Transition into Semi-Retirement
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So what does being back home look like right now? (Scroll to the bottom to skip the post and head to the Q&A’s) Like riding bikes and rollerblades to school, morning tea in the sun with Bren, coffee dates with my brother, walks with my dad, dinners with grandparents and cousins, stretching often, meditations and journaling, long showers, cooking lots of home cooked meals, growing herbs and harvesting, dancing often, backyard projects, dates with the kids, family cuddles on the couch, time with friends and giving of our time and funds. We are semi-retired and intentionality has slowed down the flow of life dramatically.
In high school, I was the kid who subscribed to Money magazine. I loved to see how numbers worked: data, analytics, spreadsheets, investing. I was curious from a young age on how money could be a tool. In my home, love came first; it wasn't something I had to learn because it just was. My foundation was strong and I knew love was a priority in my future home. I began to plan from an early age how to use money as a tool while living a life of love. To have enough money to allow flexibility in my life, without the need for more and more money. I naturally saved, and invested; it is a skill of mine. It was a good goal and maybe time for that goal to evolve. We have saved and invested for many years and are currently receiving those benefits. I am ready to give other gifts to this world and to receive. More clarity to be discovered.
I still recall reading a magazine article about retirees that really stuck with me. The question posed in the article was:
"What do you regret most in your career?"
I expected the answers to be: Not trying harder, Being afraid to put my self out there... But the answers surprised me: Working too much, not spending more time with family, Staying in a job I didn't like. I think the article stuck with me because it was a reminder of the priorities in life. Living in Orange County, CA and being the daughter of an immigrant there was a mindset of earning good money to continue bettering life. Yet here I was, a 16 year old, sitting in a comfortable bed, with healthy food and a house full of love.
The American Dream. Both Brendan and I are the proud descendants of family who in recent generations immigrated to the U.S. in search of a better life. Their journey was anything but easy—marked by relentless hard work, enduring poor conditions, and facing the challenge of unfair wages. Yet, despite it all, they persevered, with the hope of creating something greater for the generations to come.
As their grandchildren, witnessing the fruits of their labor is profoundly humbling and inspiring. Their sacrifices laid the foundation for opportunities we now have. Working in the fields, and having multiple jobs. Risking so much; probably more than they originally had imagined, leaving their families, feeling lonely.
My dad and I were talking last summer as we were on the last leg of our year travels with the family and he described his coming to America as "being a scared rat... and being kicked." That was my dad talking, one of the best and coolest humans I know to exist; my heart broke that someone I loved could feel that way. But as a term my mother in law introduced me to would say, life is "brutiful". Both brutal and beautiful. Later in the conversation I asked my dad if it was all worth it. He went on to explain the events leading up to leaving Mexico: he dropped out of high school, my grandpa tried teaching him responsibility by helping him open up a mini market; my dad had something else in mind. He wanted to go to the US where there was more opportunity. He worked hard. He went on to say he was able to make good money and send his kids to private school. He was proud of the opportunities he gave us and said "Look at you and what you've been able to do." Brendan and I in our 30's transitioned into Semi-Retirement and were traveling the world with our kids for a year. My work ethic, entrepreneurship and how I see the world directly relates to being the child of an immigrant. He went on to say "it was 100% worth it."
Brendan and I not only feel privileged to be where we are, but grateful to our parents and ancestors who took a risk. We know the position we are in isn't the norm and with that, I feel great responsibility and a yearning to continue evolving. Which brings me to the reality many friends and family face as they are trying to grow roots and it no longer feels attainable; the American Dream that is. And is this generation seeking different things? Is our economy allowing for the better life we seek in the American Dream? I may sound a bit pessimistic here, but hear me out. In polls, when asked what was considered the American Dream, a top contender continues to be homeownership. Apart from homeownership, we see Job Security, Education and enough money to retire; all of these lead to opportunity and upward mobility. But what does the reality of homeownership look like today?
Working long and odd hours as kids continue to grow. Enough money is saved to put as a down payment on a house or condo. Now there is a mortgage that is likely quite high given the cost of Real Estate. Chances are the 1+million dollar fixer upper you just bought is in need of a lot of repairs and updates. Now the goal of buying a house has passed and now you keep working long and odd hours to re-model the house while keeping up with kids activities and necessities. And then the house becomes too small and you either move or add to the house. At this point you might find yourself spending much more on your lifestyle because you can afford it. Or can you? And then you keep working those long hours for your lifestyle. Is this the American Dream?
With every generation, I like to think we continue to evolve. Intentional choices; in wellness, in parenthood, in careers, in connection. I began to wonder how and if the American Dream had shifted in defintion. Bren and I were willing to earn less because of what we would receive in return. Family time, health, balance, more time to do the things that brought joy with the people we love. We knew less money also meant less things and yet not only did we make the decision to earn less but we are truly happy, even when we can’t spend like we used to. I wondered if others were also seeking similar things?
