Crossroads- Retirement and cruise or continue to work?

[RCook]

I retired after 30 years at age 51. My wife and I both worked demanding jobs. We got into cruising while still employed, with a 22' C-Dory, on big western lakes, the San Juans and BC, and even a couple of months in SE Alaska.

By now we've cruised the Inside Passage on three different boats some 25 summers. Plan to keep doing it as long as I'm able.

Go Now

 

[Zoar]

Good thread. I am also in that place of trying to figure out how much I can Trawler verses how much I "need" to work.

 

[menzies]

Very interesting thread. One comment and then one question for parents on here.

The comment: I worked at a company which had a pretty good (actually very good) financial reward system for senior management. During my last couple of years there as I was getting ready to retire, I was constantly surprised by the number of people whom I absolutely knew had more money that they could ever spend, continuing to work - and in some pretty high pressure roles.

Was it the sense that they had to keep earning, or the sense that they were contributing to the success of the company, or to the broader goal of healthcare, or were they just scared to wake up one morning with no goal in life because they had not paid attention to aspects outside of work?

Truthfully it was hard to look at each of them individually and get a sense of what drove them to continue working. Most of them are still there today. Plugging away.

The question of parents, those of you who have some wealth or will have. Do you think it is healthy to financially provide an early retirement for your children? Specifically do you feel that your estate, in whatever way you structure it, should be passed on when you die, or would you be willing to hand enough of it over (lets say tax impact neutral) to allow them to retire at, say, mid-fifties, so that your money results in that benefit?

Should they wish to of course!

 

[rslifkin]

I've known some people that kept working just because they enjoyed it and didn't have enough else to do. And some are better off working because they're not good at being retired (these are the ones that often die early as they don't keep themselves active mentally or physically). Some keep working because they feel like they have to. And some retire as soon as they feel like they're able.

 

[MYTraveler]

Was it the sense that they had to keep earning, or the sense that they were contributing to the success of the company, or to the broader goal of healthcare, or were they just scared to wake up one morning with no goal in life because they had not paid attention to aspects outside of work?

Some people actually enjoy their jobs and fear that retirement will be boring, at best, in comparison. I can't imagine what I would do if I didn't have the daily challenge and stimulation that my work offers. Three day weekends kill me -- by the third day I am really looking forward to getting back to the office. About a week at a time is all I can spend on my boat before that gets old. Same thing with conventional travel. I see guys at my yacht club who retired from the excitement of running a big company and they are pulling their hair out looking for committees to run, etc.

I guess I am one of those people with no other goals, but I can't imagine what worthwhile goal I could have that would occupy me daily

 

[jimfrens]

I retired in May at age 65. I can't imagine how I ever had time to hold down a job.

No one ever went to their grave wishing they had worked more. Retire as soon as you can.

 

[MurrayM]

Was it the sense that they had to keep earning...or were they just scared to wake up one morning with no goal in life because they had not paid attention to aspects outside of work?

As many reasons as there are people, but I can speak to those two.

A number of years ago I was talking to a fellow about our upcoming retirements. He said, "I just don't know how I'm going to be able to survive on my pension" so I asked him how much it would be. "Fifty thousand a year" was his reply.

I let him know that was pretty much what I was making as a salary, with a stay at home wife and a daughter. He was a much more bloated goldfish in a much bigger bowl

A couple times a year I get retired guys coming up to me as I deliver mail (usually on nice sunny days) asking me how to get a part time job at the Post Office because they're bored in retirement and need something to do.

WHAT?!!?

Hasn't there been some passion in their lives they've had to restrict time and energy from because their job parasitically sucked that time and energy away?

When I think about my goals for retirement I get butterflies in my stomach

 

[MYTraveler]

I retired in May at age 65. I can't imagine how I ever had time to hold down a job.

No one ever went to their grave wishing they had worked more. Retire as soon as you can.

I would look forward to retirement if I thought I would be busy doing stuff I like more than work (and, truth be told, only about 50% of my time is highly enjoyable, the rest is consumed with HR/personnel issues, insurance, reviewing reports and the like, but even that is usually not boring). So, I would sincerely like to know what you do that is so much fun. I see retired people spending the bulk of their time going out to lunch, playing golf, fishing, going on vacation, skeet shooting, etc., which has to get old quick.

