Once I began the weblog I debated what would make for a great weblog identify. One of many names thought-about was “Excessive Early Retirement” however I discovered that that identify had already been “parked”. Early Retirement Excessive was free although and ERE additionally made for a greater acronym than EER.
On reflection, right here barely greater than 3 years after beginning the weblog, the R-part of that identify has turned out take have some annoying side-effects.
I discovered the crux of the matter to be that folks have totally different and preconceived notions about what retirement means. Retirement has historically meant the a part of life that adopted a life-time of labor. Retirement was for these employees who had been damaged down bodily and typically mentally and unable to work additional. The best way trade had been arrange meant that they might be changed by a youthful purposeful model very like a component in a machine.
As a extra strong monetary system alternative household dependence of getting kids, some individuals who managed to build up sufficient capital grew to become in a position to retire a couple of years sooner than regular. An individual might cease working even whereas being able to persevering with work. This was the primary paradigm shift.
Historically households had a single earnings which meant that there have been sufficient financial savings to assist the family.
Just lately, the concept of retirement has begun to alter.
First, as households grew to become poorer in actual phrases, single earnings households became twin earnings households. This now implies that one particular person can retire whereas the opposite retains working. That is the second paradigm shift. Right here one particular person might retire a number of and even a few years earlier than the opposite.
Some folks have additionally been in a position to push the age of retiring, that’s, the age of not working for cash far down. That is referred to as excessive early retirement. That is considerably totally different from utilizing up one’s cash till the pension rolls in. That is extra akin to a lifetime of money flows from investments that aren’t drawn down in worth.
That is what I’m speaking on on this weblog. That is the third paradigm shift. We have now come fairly far-off from the unique definition of retirement: from somebody who is just too worn out to work to somebody who has sufficient cash in order to not must work.
That is why early retirement excessive is a foul identify.
Possibly monetary independence excessive can be a greater identify?
Properly, right here the issue is that monetary independence additionally has come to have many alternative meanings. For me it means having sufficient financial savings to pay for (finance so to talk) all my wants over a lifetime. But, for some it merely means not having any debt; for others it means having sufficient earnings to just about buy no matter they need.
These definitions are even additional faraway from what I intend.
One other suggestion is “Independently Rich”. That is really fairly correct, besides many individuals confuse “rich” (having cash) with “wealthy” (spending cash).
Consequently, I’m caught with Early Retirement Excessive. Simply ensure you don’t get caught in your private interpretation of what that’s alleged to imply, okay? 
Copyright © 2007-2023 earlyretirementextreme.com
This feed is for private, non-commercial use solely.
Using this feed on different web sites breaches copyright. For those who see this discover wherever else than in your information reader, it makes the web page you’re viewing an infringement of the copyright. Some websites use random phrase substitution algorithms to obfuscate the origin. Discover the unique uncorrupted model of this put up on earlyretirementextreme.com. (Digital Fingerprint: 47d7050e5790442c7fa8cab55461e9ce)
Initially posted 2010-12-12 20:48:47.