Sharing My Retirement Plans with My Dad
Hello $wanigans! What’s going on today? Last Friday I shared a “killer guest post” with J Money at Budgets Are Sexy. Below is a snippet of the post about sharing my retirement plans with my Dad, but please click over to his site to read the full post (and the comments are great too…!).
I have something personal to share with you all – an email from my Dad. And not just any old email… a special one, in which I’ve never received anything of the like before. My Dad was wanting to know more about my plans to retire early!
To say I was nervous when I saw his email would be an understatement…
While my Dad doesn’t know I have a blog (and neither do any other friends or family), he does know I do not want to work for the rest of my life. He knows I’ve accumulated a fair amount of wealth so far, although not the exact amount. And he knows my goal is to get out of the rat race early.
I have explicitly told him this before, but that’s the extent of it.
Until earlier in January… At that point, Pandora’s Box was opened. And it started with this email. (By way of reference, my dad is currently 63 and plans to retire in 2018)
My Dad’s Email
I always do a financial review at year end and it got me thinking about you wanting to retire early. I can relate, I was always planning to retire at 50. A few things to think about (you probably have already considered these, but anyway):
– I don’t think anything greater than a 7% long term return on your investments is realistic. You don’t have to go back too many years where a huge double digit loss was happening
– College education keeps increasing.
– Health insurance is really scary in the future. I’m planning $10,000/yr/person until medicare. You want to make sure you have a good ins. plan. Who knows how much this will increase. But $20,000/yr for 20 years is $400,000.
– If you ever do decide you want or need to re-enter the work force, it’s really hard to re-enter at the salary you were making before.
When I got to my early 50s I realized:
– I would be really bored.
– I still needed a purpose in life
– By working a few more years, mom and I could have this house and possibly a second home if we wanted.
– It was also a good feeling knowing that we could retire whenever we wanted.
Anyway, a few thoughts I wanted to share. I’d love to help you reach your financial goals if there is anything I can help with.
Have a good day,
What a nice note, huh!? Needless to say, he hit on basically all the major concerns any early retiree should think about. At the time of reading this, I didn’t realize that he ever considered early retirement. I always knew that him and Mom did a good job managing their money and were financial responsible folks, but they did have to raise four boys and paid for half of each of our college costs (in-state public school tuition).
I thought about how best to respond and decided it would be best to get some thoughts on paper, send them to him via email and follow up with a phone call. Below is my unedited response to my Dad:
Click over to Budgets Are Sexy to read the rest!
Thanks for taking a look!
The Green Swan