Early retirement sounds like a dream come true, but retirement planning is not all arcs and roses for most people.
“For most Americans, early retirement is not just a decision to make the longest vacation in their lives -it’s one of the biggest monetary mistakes they will regret,” writes Professor of Economics and Author Lawrence J. Klikoff in a CNBC column.
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Kotlikoff wrote that the reason is simple: “We, as a group, unpleasant saver, making early retirement inaccessible,” Kotelikof said. “Finarily, it is generally far more fascinating and far more intelligent to retire later.”
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Jeann Voronkova, who retires at 38 years old at Bali with her husband, said in a video on her YouTube channel: “Your retirement funds are never as stupid as you plan.”
She said this is especially true if your plans include enough to spend over 30, 40 or even 50 years in the event of early retirement.
Voronkova said that in the last few years, since she and her husband have retired, the costs of living have risen and prices have increased due to things like inflation, but they have been lucky so far to be able to go through the financial challenges.
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Joe Kun had a successful career as an operation manager and chose to retire at 55. Although 55 is more acclaimed than someone in the 30th or 40s, he is still considered an early retirement to society standards.
On his YouTube channel, Kun said he and his wife agreed about 85% of things when it comes to spending, but there are some “pinch points”. For example, Kun said before retirement that they donated a lot of money. However, he saw it well to reduce that amount in half after retiring until his wife did it.
“You know it seems to me obvious that if I don’t work, I don’t make the income I used and live from savings, we will not give the same amount. It seemed obvious to me; Well, it was not obvious to my wife, and it was probably one of the bigger arguments we had for money … ”
Kun also talks about how he and his wife did not see their eyes in view of the optional costs during the down markets. He gave some examples of planned costs that he is willing to make when the markets have decreased, such as a family wedding and a new car, but says he does not believe that unplanned, optional costs should be carried out during the markets.