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AT A PARTY GIVEN BY a billionaire on affluent Shelter Island, New York, author Kurt Vonnegut informs his friend, Joseph Heller, that their host had recently made more money in a single day than Heller had earned in total from his hugely popular novel, Catch-22.
To that, Heller replies, “But I have something he will never have.”
“And what is that?” asks Vonnegut.
“Enough,” says Heller. “Enough.”
The story may be apocryphal—I’ve read a similar version featuring J.D. Salinger, author of The Catcher in the Rye. Still, it illustrates the importance of knowing what’s enough.
If you’re a bestselling author with royalties rolling in every six months, you may not want for much if your spending isn’t extravagant. Heller’s wants and needs were less than those of a titan of industry, and so more easily satisfied.
Money is both relative and a matter of perspective. For example, whether you have $6 or $10 in your pocket, it probably won’t change how you go about your day beyond, say, influencing your choice when it comes to buying a snack or a morning coffee.
Similarly, whether you have a $6 million or $10 million net worth probably won’t change how you lead your life, except perhaps causing you to make somewhat different decisions about philanthropy and estate planning.
But what if the difference is $600,000 or $1 million? That might determine whether you take an earlier retirement or continue to work. At $600,000, you might be notably more cautious about spending, while $1 million would offer more of a cushion and greater peace of mind.
That difference in the perception of whether we have enough often drives whether we work later in our lives. According to the Bureau of Labor Statistics, “Americans over the age of 55 will take roughly half of all new jobs created in the next decade, economists estimate, as the U.S. population ages and more people postpone retirement. What’s more, the biggest jump in labor force-growth in coming years will come from those age 75 and older, where overall employment is projected to nearly double by 2030.”
My wife and I are approaching the “what’s enough” quandary in several ways. As empty-nesters, we continue to work and to add to the coffers, while enjoying life without being extravagant. We also work with a fee-based financial planner to plot out various retirement scenarios and to help us manage our financial risks.
In the coming years, we’ll practice what I preach and begin a phased approach to retirement by gradually reducing the amount we work. For now, we’re relatively healthy. Fingers crossed, this will continue and we’ll be comfortable waiting to claim Social Security, thereby reaping higher monthly payments.
Over the decades, we’ve seen plenty of business titans succumb to greed and engage in illegal activities because they seemed clueless as to what constitutes enough. Our goal is to follow Heller’s lead—or is it Salinger’s?—and adopt the mentality that whatever we have is indeed enough.
My husband and I are at the same stage you and your wife are. We could retire now if we want to (we’re 62) but are both making good salaries, and my pension will be higher if I stick it out until 65. I’ve definitely dialed back on areas of my career, and we’re trying not to postpone things we want to do until retirement. But he had a health scare this year, and it definitely reminded us that those carefree retirement years are not a guarantee, even if you have “enough” money.
Thanks for your thoughtful article.
DrLefty – appreciate your comments. And it serves as a reminder that ‘enough’ can be enough financially, or enough good healthy years, or enough interests to occupy yourself, etc.
I also agree with a worker gradually slowing down from the work environment. Having a work life, is so ingrained when we’ve done it for decades it’s a shock to the ol system to go cold turkey.
I had problems with it when I left, however as mentioned in another post, attitude makes or breaks us.
We can control our thoughts, it takes discipline and work, but the reward of correct thinking is worth the effort.
Enough, I feel is determined largely in our minds. The investment advisors make a point of a client having the same level of life after retirement as before.
My position on that is, if I make such a big change in my life as quitting to work, I would expect to make similar changes in my lifestyle. I take that as a truth and that plays in to my own ‘enough.’
Donny – you make some great points about your experience. Once again, there’s no ‘cookie cutter’ answer since every situation and perspective is unique. But big transitions like this can certainly be a shock to the system as you say!
Sometimes it helps to compare and other times it doesn’t.
Comparing myself to those struggling to make ends meet each day, I definitely feel i have enough. Walk around in a third world country….enough for sure and feeling damn lucky too boot.
On the other hand, compared to writers on this blog, probably barely enough.
Johny – you’re right that we’re fortunate to be able to discuss such topics. And perhaps be in a position to actively help others to boot.
“Enough” is when you don’t have to fret about money – either too little or too much of it.
Chazooo – you’ve provided a good yardstick to measure something that’s very subjective!
Dan, I’m likewise a fan of phased retirement, when it’s possible. I had that freedom towards the end of my career and began to go in later, come home earlier, and take off some Fridays. It gave me a pretty good idea that I was going to like retirement just fine.
Andrew; thanks for sharing your experience. Your ability to ‘pilot’ having more time available sounds like it eased the transition. Good for you!
Dan, thanks for a great article. Best of luck in your retirement phase-in I look forward to reading about how it is going. Happy New Year.
Rick, thank you for your comment. I’m still some years away from that process, but considering and learning from other readers here is helping me with a roadmap for the future!
Dan, I’m at the same place in my work and my thinking, and trying to separate the financial facts from my emotions. I think I’m nearly ripe for picking, but I know I’m green about unemployment, and I don’t want to rot. I’ve been pondering the idea of phasing out for a couple of years, but haven’t pulled the trigger. I hope we both make a good decision.
Edmund, thank you for your comment. I like your “fresh take” on the concepts discussed here and feel good that we’re thinking about these things well in advance of any decisions.
You make good points. But we need to remember that it’s all relative. How we define extravagant, frugal, comfortable, even “enough” varies greatly.
I know people who feel they are retired comfortably who have very little in the bank.
Thank you for the reply and the emphasis on our assessments being relative…appreciate the thought.