An early-career layoff shocked me into re-evaluating my priorities. I was forced to confront the reality that getting my financial house in order was far more important than climbing the corporate ladder. I decided that a combination of investment/side gig was what I needed and when I found a new job, I started investing in rental real estate. I kept up contributions to my 401(k), but also acquired a few rentals. In about 10 years, this produced an amazing transformation. Even though my job produced most of my income, the rentals provided enough that I was confident I could survive without a job if that became necessary. This reduced my stress and, allowed me to work fewer hours, and let me express my own opinions rather than following the company line. Somehow, this made me more valuable and my career flourished. I still managed to retire at 62, and through the tax magic of a 1031 exchange, the rentals moved with me to our retirement location. So, essentially I brought a part time job with me where I am the boss and cannot be fired. This is much less onerous than working for someone else. Instead of having to worry about what company policy might be on any issue, I make company policy. It is a great retirement.
When I bought a 20' round swimming pool for the grandkids I needed to set it on a bed of sand. Home Depot didn't have 20' circles of anything, but a little trigonometry and I was able to make an octagon of treated 2 x 6 lumber to keep the sand contained. Made it slightly larger than the pool on the first try. When I was framing an addition to our house openings for windows and doors needed to be perfectly rectangular. Remembering trig from high school convinced me that if opposite sides were equal and both diagonals were the same everything was square. No calculation required, just make them the same.
I "retired" in 2007. After a mid-career layoff I spent 20 years at a large aerospace company. There was a lot of stress primarily based on the company needing to keep contracts coming in which meant that continued employment was always uncertain. The way I handled this was to start a money-making sideline, in my case, rental real estate. As this sideline increased my stress level decreased. I had ways to keep at least some income flowing even without a job. I kept the 401(k) contributions up but also put money into the real estate. While a lot of people said I "retired early" from my job, I had a different attitude -- I declared myself independently wealthy. Sure I had a pension and SS, but I also had a small business. Through 1031 exchanges I moved the real estate to a new, lower cost location and have been there for 17 years. Managing the real estate takes 10-20 hours per week, which is just about perfect for having both a sense of purpose and spare time for volunteer work. Not only does this avoid the lonely and adrift sensations, it also does a lot to keep our income up with inflation.
Comments
An early-career layoff shocked me into re-evaluating my priorities. I was forced to confront the reality that getting my financial house in order was far more important than climbing the corporate ladder. I decided that a combination of investment/side gig was what I needed and when I found a new job, I started investing in rental real estate. I kept up contributions to my 401(k), but also acquired a few rentals. In about 10 years, this produced an amazing transformation. Even though my job produced most of my income, the rentals provided enough that I was confident I could survive without a job if that became necessary. This reduced my stress and, allowed me to work fewer hours, and let me express my own opinions rather than following the company line. Somehow, this made me more valuable and my career flourished. I still managed to retire at 62, and through the tax magic of a 1031 exchange, the rentals moved with me to our retirement location. So, essentially I brought a part time job with me where I am the boss and cannot be fired. This is much less onerous than working for someone else. Instead of having to worry about what company policy might be on any issue, I make company policy. It is a great retirement.
Post: Buying Freedom
Link to comment from June 1, 2024
When I bought a 20' round swimming pool for the grandkids I needed to set it on a bed of sand. Home Depot didn't have 20' circles of anything, but a little trigonometry and I was able to make an octagon of treated 2 x 6 lumber to keep the sand contained. Made it slightly larger than the pool on the first try. When I was framing an addition to our house openings for windows and doors needed to be perfectly rectangular. Remembering trig from high school convinced me that if opposite sides were equal and both diagonals were the same everything was square. No calculation required, just make them the same.
Post: It’s What We Do Next
Link to comment from March 13, 2024
I "retired" in 2007. After a mid-career layoff I spent 20 years at a large aerospace company. There was a lot of stress primarily based on the company needing to keep contracts coming in which meant that continued employment was always uncertain. The way I handled this was to start a money-making sideline, in my case, rental real estate. As this sideline increased my stress level decreased. I had ways to keep at least some income flowing even without a job. I kept the 401(k) contributions up but also put money into the real estate. While a lot of people said I "retired early" from my job, I had a different attitude -- I declared myself independently wealthy. Sure I had a pension and SS, but I also had a small business. Through 1031 exchanges I moved the real estate to a new, lower cost location and have been there for 17 years. Managing the real estate takes 10-20 hours per week, which is just about perfect for having both a sense of purpose and spare time for volunteer work. Not only does this avoid the lonely and adrift sensations, it also does a lot to keep our income up with inflation.
Post: Death by Retirement
Link to comment from February 17, 2024