you trust, add them as a second set of eyes
on your accounts to watch for weird transactions. It’s not about losing
independence, it’s about keeping it.
Your will,
power of attorney, and advance directives aren’t “depressing
paperwork,” they’re tools that protect you and the people you care about. You
don’t want the state deciding who gets your mug collection or your savings
account. You don’t need a fancy lawyer for everything, but you do need a plan.
Keep Your Lifestyle, Not Just Your Money
All
this talk about budgeting and planning doesn’t mean you should spend your
seventies eating canned beans by a single lightbulb to save a buck. Money is a
tool to keep your lifestyle, not something you hoard until you’re too frail to
enjoy it. Take the trip, visit your grandkids, keep going to your pottery class,
and buy the decent mattress. Just make sure it fits in the budget so you can
keep doing it next year, too.
You
want to avoid lifestyle creep, but you also want to avoid the opposite: a
shriveled life because you’re terrified of spending. Find that middle ground
where you know what your money is doing so it’s not calling the shots behind
your back. Track your spending for a few months if you’re not sure where your
cash goes. It’s often eye-opening, and you can usually find ways to trim without
losing the stuff that actually makes life good.
You’ve worked too hard to get to this point only to be taken down by mindless
spending or avoidable debt. Your future self will thank you for handling the
unglamorous details now so you can keep the parts of your life that matter.
Getting older is a privilege, and having enough money to live how you want makes
that privilege sweeter. You don’t need to be rich, you need to be ready. It’s
not about living in fear of the future but about respecting it enough to plan.
You don’t have to do everything at once, but you do need to start. The best time
was probably a while ago, but the next best time is right now. And if you’re
already on top of it? Pour yourself something nice tonight. You’ve earned it.
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About the Authors
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
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