The Reality of Early Retirement
Dave spent about 10 years working for Google in various offices in Atlanta, Mountain View, and Bengaluru. She also worked for a startup. Feeling financially secure, she believed that the 8-hour office job was no longer for her.
In an interview with Business Insider, Dave revealed that she quit her job on Friday and immediately regretted it on Monday. “By Monday evening, all I knew was how to cry. I cried my eyes out realizing that I needed to be around people,” she said.
The Disappointing Coworking Space
Dave had planned her retirement life. She wanted to write her third book, hang out with former colleagues, and network with founders and artists in coworking spaces. However, reality turned out to be different. She quickly realized that she couldn’t maintain relationships with her former colleagues, and coworking spaces were not as inspiring as she had imagined.
On her first day of retirement, Dave felt lonely. In the following weeks, she desperately searched for inspiring coworking spaces but failed.
Financial Independence and Savings
When retiring at the age of 40, Dave became part of the FIRE (Financial Independence, Retire Early) community. For her, the decision to retire early was driven by financial considerations.
Having worked in the US for over 10 years allowed her to accumulate significant savings, especially when living in India with lower living expenses. During her working years, Dave earned around $100,000 per year.
Before retiring, Dave worked with a financial advisor to ensure her savings would be enough to cover her daily expenses. Revenue from her previous books and consulting services would help pay the bills. She added, “Everything is much more feasible in India.”
Challenges of Early Retirement
Some individuals in the FIRE community have chosen to return to work for various reasons.
Financial planner Jovan Johnson states, “Early retirement is not for everyone.” Those who wish to pursue this lifestyle need to have a clear understanding of what they will do once retired.
Gwendolyn Merz’s story from northern Illinois serves as an example. Merz retired at the age of 28 but had to return to work due to financial issues. She couldn’t access the savings tied to her retirement accounts, couldn’t earn enough money from side jobs, and had to pay higher healthcare insurance premiums.
As for Dave, her early retirement lasted only four months. Shortly after, she returned to work on special projects at an electric vehicle infrastructure company in Bengaluru. However, her goal this time was not to get rich but to meet people.
This article is referenced from Business Insider.
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