After I began the weblog I debated what would make for a great weblog title. One of many names thought-about was “Excessive Early Retirement” however I discovered that that title 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 title has turned out take have some annoying side-effects.
I discovered the crux of the matter to be that individuals 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 staff who have been damaged down bodily and generally mentally and unable to work additional. The way in which trade had been arrange meant that they might be changed by a youthful useful model very similar to 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 turned capable of 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 revenue which meant that there have been sufficient financial savings to help the family.
Lately, the thought of retirement has begun to alter.
First, as households turned poorer in actual phrases, single revenue households became twin revenue households. This now signifies that one individual can retire whereas the opposite retains working. That is the second paradigm shift. Right here one individual might retire a number of and even a few years earlier than the opposite.
Some individuals have additionally been capable of push the age of retiring, that’s, the age of now 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 now have come fairly far-off from the unique definition of retirement: from somebody who is simply too worn out to work to somebody who has sufficient cash in order to not have to work.
That is why early retirement excessive is a nasty title.
Perhaps monetary independence excessive could be a greater title?
Nicely, right here the issue is that monetary independence additionally has come to have many various 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 revenue 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 truly fairly correct, besides many individuals confuse “rich” (having cash) with “wealthy” (spending cash).
Consequently, I’m caught with Early Retirement Excessive. Simply be sure to don’t get caught in your private interpretation of what that’s purported to imply, okay? 
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Initially posted 2010-12-12 20:48:47.