What Is A Mini Retirement And Is It Right For You?
Mini-Retirement? What's that? The term was coined by Tim Ferriss in his well-loved book The 4-Hour Work Week- a mini-retirement is a planned career break, wherein you leave your current job while planning to re-enter the workforce later. So it's basically just something many professions already had: A sabbatical or hiatus. The only difference here is that it would require a clean break from your current employer and coming back at some future date to a new career or position altogether.
Taking a mini-retirement (or three) is a time to step away from your typical routine and create a blank slate. It may allow you to pursue your most coveted life experiences while you're still young enough to enjoy them- travelling the world, backpacking across Europe, watching the kids grow full time, or living on a beach somewhere...
It may also serve as a way to make a career path change- giving you the time as well as clearing your head enough to start that business you always wanted to try or make the jump into a new industry.
Planning is the key!
Most mini-retirements involve travel — not a holiday, but a relocation from a few months to a year before heading back to home base. But really, a mini-retirement can be whatever you need it to be.
So the first and most obvious step is to save up enough money. Have a goal with certain savings goalposts and spending projections.
The second, is that you can't forget that at some point you will have to come back. That can mean moving expenses to get back to your hometown, new living quarters- and most importantly, the delay to get back into meaningful employment receiving a steady paycheck again.
Lastly, don't forget you will at some point go from mini-retirements to full time retirement. So you have to continue to save for your full time (let's say the 65+ years old) retirement.
What Can I Do On My Mini Retirement?
Remember, you can do what you want on your mini retirement, but take it from experts, watching sunsets from a hammock every day will become just as tedious at the 7:14am train to Penn Station.
Its important to set goals. Here are some examples of what others have done:
One family of five spent six years paying off debt, living frugally, and saving $30,000 to live in Nicaragua for a year. They did everything from renting a house in Nicaragua, buying a car, and sending the kids to school to traveling around the country, visiting lakes, volcanoes, beaches, and historical sites.
One single 20-something traveled to 15 countries, learned Spanish in Spain, learned to sail in the Mediterranean, and started a blog about the whole experience.
A 28 year old executive adhered to a frugal budget for 3 years saving almost 40% of her after tax income to travel Asia and Australia/ New Zealand.
One family of four sold their house during an out of state move and purchased a much cheaper home (cost of living change- think New York to Kansas move). They used that equity to take a year off and travel the world and start their own business.
The Result!
One of the myths about mini-retirements is that it shuts doors and leaves awkward employment gaps. In fact, according to a study from the Society for Human Resource Management, more companies are offering sabbaticals and extended time away from work than ever before. The study also found that employees who take time away from work for a more extended period come back feeling mentally refreshed, psychologically energized, and more productive and happier overall.
Employers are becoming more tolerant to breaks in resumes especially if you can demonstrate that the time was used in a meaningful way. Keeping a blog is a good way of charting your experience. One of the examples above stated that ironically, the first person who offered him a job when he came out of mini-retirement was his old boss (who had derided him for his decision). He declined the offer because he already had other plans.
Many people realize that waiting until you’re in your mid-60s to start a life of peace and relaxation isn’t always what it’s cracked up to be. We don’t know where we’ll be financially or physically at that time (whether on this Earth or not!).
So its best not to wait until tomorrow, what with a little planning and courage, you can do today- for tomorrow is not assured!
----------------