This will probably get me excommunicated from MMM forum, but here are my thoughts as to why, gulp, some entrepreneurs and small business owners should never retire or should retire not early but late:
Should Entrepreneurs or Small Business Owners Retire Late? Or Even Skip Retiring?
I hope this is OK. I saw this post by
@SeattleCPA and thought it deserved its own thread. I've thought a lot about this in my own entrepreneurial journey. I provide a mishmash of services (and a few products) which includes presentations/trainings and printed materials I have authored. At 49, I'm beginning to notice a few of the 'old timers' who have been in the field for 40 years and how they do it.
For example, an acquaintance has stepped down into retirement where he can give a half-day seminar where he gets paid a few thousand and has his travel and lodging covered. His wife happens to be retired from an airline and has enough miles to fly for life. They go visit a fun city a few days early, hit some sights and good restaurants, give a seminar, and head home. He stays visible in the field and he picks up expert witness gigs for really high rates. I suspect if he wanted to consult a bit, he could do that too. Seems like a really great way to step into retirement where he is covering most/all of his expenses, gets to see his buddies every month or two, remains an expert in the field, and stays in demand. He feels productive an engaged, but is not working more than 10-15 hours a week and retains a lot of control of his schedule.
My current plan is to build up a number of clients where I can remain the face of my business, eventually bring on a couple of contractors to do most of the repetitive work, write a book or two, and continue speaking and staying engaged. But if I'm able to create that, why would I want to retire early from it?
The other detail that
@SeattleCPA has mentioned in other posts is that an annual income of $100,000 is the equivalent of drawing 4% from a $2.5 million stash. Or $40,000/year is the equivalent of drawing from a $1 million dollar stash. That is compelling math if someone is a little late to saving for retirement (or perhaps there was a hiccup (medical problem, divorce, etc.) in your savings plan. As he mentions in the article, this type of plan works best if you enjoy who you're working with and the work itself. I can understand why my FIL wanted to retire as soon as possible. He worked with morons and dug trenches (often by hand). But when the work is stimulating, you find the people fun and interesting, and you have control over the optimum amount of time/effort, then why not?
