The following is a guest post written by Corey from Passive Income to Retire and 20’s Finances.
Do you have a plan for retirement? Is it what you look forward to? Does it help you stay motivated and get through the work week? What if life wasn’t supposed to be about waiting for your life to begin?
What is Your Retirement Plan?
A co-worker of mine has a clock on his desk at work. The clock isn’t an ordinary clock that is set to the time of day. In fact, the clock is going the opposite way. It is counting down to his retirement by the day. This would normally suggest that he is just a few days or months away from retirement. Strangely enough, he is just under 17 years away from retirement. That’s right, it’s not a typo – 17 years!
Can you believe someone would count down 17 years (by the day) to his retirement? Strangely enough, this is what a lot of us do. We buy into the typical understanding of retirement instead of defining it for ourselves. I used to think this same way. In fact, I provided another guest post for retireby40 about my retirement plan. I suggested that because I have lots of time, I didn’t have to stress about the details. I would rather save more money to provide me the luxury of not having to stress about it. Since I’m young, I also have time and compound interest on my side.
The Best Retirement Plan Changes
Believe it or not, in the past three months, my retirement plan has changed. I now have an alternate retirement plan. I know you are thinking I am just another wishy-washy person in their 20’s, who doesn’t know what they are doing. Heck, you might be right. But I think that the best retirement plan changes. If it didn’t change, it would suggest that you are not taking into consideration your current status of your assets. While setting goals may motivate you, if they are too rigid, you will become disenchanted with them. You will fail to see the importance of them and give up on them all together.
My Retirement Plan Now
That is why it is better to change your plans when your world changes. Don’t try to hold on to a thing of the past. In this light, I am switching my retirement plans. Instead of buying into the typical retirement plan, I plan to retire in 2-3 years. By retire, I certainly don’t mean sit around and do nothing. But, I do plan to work less days than I don’t work. That’s right, my goal, as I see it now, is to “retire” in a few years with passive income (or semi-passive) to live off of (that supplements my wife’s salary). The only regulation is that I am able to manage these income streams in 3 days or less and that it replaces my current salary at my day job. Can you imagine only having to work 3 day a week starting at 27?
I may be shooting for the stars, but think about the possibilities of making this happen. I would have so many more possibilities and options with my life. I created my new site to track my progress and inspire others to resist the traditional understanding of retirement. Certainly everyone’s situation is different, but I figure that I have nothing to lose. I am going to give it all I have and see where I come out. At the very least, I will build up a decent side income. If it works out, I will be one happy person!
Has Your Retirement Plan Changed?
retirebyforty> That’s great! I can’t wait to see if Corey can do it by 27. I’m sure he can create alternative income streams and quit his day job, but I predict he’ll still be working 5-6 days/week. When you choose what to do with your time instead of following order, you want to spend more time doing it. My exit strategy is a bit more structured since I’ve been working at it for a while, but I like Corey’s plan too. I’ll be keeping an eye on his new blog – Passive Income to Retire.
Passive income is the key to early retirement. This year, Joe is increasing his investment in real estate with CrowdStreet. He can invest in projects across the U.S. and diversify his real estate portfolio. There are many interesting projects available so sign up and check them out.
Joe also highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help DIY investors analyze their portfolio and plan for retirement.