Talking to pursuers of Financial Independence (FI) of different generations, I am coming to notice some differences between those of us who are older from those who are younger. To some degree, the changes brought on by the current COVID-19 situation have made me think about this some more.
On the positive side:
- We are tested. We have seen ups and downs in the economy, in our work history, in our fortunes, and in our lives. While changing events in any area of our lives or in the greater world still bother us, we have some confidence that this too shall pass.
- We may be more prepared. We have hopefully developed multiple income streams, diversified our investments, and normally keep a useful supply of staples on hand, so that we are not as fearful of specific changes. That said, we were at a lower level than our normal safety stock of paper towels when the recent shopping crisis hit, but we were not at zero. I had time to build the stock back up to a safer level. We had enough of everything else though.
- Our financial stress is mostly behind us. Our kids are grown and doing well. Our investments took a hit like everyone else, but they are still in good shape. We are completely out of debt. Our base expenses are low. Our savings rate is high.
On the negative side:
- Health concerns. We are not only concerned about our own health, but the health of our aging parents. We are doing our best to get exercise, eat right (that one may be debatable 🙂 ), take our medicines and consult with our health experts.
- Change in income – we are experiencing some of our best income years, but anticipating retiring, we have fewer years left to earn this good money. Once we quit the high-income job it will not be as easy to earn this much again. This higher income could be masking some poorer choices, although we really have reduced most expenses. Sometimes this is called the ‘one more year’ syndrome.
- Concerns with what comes next. Will I really take on the projects that I know need work (around the house for example)? Will I maintain enough social contacts to avoid the isolation that hurts so many older people? Will I find productive uses for my time (fear of watching too much TV)? These concerns can affect younger retirees as well, but it would appear that the younger retirees have more energy and perhaps more options to reverse course if needed.
(Note: I started writing this post in April, before my retirement date was set. It seems to be standing up though, now that retirement is for real.)
A month into retirement I have spent some of the time catching up on sleep (seems almost hopeless), doing yard work, working with my local improvement association, watching probably a little more TV than is healthy (but I am almost caught up on Mrs. Maisel!).
There were a number of logistical items to deal with regarding my employer separation – forms to fill out, equipment to return, 401K to transfer. We still need to select next year’s health care provider, a scary task.
I am trying to devote more time to blogging. Make no mistake, this is work, but I enjoy it. I have a lot of articles I want to write, meaning lots of thoughts swimming in my head.
I have also done a little DIY. Biggest success to date: with the help of a neighbor who has the right tools and understanding of how things work, we located the safety switch beneath my riding lawn more and replaced it. A $10 part that saved me from having to buy a $6000+ (new) one. It took us a number of hours to get to it, prove it was the issue, confirm the correct part (my mower is roughly 20 years old and part numbers change over time), and replace it. Fortunately my neighbor is also retired. As my property is rugged (to put it mildly), I need a sturdy vehicle for this job. So I am quite grateful my neighbor was able to help.
Another win involved our printer, also a few years old. The print quality was horrible, even after replacing the ink cartridge. My wife wanted to order a new one (printer that is, she tried 3 ink cartridges with no luck). I did some googling and found an article with all the possible methods of cleaning the clogged nozzles. The easiest method, using the printer’s own capability to clean it, worked. Printers are not super expensive but still, no point buying one when this one works fine.
We are preparing to visit friends in West Virginia – they are even more isolated than us (and we are being careful), so we feel safe doing this.
Bottom line is that I am keeping busy enough (getting walks in almost everyday). I have not tackled any major projects inside the house yet. Other than that, so far, so good.
If you are newly retired (whether senior or not) or you are looking at retiring closer to traditional retirement age, as I did, let me know about your story. Are there questions you would benefit from me covering as topics?
November 1 is open season for enrollment in next year’s health care plans – I will document what we picked and how we are managing this, once we pick our plan.
You can always drop me an email at tiedyeseniorfi@tiedyeseniorfi.com