Feeling Financially Trapped
Are we there yet? You know, this early retirement thing?
Those are questions I’m asking of late…
That could be because we’re inching closer every month to realizing one of our huge, rather, monstrous personal finance goals. On the other hand, maybe that’s because I’ve finally recognized that early retirement isn’t the be-all and end-all.
Let me explain…
This would be great:
Financial Freedom Updates
A couple of years ago, I got inspired to share more details about our financial goals here. They were admittedly very lofty goals at the time.
Fast forward from that initial post, I provided an update on our journey in July 2018 here.
I still continue to dream about some of these goals for 2023…but I’m starting to wonder if I really need to realize them on that date or if at all. First up, a recap of the goals.
Projected assets by the end of 2023 ~ age 50:
- Principle residence = $600,000 (very conservative value). I’ve assumed our
house value(condo value) will be worth this amount in the coming years. I mean, it’s hard to predict real estate or anything else. Regardless, we are not counting on our house for a retirement plan. If the condo appreciates substantially in value over time – great. If not, we will enjoy it anyhow as a place to live. We have to live somewhere. I’m optimistic we can be mortgage free in another 5 years. Debt is our biggest anchor now.
- Defined benefit pension (mine) = $450,000 (estimated commuted value). I haven’t changed this value since early summer 2018. You might already know that calculating commuted defined benefit pension values is not straightforward but for the sake of this post I’ll say my 17-year pension today should be worth quite a bit more in 2023. *I hope to work at my current place of employment for another 5 years.
- Defined contribution pension (wife) = $400,000 (max value). I didn’t bother changing this value either since early summer 2018. *Assuming my wife will continue to work full-time for another 5 years; contributing to her DC pension, we might be lucky, it could be close to this value. We’ll see if markets are kind to her pension. She cannot touch this money until age 55 (if put into a LIRA).
- Personal investments = $1,000,000 (big hairy audacious goal). I’ve already highlighted this above. To date, realizing 60%+ of this goal has been a huge achievement over the last 20 years with saving and investing – but there is more work to do.
*Financial Freedom Reflections
The asterisk is there because I’ve been thinking, rather deeply, about what really matters in my life, our lives, and what all the rushing around is really for.
What if I took a slower road, career wise?
What if we didn’t max out our RRSPs anymore? Maybe we’ll just focus on investing in our TFSAs instead? Heck, maybe we’ll just focus on debt and a more minimalist lifestyle?
While I’m looking forward to our upcoming condo move, that comes with new stressors as well and I’ve often wondered: will it be worth it?
What if I simply focused on growing my blog business or got more engaged in other passions that could be enjoyable part-time jobs like something in the golf or travel industry?
What if I took a leave of absence from work? Won’t I just get replaced to get work done anyhow? Does it really matter in the big picture?
With a mortgage still to pay for at least 5 years, a move to prepare for, and a job that is often challenging for various reasons I’m feeling financially trapped of late. One foot in one direction; one foot in another. It would be nice to get out from any financial vice.
Thoughts? Words of wisdom? Other? Do you ever get stuck in a rut? If only a temporary feeling?