After Tanja Hester retired in 2017, she spent the next couple of years traveling, enjoying the outdoors near her Lake Tahoe home and writing a well-received book on the tactics to retire in your late 30s or 40s. Despite all this activity, as the world shelters in place in an effort to fend off COVID-19, or the novel coronavirus, Hester has a piece of advice for those that hope to retire one day at an extremely young age: Use this time to practice.
If youre struggling with the isolation or, for some, an increased amount of free time, its not any better when you leave the job and theres no structure at all, says Hester, author of Work Optional: Retire Early The Non-Penny-Pinching Way, who also blogs about her retirement life at Our Next Life.
For many employees, theyre dealing with working from home for the first time. The inability to leave the house has left millions feeling the impact of the isolation that can typically accompany a work-from-home lifestyle. But its that isolation that those who retire early have to prepare for.
With sheltering in place orders spreading across the country, the isolation can stress test your ... [+] notion of early retirement.
Only about 8% of retirees step away before their 50th birthday, but the past decade, along with a bull run that finally met its end in March, had given rise to the Financial Independence Retire Early (FIRE) movement. The notions within the group, super-saving their way to retiring as fast as possible, also meant you would have a lot of time to deal with your post-work life. While some may dream of flying off to far flung places, many others often use the tactics simply to escape the nine-to-five without a plan for what their days will look like once they leave the structure of a job behind.
While it might be difficult to find the silver lining while sheltering in place as dread fills the air over health and economic concerns, for those that have long sought early retirement, you can use the time as a wakeup call, says Hester. Isolation is part of the equation when you step away from the job at an extremely young age; this is an unusual chance to plan for it now.
Check in on your relationship
If you and your spouse spent the past week barely able to stand the sight of each other, then its time to work on the relationship, says Hester.
If both of you plan to step away from the job, then once that occurs, youll have more and more time with each other. For some relationships, thats a good thing. For others, it can draw out problems that already existed. Early retirement isnt a cure-all for divorce.
For Hester and her husband, Mark Bunge, it took them time to get in a routine that worked for both of them. They found that when they take trips, for instance, its best to keep them to four weeks at a time. Since they have their own hobbies, the length allows them to experience a new world, but then gets them back home to enjoy their individual pursuits.
He doesnt always want to do all the things I want to do, says Hester. But since theyre no longer a scarce resource to each other, Hester added, it required creating a new rhythm in their relationship to ensure they spend enough time together without stepping on their personal hobbies.
Tanja Hester retired at 38 to travel and write a book. It's the inability to handle isolation that ... [+] she finds ruins many early retirements.
The key to all of it, however, was that they discussed early retirement and savings strategies prior to stepping away from the day job. It wasnt one person leading the march, but a duel effort.
If youre pursuing early retirement and find all the time with the spouse confounding now, talk to each other about what you each imagine life like, once you no longer work. What do you want to do alone? What do you want to do together?
Allow the life vision to drive the money piece, added Hester.
Ensure isolation isnt everything
Most people dont dream of lounging around their house all day and eating beans and rice for dinner every night, so in many ways, the sheltering in place isnt the ideal test run. But it can provide you with clarity, if you realize that you dont know what you would do on a day-to-day basis.
Its important to remember that most of your friends arent likely pursuing the same goal, so you cant hang out with them each week just because youre now free to do what you want.
Most people come to early retirement, reacting to something, said Hester. For some its burn out from the job. For Hester, it was due to a genetic disability that could limit her chance to ski or hike in the future. People know they want freedom from the day job. Theres less thought to what do I want to be doing, she added.
Instead, youll need to build your own community, one that you can go to during the week. Will you volunteer? Will you take a part-time job working as an adventure guide? Will you start a passion project?
Whatever the case, you can take steps while in isolation today. You can take a class in an area you might want to pursue, sign up for volunteering for once the COVID-19 scare is gone, or launch that passion project. Do you enjoy the thought? It will give you a sense if you need to delve further into developing your post-work goals.
Find your new normal
No matter whether youre seeking an under-50 retirement or simply trying to adjust to a new work style, its about finding a normal that works for you.
For Hester, her schedule took shape as she had more time to let her body drive what and when she wanted to do certain things. Now, her mornings typically start slow, as she takes her time adjusting to the day.
In the afternoon, she will work on something, whether its her podcast, the blog, volunteering or even planning a trip. Then in the evening, its when she and her husband goof off.
A similar back-and-forth takes place during times when the market isnt humming, like the correction weve now entered. It requires eating out less or canceling trips. Its similar to right now, she added.
With the markets down, it requires adaption for those that hope to live on a portfolio for forty or more years. That might mean cutting your own trips or reducing your entertainment budget one year, leading to more time around the house.
In those cases, you have to adjust, just like youre hopefully doing by sheltering in place. If you cant, then it might mean saving more, ensuring your retirement life doesnt demand as many conditions.
Related: Your Money And Coronavirus: A Financial Protection Guide
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How To Use The COVID-19 Shelter In Place Orders As An Early Retirement Test-Run - Forbes
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