Monday, 2 February 2015

The final month


It’s hard not to be quietly happy as I embark on my final month of a 17 year career. Adding to this inner glow is the fact it’s a short month being February, and even further multiplying the joy is the presence of two holidays. Since today is nearly done as I write this, that makes it only 17 working days left…. Sweet !

So how did it come to this, 17 years boiled down to the next 17 days ? I don’t really know myself and will take further time post FIRE to digest and understand it all. Anyway the point of this post is not to gloat, but to reflect a little on where my head is at right now… There are plenty of things to do since in our case, FIRE also involves an international relocation with two young kids. We are lucky to have family helping on the destination side and we already bought some bits and pieces (fridge, washing machine, car) so we can hit the ground running there. We are fortunate to have an empty house ready and waiting for us too! On the departure side it will be somewhat more chaotic, the main thing yet to be booked is the moving company, which is the key job for this week. There’s a long list of other admin tasks (closing bank accounts, credit cards, change of address, etc), but still plenty of time for these.

From a career perspective, I’m keen to end it well. It’s been a happy and successful path over the years so why not end on a good note too... How to do this ? I’m trying to close out loose ends, let go for all other issues to be handed over (doesn’t come naturally for me) and giving a good exit story so that people can understand my decision. This last part is one of the more difficult things. I’ve been reading the MMM forums about how to explain FIRE, whether to tell or not, etc. In our case, I really don’t see the need to go into FIRE voluntarily, but if someone asks me directly I also wouldn’t lie about it. Making things a little easier is the merging of FIRE with geographical relocation, so it’s easier to steer the conversation to the latter. The crux of our decision to move home is down to personal reasons - the desire to live near our extended family, and raise our kids as Australians. This is an easy story for most people to grasp, and it’s also the honest truth. Therefore I tend to leave it at that and not bother about the FIRE part. Sometimes people probe into it, e.g. what will you do there ? can you continue to work in the same field ? etc. I usually answer these honestly and move the conversation into other areas. Am I being evasive or trying to hide my wealth ? Maybe, I don’t know really. But in my experience talking about money matters / relative wealth with the majority of family and friends usually ends badly. I do worry it might leave the other person feeling jealous, that we are “different “ or somehow out of touch with real people. I don’t want to drive a wedge between us and others who might not have much prospect of FIRE, or even any concept that such a thing can be achieved without a winning lottery ticket.

Anyway, in the interest of keeping this briefer than recent posts, it’s a very exciting time and I’m really looking forward to the coming months. I thought I’d be quite stressed by now about the move but it’s not the case and seems to be offset by the eager anticipation of FIRE and finally heading “home”. The end of “work” is not such a big issue. As explained in the Evolving Perspectives of FF post, for some years now I have been coming to the idea that I will continue to work after RE and phase my exit from the conventional career. It’s nice to be able to think about all the different possibilities, projects, hobbies etc on the horizon. And often I have to catch myself and remember to take it slow for the first 6 to 12 months. I got some good advice in the MMM forum along these lines, and to be open to things that come my way rather than trying to initiate/plan everything. I will try my best to follow this.

4 comments:

  1. I just came across your blog after seeing your post on MMM.

    I am also a long time Australian expat. I probably reached FF quite a few years ago but have never been able work out what to do with myself if not working.

    I have children and in one sense, that prevents me from ceasing work (although I could easily afford to do so).

    I was interested in your financial analysis of the issues but would be interested to read a bit more about the non financial aspects as that is certainly what holding me back.

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    Replies
    1. Hi there, yes I agree you need to be fully ready, both financially and more importantly even perhaps, mentally and emotionally. We already did one round of the "1 More Year", but this time we are pulling the trigger. I'm glad we took the extra year actually, I feel better prepared now and excited to take the leap.

      I'm interested to know how children prevent you from ceasing work. In our case that is actually the key forcing factor, to really catch this opportunity to spend time with them before they hit school years. And secondly, we want them to grow up us Austalians.

      I'd also be interested to hear what other non financial aspects are holding you back?

      Thanks for reading and commenting, and hope to see you around here some more :)

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    2. For me, the 1 more year point has never been reached. In 2007 I was already FI and I decided I was about ready to take a break, then 2008 came and I decided 3 more years. Then at the end of 2011 it was 2 more years. Now at the start of 2015 it is again 3 more years. So the 3 more years in 2008 has now become 9 more years.

      We also wanted our children to have an Australian education so we sent them to an international school with an "Australian" curriculum. It did not really work so for high school, the option was sending them to boarding school in Australia.

      I am not sure how much you are planning on living on in Australia, but after living the expat life, you may find the $70,000 income in Australia does not go far (particularly after tax).

      My estimate is that we need an income of $150,000 per annum for a family of 4 (and that assumes we own our home). You will say that is not "frugal" but after 25 years as an expat with a relatively high income, the "frugal" life is not for me (don't get me wrong, I don't waste money on designer clothes or expensive cars).

      So what holds me back? It is not financial. It is the fear of doing nothing and being no one in Australia.

      I have had other friends in similar positions to me who "retired" at age 50 with buckets full of money, only to return overseas to work within 12 months to escape the boredom.

      Part of me is sick of the long hours of work and would like to retire, but another part is truly scared of the unknown of retirement.

      They say money can't buy happiness - and they are probably correct.

      Scary stuff.

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    3. Thanks for the further reply. Yes expat life can be addictive. We headed off on a 3 year assignment and fully expected to return to Oz at it's completion.... 12 years later.... The first assignment stretched to 4.5 years. Then we decided we weren't ready to head home and managed to get another expat posting as a 2-3 year stepping stone (which has stretched to 7+ years)...

      One thing we managed to do is avoid lifestyle creep (much). I wouldn't say we're frugal, maybe we were at the start but have relaxed a lot over time. We never really budgeted or tracked expenses so this world of FIRE bloggers recording to the last penny has been an eye opener for me.

      But as for the non financial aspects, yes they are huge and something I have been wrestling with too. One of the earlier posts "Evolving perspectives of FF" touches on this. I'm starting to write some thoughts on the specific topic of early retirement now, so stay tuned I will aim to post it next week.

      Another excellent blog I found which is very pleasant reading, and touches a lot on the psychological aspects is livingafi.com - this guy is also about to retire early in the next month or two (maybe that's another reason I like it, we seem to have a lot in common). Suggest you check it out, especially his post titled "fear of freedom"

      Wish you all the best !

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