This week, I did a guest blog on Roger Wohlner’s blog, The Chicago Financial Planner, which you can find here. As I note there, Roger [pictured on the left] is the kind of fee-only financial planner I recommend in Findependence Day. By the way, Roger is a must-follow on Twitter as @rwohlner
As you can note in the comments section which follow that post, people are becoming more aware of this paradigm shift and the distinction the book makes between traditional “Retirement” and Financial Independence (or “Findependence”).
As one commented, by viewing the goal as Findependence rather than full-stop retirement, he was able to move his “retirement” date up by 15 years.
Related to this concept is a blog I did here a few months ago about Early Findependence being a more achievable goal than Early Retirement. I note in this weekend’s Financial Post, a package of stories about extreme saving (I’d call that ‘guerrilla frugality”) by Melissa Leong, including a profile of a couple who supposedly “retired” at 35.
We’ve seen these stories before of course: Derek Foster and Dianne Nahirny both wrote books describing how they retired in their 30s. But of course, they were really describing Findependence since if nothing else they were still “working” by writing books how about how they stopped working!
While most of this blog emphasizes wealth creation, it should never be forgotten that every once in a while, once you’ve earned, saved and grown your money, there come times when some of it can actually be spent.
Yes, a luxurious vacation! Our family is currently in the second week of just such a vacation, in a Scandinavian adventure encompassing Sweden, Norway and now Denmark. Here’s a sample photograph of myself kayaking in a Norwegian fjord with daughter Helen. The rainbow says it all (it’s barely visible here smack in the centre of the photo where the slope of the mountain hits the water!)
Before this episode near Bergen, Norway, we had just completed an 11 kilometre bicycle ride through equally wonderful scenery: numerous waterfalls tumbling from tall cliffs, many trees and lakes almost reminiscent of Ontario’s Muskokas, and even porpoises and otters in the fjords. After this kayaking trip, we donned wetgear and went deeper into the fjord in a speedboat, which you can view with a photo I posted today on Twitter. (See my Twitter feed @jonchevreau).
Memories like these transcend financial considerations, especially when they are shared with family. But of course, experiences like this do require generous dollops of cash flow. It’s good to remind oneself during long stretches of earning, saving and investing that at some point there’s light at the end of the Findependence tunnel!
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My latest Financial Independence blog at moneysense.ca looks at BMO Retirement Institute’s study showing there is a big discrepancy between the retirement aspirations of young Canadians and their savings habits to date. Click here for my take on it.
On Friday, veteran CBS broadcaster Andy Rooney passed away at the age of 92, just a month after retiring. This news came too late for a package of stories in the FP this weekend about retirement but it could easily be added as an example. As I wrote here, if you have passion about your work, age is almost irrelevant, assuming you still have your marbles physically and mentally.
When I flagged this story on social media, one family member seemed to be relieved by this theme, since her own finances are in such a state that she doesn’t expect to retire any time soon. But even if you take the case of Andy Rooney to heart, that doesn’t mean you should see this as a license to stop saving and investing for the future.
For one, there may indeed come a time when you do lose your marbles — physically or mentally or both. The years when that occurs will be costly and you won’t be generating new income.
Second, even if you’re ready, willing and able to work (As the EI forms ask), you may not always be able to find a willing employer.
So even if you don’t think you’ll ever retire, you still need to shoot for a degree of Financial Independence. The book to which this web site is devoted makes continued reference to the distinction between Retirement and Financial Independence, or what I call Findependence.
In short, plan to work as long as you’re passionate about your calling, even into your 90s. But that doesn’t mean you can take a pass on saving for the future. It’s still prudent to cut debts and maximize pensions, RRSPs/IRAs, TFSAs/Roth plans and even keep adding to your taxable accounts.
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