After we’ve explored both the paths to both early retirement and traditional retirement, you might be wondering why we need to pick one or the other. Isn’t there another way we can structure our lives so that we can enjoy them more both now and later? I’m glad I’m not the only one who is thinking beyond the obvious options.
Instead of picking one retirement method or the other, why not combine the two and find a way to make it work? Honestly, most people never entertain the thought because it doesn’t fit in well with their current careers. Just a few tweaks to traditional and early retirement can make things much more interesting if you can make it work for you.
Mini Retirements – The Early/Traditional Retirement Combo
Rather than retiring early or waiting until you’re 67 to retire, why don’t we work in spurts and take time off in between to do what we wish? Work for a few years then take a year or two off to accomplish a lifelong dream, then head back to work for a few more years and then repeat the process again. It definitely doesn’t sound like a traditional employment option, but with some work you can make it happen.
This type of life plan works best in a career field that isn’t rapidly evolving. If you work in a fast paced tech job, it probably wouldn’t work for you. However, if you work in a relatively stable field, you could easily employ this methodology to “retirement”.
Another great way to take advantage of this method of retirements is to become a contractor that takes jobs on assignment. You won’t get benefits, but you can take jobs in short spurts and it should be easy to find new jobs based on the fact that you’d be a temporary employee. These jobs generally pay pretty well, too if you’re in the right field.
Each time you head back to work, you’ll need to make sure you’re staying on track for two different retirement goals. The first is your permanent long term retirement for when you turn 67 or whichever age you’ve decided you want to retire at. You must always make sure you’re on track for this retirement goal first and foremost. Why? The younger you are the more time you can allow your money to work for you. If you get off track today with this goal, it will take even more money to get back on track in the future which can cause big problems down the road.
The second retirement goal you need to keep track of is your mini-retirement goal. Once you figure out how long you want your mini-retirement to be, you need to save up enough money to live off of for that period of time. You’ll probably want a little bit of extra buffer room as well in case you can’t land a job on your way back from your mini retirement as quickly as you had hoped.
Once you have these two financial goals in good shape, you’re ready to take your first short mini retirement. Enjoy your time off and figure out what you want to do for your next working stint. With a lot of planning and a some hard work between mini-retirements, it is definitely possible to make this method work for you!
Do you think mini-retirements is an option for you? Would you ever consider such a non-traditional version of retirements?
Photo by: Nicolas Bffd Text added by: Lance Cothern