 

[menzies]

I would look forward to retirement if I thought I would be busy doing stuff I like more than work (and, truth be told, only about 50% of my time is highly enjoyable, the rest is consumed with HR/personnel issues, insurance, reviewing reports and the like, but even that is usually not boring). So, I would sincerely like to know what you do that is so much fun. I see retired people spending the bulk of their time going out to lunch, playing golf, fishing, going on vacation, skeet shooting, etc., which has to get old quick.

Its a very, very big world!

http://atanchor.com/?page_id=1620

I can't even keep up with the photos as we keep on moving!

 

[MurrayM]

So, I would sincerely like to know what you do that is so much fun. I see retired people spending the bulk of their time going out to lunch, playing golf, fishing, going on vacation, skeet shooting, etc., which has to get old quick.

The question might be; why are they able to be happy/satisfied in the moment and/or be fully 'present' during an experience?

Besides work, what fires a passion in your belly?

 

[BandB]

I think there are multiple reasons those who could afford to retire don't.

1. They've been their jobs. Not been doing them. Their jobs and their self identity have been the same. They've taken all their self worth or a large part of it from their jobs. It's the Protestant Work Ethic times 100. People measuring their own value by their work productivity.

2. They want more. Greed has become second nature to them. Never enough money or power.

3. They've worked so hard, so many hours and days, they've developed no other serious interests. They can't imagine life without their jobs.

 

[BandB]

As to leaving money for kids and others. We will protect ourselves but we will also distribute money to those younger and close to us along the way to help make their lives as easy as possible.

One example that shows our plan. We have a girl who we consider a daughter and she considers us her parents even though we first met her right before her 18th birthday. At 18, she had no idea what she wanted to do in life, but started at community college and taking a variety of courses and it hit. She got her degree, masters and doctorate and today is running our Foundation. We never pushed her at all in that or any direction. However, she has had one advantage and that is she never had to consider money in choosing a career. We pay her well and gift her well each year. We will do more. She's in a job that anyone has to ultimately burn out to some degree in. I sure would quickly. She knows when that time comes, if it does, she's protected. We do give her lots of vacation because when you're dealing with the problems of people every day on your job, you need time away from it. Stress on a job isn't worrying about making a dollar, it's when you worry about being able to help someone who is really in need.

We could have told her she never needed to work, she'd be taken care of. Or, we could have told her she was on her own. We feel like we found the middle ground that works for us.

There are also other "family" members, young persons we're close to. We will always to extra for them but they all are good kids and hard workers. Are we spoiling them all? Perhaps although they don't come to us asking for anything ever. We just do it when we choose so I don't consider that spoiling them. Regardless, that's the path we've chosen.

 

[MYTraveler]

I think there are multiple reasons those who could afford to retire don't.

1. They've been their jobs. Not been doing them. Their jobs and their self identity have been the same. They've taken all their self worth or a large part of it from their jobs. It's the Protestant Work Ethic times 100. People measuring their own value by their work productivity.

2. They want more. Greed has become second nature to them. Never enough money or power.

3. They've worked so hard, so many hours and days, they've developed no other serious interests. They can't imagine life without their jobs.

Of the three categories you identify, I may have a little of #1 (as a kid, I didn't miss a day of school due to illness from the first grade though the 10th grade -- I felt like I would be a slacker if I stayed home needlessly -- plus I had remarkably good health) and #2 (I do like money, though I am not a spender and I don't "love" money), but I am predominantly #3. Still, I think there is a category you missed -- the possibility that one's job is more stimulating than retirement could be. Time away from the office is only fun for me because its different -- it doesn't take long before I wish I was back and I attribute that to the "fun" I have on a daily basis. I go to bed thinking about what I want to do the next day. And 90% of that is not worrying about how to fix a problem but instead to capitalize on an opportunity.

 

[menzies]

As to leaving money for kids and others. We will protect ourselves but we will also distribute money to those younger and close to us along the way to help make their lives as easy as possible.

One example that shows our plan. We have a girl who we consider a daughter and she considers us her parents even though we first met her right before her 18th birthday. At 18, she had no idea what she wanted to do in life, but started at community college and taking a variety of courses and it hit. She got her degree, masters and doctorate and today is running our Foundation. We never pushed her at all in that or any direction. However, she has had one advantage and that is she never had to consider money in choosing a career. We pay her well and gift her well each year. We will do more. She's in a job that anyone has to ultimately burn out to some degree in. I sure would quickly. She knows when that time comes, if it does, she's protected. We do give her lots of vacation because when you're dealing with the problems of people every day on your job, you need time away from it. Stress on a job isn't worrying about making a dollar, it's when you worry about being able to help someone who is really in need.