It turns out “2 in 5 Americans voluntary made changes in the past five years that resulted in making less money” 86% of those people are happy about the change. (newdream.org)
Another survey found that over “50% Respondents would take a 20% pay cut for a better quality of life.” And even stronger among younger generations: “56% of Gen Z and 60% of millennials would trade pay for an enhanced quality of life.” (Worldatwork)
“35% of Americans would accept a paycut to shorten their commute.” (Zebra Insurance) “82% valued schedule flexibility and 83% believed employers should support psychological health.” (Marketwatch).
What aspects are being associated with a "higher quality of life?" (Ford Motor Co)
- Family and friend time
- Work-Life Balance
- Mental and Physical Health
- Time for Leisure & Personal Growth
- Living Environment
- Alignment with Personal Values
- Commute Times
- Flexibility
- Financial Stability
"Fathers have quadrupled their time spent in active caregiving roles." (Littlebird).
"In 1950, 90% of married women were homemakers, with the husband serving as the sole breadwinner. In 2022, 60% of married couples were in dual-income households."
We, the people are shifting the American Dream; The American Dream I think still encompasses upward mobility, but how we measure that upward mobility, is changing. People are prioritizing work-life balance, health and overall a higher quality of life over higher salaries. That is inspiring and yet it may still leave a large amount of people uneasy with our housing prices. As a Real Estate Broker who enjoys numbers, I will say this:
Keep saving and don't spend what you don't have. Be intentional with the way you live and what you want to do - you may realize you spend less when you're intentional. Invest those savings. Numbers can feel overwhelming; don't be discouraged when you realize the house you can afford is not what you had in mind. (It's possible it won't be your only home.). I continue to believe that Real Estate remains a great way to build wealth and receive tax advantages, among many other benefits. And bonus: few investments offer the unique combo of equity growth while creating beautiful memories.
Q&A’s So what does this Semi-Retirement we're transitioning into mean?
What is Semi Retirement? To better understand, we'll take you down our thought process. I don't think our initial thought when Brendan retired from the fire department was Semi-Retirement. After the year of pause and growth, we were yearning more intentionality and evolvement. Life felt simple and we moved toward the idea of Semi-Retirement. We also discussed the option of fully retiring. This would mean selling our Real Estate and Crytpo, exlcuding our primary home. I am 39 and Brendan is 40 and while that option would be a nice early Retirement, we weren't all in on the idea. I later posed the question as to how our lives would change if we were fully retired vs Semi-Retired. Not a whole lot. So, in essence, we're retired and Semi-Retirement for us means that we are willing to take on Part Time work if it aligns with our goals.
Currently, that means working about 15 hours a week. Our properties are under property management so for me that means putting systems into place that allow me to better analyze the performance of our portfolio. And for Brendan it means managing a backyard remodel and having a maintenance plan in place for our properties.
How are we able to Afford Semi-Retirement? Short answer would be: we saved often and invested early on. Income through our Real Estate Investments and a peace of mind through our Retirement Accounts for the future. And hopeful for the future of our crypto investments but not counting on it.
What are our streams of income? Rental income from our properties. A big support has been our unit above the garage and bringing The Gypsy Wagon (our tiny house) home. Both have their own entrances and are standalone units that we rent on a month to month basis. With intention in mind, I am doing more consulting and referrals in the Real Estate space.
How did we retire young? We transitioned into semi retirement at 38 & 39 years of age and we know that much of that comes from opportunity: we were born into loving families, our parents worked hard to give us a College Education and we had great mentors whom we learned many things from. Apart from that foundation, if I were to boil it down to 5 things that allowed us to retire early, they would be
- Goal Setting Often
- Saving and Investing Early on
- Tracking Income & Expenses & not spending more than we made.
- Eliminating Debt
- Having an open & Creative Mind
Did we always plan to retire early? No, in my early 20's, I was strategizing for retiring at 65. In my mid 30's I started to see the unhealthy parts of Firefighting and began planning to retire at 45. Life had a different plan and we ended up in semi-retirement at 38 & 39.
Do we miss the income? Sometimes, but not enough to want it over what we have. Our hearts are so full and my hope is that when we hit moments of missing the income, that we can hone in on the feeling and growth and be reminded that life is so damn good.
Are we really done working? For the most part, yes. However that doesn't mean we won't take on work. If an opportunity arises that aligns with our goals, we will intentionally move forward. Currently that might look like an investment or a fire related gig, but we're not putting boundaries on what that could be. In the past 20 months, our opportunity was traveling and our backyard Design & Landscape.
Do we feel like we missed out in pursuing more in our career?
Linda: I did in the beginning. Thinking of all the things I could have done and what that might have looked like. But now, no. I feel like I'm seeing life through a different lens of aww and wonder and I don’t doubt opportunities will present themselves when the time is right.
Brendan: I do feel like I'm missing out on experiences and relationships but also feeling a sense of satisfaction and enjoyment knowing that the impact of those experiences were costing so much. Open and excited to a new season of life. There will be ups and downs and knowing that those ups and downs are on a path we want to pursue and live feels good.
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