Why Do We Take So Long To Retire?


I found myself reading this article about a 30 something who retired early to travel. What a great goal not only to set but also to accomplish. She paid off $100,000 in law school debt with a bonus from her employer, worked her way up to make $360,000 a year, saved $700,000 in a short period of time and “retired” to travel.

While reading this Forbes article, it got me thinking, and rethinking, and I began to ask why does it take so long to retire?

Retirement Planning

3 Reasons People Put Off Retirement

I think it comes down to 3 reasons:

  1. Values
  2. Money
  3. Relevancy

Values – our checkbooks truly show our priorities.

I’d suggest that “retiring” with only $700,000 in your early 30s will not be enough to make a “traditional retirement” enjoyable for my typical client. This assumes a 5% rate of return and living off the interest; a gross income of $35,000 won’t cut it.

I Want Her to Prove me Wrong!

I think we can retire early, yet retiring with only $700,000 just won’t cut it for someone in their 30s. Especially, when you factor in life expectancy. She could live for 50 years. That’s a long time! $700,000 is a nice sum of money, but when you factor in life, I suspect it won’t be enough for the long run.

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