We could have told her she never needed to work, she'd be taken care of. Or, we could have told her she was on her own. We feel like we found the middle ground that works for us.

There are also other "family" members, young persons we're close to. We will always to extra for them but they all are good kids and hard workers. Are we spoiling them all? Perhaps although they don't come to us asking for anything ever. We just do it when we choose so I don't consider that spoiling them. Regardless, that's the path we've chosen.

Sorry, while that is interesting, it doesn't really answer the question I presented.

For those parents (i.e, people with children) on the forum, will you pass your wealth onto your children in amounts sufficient enough to ensure their ability to retire without concern when they are in their mid-fifties. And take the tax hit when doing so, rather than waiting to leave it to them in your estate on death, with all of the tax benefits that your estate may be able to garner at the stage?

 

[klee wyck]

Of the three categories you identify, I may have a little of #1 (as a kid, I didn't miss a day of school due to illness from the first grade though the 10th grade -- I felt like I would be a slacker if I stayed home needlessly -- plus I had remarkably good health) and #2 (I do like money, though I am not a spender and I don't "love" money), but I am predominantly #3. Still, I think there is a category you missed -- the possibility that one's job is more stimulating than retirement could be. Time away from the office is only fun for me because its different -- it doesn't take long before I wish I was back and I attribute that to the "fun" I have on a daily basis. I go to bed thinking about what I want to do the next day. And 90% of that is not worrying about how to fix a problem but instead to capitalize on an opportunity.

I am with Traveler on this topic. Play time is good and I look forward to it, but it gets old for me pretty quickly. I am pretty certain that I would age faster without meaningful work. The opportunities that present almost daily are interesting, engaging, and invigorating.
Nice to have the option for both and I am grateful that I have spent the better part of my existence looking forward to every day, not just the weekends. My goal is that ‘retirement’ is not an all or none proposition and so far, so good.

 

[Zoar]

i can't fathom being bored. Apparently being an inventor and someone who has never been bored makes it so.

 

[MurrayM]

I guess much of it depends on how your brain is hard wired.

Being an artist is much like an iceberg in that 10% is the work you create and 90% is ruminating over what to do and how to do it. Additionally, there is no right or wrong answer to anything so one can go romping down time sponging tangents, but these sometimes lead to discoveries, so it's all good.

Being an artist means never being bored as there's always something to think about.

 

[BandB]

Sorry, while that is interesting, it doesn't really answer the question I presented.

For those parents (i.e, people with children) on the forum, will you pass your wealth onto your children in amounts sufficient enough to ensure their ability to retire without concern when they are in their mid-fifties. And take the tax hit when doing so, rather than waiting to leave it to them in your estate on death, with all of the tax benefits that your estate may be able to garner at the stage?

Answer was will pass it on sufficient to ensure their ability to retire when in their mid 50's or sooner. Will insure against estate taxes through life insurance.

 

[BandB]

I guess much of it depends on how your brain is hard wired.

Being an artist is much like an iceberg in that 10% is the work you create and 90% is ruminating over what to do and how to do it. Additionally, there is no right or wrong answer to anything so one can go romping down time sponging tangents, but these sometimes lead to discoveries, so it's all good.

Being an artist means never being bored as there's always something to think about.

I think it also depends some on the people you're surrounded by. They keep us from any chance of boredom.

 

[Zoar]

Here is my plan:

(background: I live in the Finger Lakes of NY. I am an inventor and have 3 businesses that are based on my inventions of products that I have commerialized and built companies around. I live OFF THE GRID on 21 acres on a mountain that overlooks one of the finger lakes. There is a gorge with 9 waterfalls on the land. It is one of the most beautiful properties I have ever seen.)

My plan is to sell or license, thus semi retire from the primary company and live 8 months of the year here and live 4 months of the year on a Trawler I am in the process of buying. The trawler will come up to the Finger Lakes in the spring. Then in the Fall I will bring it down to somewhere between Savannah and St Augustine. Then on DEC 1 we will go down and travel across to Bimini and the Bahamas and spend the greater part of 4 months in the Bahamas starting Dec 2020 to April 2021. I will need to communicate via email and phone and perhaps even do a business trip or two during this time but the outline of the plan is starting next Dec 4 months on the Trawler in the Bahamas and 8 months in the Finger Lakes of NY. Hopefully entering semi-retirement.