Friday, October 16, 2009

How some Early Retirees are doing in this Recession

Retired by Fifty - Where are they now? by Liz Pulliam Weston is a follow-up story on five couples that had retired before 50 in the past couple years. Three couples had retired from corporate jobs, lived off investments and kept working part time. One couple sold their businesses and lived on the investment income and part time work. One couple had government jobs, with one retiring after 20 years with a pension and one quitting after 14 years, both to start their own businesses.

  • The three couples who retired from corporate jobs seemed to have best weathered the recession. They continue to live off their investments and get supplemental income from their part time jobs. So far none have had to undo early retirement. However, one person is considering that it may be necessary to return to a corporate job.

  • The couple, who sold three restaurants, has started a new restaurant because their investment income wasn't sufficient to cover their expenses. However, the new restaurant is only open 4 hours per night and is much less effort than the three full time restaurants they previously owned.

  • Finally, the couple with the government jobs appears to be doing well living on the wife's pension, the husband's part time consulting job, while the wife continues to explore retirement career options.
  • For all these couples, early retirement didn't go the way they had planned. However, while the financial crisis of 2008 has been challenging, it seems to me that these early retirees have stayed retired through having enough saved, living within their means, and having the ability to work part time for supplemental income.

    For more on Reaping the Rewards, check back every Friday Saturday Sunday for a new segment.

    This is not financial or retirement advice. Please consult a professional advisor.

    Copyright © 2009 Achievement Catalyst, LLC

    No comments: