{"id":1105164,"date":"2019-03-13T16:06:07","date_gmt":"2019-03-13T16:06:07","guid":{"rendered":"https:\/\/dailyreckoning.com\/?p=106927"},"modified":"2019-03-13T16:06:07","modified_gmt":"2019-03-13T16:06:07","slug":"your-5-retirement-options","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1105164","title":{"rendered":"Your 5 Retirement Options"},"content":{"rendered":"<p>This post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/your-5-retirement-options\/\">Your 5 Retirement Options<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n<p class=\"p1\"><span class=\"s1\">It turns out retirement is a relatively new concept. Consider these numbers from <i>The Evolution of Retirement<\/i> by Dora L. Costa:<\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li1\"><span class=\"s1\">In 1880, over 75% of men over 64 remained in the workforce.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">By 1900, that number had dropped to about 65%.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">By 1950, just 47% of men over 64 continued to work.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">By 1998, fewer than 20% of men over 64 were in the labor force.<\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">You see, retirement wasn&#8217;t always considered desirable. In the 1800s, \u201cmandatory retirement\u201d caused a lot of resentment among older workers and there was a backlash against it. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">People wanted to keep working. Work was proof of vitality and productivity. It gave men a sense of purpose and most families needed the money. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">However as big corporations grew, they pushed for a younger workforce. Rising wages, private pensions, and social security lead to a flip in the perception of retirement to something more desirable.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In the 1980s, the mandatory retirement policies adopted by law, both officially and unofficially, started to be deemed discriminatory and were abolished. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Today things are even more complex. There are several ways you can retire and each path has its own timeline. Here are the five types of retirement you\u2019ll find in our current economy.<\/span><\/p>\n<h2 class=\"p4\"><span class=\"s1\"><b>Traditional Retirement<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Tell me if this sounds familiar: Get a good job, work hard for forty or fifty years, and then retire around age sixty to enjoy the last decade or two of your life. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">During the 20th century, this was considered the standard model of work in the United States. Your retirement was funded through a combination of company pension, personal savings, and government aid. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But by the \u201870s and \u201880s, standards of living had risen enough that some people began to challenge this traditional model. They thought, \u2018Why am I waiting until the end to enjoy life?\u2019 There must be a better way.<\/span><\/p>\n<h2 class=\"p4\"><span class=\"s1\"><b>Early Retirement<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">This \u201cbetter way\u201d was early retirement. After running the numbers, employees figured out if you worked hard to increase your income while keeping costs low, you could save enough to stop working at age 50, or 45, even sometimes 40. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">What best determines whether or not you can retire early is your saving rate. Traditional retirement requires a saving rate of 10-20%. Early retirement requires you to save nearly half your income \u2014 or more. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The more you save and invest, the faster your money can reach what\u2019s called the crossover point \u2014 where your income from investments are enough to support your spending. Traditional and early retirement both lead to permanent retirement. But, if you enjoy working, you may want to consider these other three types of retirement. <\/span><\/p>\n<h2 class=\"p4\"><span class=\"s1\"><b>Temporary Retirement<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">One of the first books to explore alternative retirement options was Paul Terhorst\u2019s 1988 book, titled <i>Cashing in on the American Dream<\/i>. Terhorst was an advocate for early retirement, but he also saw another type of retirement, called temporary retirement.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Here\u2019s how he explains it:<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>We used to work and then retire. [I suggest] you work, then retire, then consider going back to work. Under this plan you devote your middle years to yourself and your family. During those years your mental and physical powers reach their height. You can explore, grow, and invest your time in what&#8217;s most important to you. You can enjoy your children while they&#8217;re still at home. Later, after you&#8217;ve lived the best years for yourself, you can go back to work if you want to. The choice will be up to you.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">If you were to follow Terhorst\u2019s plan, you\u2019d go to work for 10-15 years, then take time off to pursue passions and spend time with your family until your money runs out and you have to go back to work. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">A lot of early retirees have trouble finding affordable, quality health coverage. One key advantage to temporary retirement is when you return to the workforce later in life, you\u2019ll likely have access to better health insurance.<\/span><\/p>\n<h2 class=\"p4\"><span class=\"s1\"><b>Semi-Retirement<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Temporary retirement was popularized by Bob Clyatt in his 2005 book, <i>Work Less, Live More<\/i>. What is the difference between semi- and temporary retirement? <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Here\u2019s Clyatt: <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>Semi-retirement is about finding work-life balance. For some, that means continuing with their previous career, but in some sort of reduced capacity. For others, it could mean changing jobs completely to something that pays poorly but offers a sense of satisfaction. And for others, semi-retirement could simply mean supplementing investment income with a carefree job at the local coffee shop or fabric store.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The main advantage to semi-retirement is you get out of the rat race earlier. Even if you\u2019re still working, you have more choices about the kind of work you do. Most people choose jobs or side gigs that are less stressful and more fulfilling. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And because you\u2019ve saved enough that your financial needs aren\u2019t as great, you have the freedom to choose work that pays a bit less. <\/span><\/p>\n<h2 class=\"p4\"><span class=\"s1\"><b>Mini Retirements<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">The fifth type of retirement I want to cover is from Tim Ferriss\u2019 2007 book, <i>The 4-Hour Workweek<\/i>. Ferriss asks, \u201cWhy not take the usual 20-30-year retirement and redistribute it throughout life instead of saving it all for the end?\u201d <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">With this model, you work on and off as your savings permit. For instance, you might work for five years and then take two years off. You repeat this process over and over again. Hence why they\u2019re called \u201cmini retirements.\u201d <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The advantages of taking sabbaticals like this is you get to enjoy retirement and work at every age. The disadvantage is you never amass a lot of savings because you\u2019re constantly spending what you make every few years. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">This type of retirement is more geared toward the entrepreneur-type or anyone interested in following an unconventional career path. <\/span><\/p>\n<h2 class=\"p4\"><span class=\"s1\"><b>Which Type of Retirement Is Right for You?<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">As you can see, there\u2019s no one right way to retire. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">All of the above options offer some advantages and disadvantages. It\u2019s up to you to decide what type of retirement best suits your interests, values, health, and savings. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The good thing is you have lots of options.<\/span><\/p>\n<p>To a richer life,<\/p>\n<p><img decoding=\"async\" class=\"align-none\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/signature-nilus-mattive.png\" alt=\"Nilus Mattive\" \/><\/p>\n<p>\u2014 Nilus Mattive<br \/>\nEditor, <i>The Rich Life Roadmap<\/i><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/your-5-retirement-options\/\">Your 5 Retirement Options<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/your-5-retirement-options\/\">Your 5 Retirement Options<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n<p>All of these options offer some advantages and disadvantages. It&rsquo;s up to you to decide what type of retirement best suits your interests, values, health, and savings.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/your-5-retirement-options\/\">Your 5 Retirement Options<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1619,366,1974,489,1747,923,1975],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1105164"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1105164"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1105164\/revisions"}],"predecessor-version":[{"id":1105165,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1105164\/revisions\/1105165"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1105164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1105164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1105164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}