At the Canadian Personal Finance Conference I attended last year, there was a great deal of money talk, presentations and discussions about retirement, early-retirement, and what you’re really working towards. Many of the discussions circled back to not retiring in the traditional sense but instead finding more purpose in your work and ideally working on your own terms. Retirement sounds great but what does that really mean?
If you’ve done any thinking on this subject yourself, or in fact, you’re already retired you probably know the rules of retirement have changed. There’s longevity risk – people are living longer and need to finance more years of retirement expenses. You have market risk – gone are the days of healthy interest and savings rates. Last but maybe most importantly there are psychological and leisure risks – going from 100% work mode to 100% leisure mode may not be sustainable nor desirable.
In Victory Lap Retirement authors Jonathan Chevreau and Mike Drak share their wisdom by looking into their financial future to see how they will retire and what they will do when they get there. They believe if you enjoy what you do, and you can continue to work, then plan now so your financial needs are covered sooner than later. You will find joy in doing so since when it comes to work you’ll work because you want to not because you have to.
Chevreau and Drak believe the traditional retirement definition needs to be replaced by what Chevreau coins “Findependence” (short for Financial Independence); the point where your basic living expenses are covered by your passive income. This crossover point provides you with an opportunity for a Victory Lap Lifestyle, one that does not include permanent retirement from all work but options to work and play on your own terms, staying engaged in life when and where you please.
Thanks to Jonathan Chevreau and Mike Drak, I got a copy of Victory Lap Retirement to giveaway to one lucky reader. Before you enter the giveaway below check out what I liked about this book from some selected chapters.
Chapter 1 – As part of rethinking retirement, I agree Victory Lap living sounds very appealing to me/us. This is because money and the security it brings are no longer the main motivators for working. The debt is gone. The passive income is healthy. Financial independence therefore provides more (and better) options such as working part-time, working seasonally, or volunteering our time and skills.
Chapter 3 – Chevreau and Drak equate “Findependence” to the following:
Passive Income > Non-Discretionary Expenses = Freedom
Sources of after-tax passive (non-work) income for you may include some of the following:
- Income from investments
- Company or government pensions
- Rental income
- Royalties from properties, books, music, apps.
We’re optimistic our income from investments will cover most of our basic expenses.
Chapter 4 – Good financial advice rarely changes, and Victory Lap Retirement recaps the financial mantras of living below your means and many more nicely. One eternal truth I did disagree with is about buying a home (and paying it off as soon as possible). Buying a home in the first place may or may not make sense depending upon your lifestyle. Paying your mortgage off as soon as possible may forgo opportunity costs to invest in the stock market – time in the market is your friend after all. The premise of their message is good – for most of us we should avoid servicing mortgage debt for many decades on end.
Chapter 8 – Time is our most valuable resource and Victory Lap Retirement suggests we use it wisely. The hour allotted to the rich is no longer than the hour experienced by the poor. Eventually, for all of us, our physical abilities and mental faculties will diminish. Chevreau and Drak encourage you to make the most out of your life energy and provide some tips how to do so.
Key Takeaways and Giveaway
At some point in our lives, we’ll all need to pause and reflect on what we’re working towards or what’s next. Is that staying in our current job? Taking on a new job? Downsizing? Decumulation? More travel? More volunteer work? All the above? Only you know the answers.
Jonathan Chevreau and Mike Drak in Victory Lap Retirement make a strong case for “Findependence” sooner than later so you can optimize your time and life energy. All of that sounds pretty good to me.
Enter to win my copy of Victory Lap Retirement provided to me by the authors. I’ll keep the giveaway open for a few weeks on my site and I’ll draw one name at random as the winner. Good luck!
What are your thoughts about a Victory Lap? Are you thinking about this? Are you already doing this?